Feb 19, 2017 09:11 PM EST
Tech company Lenovo posted a drop in its third quarter profits as it faced "sizeable" challenges in its business lines of data centers, mobile devices and personal computers.
The Lenovo Group reported a six-percent decrease year-over-year on its quarterly revenue to $12.2 billion. Its third quarter pre-tax income was $101 million, which was a 68-percent drop year-over-year. The company's net income plummeted 67 percent year-over-year to $98 million.
Lenovo attributed the loss to the "sizeable challenges" the company faced in its three main lines of business: the data center, mobile devices and personal computers and smart devices that, according to analysts' reports, have continued to experience either slow growth or no growth at all during the quarter ending Dec. 31, 2016.
"Despite ongoing macro-economic uncertainties and the two new businesses still in transition, Lenovo delivered a solid performance last quarter," said Yang Yuanqing, Lenovo chairman and CEO.
Yuanqing said the company's PC business remains strong, while the mobile business has made steady progress.
The company head added their data center business now has a clear improvement plan in place.
"Although it takes time to build the core competence in these two new growth engines, we are confident to achieve breakeven and profitable growth in them," Yuanqing said.
Lenovo's gross profit for the third fiscal quarter has seen a 15-percent drop year-over-year to $1.6 billion, with gross margin at 13.1 percent.
The company posted a 64-percemt decrease year-over-year on its operating profit for the third quarter. Basic earnings per share for the quarter was 0.90 US cents, or 6.98 HK cents. Lenovo also reported a net cash of $155 million as of Dec. 31, 2016.
The tech company posted a two-percent increase year-over-year in its PC and Smart Devices Business Group (PCSD). For the quarter, the PCSD saw a 10.2-percent growth. Lenovo also saw strong growth in tablets, up ten percent year-over-year, outperforming the market by 29 points.
The French luxury group gains full control of the 70-year-old Parisian fashion house Christian Dior in a mammoth deal worth around €12.1 billion.
UK luxury fashion retailer Burberry posts lackluster set of results for its second half following an impressive result in the third quarter, a retail analyst stated.
What seemed like a perfect hacking operation turned out to be a failure as Kaspersky has spotted a mistake on the part of the Lazarus hackers. It found a brief connection that came from North Korea - proving their identity and origin.
A lawsuit has been filed by a Democratic political consultant and Fox News contributor on Monday alleging, among others, that Roger Ailes denied her of a permanent hosting job after she turned down his sexual advances.
South African leader, Jacob Zuma, has sacked finance minister Pravin Gordhan in a move that drove the country's currency down five percent in value. The president calls for a midnight reshuffle in his Treasury members who he felt were disloyal to his political intentions.
The US president has long promoted a change on how foreign businesses should run their operations - and that is to revive American manufacturing. Uniqlo head showed he didn't like being given an ultimatum by Trump.
Cemex, one of the world's largest cement producers, has not participated in the first round of bids that is currently underway but said it is open to providing quotes to supply the raw materials for Trump's promised border wall.
Arket, which means 'sheet of paper' in Swedish, will cater to a modern-day market with products for men, women, children and the home.
Amazon was one of the leaders in keeping online purchases tax-free. As the company moves to offer faster deliveries, it expanded its distribution centers and started collecting sales tax in more states.