Chinese PC maker Lenovo has reported a 24% revenue decline for the third quarter of its FY 22/23, its largest revenue fall in 14 years as global demand for electronics slumped, according to a Reuters report.
Revenue fell 24% YoY to $15.3 billion in the third quarter of its financial year 22/23 – three months ended 30th December 2022, from $20.1 billion in the same period in FY 21/22, the results trailing an average analyst estimate of $16.39 billion, according to Refinitiv.
In the third quarter report, net income also dropped to $437 million from $640 million the in the quarter, marking a 46.5% YoY decrease.
Embattled by the "severe downturn" in global demand for electronics, the world's largest maker of personal computers (PCs) has said also it would look to make workforce adjustments – rivals including Dell and HP have also announced plans to cut workforce due to similar reasons.
This is part of its effort to reduce its run rate operational expenses by approximately $150 million to achieve a medium-term goal of doubling net margin, its chief financial officer, Wong Wai Ming, added.
However, in its outlook for this year, the Group expects year-on-year growth to resume in the second half of the calendar year with end-user PC demand projected to be higher than pre-Covid levels.