Lenovo CFO Quits As Revenue’s Climb, Disties Not Happy Over Rebates
Lenovo Australia who last week won the 20,000 unit Federal Government, Centrelink PC contract has reported a $669,295 profit on revenues of $699million.
The Federal Government win, follows the resignation of Chief Financial Officer Richard Rodgers who will leave the Company on July 1st, he will also resign as a director of the local operation.
In 2016 Lenovo Australia reported a profit of $93,814 on revenues of $643,617.
ChannelNews understands that the Chinese PC Company who have been heavily discounting their retail PC’s has also laid off several staff in Australia during the past month, they are also selling a bunch of selected laptops for up to 40% off including the ThinkPad E480 for $814 off the RRP in an effort to clear stock levels.
During the past year the Company lifted their marketing spend in Australia from $33M in 2016 to $35M in 2017.
This expenditure includes rebates and online marketing to promote their direct sell online operation.
Administration costs were cut from $40M in 2016 to $34M in 2017.
According to sources at Ingram Micro and Synnex Lenovo is currently in discussions with these distributors over the payment of rebates which have been outstanding “for some time”.
One source told ChannelNews that one of these distributors has moved to heavily promoting Hewlett Packard notebooks over the Lenovo offering.
Income tax expenses rose from $93K in 2016 to $5.08M in 2017.
The local entity whose parent Company was delisted last week from the Hong Kong stock exchange reported foreign exchange losses of $71K in 2017, Vs a profit of $4.09M in 2016.
Current trade liabilities climbed in 2017 from $55M in 2016 to $127M in 2017. The Company has not explained the sudden rise.
During the past financial year Lenovo Australia split out their Data Centre Group into a new entity called Lenovo Global Technology.
More to follow.