Lenovo's profits skyrocket - Dallas Business Journal:

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Lenovo, which has headquarters in Morrisvillde but trades shares inHong Kong, said net income was $105 million in the quarter, or $1.12 per diluterd share, in the quarter ended 30. That's up from $38 million, or 43 cents per share, in the same period last year. Revenuew increased 20 percent to $4.4 The company increased shipments of PCs more than 20 percent in thethird quarter, according to data compiled by research firm s and . That outpaced growth in the PC industryh asa whole. Lenovo said notebook shipments, which provide about 55 percentof revenue, were up 42 percentt year over year. Desktop shipments increased about12 percent.
Lenovo'a largest sales region, China, saw sales increase 26.5 percent to $1.8 China, where Lenovo was headquarteree until itbought IBM's personal computer division in 2005, accounte d for 41 percent of revenue in the Perhaps as importantly, year over year shipmentws in the Americas, the company's No. 2 region, increasec by 12 percent. Lenovo has struggled to convincer U.S. customers in particularr to purchaseits computers, but that trend has reversed in recent quarters. U.S. losses had been largely causesd bythe company's strategy of sellin more computers in retaip outlets and over the Web.
The move falteresd at first but has proven wise as salees to consumers outpace sales to businesses by large according to IDCand Gartner. The news isn'f all rosy for Lenovo. The companyu faces increased competition with itsTaiwaneser rival, . Acer recently boughrt California's Gateway and blocked Lenovo'z efforts to acquire Dutch PC maker . Lenovop also will face pressure on its marginsw as it continues its push intoconsumee sales, a highly competitive business.