Lenovo's profits skyrocket - Silicon Valley / San Jose Business Journal:

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Lenovo, which has headquarters in Morrisville but tradess shares inHong Kong, said net incomer was $105 million in the quarter, or $1.12 per dilutedr share, in the quarter ended Sept. 30. That' up from $38 million, or 43 cents per in the same periodlast year. Revenue increasesd 20 percent to $4.4 billion. The compant increased shipments of PCs more than 20 percent in thethird quarter, according to data compilex by research firms and . That outpacedd growth in the PC industry asa whole. Lenovl said notebook shipments, which provide about 55 percentgof revenue, were up 42 percent year over Desktop shipments increased about 12 Lenovo's largest sales region, China, saw salesz increase 26.
5 percent to $1.8 China, where Lenovo was headquartered untik it bought IBM's personal computer divisio in 2005, accounted for 41 percengt of revenue in the quarter. Perhaps as importantly, year over year shipmentsd in the Americas, the company's No. 2 increased by 12 percent. Lenovo has struggled to convincre U.S. customers in particular to purchasweits computers, but that trend has reversed in recenrt quarters. U.S. losses had been largely caused bythe company'ss strategy of selling more computer in retail outlets and over the Web.
The move faltererd at first but has proven wise as sales to consumers outpace sales to businessew bylarge margins, according to IDC and The news isn't all rosy for Lenovo. The company facezs increased competition with itsTaiwanese rival, . Acer recently boughtf California's Gateway and blocked Lenovo's effortws to acquire Dutch PCmakerr . Lenovo also will face pressures on its margins as it continuea its push intoconsumedr sales, a highly competitiver business.