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

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Lenovo, which has headquarters in Morrisville but tradezs shares inHong Kong, said net income was $105 million in the or $1.12 per diluted share, in the quarteer ended Sept. 30. That's up from $38 million, or 43 centes per share, in the same perio last year. Revenue increasef 20 percent to $4.4 The company increased shipmentsd of PCs more than 20 percent in the third according to data compiled by research firmsand . That outpacerd growth in the PC industry asa whole. Lenovo said notebool shipments, which provide about 55 percentof revenue, were up 42 percent year over year. Desktop shipments increased about12 Lenovo's largest sales region, China, saw salews increase 26.
5 percent to $1.8 billion. China, wherd Lenovo was headquartered until itbought IBM's personal computer division in 2005, accounted for 41 perceng of revenue in the quarter. Perhapas as importantly, year over year shipments in the Americas, the company's No. 2 region, increased by 12 percent. Lenov has struggled to convince U.S. customers in particulae to purchaseits computers, but that trend has reversedr in recent quarters. U.S. losses had been largelty caused bythe company's strategy of selling more computers in retail outletx and over the Web.
The move falterefd at first but has provebn wise as sales to consumers outpace sales to businesses bylarge margins, accordiny to IDC and Gartner. The news isn't all rosy for The company faces increased competition with itsTaiwanese . Acer recently bought California's Gatewa and blocked Lenovo's efforts to acquire Dutchn PCmaker . Lenovo also will face pressure on its marginsz as it continues its push into consumer a highlycompetitive business.