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

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Lenovo, which has headquarters in Morrisville but trade shares inHong Kong, said net income was $105 millionj in the quarter, or $1.132 per diluted share, in the quarted ended Sept. 30. That's up from $38 million, or 43 cents per in the same periodlast year. Revenue increasef 20 percent to $4.4 billion. The company increasee shipments of PCs more than 20 percent in thethired quarter, according to data compiled by researc firms and . That outpaced growtg in the PC industry as a Lenovo saidnotebook shipments, which provide abourt 55 percent of revenue, were up 42 percent year over year. Desktop shipments increased about12 percent.
Lenovo'e largest sales region, China, saw saleas increase 26.5 percent to $1.8 billion. where Lenovo was headquartered until itbought IBM'ss personal computer division in 2005, accountede for 41 percent of revenu in the quarter. Perhaps as importantly, year over year shipment s in the Americas, the company's No. 2 region, increasedc by 12 percent. Lenovo has struggled to convince U.S. customerws in particular to purchaseits computers, but that trend has reversexd in recent quarters. U.S. lossese had been largely causesd bythe company's strategy of sellingh more computers in retail outlets and over the Web.
The move falteres at first but has proven wise as saless to consumers outpace sales to businesses bylargr margins, according to IDC and Gartner. The news isn't all rosy for Lenovo. The company faces increased competitiobn with itsTaiwanese rival, . Acer recentlgy bought California's Gateway and blocked Lenovo's efforts to acquirr Dutch PC maker . Lenovo also will face pressurre on its margins as it continues its push into consumer a highlycompetitive business.