Lenovo Q2 profit climbs 19% as PC market share grows
Lenovo Group Ltd, the world's biggest maker of personal computers, reported a 19% jump in net income in the second fiscal quarter, but revenue fell short of analyst expectations, sending shares lower.business Updated: Nov 06, 2014 12:54 IST
Lenovo Group Ltd, the world's biggest maker of personal computers (PCs), reported a 19% jump in net income in the second fiscal quarter, but revenue fell short of analyst expectations, sending shares lower.
The company, which has been muscling its way into the smartphone market, said quarterly revenue rose 7% to $10.5 billion, but sales from its mobile device division fell 6% to $1.4 billion.
Shares of Lenovo shed 2.46% in Thursday afternoon trade, compared with a 0.1% decline in the benchmark Hang Seng index.
Still, the Beijing-based company, tightened its hold over global PC sales even as the broader market shrunk. Sales of both laptops and desktop computers rose 0.9% and 6.4%, respectively.
Net income was $262 million, exceeding the $260 million expected by analysts, according to Thomson Reuters SmartEstimates.
The company also announced a dividend payment of HK$0.06 ($0.0077) per share to stockholders.
Lenovo is now ramping up its assault on new product markets after closing in recent weeks two multi-billion-dollar acquisitions for IBM's low-end server business and Google Inc's Motorola handset unit.
The company additionally named Jerry Yang, the Yahoo! Inc co-founder, to its board of directors. Yang, who is also an Alibaba Group Holding Ltd director, formerly served as a Lenovo board observer.