Printed from http://www.electronista.com

Lenovo posts quarterly loss, forecasts better times

updated 01:20 pm EDT, Thu August 6, 2009

Lenovo loses in Q1

Chinese computer maker Lenovo has suffered a net loss in its most recent fiscal quarter, the Wall Street Journal reports. The company lost the equivalent of $16.01 million, as compared to a net profit of $110.5 million posted in the same quarter a year ago. Revenue is meanwhile noted to have slipped 18 percent in Q109, from $4.21 billion to $3.46 billion. When ignoring restructuring costs and some one-time expenses, Lenovo claims it turned a small profit.

The company further comments that while PC shipments rose 1.1 percent year-over-year, and marketshare climbed to 8.6 percent, it is still suffering the impact of the global recession. Product prices have dropped, and poor sales are said to be occurring in First World regions, namely North America, western Europe and Japan. "The world economy hasn't yet started a full recovery, so don't set your hopes too high for Lenovo's near-term earnings results," says Lenovo chairman Liu Chuanzhi.

The company is continuing to do well in China, but has had trouble outside the country since buying IBM's PC division. In January the company announced that 11 percent of its workers would lose their jobs, saving the company $300 million per year. Profits are forecast to return in Q209, contributing to a positive fiscal year overall. Behind this is a solid Chinese market, although many PC shoppers are expected to wait until October's release of Windows 7.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Dell AD211 Bluetooth speaker

For all of the high-priced, over-engineered Bluetooth speakers in the electronics market, there is still room for mass-market solution ...

VisionTek 128GB USB Pocket SSD

USB flash drives dealt the death blow to both the floppy and Zip drives. While still faster than either of the old removable media, sp ...

Kodak PixPro SL10 Smart Lens Camera

Smartphone imagery still widely varies. Large Megapixel counts don't make for a good image, and the optics in some devices are lacking ...

Sponsor

toggle

Most Commented

 
toggle

Popular News