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Lenovo posts $16 million quarterly loss

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On August 6, 2009, 11:34 AM EST

Lenovo has joined a laundry list of companies who have experienced dwindling revenue, posting a $16 million quarterly loss today. Despite a weak global demand, the company still reported growth in market share. Its loss during the quarter ending June 30 translates to $.18 per share, which compares to its $110 million profit only one year ago. Sales tumbled 17.9% from last year to $3.5 billion.

The computer maker saw a growth of 1.1% in global PC shipments, which doesn't look so bad when compared to the industry-wide contraction of 3.3%. The company has reportedly achieved its largest global market share since the acquisition of IBM's PC unit in 2005. Lenovo saw sales of $1.7 billion in China, flat from a year ago, and its shipments rose 15%.

The Beijing-based company has benefited from China's robust economy, which has grown 7.9% year over year and 1.8% from the previous quarter. They still face stiff competition in the region, with HP leading the market and Acer closing in on Dell's position at number 2.

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User Comments (3)

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Route44
on August 6, 2009
11:47 AM

A shame considering they make good products and I love their T Series models. Wish Icould afford one.

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TomSEA
on August 6, 2009
12:21 PM

$16 million is really nothing to a company the size of Lenovo. In fact, a pretty small loss in comparison to what other manufacturers have been posting. I expect them to be around for quite a while - they put out some of the best products around.

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raybay
on August 6, 2009
12:52 PM

You are correct. Sixteen million is hardly anything in today's computer marketing world, for Lenovo. Chump change. Let us see what happens next quarter. They market a great deal to companies with large sales forces. Those stopped hiring, and reduced their field force, but they will be back in time for Christmas.

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