Lenovo profit rises but shares lower on disappoint revenue

Yahoo! co-founder Jerry Yang joins Lenovo board as PC maker records shares shed 2.46%

The company also announced a dividend payment of HK$0.06 ($0.0077) per share to stockholders

Lenovo, the world’s biggest maker of personal computers, reported a 19 per cent 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 per cent to $10.5 billion, but sales from its mobile device division fell 6 per cent to $1.4 billion.

Shares of Lenovo shed 2.46 percent in Thursday afternoon trade, compared with a 0.1 per cent 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 per cent and 6.4 per cent, respectively.

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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's Motorola handset unit.

The company additionally named Jerry Yang, the Yahoo! co-founder, to its board of directors. Mr Yang, who is also an Alibaba director, formerly served as a Lenovo board observer.

Reuters