The group also posted a gross profit of $668 million against $480 million reported last year. The Q2 2007 diluted earnings per share were $1.12 compared to $0.43 in the previous year.

Lenovo witnessed a year-on-year growth rate of 23% in its PC shipment compared with the global industry average of 15.7%. The Greater China market, which accounts for 41% of the company’s revenues reported a 26.5% growth compared to the previous year. Other geographies such as Americas and EMEA, which accounted for 27% and 20% of the company’s revenue, grew at 12% and 16%, respectively.

With respect to business divisions, the Notebooks and Desktop shipments, which accounted for 56% and 40% of the company’s revenues, grew at 42% and 12%, respectively compared with the previous year. However, the mobile handsets shipments declined by 17% during the same period.

The company reported a total net cash reserve of $1.7 billion and has declared an interim dividend of 0.39 cents per share.

Lenovo’s Chairman Yang Yuanqing said, We will also continue to tap the growth potential of the PC industry, especially in China and other emerging markets, the SMB and consumer segments in mature countries, and the notebook market worldwide.

William J. Amelio, Lenovo’s president and chief executive, said, By making substantial progress on all of our critical priorities over the past few quarters, we’re now a stronger, healthier company. One important sign of this progress is our decision to completely transition our Think products from the IBM brand to the Lenovo brand two years earlier than planned. Concurrently, we’ve recently launched our own ‘Best Engineered PCs/’ advertising campaign and global sponsorship of the Beijing 2008 Summer Olympic Games to promote our brand worldwide.

As per the original agreement between Lenovo and IBM, Lenovo could sell IBM-branded desktops and laptops till 2010. However, Lenovo plans to cease using IBM brand name two years ahead of schedule.

Lenovo’s direct competitor Dell has reported an increase in its revenues by 4%

in its Q2 of fiscal 2007 compared to the same quarter in 2006. It reported revenues of $14.8 billion, operating income of $896 million and earnings per share of $0.32 in its Q2 results.

Source: ComputerWire daily updates