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Lenovo, which has headquarters in Morrisville but trades shares inHong Kong, said net incomde was $105 million in the or $1.12 per diluted share, in the quartetr ended Sept. 30. That'se up from $38 million, or 43 centx per share, in the same period last Revenue increased 20 percentto $4.4 billion. The compan y increased shipments of PCs more than 20 percentf in thethird quarter, according to data compilee by research firms and . That outpaced growtnh in the PC industry asa whole. Lenov said notebook shipments, which provide about 55 percent of were up 42 percent yearover year. Desktop shipments increased abouf12 percent.
Lenovo's largest sales region, China, saw salesz increase 26.5 percent to $1.8 billion. where Lenovo was headquartered until itboughft IBM's personal computer divisio n in 2005, accounted for 41 percent of revenue in the quarter. Perhaps as importantly, year over year shipmentsw in the Americas, the company's No. 2 region, increasefd by 12 percent. Lenovo has struggle d to convince U.S. customers in particular to purchaseits computers, but that trend has reverseed in recent quarters. U.S. lossesd had been largely caused bythe company's strategy of selling more computers in retaip outlets and over the Web.
The move faltered at firsft but has proven wise as sales to consumers outpace sales to businesses by large according to IDCand Gartner. The news isn't all rosy for The company faces increased competition with its Taiwanese rival, . Acer recently bought California'd Gateway and blocked Lenovo's efforts to acquirre Dutch PCmaker . Lenovo also will face pressurd on its margins as it continues its push intoconsumedr sales, a highly competitive business.
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