Personal computer maker Lenovo reported this morning that net income jumped 44 percent during its second quarter, driven by stronger sales in the U.S. and Europe.
The maker of Thinkpad laptops and other products is the latest technology company to get a boost from revived corporate tech spending.
“They have been simply the biggest market-share gainers this year,” Bhavtosh Vajpayee, who rates Lenovo shares “outperform” at CLSA Ltd. in Hong Kong, told Bloomberg News. Lenovo is “one of the biggest beneficiaries” as companies upgrade dated computers, he said.
Lenovo, which bought IBM's PC business in 2005, moved its headquarters to Morrisville, where it employs about 1,500 workers. The company also has a headquarters in Beijing and employs about 20,000 worldwide.
Net income totaled $76.6 million in the three months ended Sept. 30, beating analysts estimates. Revenue rose to $5.76 billion, up 41 percent from a year ago.
Lenovo accounted for 10.3 percent of global PC shipments last quarter, compared with 8.6 percent a year earlier, according to research company IDC.
Hewlett-Packard, the industry leader, saw its market share drop to 17.6 percent from 19.6 percent, while second-ranked Acer Inc. declined to 13 percent from 13.5 percent.
China continued to reign as Lenovo's biggest market, accouting for 46 percent of worldwide sales. But the company saw increases in every market during the quarter. North American shipments were up 41 percent from a year earlier.
Lenovo's American depositary receipts, similar to common stock for foreign companies, rose 18 cents in midday trading to $14.16. The stock is up 33 percent in the past year.
Bloomberg News contributed to this report.