Lenovo Profits Almost Double on Year

Coming to act as proof of how general finances are at least partially recovering, Lenovo experienced a very promising first quarter of its fiscal year 2012, amassing revenues of almost $6 billion.

When it comes to finances, 2011 has, so far, been a year of promising upturns, despite a short slide here and there.

Granted, many companies are still advancing slowly as far as cash inflow is concerned, but the overall mood is one of optimism.

Lenovo is the most recent company to add to the trend of sharp revenue and profit increases compared to what FY 2011 allowed.

With total revenues of $5.92 billion during the first quarter (up 15% on year) of its fiscal year 2012, the company can brag about almost doubling its profits on year.

In other words, the sum of $54.9 of 1Q FY 2011 was replaced by $108 million, largely thanks to the 23% rise in PC sales.

"The solid execution of the successful "Protect and Attack" strategy fueled Lenovo's strong performance in the past fiscal quarter that we have achieved record high in global shipments, revenue as well as global market share. At the same time, we outperformed the industry in all geographies, customer segments and product segments," said Yang Yuanqing, Lenovo CEO.

"Over the past two years, we have placed emphasis on and invested significantly in our business growth. Our global market share has now reached double-digits and we have attained a double-digit share in a greater number of our strategic markets. Starting this year, we are advancing to a more balanced strategy of continuing to grow, while shifting our focus more on profitability.

The one thing that Lenovo is not overly enthused about is the likelihood of Ultrabooks taking off, although the fact that they aren't getting any cheaper makes this less surprising than it would otherwise be.