Lenovo Group Ltd. posted its fastest pace of revenue growth in more than two years by pushing premium computers and expanding its datacenter business in a generally stabilizing PC market.
The world's second-largest PC vendor reported a 69 percent plunge in net income to $33 million in the three months ended March as it grappled with rising expenses. Sales however jumped 11 percent to $10.6 billion, surpassing the $9.8 billion projected and marking its first double-digit percentage increase since late 2015.
Lenovo, has focused on pushing its premium line of PCs into the lucrative gaming segment.
Revenue from PCs and devices climbed 16 percent to $7.7 billion in the quarter. But higher costs, for instance of memory chips, pushed the division's profit 2 percent lower.
Lenovo continues to be weighed down by the poor performance of a subscale mobile segment despite an improved datacenter business.
The company keeps pushing back the deadline to turn around the smartphone business, a mix of Lenovo and Motorola branded products.