Lenovo Earnings Hurt by Low Enterprise Spending
Lenovo reported a net loss of $16 million, or 18 cents a share, in the first fiscal quarter on revenue of $3.5 billion, representing an 18 percent decline. The reason, says Lenovo, is because of weak enterprise spending.
What’s interesting to note is that Lenovo actually leads the commercial market in China by extending PCs to the countryside and is also doing well with 3G mobile adoption, but the company continues to struggle in mature markets like the U.S. and Europe, CNet reports.
Moving forward, Lenovo says it expects enterprise spending to remain weak in its second fiscal quarter, which the company intends to cope with by cutting costs. Whether or not this might also include job cuts, Lenovo didn’t say.
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