Lenovo Group reported a $55 million quarterly profit, driven by rising sales of personal computers and other products in China and other emerging markets.
That's an improvement from a year earlier when the company reported a $16 million loss, and are the latest indication that spending on technology continues to revive globally.
Still, the profit was weaker than analysts had expected, and Lenovo shares fell overnight in Hong Kong, Bloomberg News reported.
Its American depositary receipts, which are similar to common shares for foreign companies, fell 40 cents to $12.03. The ADRs are down 2 percent this year.
Like rivals Hewlett-Packard and Acer, Lenovo is selling more sub-$500 computers in emerging markets, diluting the profitability from its premium Thinkpad laptops. CEO Yang Yuanqing forecast more "downward pressure" on Lenovo's profit margins because of the low-priced products.
Lenovo, which bought IBM's PC business in 2005, moved its headquarters to Morrisville, where it employs about 1,500. The company also has a headquarters in Beijing and employs about 20,000 worldwide.
Global sales surged 50 percent from a year earlier to $5.1 billion, boosted by a 50 percent rise in Lenovo's home China market. Sales in other emerging markets doubled. Sales in the United States, Europe and other mature markets increased less but still racked up a 38.5 percent rise over a year earlier to $1.8 billion.
Lenovo was hit hard by the global economic crisis, which prompted its core corporate customers to slash purchases. The company suffered three losing quarters before rebounding to profit in the three months ending last September.
Get the biggest news in your email or cellphone as it's happening. Sign up for breaking news alerts.
U.S. stock futures are following overseas markets lower Friday after Greece's crucial bailout was put on hold by the rest of the eurozone, a day after it seemed that the country had pacified its creditors. 
The Obama administration clearly won't take no for an answer when it comes to recruiting state Banking Commissioner Joseph Smith Jr. to tackle the mortgage mess that has been hampering the nation's economic recovery. 
The number of people seeking unemployment aid neared a four-year low last week, a positive sign that strong hiring could continue in the coming months. 
U.S. stock futures are falling after Greek leaders failed to accept the entire batch of new austerity measures demanded by creditors, leaving its bailout in limbo. Keep up with the latest business stories with our free e-mail newsletter, delivered straight to your inbox!
Subscribe to Business - it's free!
Subscribe to NC Business News - it's free!
Subscribe to Technology/Biotech - it's free!
