UPDATE 2-Lenovo rises as mobile, data server player to sidestep PC slump

Thu Nov 7, 2013 7:19am EST
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* Q2 net profit $219.7 mln vs $162 mln a year earlier

* Actively seeking acquisitions to boost growth

* Targeting corporate data servers to counter PC decline

By Paul Carsten

BEIJING, Nov 7 (Reuters) - China's Lenovo Group Ltd , the world's biggest personal computer maker, is reinventing itself as a growing force in mobile devices and data storage servers to beat the slump in the PC market that is crippling less agile rivals.

Lenovo said on Thursday net profit beat estimates, jumping over a third in July-September to a quarterly record of $219.7 million.

Now the world's fourth-biggest smartphone maker, the company also said it's looking for new businesses to buy as it remoulds itself. It has $2.87 billion in cash and equivalents on its balance sheet three decades after it was founded in Beijing with a staff of 11.

The progress at Lenovo, with a 17.7 percent share of worldwide PC shipments according to research firm IDC, is in sharp contrast with that of other PC makers like Acer Incorporated. Acer's chief executive stepped down this week after poor results at the Taiwanese firm in a quarter when the PC industry contracted 7.6 percent globally, according to IDC.

Lenovo's continuing cruise into smartphones, tablets and network storage systems extended its streak of double-digit quarterly growth to over three years. Desktop PCs were its only business line not to grow as July-September net profit surged compared with $162 million a year ago and a $199.12 million consensus forecast on Thomson Reuters Starmine SmartEstimate.   Continued...