Lenovo Takes Control of Fujitsu PCs as Revenue Tops Estimates

Lenovo unveiled plans to take over Fujitsu’s PC business for at least $157 million after posting its strongest revenue growth in two years amid signs the market is stabilizing, according to Bloomberg.

China’s largest PC maker reported a 5 percent jump in revenue to $11.8 billion in the quarter ended September, surpassing projections for $11.3 billion and marking the biggest rise since the same period of 2015. Net income fell 11 percent to $139 million, which was bolstered by accounting gains. Lenovo  rose as much as 5 percent in the afternoon, erasing year-to-date losses.

PC shipments climbed 17 percent from the previous quarter, allowing Lenovo to arrest market share losses. The company’s struggling smartphone division also made headway into Latin America and Western Europe.

Lenovo is struggling to find growth in its  key divisions of personal computers, smartphones and servers. While it lost top spot in PCs to HP, the market shrinkage of the past few years is easing and Chief Executive Yang Yuanqing is taking costs out of a mobile business that’s made little progress since buying Motorola for $2.9 billion.

The company continues to face rising costs for components such as memory chips. Chief Operating Officer Gianfranco Lanci previously said he expects costs for essential components such as memory chips to keep rising throughout the rest of the year, albeit at a slower pace.