Lenovo earnings dinged by weak enterprise demand

From CNET News.com: Lenovo reported a net loss for its fiscal first quarter as revenue skidded 18 percent because of weak enterprise spending.

The company reported a net loss of $16 million, or 18 cents a share, in the first quarter, on revenue of $3.5 billion. Lenovo, which remains tethered to the commercial market, has been restructuring to cut costs. In addition, Lenovo remains a tale of two companies. The company leads in China and is extending PCs to the countryside and leveraging 3G mobile adoption. However, Lenovo has struggled in mature markets such as the U.S. and Europe.

Lenovo CEO Yang Yuanqing said the plan is to "continue to extend our leadership in China, strive to restore profitability in mature markets, and also seize opportunities in emerging markets and the transactional space."

As for the outlook, Lenovo said that it expects enterprise spending to remain weak in its second fiscal quarter, but will continue to cut costs to restore profitability.

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