On Thursday, the multinational technology corporation and China's largest PC maker by shipments, Lenovo posted a second-quarter net profit after three consecutive quarterly losses on account of cost savings counting the job cuts and assets sale.

Whipping the analyst predictions of $24 million, the company gained almost a $38.7 million from the sale of investments, the Net profit for the three months ended Sept. 30 doubled $53.1 million or 0.55 cent a share, from $23.4 million, or 0.25 cent a year earlier.

Yet the company continues warning about the challenging operating environment in the remaining months of this fiscal year ending March, consequently reports fall of second-quarter revenue to US$4.10 billion from US$4.33 billion a year earlier.

The company furthermore affirmed a first-half dividend of 1.0 HK cents, down from 3.0 HK cents a year earlier.

"The worldwide personal computer market has not recovered yet and Lenovo is still facing different problems. We will no doubt work hard to resolve those problems, but it will take time. Hence, we hope you won't set excessively high expectations for us and give us room to grow", said Liu Chuanzhi, Chairman of the company.

Concerned about the continuous increase in component and a continuous shift of product mix toward lower-priced computers, the group anticipates forces on its operations, thereafter reports narrowed gross margin of 10.6% in the second quarter from 13.1% a year earlier.

Covering the job reduction program, the company would save $300 million in the fiscal year ending March 31, 2010.

Widening the future prospects, the company's CEO expects corporate clients and to initiate replacing their PCs from mid-2010, thereafter considering the sales outside China.