As PC, smartphone and server sales fell, Lenovo’s revenues fell 8 percent to $11.2 billion from a year ago but the global tech company made a profit of $157 million, topping analysts’ expectations of $138 million.

However, revenues were up 12 percent from the previous quarter.

Even with a return to profitability, Lenovo noted that “market conditions remain challenging.”

  • LENOVO SHUFFLES, ADDS EXECS: Lenovo names new leaders for its RTP-based server group as well as its mobile business. It also appoints new CTO and chief legal officer.
  • MEET THE NEW LEADERS: Who are the new execs joining Lenovo?

Lenovo, which reported a huge $842 million loss a year ago as it absorbed costs from its multi-billion-dollar acquisitions of IBM x86 and Google Motorola Mobility, reported its latest quarterly financials overnight in Hong Kong where its shares are traded.

In September, Lenovo cut costs by laying off 2 percent of its 55,000 person work force. Most cuts took place in its Chicago-based Motorola business.

“Market conditions remained challenging but we delivered solid results,” said Lenovo Chairman and CEO Yang Yuanqing.

“Our PCSD business maintained leadership and strong profitability, our Mobile business had good quarter-to-quarter volume growth and margin improvement, and our Data Center business is actively addressing its challenges.“

Lenovo acknowledged that:

  • PC sales were down 8 percent.
  • Mobile device sales fell 12 percent
  • Server and related sales also declined 8 percent.

Sales fell in every geography.

Lenovo also disclosed several management changes, including new leaders for its sever and mobile groups, as part of the earnings report.

“We have also added several of the industry’s top minds into Lenovo, and are continuing to strengthen our leadership team,” Yang said. “We remain confident in our vision, our strategy and our team’s ability to achieve new heights.”

Lenovo operates one of its two global headquarters in Morrisville. Its server business also is based in the Triangle.