Lenovo recorded a quarterly loss for the first time in over 6 years


Moscow. November 12. China’s Lenovo Group, the world’s largest manufacturer of personal computers in terms of volume, recorded a quarterly loss for the first time in more than six years, writing off over $900 million in restructuring of operations and the integration of acquired assets.

As reported in a press release, Lenovo’s net loss in the second fiscal quarter (July-September 2015) was $714 million compared with a net profit of $262 million for the same period in the previous Vigoda.

Lenovo’s revenue in the last quarter increased by 16% to $12.2 billion from $10.5 billion a year earlier.

Analysts surveyed by Bloomberg on average had predicted the company’s net loss of $803,2 million, revenue – $11.8 billion

Last year Lenovo bought from Google the unit for the production of mobile phones Motorola Mobility and the IBM business on release of servers budget, spending on these acquisitions more than $5 billion.

Lenovo has stated that it expects to bring the business of manufacturing smartphones at a profitable rate, within six quarters after completing the deal to buy Motorola Mobility in late 2014.

Write-off of assets, and also announced in August a reduction of more than 5% of jobs are expected to help the company in achieving this goal.

Excluding one-time factors Lenovo recorded a profit of $166 million in the last quarter, which was 50% lower than the same period a year earlier.

Shares of Lenovo at auction in Hong Kong on Thursday rose by 4%.