Lenovo reported net loss of 714 million USD in Q3 2015

Lenovo reported net loss of 714 million USD in Q3 2015, but remained above the analysts expectations. For the biggest producer of personal computers in the world, this is the first quarterly loss for last six years, but is not particularly surprising, because of the two acquisitions, which Lenovo wrote-down around 900 million USD. However, during the quarter the revenues of the company jumped with 16% yoy to 12.2 billion USD. The shares of Lenovo rose with 5.9% on Hong Kong Stock Exchange, which is the strongest growth during the last month. However, the company lost a quarter of its market capitalization since the beginning of the year.

“The last year’s transactions for business servers and smartphones overload the profitable PC business to Lenovo. The job cuts and a shift from aggressive competition in China will help the company to make its smartphone division profitable in the specified time period”, said President and CEO Yang Yuanqing. “We greatly enhance the smartphone business in the rest of the developing countries, it is our strategy. We know that our Chinese competition is too strong, so shift the focus”, added Yang Yuanqing.

Lenovo promised to make its smartphones business profitable in the next one to two quarters, or otherwise – six quarters after the acquisition of the brand Motorola. The company will be more aggressive in their efforts to promote next year its market share in already developed markets like the US and Europe.

Worldwide sales of personal computers fell with 7.7% to 73.7 million units in Q3 2015, on the background of strong USD, which made devices more expensive.

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