Business, Gadgets & Electronics, Telecom & Wireless

Lenovo Reports First Quarterly Losses Over Past Six Years

China's Lenovo published its unaudited performance for the second financial quarter ended September 30, 2015, stating that the group's revenue increased by 16% year-on-year to USD12.2 billion, which included the details of SystemX and Motorola for the entire quarter.

Meanwhile, the group reported one-time costs of USD923 million, including USD599 million for restructuring and USD324 million for clearing smartphone stock. The group is expected to save USD650 million expenses in the second half of this financial year. In addition, the group said their losses before tax were USD842 million during the reporting period; and net losses were USD714 million.

The financial report pointed out that Lenovo Group's business restructuring went smoothly during the second financial quarter, disregarding the USD599 million restructuring costs and the USD324 million one-time costs.

Moreover, the report revealed that during the six months ended September 30, 2015, Lenovo Group's comprehensive revenue increased by 10% year-on-year to USD22.866 billion; while its PC business revenue decreased by 9% year-on-year to USD15.425 billion. At the same time, the group's mobile businesses, including Lenovo and Motorola sectors, saw a revenue increase of 65% year-on-year to USD4.797 billion; its enterprise services, including Think servers and SystemX business, saw a revenue increase of 560% to USD2.254 billion; and the revenue of other products and services was USD390 million.

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