BEIJING—Lenovo Group Ltd. said Thursday its net profit
for the quarter through March fell 36.7% from a year earlier, as
the Chinese personal-computer maker adjusts to the acquisitions of
unprofitable phone maker Motorola Mobility and International
Business Machines Corp.'s x86 server business.
Net profit for the quarter fell to $100 million from $158
million a year earlier, beating analyst estimates, while revenue
rose 20.7% to $11.3 billion.
"We are ready to transform ourselves from making mostly hardware
to a combination of hardware and software services," said Lenovo
Chairman and CEO Yang Yuanqing in a news release.
In October, Lenovo closed its $2.91 billion acquisition of
Motorola Mobility from Google Inc. and $2.1 billion purchase of
IBM's low-end server business.
Lenovo, which was founded in Beijing, acquired IBM's PC business
in 2005. The company now has headquarters in the U.S. and China,
and surpassed Hewlett-Packard Co. to become the world's No. 1 PC
maker by shipments last year.
As the global PC market has become saturated, Lenovo has
expanded into other sectors, including smartphones and servers.
Write to Eva Dou at eva.dou@wsj.com
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