The net loss of the Chinese Lenovo Group Ltd., the world's largest manufacturer of personal computers in terms of shipments, in the second fiscal quarter (July-September 2015) amounted $ 714 million compared with the net profit of $ 262 million for the same period of the previous financial year. The company recorded a quarterly loss for the first time in more than six years, writing off more than $ 900 million in the framework of restructuring the operations and integration of the acquired assets.
Lenovo's revenue in the last quarter rose 16%, to $ 12.2 billion, from $ 10.5 billion a year earlier.
The loss, though large, was less than the forecast of analysts, who had expected losses of $ 787.8 million, according to Thomson Reuters SmartEstimates. Analysts surveyed by Bloomberg, on average, had forecasted the net loss of $ 803.2 million and revenues amounting to $ 11.8 billion.
In the past year, Lenovo bought from Google Inc (O: GOOGL) the unit for the production of mobile phones - Motorola Mobility, as well as IBM (N: IBM) business for the production of low cost servers, spending for these purchases more than $ 5 billion.
Lenovo announced that it expects to bring the business of smartphone manufacturing at a profitable level in six quarters after the completion of Motorola Mobility purchasing deal at the end of 2014.
The write-off of assets, and also the August announcement of 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, 50% lower than the same period a year earlier.
Shares of Lenovo's auction in Hong Kong on Thursday rose 4%.