Lenovo has reported a 37% decline in its net profit for its fiscal fourth quarter, falling short of analysts’ expectations and following the completion of two major acquisitions last year.
Net profit for the fourth quarter fell to $100m, or $0.90 per share, from $158m reported in the corresponding 2014 quarter.
Revenue has however increased 21% to $11.33bn, despite the company claiming it as a seasonally slow quarter with significant currency impacts.
Lenovo’s mobile unit, which includes products from Motorola Mobility, shipped 18.7 million smartphones for the quarter and a company record of 76 million for the full year.
Revenue for the division, which also includes Android tablets and smart TVs, was $2.8bn for the quarter.
The company’s PC unit shipped 13.3 million PCs in the quarter, up 2.7 percent year-over-year. The unit, which also produces Windows tablets, recorded revenues of $7.2bn, an increase of 11% year-over-year.
Smartphones, tablets, servers and other services contributed 37% of revenues in the quarter, compared to 17% in the earlier year.
Lenovo chairman and CEO Yang Yuanqing said: "In view of the opportunities and challenges of the new Internet+ era, we are ready to transform ourselves from making mostly hardware to a combination of hardware and software services. This will spur a new wave of growth for Lenovo in the coming years."