Lenovo reports rise in profits, drop in earnings

Lenovo reports rise in profits, drop in earnings

Chinese tech giant and the new owner of the Personal Computer division of the IBM, Lenovo has reported that they have recorded a net profit of 6% in the last year though its earnings in the last quarter has dropped down drastically by almost 12%. The net profit of the last year, which ended on March 31, was around 1.12 billion Hong Kong dollars.

This figure is up from HK$1.05 billion the previous fiscal year as per the company’s income report. The revenue figures however have dropped down from HK$23.18 billion to HK$22.55 billion. The profits in the last quarter of the last financial year were also down to HK$166 million from HK$188.3 million a year earlier.

This drop in revenue figures is mostly blamed on the drop in sales of its handset business. However, the losses on the handsets revenues were down to HK$54.5 million from HK$76.9 million. These reports led to the shares of the company take a dive in the stock markets. Investors seem to be still worried about how Lenovo would be integrating the IBM’s business branch into their own structure.

The company however posted a profit in the division, which is responsible for selling personal computers to consumers. This should bring a smile to the owners of the corporation.