Lenovo for the first time in six years, received damages

The smartphone market, with its high production costs and competition, is a tough market. Lenovo has released its financial results for the second quarter, which turned out to be quite unpleasant for us.

Lenovo for the first time in six years, received damages

In the second quarter, Lenovo gained a net loss of $ 714 million and is the first of their defeat in the last six years. The main reason for the disappointing results – a serious restructuring of the companies after the high-priced acquisitions in the server and the mobile markets in the past year. Most notable was the acquisition of Motorola’s cost of $ 2.91 billion. After the fall of profits, the company incurred non-recurring restructuring costs, including staff layoffs and focus on Motorola, for $ 923 million.

Lenovo said that without these costs the company would have earned a profit of $ 166 million. However, it is still 50% lower than a year earlier. The company expects to complete the restructuring before the end of the financial year and believes that the change will save about $ 650 million during the second half of 2015 and approximately $ 1.3 billion annually.

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