DHAKA: Lenovo reported revenues for its fiscal third quarter up 15 percent year-on-year to USD 10.8 billion, while net profit rose 30 percent to USD 265 million. Operating profit increased 37 percent to USD 334 million.

The Mobile Internet and Digital Home division, which develops smartphones, tablets and smart TVs, accounted for 16 percent of total revenues at USD 1.7 billion, up from 11 percent a year ago.

In units, the company shipped more smartphones and tablets – 17.3 million devices – than PCs (15.3 million). Smartphones rose by 47 percent year-over-year to 13.9 million units, and tablets were up over 300 percent to 3.4 million units, helped by expansion to new markets and the Yoga Tablet.

China still acounted for 37 percent of Lenovo’s sales in the quarter, followed by the EMEA region at 27 percent. Sales growth was the strongest in the Americas, up 36 percent on growth in the US and Brazil.

Looking ahead, Lenovo said it will focus on securing regulatory approval and then integration of its recent acquisitions, the IBM server business and Motorola’s handset operations.

In a presentation of the results, Lenovo CEO Yang Yuanqing tried to calm market concerns that the acquisitions would put pressure on the company’s growth rate.

Yang said the purchases were ‘not an aggressive action. Both deals fit with our strategy. We did not choose to do it this way, but the acquisitions are opportunity driven’, media reported, says telecompaper.com.

He said the group was confident it could ‘digest’ the two takeovers and still show sustainable growth.

While the acquisitions may hurt its performance in the short term, the CEO said it would only take ‘a couple of quarters’ to turn around the loss-making Motorola business.

The company later extended this time frame to three to five quarters after the deal closed.

BDST: 1748 HRS, FEB 13, 2014