Losses in The Quarterly Balance for Lenovo for The First Time in 6 Years: Motorola Came out Very Expensive

Bad times to play purchases, and if that does not say it to Lenovo. The manufacturer was news at the beginning of 2014 for purchasing 20% Motorola 2.910 million company, which previously was owned by Google (from 2011). Today Lenovo presents the economic balance belonging to the second quarter of fiscal year 2015-2016, and for the first time in six years it has suffered losses.

Specifically, the company has registered a net $ 714 million loss. The reasons? Acquire companies has cost more than their given value that is there to make changes and restructure, and this does not come cheap (about 600 million dollars) and less still if done globally. Sales also have done too well in general, taking into account that Lenovo is currently a manufacturer of computers, peripherals and tablets and smartphones, and for this quarter inherited an empty $ 324 million inventory.

Precisely are these last ones who can that be carried much of the accusing fingers have made the purchase of Motorola. As we see in the report that he has presented Lenovo, sales for the products of the mobile division (Mobile Business Group MBG) amounted to $ 2,700 million, what is a 104% compared to the same period in 2014, of which Motorola products have contributed 1,400 million dollars. As indicated by, the MBG division records 217 million dollars in losses.

The Motorola push is coming

Lenovo blamed these numbers to sales of new products are not reflected (the second fiscal quarter ends September 30), as they are the Turbo DROID 2 or the P1 Vibe, and restructuring that has occurred in the MBG section will better figures there next balance sheet. In fact, sales have increased in many countries, among them China (from a 19 to 70% this year), without of course forgetting emerging markets (Indonesia, India, Brazil and Russia), which also has experienced floods in the sales of smartphones.

However, in total we have obtained 12.200 millions of dollars in revenue, one higher number of which were obtained last year in the same period, although part of this amount is due to the redundancies that the company carried out (around 3,200 jobs). Thus, from the company are confident announcing plans to invest in new areas and remain strong in the face of competition. We will see if, as with the homework done their products manage to change the trend and give better results in the next quarter.