Lenovo reports sharp drop in quarterly profit

Lenovo reports sharp drop in quarterly profit

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Lenovo reported a 67% plunge in quarterly profit over the year-earlier period, The Wall Street Journal reports. Lenovo chairman said the company's smartphone business may turn profitable by the end of 2017, but its data-center unit will stay in the red for at least another year amid fierce competition. Lenovo on Tuesday reported net income of $98 million for its third fiscal quarter ended Dec. 31. Revenue slipped to $12.2 billion, from $12.9 billion a year earlier. Lenovo shares fell 6.7% to close Thursday at HK$4.88 (63 US cents). Beijing-based Lenovo said the company's core personal-computer business grew from a year earlier, but its smartphone and data-center units posted operating losses despite two years of attempts to turn them into the primary growth drivers.