Last time Lenovo released quarterly financial results, the world's biggest PC maker missed targets and planned job cuts. In the second quarter (PDF) of its 2015-2016 fiscal year, the company is still on stormy seas. Revenue grew 16% year-over-year to $12.2 billion, but those gains didn't stop Lenovo from losing $714 million. That loss is due in part to one-time charges related to the restructuring plan announced last quarter, as well as a $324 million write-down of unsold smartphone inventory.
Lenovo continues to solidify its position as the number-one PC maker in the world. It says its products now account for 21.2% of all PCs sold. The PC Group's division took in $8.1 billion, with a pre-tax profit of $401 million (excluding restructuring costs). That revenue figure is down 17% year-over-year, though.
The company's Mobile Business Group is struggling a bit. The division recorded a loss of $214 million on $2.4 billion in revenue. Tablet sales were up less than 1%, but because the world tablet market is in a steep decline, Lenovo says that slight increase actually resulted in a record share of that market. The company also sold 18.8 million phones worldwide in the quarter. Overall, Lenovo says this business on track to break even within one to two quarters.
The Enterprise Business Group's sales increased 5.5 times year-over-year—to $1.2 billion—thanks in large part to the inclusion of $900 million in sales of System x servers. Despite that impressive growth, this division posted a $33 million loss. Lenovo is optimistic that its server group will continue to grow, and become profitable yet later this fiscal year.