Lenovo, the world's biggest PC maker by sales, announced this morning that its annual net profit rose one 1pc to $829m, slightly below analyst expectations, as it completed two major acquisitions during that year.
The Beijing-based firm closed in October its $2.1bn acquisition of IBM's low-end server unit and also its $2.9bn purchase of Motorola, and these purchases weighed on its profit for the year to the end of March.
Analysts had forecast a net profit of $857m.
Revenue during the 2014/15 financial year rose 20pc to $46.3bn as Lenovo expanded its share of the shrinking PC market to one-fifth. In the fourth-quarter alone, revenue rose 21pc to $11.3bn.
Lenovo said PC sales rose across all geographic regions but targeted Europe in particular as an area of potential growth.
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PC sales to businesses rose 3pc year-on-year despite a 3pc drop in the broader market, it added.
Lenovo has been expanding into enterprise computing and smartphones to offset the decline in PC sales globally.