BEIJING: Lenovo reported a surprise net loss of $289m in the December quarter as the Chinese computer manufacturer recorded a one-time write-off of $400m of deferred income tax assets thanks to the tax reform passed in the US at the end of 2017. An average of analyst estimates had forecast net profit for the quarter of $124.5m. It recorded a net profit of $98m in the same quarter a year earlier.
The loss came despite the company recording revenue growth of 6 per cent year on year to $12.9bn for the third quarter even with higher component costs and a marginal loss in market share (to 22.2 per cent) for its PC and smart device unit, which accounted for 72 per cent of the company’s total.
