Lenovo Group on Thursday reported its first loss in six years, as the company's earnings were hit by acquisition and restructuring costs as well as weak sales of smartphones and personal computers. The world's biggest PC maker booked a net loss of $128 million for the business year ended March, from $829 million profit a year earlier.

Revenue fell 3 percent to $44.9 billion. In the fourth-quarter alone, revenue fell 19 percent.

Lenovo said profit was pulled down by costs of multi-billion dollar acquisitions in 2014 - for the Motorola handset division of Google and low-end server arm of IBM.

"Last quarter, despite challenging economic and industry conditions that hurt our top line, the decisive actions we took mid-year allowed us to protect our profitability. We kept our core PC business strong, continuously improved profitability in enterprise and saw positive momentum in some key smartphone markets." said Yang Yuanqing, Lenovo Chairman and CEO. "Facing the operational issues in the businesses, we have already taken a number of proactive actions, including making key decisions in organization, leadership, products and channels to get back to growth in mobile, and adopting a new multi-business operating system to unleash the productivity and creativity of each business. At the same time, we will integrate our traditional strength in end-user devices with our new capabilities in cloud and infrastructure to attack the balanced Device + Cloud opportunities."

In Lenovo's PC Group or PCG, which includes PCs and Windows tablets, Lenovo’s quarterly sales were US$6.2 billion, with pre-tax income of US$312 million, down 20 percent year-over-year. Lenovo will attack new growth areas – such as gaming and detachables – in the expanded PC market and continue to take advantage of consolidation to strengthen revenue performance. Lenovo shipped 12.1 million PCs in the quarter for a total market share of 20.2 percent in the quarter and 21 percent for the full year. In Q4, Lenovo tied with Apple for #1 in the expanded PC market, which includes traditional PCs, detachables and slate tablets. Lenovo saw strong performances in North America where it had 19 percent growth and remained #3.

In the Mobile Business Group or MBG, which includes products from the Motorola investment, Lenovo-branded mobile phone business, Android tablets and smart TVs, Lenovo quarterly sales were US$1.7 billion. Lenovo had 10.9 million smartphone shipments in Q4 and 66.1 million in the full year. For the full year, markets outside China saw 63 percent growth hitting 51 million smartphone devices shipped. In tablets, Lenovo outpaced the market and continued to grow with nearly 11 million units shipped, and 5.4 percent market share. Motorola contributed nearly 5 million units in the quarter to Lenovo’s total, while adding US$1.0 billion to Lenovo’s MBG revenues.

"These results show integration efforts did not meet expectations. In particular, China shipments declined 85% as the business shifted focus to open market and higher price bands and product transition in North America was not successful," Lenovo said.