Lenovo completes sales of handset unit
San Francisco - Lenovo Group completed the sale of its handset unit to a group of investors on March 31, the company said Thursday, marking the official end of its foray into the mobile phone business.
Mobile phones were never much of a success for Lenovo, and executives ultimately decided the business was a distraction from the company's core PC business. The deal to dispose of the handset business, which Lenovo valued at $100 million in January, was approved by shareholders on March 17, clearing the last hurdle to the sale.
Lenovo's handsets were sold primarily in China, accounting for $108 million in revenue during the quarter ended on Dec. 31, 2007. That figure represented 2.4 percent of the company's total sales during that period. During the quarter, the company reported that handset shipments declined by 31 percent compared to the previous year.
Proceeds from the sale of the mobile phone unit will be reflected in Lenovo's fiscal fourth-quarter and annual results. The company's fiscal year ended on March 31.
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Mobile phones were never much of a success for Lenovo, and executives ultimately decided the business was a distraction from the company's core PC business. The deal to dispose of the handset business, which Lenovo valued at $100 million in January, was approved by shareholders on March 17, clearing the last hurdle to the sale.
Lenovo's handsets were sold primarily in China, accounting for $108 million in revenue during the quarter ended on Dec. 31, 2007. That figure represented 2.4 percent of the company's total sales during that period. During the quarter, the company reported that handset shipments declined by 31 percent compared to the previous year.
Proceeds from the sale of the mobile phone unit will be reflected in Lenovo's fiscal fourth-quarter and annual results. The company's fiscal year ended on March 31.
source
Type rest of the post here
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