Lenovo CEO Yang Yuanqing has sworn to cut Motorola Mobility’s losses in a few quarters, despite the company’s continued losses under Google.
He said the company could become profitable “over time” under Lenovo, helped by the launch of new products and a possible relaunch in China.
Motorola has been a drag on Google’s books since its acquisition for $12.5 billion in 2012. Google reported a $374 million operating loss for Motorola in its most recent quarter, up from $154 million the previous year.
Motorola will go to Lenovo for a fraction of the price at $2.9 billion – and Yang said he’ll work to make the company profitable “from day one” of the completion of the deal. However, he admitted that Motorola could impact Lenovo’s bottom line in the short term.
“We have already identified areas where we can cut expenses,” he told the Wall Street Journal. “Most likely it will take a couple of quarters to turn around the Motorola business. “But I definitely believe we can have a profitable business over time.”
“Motorola is still a well-known, respected brand,” he added. “So we believe we can improve our position not only in mature markets but also in China and other emerging markets.”
Lenovo also reported a 30% rise in profits for its fiscal third quarter, hitting $265.3 million, up from $204.9 million the year before. It also surpassed $10 billion in revenue for the first time, bringing in $10.8 billion.