Lenovo has released its fourth financial quarter report, revealing a profit decline of 36.7% compared to a year ago. In the three months ending March 31, Lenovo had a net income of $100 million compared to a net income of $158 million in the previous year. cRevenue jumped by 21% and year-over-year revenue was up by 20%. All of those numbers are pretty good and Lenovo has beaten analyst expectations.

This quarter included the acquisition of Motorola Mobility and the X86 server business from IBM since those deals closed in October 2014. Motorola is now wrapped into the mobile division at Lenovo and that division saw 18.7 million phone shipments in the quarter.

Lenovo believes the Motorola unit is going to become profitable again within 1-1.5 years and its re-entrance into the Chinese market will help.

The PC group at Lenovo helped the most. Quarterly sales reached $7.2 billion and year-over-year income was up by 11%.