Smartphone maker Lenovo on Thursday posted its first loss in six years, with earnings dragged down by the costs of acquisition and restructuring as well as weak sales of smartphones and personal computers.

Lenovo reported a net loss of $128 million for the business year that ended on March 31, in comparison with an $829 million profit in the previous year, according to NDTV.

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Its revenue plunged three percent to $44.9 billion although at constant currency exchange rates its revenue climbed by percent, according to Yahoo. Meanwhile, in the fourth quarter, Lenovo's revenue plummeted by 19 percent as the company attempted to shift from producing PCs to creating smartphones and servers. 

Its profit was severely pulled down by the cost of its acquisition of Motorola from Google and International Business Machines Corp. in 2014.

Lenovo also spent $923 million on restructuring and cleaning up its smartphone inventory.

The decline in Lenovo's revenue was "due to currency fluctuation and the slower PC demand, while the Group was building up the quality of its smartphone business," Yang Yuanqing, Lenovo's chief executive, said.

Experts have noted that the company's cost-cutting strategy was not enough to compensate for its smartphone sales, which ended up lower than anticipated.

"These results show integration efforts did not meet expectations," Yang admitted. Nevertheless, he said the company does not regret its decision to acquire Motorola as "we would not have had the global footprint we see today."

Lenovo is thus venturing on the possibility of a Chinese listing.

"We have been looking for ways to raise value of shareholders," Wong Wai, Lenovo's president and chief financial officer, said. "Listing in another market is an option and China is a good market." 

TagsLenovo, Motorola, Smartphone