(Telecompaper) Lenovo reported revenues for its fiscal fourth quarter up 21 percent year-on-year to USD 11.3 billion, helped by its acquisition of Motorola Mobility and the IBM server business. Organic growth was held back by negative currency effects; without the forex effect, sales would have increased 28 percent. While the gross margin improved to 15.7 percent from 13.3 a year ago, the acquisitions led to a sharp rise in operating costs. As a result, operating profit fell 45 percent to USD 127 million, and net profit dropped 38 percent to USD 100 million. Lenovo said it laid a good base for profitable growth in the past year, reducing the share of PCs in revenue to 63 percent in the last quarter. The PC market saw a seasonal slowdown in the March quarter, with shipments up just 2.7 percent year-on-year to 13.3 million. In the mobile market, Lenovo shipped 18.7 million smartphones in Q4 and a record 76 million over the full year. Motorola contributed over 7.8 million units in the quarter, and Lenovo said the company was on track to return to profit within 4-6 quarters of the acquisition. Outside Lenovo's home market China, smartphone shipments were up over four-fold to 31 million in the year, as the company expanded Lenovo-brand phones to new markets. Lenovo also grew tablet shipments 26 percent last year to 12 million units.