Lenovo today posted its earnings for the final quarter of FY15-16 ending March 31st that saw the company posting its first loss in six years. The company saw its revenues and sales decline in almost every market, with its smartphones sales particularly falling in China where its sales declined by over 85% in just one quarter.

For the January-March quarter, Lenovo sold 10.9 million smartphones, with Motorola smartphones contributing almost 5 million to it. The overall revenue for the mobile business stood at US$1.7 billion, with Motorola smartphones sales making the company US$ 1 billion in revenue.

The company notes in its press release that its efforts to integrate Motorola “did not meet expectations.” It also says that it could not do a successful product transition in North America that also greatly affected its sales in the region. Not all is gloomy for the Chinese company as it says that it has learned a great deal since its acquisition of Motorola and is implementing them quickly.

Going forward Lenovo will focus on the open market in China and leverage its ZUK brand there. As for the rest of the world, the company aims to get back on track with a “competitive product portfolio.”

When Lenovo had initially acquired Motorola, the company wanted to become a credible challenger “to the top two” players in the smartphone market. However, the company has failed to evolve quickly that has led other Chinese players like Oppo and vivo to catch up and even surpass it within a short period of time.

Lenovo owned Motorola has already unveiled the Moto G4 and Moto G4 Plus, with the company’s flagship — likely dubbed Moto Z — reportedly being unveiled early next month.