Lenovo’s recent acquisitions have taken a bite out of the company’s earnings, with its net profit in the first quarter dropping 37 percent despite strong PC sales.

The Chinese company paid US$2.9 billion for Motorola Mobility and $2.1 billion for IBM’s x86 server business. Prior to the acquisitions, Lenovo typically reported strong earnings on continued PC demand in its home market.

The impact of the acquisitions was not unexpected. The Chinese PC maker has said its net profit will fall in the short-term, following the acquisitions last year.

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