Lenovo, which is fighting a global downward trend in PC sales and has seen its smartphone sales fall sharply, is taking a beating in the stock market today after reporting an 8 percent drop in revenues for 2015’s year-ending quarter.

Shares dropped 11 percent in Hong Kong.

Lenovo reported earlier Wednesday $12.9 billion in revenue, which missed Thomson Reuters expectations of $13.2 billion.

However, profits did rise to $300 million, up from $253 million a year ago and topping analysts’ expectations of $226 million.

[For WTW Insiders: An in-depth analysis of where Lenovo’s business stands.]

Lenovo, which operates one of its two executive headquarters in Morrisville, attributed much of a return to profitability to restructuring and layoffs made in 2015.

“Lenovo swiftly concluded its restructuring plan and is on track to deliver savings of US$650 million in the second half of the year and US$1.35 billion annually,” the company said in the earnings announcement.

The quarterly report could accelerate Lenovo’s shifting focus to global emerging markets outside of China, where most of its operations are based. India has become a big market for Lenovo, especially in smartphones where it routinely sells thousands of new devices within seconds through so-called “flash sales.”

“Lenovo has no better options but to shift focus to emerging markets,” Jefferies analyst Ken Hui told Reuters. “It’s hard for Lenovo to compete in mature markets, and the margins in the China market are too low.”

Research firms have reported big sales drops in smartphones for Lenovo. The company has already cut hundreds of jobs in the Motorola Mobility phone business in acquired from Google.

Lenovo also made layoffs in other units last year.

While the company strengthened its hold on the No.1 ranking in PC sales, Lenovo’s bright spot was increasing sales and market share in the U.S.

Lenovo also is seeing growing in another declining market – tablets. Lenovo recently has put increasing focus on development of “detachables” such as its Yoga product line.

“Last quarter, although we were impacted by the global macro-economic slowdown, currency fluctuations in key markets, and PC market decline, Lenovo still achieved record high profit and delivered on our commitment to turn around the Mobile business,” said Yuanqing Yang, Lenovo’s chair and CEO, in a statement.

“Next, in PCs, we will leverage the consolidation trend, commercial PC replacement, and opportunities in innovative product categories to drive growth. In Mobile, we will build scale and efficiency to accelerate our growth in emerging markets, breakthrough in mature markets with innovative products and premium brands, and expand in the open market in China with a stronger product portfolio.

“And finally, in Enterprise, we will leverage leading technologies and strategic partnerships to drive profitable growth.”

Read the full financial report at: