Lenovo has reported a net loss of $714 million after being hit by restructuring costs.

Second-quarter earnings were affected by charges of $923 million related to job cuts and clearing stocks of smartphones.

However, the loss was not as large as forecast and the Chinese computer and smartphone giant’s revenue rose 16% to $12.2 billion.

Lenovo, which is the world’s biggest PC maker, saw its Hong Kong-listed shares rise more than 5% on the news.

Photo Lenovo

The company said it had continued to experience a declining PC market during the period, together with slowing smartphone and tablet sales globally.

In a statement, Lenovo said: “The macro-economy and global markets remained challenging, along with currency fluctuations in emerging markets.

“In addition, the China smartphone market continued to see a market shift from traditional carrier channels to online, while competition in China further intensified.”

Lenovo said that its restructuring program, which included 3,200 job cuts announced earlier this year, was set to generate annual cost savings of $1.35 billion.

In 2014, Lenovo bought the Motorola brand from Google for $2.9 billion in an attempt to boost its position in the smartphone market.

Lenovo said its share of the global smartphone market had increased to 5.3% in Q3 of 2015, pushing it to the number four position worldwide.