BEIJING, Feb. 3 -- Quarterly revenue of Lenovo Group, the world's biggest personal computer maker and third-largest smartphone producer, reached 14.1 billion U.S. dollars by the end of 2014, up 31 percent year on year, the company said on Tuesday.

The company's gross profit increased by 54 percent to 2.1 billion U.S. dollars in the three months through December while its net income declined by 5 percent to 253 million U.S. dollars.

Lenovo fully acquired Motorola's mobile business in October. It also acquired IBM Corp.'s low-end server business in September.

"Our core PC business maintained its leading position and further improved profitability. The two newly acquired businesses are achieving great momentum in their first quarter of integration," said Yang Yuanqing, chairman and CEO of Lenovo.

Motorola for the first time sold more than 10 million units in the quarter and it is now re-entering the Chinese market following a two-year absence.

Lenovo shipped 16 million PCs in the quarter, up 4.9 percent year on year, accounting for a 20 percent share of the global market. Its sales of PCs and Windows tablets reached 9.2 billion U.S. dollars in the quarter.