The company said it expects second-quarter adjusted profit of 58-64 cents per share. It also forecast a 5-8 percent fall in revenue, implying revenue of USD 1.94 billion-USD 2 billion.

Analysts on average were expecting a profit of 84 cents per share on revenue of USD 2.05 billion.

Motorola expects revenue to fall at a low single-digit rate for the full year.

"... We will accelerate ongoing cost actions to improve our competitiveness and operating leverage going forward," Chief Executive Greg Brown said in a statement on Thursday.

The company said net income fell to USD 127 million, or 49 cents per share, for the first quarter ended March 29, from USD 192 million, or 68 cents per share, a year earlier.

Excluding items, the company earned 50 cents per share, in line with analysts' estimates.

Revenue fell 9 percent to USD 1.8 billion. Analysts expected sales of USD 1.82 billion.

Sales in its government unit fell 11 percent to USD 1.2 billion. The business, which includes the U.S. government as its largest customer, provides land-mobile-radio systems, walkie-talkies and sells video surveillance systems.

Sales in its enterprise business fell 4 percent due to lower demand for iDEN wireless communication products.

Motorola will be retaining its iDEN products portfolio after it sells its enterprise business to barcode printer maker Zebra Technologies Corp for USD 3.45 billion.

Shares of the company closed at USD 63.58 on the New York Stock Exchange on Wednesday.


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