Jan 22 Motorola Solutions Inc, which
makes walkie-talkies and rugged mobile computers, reported a
slight rise in quarterly profit, helped by higher government
sales, but forecast a steep drop in first-quarter sales.
The company's government business, which accounts for 70
percent of its revenue, fared well over the past year but its
enterprise business has struggled as companies delay orders and
cut down on spending.
Motorola Solutions forecast a 4-6 percent drop in
current-quarter revenue. The forecast implies sales of $1.85
billion to $1.89 billion, well short of analysts' average
estimate of $2.02 billion.
The company said it expects earnings from continuing
operations of 46-52 cents per share. Analysts on average were
expecting earnings of 77 cents per share, according to Thomson
Revenue in Motorola's government business rose 4 percent in
the fourth quarter.
The business, which counts the U.S. government as its
largest customer, provides land-mobile-radio systems,
walkie-talkies and sells video surveillance systems.
Sales in Motorola's enterprise business rose to $736 million
from $733 million, the second consecutive quarterly growth.
Sales in the unit, which makes rugged mobile computers and
tablets for businesses, jumped 2 percent in the third quarter,
the first growth in seven quarters.
Net income rose to $343 million, or $1.31 per share, for the
fourth-quarter ended Dec. 31, from $336 million, or $1.18 per
share, a year earlier.
Excluding items, the company earned $1.67 per share from
Revenue rose to $2.50 billion from $2.44 billion.
Analysts on average had expected earnings of $1.62 per share
on revenue of $2.49 billion, according to Thomson Reuters
Motorola's shares have gained 11 percent since the company
reported its third-quarter results in October, hitting their
highest in six years on Tuesday after Citi upgraded the stock to
"buy" from "neutral".