April 24 (Reuters) - Communications gear maker Motorola Solutions Inc reported lower-than-expected first-quarter revenue as growth slowed in its government business, and it cut its full-year revenue forecast.
The company, which sells mainly to government agencies, downgraded its revenue forecast for this year to about 3 to 4 percent growth. In January it had forecast growth of 5 to 5.5 percent.
The company maintained its outlook of adjusted operating income of about 18 percent of sales for the year.
For 2013, analysts on average were expecting earnings of $3.72 cents per share on revenue of $9.16 billion, according to Thomson Reuters I/B/E/S.
Motorola said in January it expected growth in its government business, which brought in nearly 70 percent of its total revenue last year, to moderate in 2013 after the end of an upgrade program for two-way radios.
The company benefited over the past year as two-way radio users were required by the Federal Communications Commission to upgrade their devices for a switch to narrow bands of 12.5 kHz from wideband channels of 25 kHz by Jan. 1.
Motorola Solutions dominates the two-way radio market with its land-mobile-radio systems and public-safety products, and the U.S. government is its largest customer.
Net income from continuing operations rose to $192 million, or 68 cents per share in the first quarter, from $159 million, or 50 cents per share, a year earlier.
Excluding items, the company earned 66 cents per share from continuing operations.
Revenue rose by about a percent to $1.97 billion. Sales in its government business rose 3 percent to $1.35 billion.
Analysts on average had expected earnings of 66 cents per share on revenue of $2.05 billion.
Shares of the Schaumburg, Illinois-based company closed at $61.75 on the New York Stock Exchange on Tuesday.