Motorola Solutions cuts 2013 sales forecast again Jul 24th 2013, 17:50
(Reuters) - Communications gear maker Motorola Solutions Inc cut its full-year sales forecast for the second time as it struggled with a slowdown in sales to businesses, and posted quarterly revenue below analysts' estimates.
The company forecast revenue of between $8.69 billion (5.68 billion pounds) and $8.77 billion for 2013, missing the $8.93 billion analysts were looking for on average, according to Thomson Reuters I/B/E/S.
It said enterprise sales fell 5 percent in the second quarter to $656 million, dragging down overall revenue by 2 percent to $2.10 billion.
Motorola said in April its enterprise business had a tough start to the year as large customers delayed projects, contemplating a transition to Android or Windows 8 operating systems.
Motorola's enterprise business manufactures and sells rugged and enterprise-grade mobile computers, tablets and security products.
Despite the fall in sales, net income from continuing operations rose to $258 million, or 94 cents per share, in the second quarter from $177 million, or 60 cents per share, a year earlier.
Excluding one-time items, the company, which dominates the two-way radio market with its land-mobile-radio systems and walkie-talkies, earned $1.12 per share from continuing operations.
Analysts had estimated earnings of $1.04 per share on revenue of $2.13 billion.
The company maintained its forecast for a full-year adjusted operating margin of about 18 percent.
Motorola Solutions, which had earlier forecast a full-year revenue growth of 3-4 percent, said it now sees full-year revenue remaining flat or rising 1 percent.
The company authorized a $2 billion share repurchase program in addition to the $5 billion currently in place.
Motorola Solutions is not related to Motorola Mobility, the cellphone maker bought by Google Inc in 2011.
Motorola shares closed at $59.98 on the New York Stock Exchange on Tuesday.
(The story has been filed again to correct the adj earnings as $1.12 per share, not 1.12 cents in the seventh paragraph.)
(Reporting by Neha Alawadhi in Bangalore; Editing by Saumyadeb Chakrabarty and Sreejiraj Eluvangal)