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UPDATE 2-Motorola Solutions' sales rise

Published 01/27/2011, 08:38 AM
Updated 01/27/2011, 08:40 AM

* Revenue rises 13 pct to $2.246 billion

* Forecasts sales growth of 3 pct to 4 pct in Q1 2011

* Enterprise sales increased 23 pct in Q4 (Adds outlook, details on segment sales, byline)

By Liana B. Baker

NEW YORK, Jan 27 (Reuters) - Motorola Solutions Inc posted a 13 percent increase in quarterly revenue as demand for its wireless equipment rose because corporations loosened their purse strings as the economy improved.

In its first quarterly report as an independent company, the supplier of wireless gadgets like walkie-talkies to government agencies and corporate clients, Motorola Solutions' revenue rose to $2.246 billion from $1.983 billion in the year- ago quarter if it had been a stand-alone company.

The company forecast sales growth of 3 percent to 4 percent in the first quarter of 2011 and earnings per share from continuing operations of 29 cents a share to 34 cents a share.

Motorola Solutions said the forecast excludes the portion of the Networks business expected to be acquired by Nokia Siemens Networks in the first quarter of 2011.

Government sales rose 9 percent to $1.5 billion and enterprise sales were $772 million, an increase of 23 percent from a year earlier.

It posted $279 million from operating earnings, compared with $250 million in the year-ago quarter if it had been a stand-alone company.

The company said its EPS was 14 cents, adjusting for the spinoff of its handset and set-top business in January. It said it could not provide a GAAP EPS figure.

Motorola Inc split in two on Jan. 4 to form Motorola Solutions and Motorola Mobility, the handset and set-top box business.

Shares of Motorola Solutions closed at $39.24 on Wednesday on the New York Stock Exchange. (Reporting by Liana B. Baker and Sinead Carew; editing by Dave Zimmerman and Maureen Bavdek)

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