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Thursday, 25 July 2013 10:08

Motorola slashes sales forecast

Written by Nick Farrell

Over and out 

Motorola Solutions, which is known for its walkie-talkies, has slashed its 2013 sales forecast for the second time in three months. Motorola spun off its mobile phone arm into Motorola Mobility in January 2011 and renamed itself Motorola Solutions. Motorola Mobility was later sold to Google.

Chief Financial Officer Ed Fitzpatrick said on a post-earnings conference call that it looks like profits at Motorola Solution’s enterprise business are expected to fall by a low-single digit percentage. Enterprise business revenue, which makes up about a third of total revenue, declined for the sixth straight quarter in the three months ended June 29.

Chief Executive Greg Brown said that the industry is being impacted by customers carefully managing their IT budgets in the face of macro uncertainty. Others say that Motorola Solutions is taking too much time developing and launching new products. For example there was a delay in launching Microsoft Windows 8-based products from the second half of this year to the first of 2014.

Nick Farrell

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