Motorola Solutions Q1 revenue dips 9%, net income declined 21%

Motorola Solutions today said its first quarter (Q1) 2014 revenue decreased 9 percent to $1.8 billion. Net income declined 21 percent to $170 million.

Revenue performance of both enterprise and government segments was not up to the mark.

Future is also not a promising one for the company. Motorola Solutions expects a revenue decline of 5 to 8 percent in the second quarter of 2014. The company expects a revenue decline of low single digits in 2014.

In Q1 2014, Government segment sales dipped 11 percent to $1.2 billion reflecting lower aged backlog in the quarter and a challenging year-ago comparison in the Federal business. In addition, North America sales were weaker than expected due to lower ASTRO and professional commercial radio subscriber volume. Global sales were strong in TETRA, and the services business grew single-digits.

Greg Brown, chairman and CEO, Motorola Solutions

Enterprise segment sales slipped 4 percent to $600 million due to decline in iDEN. Excluding the impact of iDEN, enterprise revenues dipped less than 1 percent primarily driven by the delay of several deals late in the quarter, primarily in North America.

Greg Brown, chairman and CEO, Motorola Solutions, said: “The long-term fundamentals of our Government business remain solid and, with the announced sale of the Enterprise business, we will accelerate ongoing cost actions to improve our competitiveness and operating leverage going forward.”

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