Motorola Radio Unit Reports Sales Decline

Radio and electronics company Motorola Inc. reported another in a series of quarterly losses, with the company’s radio division turned in a narrow profit on a sales decline of 11%. The company’s financial results continue to be impacted by competition in the cellular handset market. Sales of handsets was down significantly for the quarter, as the company cut expenses and tried to introduce new handset models to jumpstart sales. The company reported revenue of $5.3 billion for the first fiscal quarter of 2009, and posted a loss of $449 million. The company’s Enterprise Mobility Solutions unit, which includes public safety radios and systems, reported sales of $1.6 billion, compared to $1.8 billion for Q2 2008. Profit dropped to $156 million, compared to $250 million for the same quarter of 2008. In a press release, Motorola said it expanded its public safety portfolio with the new ASTRO 25 Express system, and secured public safety contracts for the State of Mississippi, Pernambuco State in Brazil and the Danish Police. The company forecast declining sales for the second quarter of 2009, and a possible loss of $449 million.