(Reuters) - Motorola Solutions Inc, a maker of walkie-talkies and radio systems, reported lower-than-expected second-quarter revenue and profit, partly hurt by lower U.S. government spending.
The company, whose shares were down 6 percent in premarket trading, also forecast a 7-9 percent fall in revenue this quarter.
Motorola Solutions, split from Motorola Inc in 2011, said it expects earnings of 35-41 cents per share from continuing operations for the third quarter ending September.
The company said on Tuesday it expects to cut costs by about $300 million (224.14 million pounds) by the end of 2015 — more than its targeted $200 million.
Motorola Solutions has been cutting costs to boost profitability in the face of declining spending by the U.S. government.
The company said product sales fell 10 percent in the second quarter ended June 28, primarily due to lower subscriber and systems revenue. The business contributes about a third of total revenue.
Total sales fell to $1.39 billion from $1.50 billion a year earlier and were well below the average analyst estimate of $1.96 billion, according to Thomson Reuters I/B/E/S.
Net earnings attributable to Motorola Solutions increased to $824 million, or $3.22 per share, from $258 million, or 94 cents per share, a year earlier.
The income included a gain of $746 million from Motorola's enterprise business, which the company now classifies as 'discontinued operations' after agreeing to sell it to Zebra Technologies Corp.
Excluding items, Motorola earned 47 cents per share, while analysts expected earnings of 63 cents per share.
Schaumburg, Illinois-based Motorola's shares closed at $64.11 on the New York Stock Exchange on Monday. They gained about 14 percent in the 12 months to Monday's close — almost in line with the S&P 500 index.
(Reporting by Sagarika Jaisinghani in Bangalore; Editing by Joyjeet Das)