UPDATE: Motorola Solutions 4Q Net Falls 37% On Charges

Motorola Solutions Inc.'s (MSI) fourth-quarter earnings fell 37% as charges masked the company's stronger-than-expected revenue growth.

The provider of public safety radios, handheld scanners and telecommunications network gear was created last year in the split of Motorola Inc., which spun off the higher-profile mobile-devices and TV-set-top-box operations into Motorola Mobility Holdings Inc. (MMI).

Motorola Solutions reported a fourth-quarter profit of $184 million, down from $292 million a year earlier. On a per-share basis, earnings rose to 54 cents from 49 cents due to fewer shares outstanding in the most-recent quarter. Excluding items such as stock-based compensation, amortization and reorganization costs, earnings rose to 87 cents from 64 cents. Revenue jumped 5.3% to $2.3 billion.

The company said it expected sales growth to slow to 5% this year, compared with 8% in 2011. That includes an expected 4% increase in first-quarter revenue, lower than last year's 8% rise. For this year's first three months, the manufacturer said it expects between 50 cents and 55 cents a share in earnings from continuing operations, which is about the same as last year's result.

Analysts surveyed by Thomson Reuters expect 56 cents a share on 3% revenue growth.

In the fourth quarter, government sales increased 6%, and the enterprise business posted a 3% jump. While North America remains Motorola Solutions's largest enterprise market, comprising 57% of that division's sales, Asia is the fastest growing, followed by Latin America. Motorola Solutions lifted enterprise revenue in those regions by 14% and 10%, respectively, compared with just 5% for North America.

Its October projection was adjusted earnings from continuing operations of 78 cents to 83 cents a share on 2% to 3% sales growth.

Gross margin rose to 50.4% from 49.8%.

Shares closed Tuesday at $47.86 and were inactive premarket. The stock has risen 5.7% over the past three months.

--By Greg Bensinger, Dow Jones Newswires; 212-416-4676; greg.bensinger@dowjones.com

--Melodie Warner contributed to this report.

Motorola Solutions (NYSE:MSI)
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