(Reuters) - Motorola Solutions Inc reported a better-than-expected quarterly profit as it slashed costs, and the maker of walkie-talkies and radio systems raised its share buyback authorization by $5 billion.
Motorola Solutions has about $600 million remaining from its earlier $7 billion buyback program, and the new authorization takes the total to $12 billion since July 2011.
The company's total operating expenses from continuing operations fell 9 percent in the quarter ended Sept. 27, Chief Financial Officer Gino A. Bonanotte said on a conference call.
Motorola said it expected to cut costs by more than $200 million in 2014 and was on track to save $300 million by the end of 2015.
The company's shares rose 2.8 percent to $66.50 in early trading on the New York Stock Exchange on Tuesday.
Motorola, which completed the sale of its enterprise business to Zebra Technologies Corp for $3.45 billion in October, forecast a 1-3 percent fall in fourth-quarter sales due to weak government spending.
Sales to government agencies such as fire and police departments accounted for 69 percent of Motorola Solutions' sales in 2013.
The rest came from its enterprise business, which makes rugged mobile computers, tablets and barcode scanners.
Motorola Solutions' net income fell to $147 million, or 59 cents per share, in the quarter 27 from $307 million, or $1.16 per share, a year earlier.
Excluding items, the company earned 62 cents per share
Revenue fell 5.3 percent to $1.44 billion.
Analysts on average had expected a profit of 41 cents per share on revenue of $1.39 billion.
Motorola Solutions is not related to smartphone maker Motorola Mobility, which is now owned by China's Lenovo Group Ltd.
Up to Monday's close, the company's stock had fallen about 4 pct this year.
(Reporting By Arathy S Nair and Anya George Tharakan in Bangalore; Editing by Ted KerrEditing by Robin Paxton)
http://www.reuters.com/article/2014/11/04/us-motorola-solu-results-idUSKBN0IO13P20141104
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