Motorola has warned that its profits will be lower than expected, blaming a sluggish global economy and the impact of Sars in Asia.
The company said that it now expects second-quarter sales to be between $6bn and $6.2bn, against prior guidance of $6.4bn to $6.6bn.
Motorola admitted that its personal communications segment sales of cellular handsets in Asia in the second quarter were lower than expected.
"[Sars] had a more pronounced impact on consumer purchases of cellular handsets than the company had assumed in its previous guidance," the company said.
It also blamed continuing excess levels of inventory from local handset manufacturers.
Motorola added that its semiconductor products segment is also being adversely affected by these issues in Asia.
The manufacturer's semiconductor facility in Sendai, Japan was damaged by an earthquake in late May, temporarily disrupting operations and resulting in repair and clean up costs in the second quarter.
"We are confident that health authorities in Asia will bring Sars under control and that consumer behaviour patterns in the region will return to normal. However, the timing of a return to normal conditions in Asia is uncertain," the company said in a statement.
"Motorola is also confident that consumers in Asia will then resume their purchases of cellular handsets at levels similar to those prior to the Sars outbreak."
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