Motorola reported a loss of $0.27 per share on net revenue of $3.0 billion for the quarter. The loss is better than the $0.72 per share it lost in the first quarter this year. Net revenue was up 22 percent from the first quarter of 2010. Analysts polled by Thomson Financial had given an average forecast of $2.84 billion in revenue. Excluding certain items, Motorola Mobility reported a loss of $0.08 per share, beating the analysts' forecast of a $0.12 loss per share.

The company expected a challenging first quarter, in part due to new competition at Verizon from the iPhone. The Droid franchise at Verizon has been a big driver of sales for Motorola.