Updated from 7:40 a.m. EDT

Motorola ( MOT) took down its sales and earnings guidance for the second quarter, in part because of lower cell-phone sales in Asia, which have been hurt by SARS and excess inventory in the region.

The company now expects second-quarter sales of $6 billion to $6.2 billion, down from its prior guidance of $6.4 billion to $6.6 billion. Excluding items, Motorola expects to roughly break even for the quarter. When calculated according to generally accepted accounting principles, the company believes it will earn around 2 cents.

Previously, Motorola projected earnings of 3 cents to 5 cents excluding items and a GAAP profit of 1 cent to 3 cents a share.

Sales and earnings estimates for the full year will be lowered because of the decrease in guidance for the second quarter and because the issues affecting the second quarter are now expected to also hit the third quarter and possibly the fourth quarter.

Motorola plans to revise its full-year forecast when it announces its actual financial results for the second quarter in mid-July.

On average, analysts polled by Thomson First Call expect Motorola to earn 4 cents in the second quarter and 31 cents for the year. Wall Street is looking for sales of $6.4 billion in the quarter and $26.9 billion for 2003.

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