Motorola reported a Q1 loss of $ 231 million which was lower than what analysts had expected. The company had posted a loss of $ 1194 million during the corresponding quarter last year. The Q1 loss amounted to 10 cents per share.

Revenues fell by 28 percent to $5.37 billion. It managed unit sales of 14.7 million during the quarter as compared to 27.4 million recorded last year. Revenues from handset business are down by 15 percent to $1.8 billion.

The cash position fell from $ 7.4 billion to $ 6.1 billion. Motorola said that the decline was due to $700 million reduction in accounts receivable sales and about $200 million in restructuring-related payments. Cash generated in Q1 was $ 200 million.

The company expects loss in Q2 to be in the region of 3-5 cents per share. It said that it is increasing its cost savings target for 2009 by $200 million to $1.7 billion, including $1.3 billion in savings from the cellphone unit.

Company Co-CEO, Sanjay Jha said that the company’s turnover will start reflecting by Q4.