Motorola reported sales of $7.5 billion in the first quarter of 2008, down $2 billion compared with its first quarter of 2007.

The company narrowed its net loss slightly, from $218 million a year ago to $194 million in the first quarter just completed.

CEO Greg Brown affirmed that Motorola will separate its shrinking Mobile Devices operation from its Home and Networks Mobility and Enterprise Mobility Solutions businesses, which he said “continue to expand their portfolios of solutions, grow internationally and deliver solid financial results.”

While sales were down in the mobile segment, they were up in the other two divisions.

Motorola reported strong demand for high-definition (HD) and digital video recorder (DVR) devices, to the tune of four million digital entertainment devices shipped during the quarter.

Looking ahead to the second quarter, Motorola expects another loss, but an even smaller one.

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