* Expects 2013 revenue to be flat vs prior forecast of flat to up 1 pct
* Third-qtr adj EPS $1.32 vs est $1.02
* Revenue down 2 pct to $2.11 bln vs est $2.13 bln
Oct 23 (Reuters) - Communications gear maker Motorola Solutions Inc cut its full-year revenue forecast for the third time this year and posted a steeper-than-expected fall in quarterly revenue due to a drop in government sales.
The company, which dominates the two-way radio market with its land-mobile-radio systems and walkie-talkies, had earlier forecast revenue to be flat to up 1 percent this year.
The company's revenue fell 2 percent to $2.11 billion in the third quarter, falling shy of the average analyst estimates of $2.13 billion, according to Thomson Reuters I/B/E/S.
Revenue was pulled down by a 4 percent drop in its government business, which brought in nearly 70 percent of its revenue.
However, sales rose for the first time in seven quarters in its enterprise division, which makes rugged mobile computers and tablets, data capture devices and security products.
Motorola has cut its 2013 sales forecast twice this year, saying business customers were delaying purchases.
Net income attributable to Motorola rose to $307 million, or $1.16 per share in the quarter ended Sept. 28, from $206 million, or 72 cents per share, a year earlier.
Excluding items, it earned $1.32 per share, higher than analysts' estimate of $1.02 per share.
It expects full-year adjusted earnings from continuing operations of $4.63 to $4.70 per share, higher than analysts' estimate of $4.43.
Reuters reported last week that Motorola is exploring a sale of its underperforming wireless LAN business, a part of the enterprise business, which has been losing market share to rivals such as Cisco Systems Inc.
The company's shares closed at $60.43 Tuesday on the New York Stock Exchange.