Motorola reported a 17 percent increase in revenue during the third quarter. Shares slipped, however, following news that the handset maker reported a 45 percent drop in profit.

Revenue came in at $10.6 billion, up from $9.05 billion. Despite the gain, however, the company fell short of analysts' expectations of $11.07 billion. The company's wireless handset division, fueled in large part to the popularity of its RAZR handset, reported a 26 percent increase in revenue, which reached $7.03 billion.

Mobile phone shipments totaled 53.7 million at the end of the period, bumping the company's global handset market share to 22.4 percent. Year-over-year, handset shipments were up 39 percent.

Earnings plummeted to $968 million, or 39 cents a share, from $1.75 billion, or 69 cents a share, a year ago.

"During the quarter, GSM infrastructure sales in the Europe, Middle East and Africa region were weaker than anticipated due to customer delays in capital spending," said Ed Zander, Motorola's chairman and CEO, in a prepared statement. Zander also pointed to lower sales of iDEN mobile devices as cause for the profit dip.

Looking ahead to the fourth quarter, Motorola expects sales to come in between $11.8 billion and $12.1 billion, which would represent an 18 to 21 percent quarter-over-quarter increase.

At one point, Motorola shares were down $1.22, or 4.9 percent, to $23.63. Nearly 43 million shares were trading hands, which is well above the company's average daily volume of 18.9 million.

Rival Nokia is set to release its latest financial results on Thursday.