Motorola Inc posted a small quarterly profit on Thursday and forecast a bigger-than-expected profit for the current quarter, when it starts selling new advanced cellphones in an effort to revamp that business.

Motorola posted a third-quarter profit of $12 million, or 1 cent per share, compared with a loss of $397 million, or 18 cents a share, a year earlier. Revenue fell 27 percent to $5.45 billion, compared with Wall Street estimates of $5.54 billion, according to Thomson Reuters I/B/E/S.

The company, which has been losing ground in the cellphone market for more than two years, shipped 13.6 million handsets in the quarter, compared with 25.4 million in the same quarter the year before.

The report follows the introduction of two phones based on Google Inc's Android system, around which Motorola reorganized its entire cellphone business.

(Reporting by Sinead Carew; Editing by Derek Caney)