Feeds

Marconi lives! (But sales are slumpier)

Freed from Debtor's Prison

  • alert
  • submit to reddit

High performance access to file storage

ComputerWire: IT Industry Intelligence

Marconi Plc has finally clinched the deal that it sketched out in August to hand 99.5% of its equity to its creditors and it expects to finally emerge from a humiliating reorganization before the end of its financial year on March 31, 2003.

In a deal delayed by continual haggling with creditors, Marconi has been forced to accept higher interest charges and deeper cuts as the price of being freed from a 2.8bn pounds ($4.4bn) debt burden.

Dealing with bankers however is child's play compared to coping with the downturn in the market for telecoms equipment. In the six months to September 30, the firm's net loss was 730m pounds ($1.2bn), down from a loss of $5bn ($7.9bn) on revenue down 54.8% to 1bn pounds ($1.59bn).

Marconi now plans to bring the workforce in its core business to down to 14,000, compared with its original target of 15,000 though the company hopes that natural wastage will bring about the lower figure.

The target is to get costs down to 450m pounds ($715.5m) its the next financial year, compared with the previous target of 520m pounds ($826.8m).

CEO Mike Parton had little optimism about market conditions. "We are not expecting any upturn. We are expecting the market to remain tough." While Italy has shown some resilience and it had hopes of eventually profiting from BT Group Plc's broadband push, there was no joy in the US where the RBOCs were still reining back spending.

© ComputerWire

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Nokia offers 'voluntary retirement' to 6,000+ Indian employees
India's 'predictability and stability' cited as mobe-maker's tax payment deadline nears
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
Adrian Mole author Sue Townsend dies at 68
RIP Blighty's best-selling author of the 1980s
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Analysts: Bright future for smartphones, tablets, wearables
There's plenty of good money to be made if you stay out of the PC market
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.