Feeds

Marconi lives! (But sales are slumpier)

Freed from Debtor's Prison

  • alert
  • submit to reddit

The essential guide to IT transformation

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

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
BBC: We're going to slip CODING into kids' TV
Pureed-carrot-in-ice cream C++ surprise
Twitter: La la la, we have not heard of any NUDE JLaw, Upton SELFIES
If there are any on our site it is not our fault as we are not a PUBLISHER
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.