Marconi cut losses and upped sales for the three months ended 31 December, its third quarter. Sales were up to £330m, a five per cent improvement on a year ago.

Group operating loss was £21m, down from £66m last year.

Broadband routing and switches sales fell to £30m from £43m in the same quarter of last year because US defence spending was diverted to other projects.

Major contract wins included a deal with Deutsche Telecom's fixed line business T-Com, a DSL deal with Bulldog Communications and a services contract with Energis. Marconi also won a £150m contract to upgrade Tubes Lines Ltd's communications network.

Marconi expects its deal with Chinese firm Huawei to improve the broadband unit's performance.

The UK accounted for £119m in sales, 36.1 per cent. Italy provided £37m, Germany £72m and other EMEA countries contributed £46m. Full unaudited results are available for download on Marconi's website here (http://www.marconi.co.uk/Home/press_office/News%20%26%20Events/Headlines/Unaudited%20Results%20for%20the%20Three%20and%20Nine%20Months%20Ended%2031%20December%202004/index.html) ®

Related stories

Marconi picks Chinese hardware partner (http://www.theregister.co.uk/2005/01/31/marconi_goes_china/)
Marconi chief falls on own axe (http://www.theregister.co.uk/2004/11/02/marconi_man_goes/)
Marconi back in the black (http://www.theregister.co.uk/2004/05/19/marconi_profits/)