Feeds

Marconi revs flat

Restructuring costs bite

  • alert
  • submit to reddit

Eight steps to building an HP BladeSystem

Revenues at Marconi remain "stable", the UK telecoms equipment maker announced today.

Takings from continuing operations for the three months to the end of June (Q1) were £285m compared to £289m during the same period last year.

This was boosted by a strong performance from Marconi's operations in Asia Pacific and an increased rate of broadband access network deployment in the UK. However, this was offset by a decline in data networks in the UK and Italy.

Q1 loss from continuing operations climbed to £36m compared to a loss of £11m last year. Much of this was due to £27m restructuring costs after Marconi failed to win a slice of business from BT's £10bn investment in its new 21st Century Network (21CN).

As a result, Marconi announced plans in May to axe 800 workers in the UK, a move that was widely expected following Marconi's failure to become a preferred supplier for 21CN.

Although BT had said Marconi's telecoms gear was up to scratch, the UK's dominant fixed-line telco said that Marconi's price just wasn't competitive.

The restructuring is expected to give Marconi room to "dismantle much of the current UK-based central operations organisation leading to significant cost savings". The company is also looking at introducing other "overhead cost reduction initiatives" across the whole business in a bid to save money.

Speaking today Marconi chief exec Mike Parton said that despite recent set backs the company's order book looked "healthy".

"We achieved solid results in the quarter despite a very competitive marketplace. We have seen new wins for our next-generation products with customers such as Cable and Wireless and Vodafone.

"Despite continuous and significant changes in our industry's dynamics the business has been stabilised giving us the opportunity to consider the best future from this stronger base," he said.

By mid morning shares in Marconi were down 4.85p at 268.65p. ®

Related stories

MPs accuse BT of 'exploiting low wages in China'
DTI reaches out to struggling Marconi
Marconi culls 800 jobs
Unions hold powwow with Marconi over job fears
Marconi mulls bleak future following BT bombshell
Job fears haunt Marconi
Marconi savaged after failure to win BT 21CN deal

Mobile application security vulnerability report

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
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.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.