Marconi ups revs in Q2
Turns in profit as well
Marconi increased revenues for the three months to September, the UK telecoms equipment maker reported today.
Its Q2 results published today revealed that revenues from continuing operations in the second quarter were £312m, up from £285m in the first quarter and £305m last year, as lower revenues from network services were offset by increased cash from other divisions.
Adjusted operating profit skipped in at £7m compared to an adjusted Q1 loss of £6m and a £2m last year. Group profits were £5m compared to losses of £36m in Q1 and £6m a year ago.
Marconi's ten largest customers - which include BT, Deutsche Telekom, O2, Telecom Italia, Telstra, the US Federal Government and Vodafone - accounted for more than half of all the equipment maker's sales during Q2.
Four weeks ago Swedish phone giant Ericsson announced it was splashing out £1.2bn for the name and most of the assets of Marconi.
As part of the deal Ericsson gets Marconi trade marks, its optical networks business, the majority of its Access Networks business, its data networks and services business in North America and services business in the Middle East. Around 20 per cent of the workforce are likely to face the chop.
The remnants of the firm will be renamed Telent and focus on services for telcos and enterprises - it will be Ericsson's preferred partner in the UK. It will stay on the London Stock Exchange and will keep the UK telecoms business, UK and German services business and System X narrowband digital switches and the payphones business. ®