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 ®

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