Marconi Sees Sales Rise in Latest Quarter

Marconi's sales for the latest fiscal quarter rose 6% sequentially to £378 million on a constant currency basis -- in line with expectations and previous guidance -- or 1% after taking into account negative foreign exchange issues. The company reported continued improvement in operating performance and strong progress on its underlying adjusted gross margin, which is expected to be at the top-end of its 28% to 30% target. Sales of optical equipment to Telecom Italia were down, but more than offset by increasing SDH sales to BT. (BT accounted for 22% of Marconi's overall sales for the quarter). Telecom Italia's accelerated broadband deployment was the major contributor a substantial increase in Access Hub sales during the quarter. Sales of fixed wireless access equipment dropped slightly. Sales of Marconi's BBRS equipment and services rose 7% in the quarter due to a strong increase is sales to the U.S. federal government, including additional sales of the BXR-48000 multiservice switch router.



Marconi also confirmed its sales outlook for the coming quarter. http://www.marconi.com