For the first quarter of fiscal year 2004, the telecom equipment maker posted a net loss of 88m pounds ($138.6m), down from a net loss of 346m pounds ($545.2m), on revenue down 31% at 367m pounds ($578.4m), from 533m pounds ($840m) in the year-ago quarter. Restructuring costs have risen to 30m pounds ($47.2m), twice as much as first projected.
The results were disappointing bearing in mind the significant cost savings from Marconi’s huge lay-off program, and the sell-off of non-core assets. Marconi employed 56,000 people as of April 2001. However, it announced further restructuring plans earlier this year, and it expects to bring staff numbers down to 13,000 by next March.
Looking forward, chief executive Mike Parton, who could make up to 22.5m pounds ($35.4m) if he succeeds in turning the company around, said that sales should stabilize or begin to increase in the current quarter ending September, as many Marconi customers are reaching points at which they need to splash out on maintenance programs.
Source: Computerwire
