UK-based telecoms equipment, services and solutions provider Marconi Corporation announced results for the three months ended 30 June. Group revenue totalled GBP 285 million, slightly down from GBP 289 million in the previous quarter and down from GBP 289 in Q2 2004. Adjusted Gross Margin was 30.2 percent, down from last year's 32.2 percent. According to Marconi, the decrease is driven by pricing pressure and changes in business mix, with a decreased proportion of higher margin Optical products, an increased proportion of lower margin Access products and a higher percentage of Services sales. The loss from Continuing Operations wasGBP 36 million, after share option costs of GBP llion and restructuring costs of GBP 27 million as the company began to implement the restructuring plans announced in May. This compared to a loss from Continuing Operations of GBP 11 million in the three months ended 30 June 2004. Marconi is maintaining the previous guidance for the current financial year.
Revenues are expected to be at a similar level to FY05 despite our continued expectation of a decline of around GBP 50 million in revenues from BT as they move to implement their 21CN network Gross margins will be impacted by continuing fierce pricing pressure and changing business mix.
