Marconi returns to profit… just

25 Nov 2005

UK equipment vendor Marconi says that it returned to profit in its fiscal second half of the year, recording a GBP4 million (USD6.9 million) pre-tax profit in the three months to 30 September, compared to a loss of GBP12 million in the corresponding period of last year. Revenues rose 2% year-on-year to GBP312 million in the quarter, but remained flat at GBP597 million for the first half of the fiscal year.

Last month Ericsson of Sweden agreed to purchase Marconi in a deal worth GBP1.2 billion (USD2.16 billion), including GBP700 million in pensions liabilities. Under the deal, Ericsson will acquire Marconi’s optical networks operations, the bulk of its network access business, its data networks operations and international services operations. The takeover will see 6,670 employees transferred to Ericsson, but more than 1,300 are likely to lose their jobs.

United Kingdom