Telecoms equipment supplier Marconi Plc says it is on course to meet its targets of low single digit revenue growth and improved margins this year and sees a much-improved economic climate ahead.
Chief executive Mike Parton said that he saw more opportunities for sales of next generation equipment than at any time in the last three years and this gave the company confidence in its medium-term growth prospects.
In its first quarter to June 30, the net loss was 36m pounds ($66.3m), down from a loss of 88m pounds ($162m) on revenue 7.6% lower at 339m pounds ($624.1m). The figures were skewed by the inclusion of the Outside Plant & Power (OPP) operation, whose sale has been agreed, and if this is excluded, Marconi says there was 3% sales growth at constant currency.
Marconi has raised its gross margin target by a percentage point to 34% as a result of the OPP disposal. It said it was now seeing stability in customer demand for telecoms equipment and services, particularly in the major European markets.