LONDON-Marconi Corp. announced a distribution agreement with Chinese supplier Huawei Technologies Co. Ltd. that will see the two companies resell part of each other’s product portfolios. The news follows an announcement from Marconi earlier this month that it would refocus its business and cut a “substantial” number of jobs after it failed to win a key contract from U.K. carrier BT plc.
Under the agreement, Marconi will resell Huawei’s carrier-class data communications products to telecom service providers under an original equipment manufacturer model. Huawei will resell Marconi’s microwave radios, including next-generation microwave radio equipment, and associated network services for Huawei’s wireless network projects.
The two companies said they will leverage their respective sales and marketing teams’ capabilities and regional strengths on an account-by-account basis to bring products and support services to as many customers as possible.
“Combining our core development strengths with the additional reach and product capabilities of Huawei coupled with a comprehensive service wrap allows us to address customer needs with a strong and compelling solution for their next-generation networks,” said Marconi Chief Technology and Information Officer Andy Evans. “Both partners will also benefit as it creates new market opportunities for their respective product lines.”
Marconi also released its quarterly and fiscal results for the period ended March 31. Revenues in the quarter increased 5 percent, while annual sales were up about 4 percent. Marconi posted an adjusted operating profit of $51.5 million for the fiscal year and a quarterly loss of $101 million.
“Whilst we are extremely disappointed not to have been selected as a preferred supplier for BT’s 21CN program, the actions we had already taken to rebuild the business over the last three years will enable us to make further progress this year, despite BT’s decision,” said Mike Parton, Marconi’s chief executive officer. “Product manufacturing and overhead cost reductions will remain key in our efforts to address the competitive environment of our industry.”
