Telecoms equipment firm Marconi has reported another fall in sales and said it is facing a shrinking market.

In a trading update, Marconi said group sales for the January to March period fell to �430m ($692m) from �466m in the previous quarter.

But chief executive Mike Parton said the company was keeping the sales decline under control.

"The market for our products and services continue to decline but we have been able to limit our sales fall to single figure percentages in each of the last three quarters," he said.

Marconi also said its profit margins had increased to 24% from 22% in the previous quarter.

"With our financial restructuring almost behind us the business is well placed for any market upturn," Mr Parton added.

Debt deal

Marconi is due to complete its financial restructuring by 19 May and re-list on the stock market as Marconi Corporation.

The move will see �4bn of debt refinanced and leave existing shareholders with only 0.5% of the company.

The rest will be held by former bondholders, who agreed to swap their bonds for shares.

Marconi's downfall followed a decision in the late 1990s - when the company was called GEC - to focus on the then growing international market for high-capacity telecoms networks.

It spent heavily on acquiring new businesses in the sector but was plunged into a financial crisis when demand for such telecoms products dried up.