Shares in Pace plc (formerly known as Pace Micro) rose sharply on March 29 on the news of a major deal to supply set-top boxes to a leading US cable TV operator. The deal will see the as-yet-unnamed operator convert its set-top boxes from analogue to digital.
The three-year contract, believed to be with Comcast and long-awaited, should boost Pace's gross profits by around £3m-£4m each year, according to an analyst’s report. The broker reiterated its "buy" rating on Pace with a target price of 110p, adding the company was well placed to benefit from the shift to digital among cable operators, either by selling more digital converters or higher margin set-top boxes. Pace rose 10.8 per cent to 95p.
Profit for the year will “materially'' exceed analyst estimates, CFO Stuart Hall said in interviews. This also helped analysts at house broker ABN Amro up its own pre-tax profits forecast for Pace, now the third-largest box supplier in the world, by 25% to £15m.
Source: Rapid TV News | 
02-06-2008
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