Pace upgrades guidance

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Set-top box supplier Pace took the unusual step of reassuring the market not only that all was well, but that its June 30 half-year results would be not just at the higher end of predictions but “significantly exceeding expectations”. Pace’s shares, which lately had been under some pressure, immediately responded by jumping 4.2%.

Pace, in a statement, said its Board was pleased to report that Pace had continued to make good progress across all of its global markets, “in particular at Pace France [the recently renamed Philips Set-top Box and Connectivity Solutions business Pace acquired on 21 April 2008], where work initiated by the management team has enabled the realisation of performance improvements earlier than expected. Due to this and a beneficial US Dollar/Euro exchange rate, the Pace France business, which was initially expected to be loss making for 2008, is now profitable and the Board expects that the Group’s outturn for the year will significantly exceed current expectations.”

“At the same time Pace continues to see growth opportunities in the market for digital TV, which it is in a strong position to take advantage of thanks to the diversified geographical and product spread of its enlarged business. These factors and ongoing improvements within the Pace business, provide the Board with greater confidence in the Group’s 2009 performance, which is now expected to be ahead of the Board's previous estimates.”

Neil Gaydon, Pace’s CEO added: “We are delighted with what has been achieved so far in Pace France and are excited at the prospects for the overall Group through our unmatched global portfolio of customers, the breadth and depth of engineering and technology skills to address set-top box markets around the world and the increased scale of our business.”

Pace will announce its interim financial results for the half-year ending 30 June 2008 on Monday July 28.



Source:RapidTVNews

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