Pace reports positive start to 2014
Pace has reported that its Q1 gross margins are “well ahead” of last year and that it is on track to meet its full-year revenue growth target of about $2.7 billion.
Pace said last month it expected revenue to increase by about 9.3 per cent in 2014, while its operating margin would be about 8.5 per cent, up from 7.8 per cent in 2013.
The company, which supplies decoders to television operators such as Sky Deutschland, Comcast and AT&T, said in a trading update that its gross margins benefited from an improved revenue mix and the acquisition of Aurora Networks earlier this year.
The company said new customer wins had helped it make progress in the middle eastern, Indian and European markets. The company received more than half its revenue from North America in 2013.
Pace acquired US-based network gear maker Aurora Networks last October for $310 million in cash to diversify its products to cable customers. Pace said the integration activity and trading of Aurora in the period were ahead of expectations.