Pace Q1 continues switch from manufacture
April 24, 2013
Pace has announced its Interim Management Statement for the four months to April 23rd 2013. At its Annual General Meeting Allan Leighton, Chairman said: “I am pleased to report that Pace has made an encouraging start to the new financial year with strong revenue growth in the period, in line with our expectations. We expect revenue for H1 2013 will be ahead of H1 2012, driven largely by continuing demand for Media Server products in North America and the comparative half being impacted by Hard Disk Drive supply disruption.”
“Profitability is in line with our expectations and the robust cash flow generation has continued. We continue to focus on the execution of our Strategic Plan and have made good headway in the period”
“Transform Core Economics: The transformation of our supply chain continues to progress well with the implementation of a single Product Lifecycle Management system and related engineering processes across the whole business. This will support the transition to two core Electronic Manufacturing Services (EMS) partners that will be completed later in the year.”
On the market he says: “Liberty Global has selected Pace to provide Media Server products to a number of their operations in Europe. Pace has been selected by Telefonica as the major supplier of High Definition Zapper and PVR devices for their IPTV operations in Latin America as part of their rollout of the Telefonica Global Service Platform. Initial deployments will take place in Brazil and Chile later in the year.”
On the switch to a service approach, Leighton commented: “The win rate and pipeline of new business remains strong across all areas of our software and services offerings and we have made good progress in the delivery of the landmark customer projects won in 2012.”
“Our Latens business has deployed an integrated product combining Conditional Access (CA) and Digital Rights Management (DRM) for both Broadcast and Over-the-Top (OTT) services, the first deployment of its kind in the industry.”
On the 2013 Outlook, Leighton concluded: “Revenues for 2013 expected to be broadly in line with 2012. Operating Margin for 2013 is expected to be c.7.5 per cent. Strong cash flow will continue, and Pace expects to be in a positive cash position at the end of 2013.”