Pace to meet revenue target after strong start

PACE announced this morning that it is confident of achieving revenue of around $2.7bn after making a strong start to the year.

The Saltaire-based set-top box maker and pay TV and broadband technology provider’s chairman Allan Leighton said: “I am pleased to report that Pace has made a good start to the new financial year. Forecast demand for both current and new products is building as the year progresses, giving the board confidence that the company is on track to achieve the guidance of c. $2.7bn revenue for the year.

“In line with our expectations, revenue in the period was lower than the same period in 2013 reflecting the impact of dual-sourcing of Media Servers and Gateways. Gross margins in the period are well ahead of Q1 2013 due to the positive impact of improved revenue mix, procurement benefits and Aurora. Operating costs, excluding Aurora, continue to trend down reflecting on-going improvements in operating efficiency.”

Leighton said profitability for the group is in line with expectations and that the robust cash flow generation has continued.

Pace also said it expects Aurora, which it acquired in January, to be a “significant profit and cash contributor” in 2014.

The group will be announcing its half year results for the period ending June 30, 2014 on July 29.