Pace confident on upward trajectory – Pulli
PACE expects revenues in the second half of its financial year to be ahead of 2011 as the company continues to implement its growth strategy.
The Saltaire-based home entertainment technology business said revenues across the year would be flat on 2011. However, second half revenues are expected to be 16% ahead at $180m.
In an interim management statement covering the period from July 1 to November 13, the business said there was not now expected to be any impact from HDD supply disruption on revenue or EBITA in the second half of the year. There had previously expected to be a $4m impact on EBITA.
Net debt is expected to be below $200m at the end of the year.
Chief executive Mike Pulli said: “We continue to make good progress in executing our strategy and becoming a more profitable, cash generative company with a broader commercial opportunity.
“We have made significant steps in transforming our supply chain and the continued focus on operational improvement will deliver further operational savings in 2013.
“The demand we are seeing for our innovative next generation Media Server products underpins our strong revenue growth in H2 2012. Our widening out strategy continues to build momentum with wins and deployments across the globe. As a result we have further invested in these growth areas.
“We are confident about our trajectory and remain firmly focused on execution in the remainder of the year and beyond.”
Mr Pulli said the PayTV market continued to show resilience despite uncertain economic conditions and previously feared disruptive threats from new ‘Over-the-Top’ (OTT) market entrants.
Pace has streamlined its operations in India from four sites to one which are expected to generate savings in 2013.
