07.32 Europe/London, July 26, 2011 By Julian Clover

Pace has said its inventory management has now been normalized following the component issues that led to the set-top developer’s profit warning in May.

Announcing increased revenues of 21% for the first half of 2011, the company said that the impact of the Japanese Tsunami on potential availability of components has been largely mitigated, though there remained a handful of items that were “at risk”.

The Networks business has now been resized, however there remains issues with the profitability of Pace Europe, the former Philips set-top business.

“Progress is being made on each of the issues identified in May, and we continue to address those issues not fully resolved, particularly in Pace Europe,” said CEO Neil Gaydon.

Revenues stood at $1,187.1 million (€820.05m) from $978.2m in the first six months of 2010. EBITDA fell from $73.3m to $68.4m.