Thai floods lead to third Pace profits warning
09.35 Europe/London, October 21, 2011 By Julian Clover
Pace has issued its third profits warning of 2011 after the set-top developer announced that floods at hard driver supplier Western Digital’s Bang Pa-In facility in Bangkok would hit shipments through until the end of the year.
“Because Western Digital is the major supplier of hard disk drives to Pace, this will negatively impact expected shipments of products with hard disk drives from this supplier during the remainder of this year,” the company said in a statement. It added operating profit is likely to fall below the $150 million to $170 million range.
Shares fell to a 52-week low before recovering slightly to 82.35p in early morning trading on Friday, some distance from the 233.90p 12-month high.
In March it emerged that a US provider had delayed an order by 12 months into 2012, effectively skipping a generation of technology. Two months later the Japanese Tsunami led to problems within the supply chain.
IHS Screen Digest estimates Pace to have been the number one set-top supplier in terms of shipments during 2010, a crown that by now must be in danger of slipping.