Gaydon resigns as Pace CEO
Editor ©RapidTVNews | 14-12-2011 To round off a tumultuous year that has seen two profit warnings following supply issues, Pace CEO Neil Gaydon has handed in his resignation.
Gaydon, who piloted the company as it made its transition from being a set top box supplier to a provider of broadband and broadcast technology and services, has been replaced with immediate effect by Mike Pulli, currently President of Pace Americas. In a brief holding statement, Pace said that Gaydon has decided to step down to “take some time off and look for a fresh challenge.” Commenting on the announcement, company chairman, Allan Leighton said: "We would like to thank Neil for his significant contribution to Pace over a 16 year period, the last five as CEO, and wish him and his family well for the future. Mike has developed a hugely successful business for Pace in the Americas, and his background and gravitas in the industry make him the right leader to succeed Neil and deliver our Strategic plan".
The plan had been put in pace earlier in May 2011 after the company revealed that Q1 2011 revenues would be somewhat below expectation due to a build-up of inventory ahead of schedule and a higher than planned cash outflow in order to ensure that it could deliver on customer orders within a tight supply chain environment.
In November 2011, the company published an interim management statement for the period covering 1 July 2011 to 16 November 2011 that showed HDD supply issues, due mainly to flooding at suppliers’ factories in Thailand, had cost the firm some $9.5 million. It projected that the blow would mean full year group operating profit would likely be $141 million on the back of revenues of $2.3 billion.
Pace offered assurances that based on dialogue with suppliers and customers, and detailed analysis, its current working assumption of operating profit impact in 2012 was $35 million-$50 million, most of which will likely fall in the first half of the year.