Lower revenues in Q3 but Pace claims progress

Editor | 14-11-2013

Even though it posted lower revenues than in the same period a year ago, pay-TV and broadband technology and services supplier Pace says that third-quarter trading has shown good progress, with continued momentum across the business.

In an interim management statement commenting on trading performance in the period 1 July 2013 to 13 November 2013, Pace noted key wins, giving confidence for 2014. It said project delivery for the new wins was well underway and the underlying demand across the business was strong.

The lower than Q3 2013 revenue was, it said, expected and reflected the impact of dual-sourcing of media server supply by a large North American satellite customer. The company added that gross margins benefited from improved revenue mix and procurement savings resulting from improved supply chain effectiveness.

Looking to the full year’s results, Pace said that FY2013 revenues should be broadly in-line with 2013, with an operating margin for FY2013 greater than 7.5%. Pace assured that strong cash flow would continue, and excluding acquisitions, and expected to retain a net cash position through to the end of 2013.

"Following a strong first half in 2013, Pace has made further good progress in the period with continued momentum across the business,” said Pace CEO Mike Pulli. “The transformation of our supply chain is nearly complete and we are seeing meaningful benefits both operationally and financially. Wins with tier one customers reinforce our leadership position in pay-TV hardware and our strategy of widening out our products and services continues to build momentum with wins and deployments across all of the regions we operate in … We are confident about our trajectory and remain firmly focused on closing out the year and then making further progress in 2014."

Pulli also made particular note of the recent acquisition of Aurora represented an important step in the evolution of Pace and enhanced its strategy to widen out and build a broader platform from which to drive revenue.