Pace tunes into improved outlook

British TV decoder maker Pace said the outlook for the remainder of the year has improved after strong demand for its next generation media server products in North America.

The set-top box firm said revenue in the quarter to November 13th 2012

were in line with management expectations and ahead of last year, driven largely by the launch of and robust demand for next generation media server products in the US including the XG1 for Comcast's new X1 service and DIRECTV's Genie.

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Pace expects revenues in the second half of 2012 to be around $180m, up 16% from the same time the previous year. 2012 revenues are now expected to be flat on 2011 actuals with 2% underlying growth before the impact of HDD supply disruption.

The group said the PayTV market continues to show resilience despite the uncertain economic conditions and previously feared disruptive threats from new over-the-top (OTT) market entrants.

"Our major customers have performed well with sustained consumer demand and strong profitability," it said.

Pace's CEO Mike Pulli commented: "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."

Pace added that it is confident about its trajectory and remains firmly focused on execution in the remainder of the year and beyond.

CJ