Pace buoyed by North America demand

UK-based set-top box provider Pace raised its full year profit expectations after reporting strong half-year results, driven by demand for its media server products in North America. 

The firm reported 31% year-on-year revenue growth to US$1.318 billion with adjusted earnings before interest, tax and amortisation up 57% to US$96.7m.

Listed among Pace’s operating highlights was demand for its media server products, with the firm shipping shipped more than 2 million Genie TM Advanced Whole-Home HD DVRs for DirecTV since launch in June 2012.

It said that the next generation HR44 Genie TM Media Server and C41 mini Genie TM client devices were also now in production.

Other “key wins” noted in the period were a PVR deployment by Vivo TV Brazil and a service management deal with Mexican telco Telmex – alongside wins and deployments at major operators including Liberty Global and Get TV.

Pace said that “trading in the first half of the year has been strong and the outlook for the remainder of the year has improved.” Revenues for the full year are expected to be broadly in line with 2012, while operating margin is expected to be greater than 7.5%. The firm said it expects to report a net cash position at the end of 2013.

“Pace has had a strong  first half. Revenue growth in the period was driven largely by the continuing demand for Media Server products in North America. The revenue growth coupled with our continued focus on operating efficiency has enabled Pace to deliver significant earnings per share growth and a third consecutive half of strong cash generation,” said CEO Mike Pulli.