Pace plc Interim Management Statement

Pace plc (LSE: PIC) , the leading independent developer of digital TV technologies for the global pay TV industry, is providing its second Interim Management Statement for the 2009 financial year.

In the four months since 30 June, Pace has continued to execute against its strategy to be a leader in technologies and products for the global payTV market. Group revenues and volume deliveries are tracking to plan and Pace has maintained a strong balance sheet and robust financial position. As anticipated in the half yearly statement, average selling prices are increasing in the second half of 2009 when compared to the first half due to a greater proportion of high definition (HD) PVRs in the product mix. Operating margin for the full year is expected to increase slightly over the first half.

Therefore, given current market strengths, Pace’s position and good order visibility, the Group continues to be confident in management’s expectations for the full year 2009.

During the period, Pace announced a series of HD contract wins with operators that included Europe’s largest cable TV company UPC Broadband, satellite operator Viasat in Scandinavia, Brazil’s NET Serviços and new customer Sky in Germany. An increasing number of operators ordering HD PVRs are moving to hybrid platforms that combine broadcast and broadband delivery, where Pace has established early market leadership.

Additionally, there was news on the first customer for Pace’s new MultiDweller™ technology – Canal Digital, the leading television distributor in the Nordic market – and a series of customers for the Group’s first ‘whole home’ solution for US cable operators, which delivers HD content and Personal Video Recorder (PVR) capability to multiple connected TVs in the home.

Commenting on the period, Neil Gaydon, Pace’s Chief Executive Officer,
said: “I am pleased to report Pace is firmly on track to meet management’s expectations for the 2009 financial year as the Group continues to perform well strategically, commercially and operationally. Pace is operating in a strong market and has taken a leadership position in high definition and hybrid products, where there is significant consumer demand.

“As part of Pace’s ongoing growth and diversification strategy we successfully launched our MultiDweller product, which extends triple-play delivery into hard to reach places. We also launched the very first whole home PVR solution for the American cable market ahead of all competition.”