Pace Preliminary results for the year ended 31 December 2011

Tuesday, March 6th, 2012
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Pace plc (LSE: PIC), a leading global developer of technologies and products for Pay TV and broadband service providers, today announces its results for the year ended 31 December 2011.

Operating highlights

  • Pace maintained its position at the forefront of technological development in the Pay TV market as advanced solutions were deployed at its key customers.
  • Acquisitions made in 2010 now fully integrated; synergies achieved earlier and greater than anticipated.
  • Challenges in 2011 being addressed:
    • Inventory controls strengthened, with inventory of $150.0m at 31 December 2011 (31 December 2010 restated: $222.7m).
    • Pace Europe being re-organised.
    • Gross margin in organic business improved to 17.0% in H2 compared with 15.6% in H1.
  • HDD shortage following major flooding in Thailand and will continue to impact 2012, but outlook improved.
  • Strategic Review determined that:
    • Markets for meeting the needs of Pay TV operators are large, growing and profitable.
    • Growth in Over-the-top (OTT) delivery is complementary to the continued growth of Pay TV.
    • Pace’s products, new product development and capabilities meet customer needs for innovation.
    • Sharper focus is required to achieve operational cost excellence commensurate with our scale.
    • Pace’s deployment of acquired and developed software and services assets should be accelerated.

Revenue by destination:

                            2011     2010
                              $m       $m
                         -------  -------
Europe                     457.7    568.2
North America            1,065.1    838.9
Latin America              469.0    375.6
Rest of World              317.5    280.2
                         -------  -------
                         2,309.3  2,062.9

Revenue by application:

                            2011     2010
                              $m       $m
                         -------  -------
Set-top boxes            1,775.4  1,935.9
Gateways                   433.5    107.4
Software & Services        100.4     19.6
                         -------  -------
                         2,309.3  2,062.9