Looking over the past decade or so of UK set top maker Pace Micro Technology’s results is a little like looking over a roller coaster ride, but this week it seems to be showing itself as a mature company, entrenched into the satellite and cable industries equally well on both sides of the Atlantic.
It looked back on a seven month period up to December 2007, and said it shipped 2.4 million set-top boxes compared to 3.9 million in its last reported financial year.
Its revenues are up to £250 million ($497 million) which puts it on track for something like $850 million for a full year, its margins are up (to over 20%) and it’s net profit is considerably up, to £15.4 million ($30.6 million). For once the board of Pace says that it is on track to meet expectations during 2008.
Commenting on the results, Neil Gaydon, Chief Executive Officer, said:
‘I am pleased to report exceptional results for the shortened financial year, which met our increased expectations. We strengthened our position as the leading digital TV technology company with both new and existing customers, delivered new products and technologies and increased market share in key areas such as high definition and PVR.’
Another reason for smiling and also for changing its year end, is the acquisition at the end of 2007 of the Philips set top business, which will virtually double the company’s size.
The company picked up the $512 million Philips business for just $136 million, mostly in an issue of new shares, and minor amounts of cash.
Pace has been performing well of late, having finally delivered long term US contracts, and when the declining Philips business is added, now looks on track to be well over $1 billion in revenues and more stable and profitable than its roller coaster past.