Shadow
19-04-2010, 21:30
Set-top box maker Pace has predicted a World Cup sales boost as pay-television firms rush out high-definition technology ahead of this summer's football tournament.
Pace said sales for the first six months of 2010 would outstrip the second half, although trading for the overall year will be in line with expectations.
The firm added: "We entered 2010 in a strong operating and financial position with our pay-TV markets continuing to be positive and with good demand for the group's products."
Pace employs around 1,200 staff in countries around the world including the US, India and China, with its headquarters in Saltaire, West Yorkshire.
The eagerness for HD technology has driven demand across all of Pace's markets. Although 3D technology is still in its infancy, the firm estimated that only 4% of global TV households had made the switch to the format by the end of last year.
The company expects "solid" volume growth this year along with slightly lower selling prices, resulting in single-digit revenue growth.
Pace has also landed new contract wins including a deal to provide Malaysia's first HD service, as well as a second generation set-top box for BT Vision and a new range of Freeview products in the UK.
Pace added that a further drive on costs had boosted margins, while the company is also keeping a tight rein on its supply chain to ward off the risk of component shortages.
Shares edged 1% lower following its update on a sluggish day for the wider market.
Seymour Pierce analyst Ian Robertson held forecasts unchanged but said the stock looked "too cheap".
Source: The Press Association
Pace said sales for the first six months of 2010 would outstrip the second half, although trading for the overall year will be in line with expectations.
The firm added: "We entered 2010 in a strong operating and financial position with our pay-TV markets continuing to be positive and with good demand for the group's products."
Pace employs around 1,200 staff in countries around the world including the US, India and China, with its headquarters in Saltaire, West Yorkshire.
The eagerness for HD technology has driven demand across all of Pace's markets. Although 3D technology is still in its infancy, the firm estimated that only 4% of global TV households had made the switch to the format by the end of last year.
The company expects "solid" volume growth this year along with slightly lower selling prices, resulting in single-digit revenue growth.
Pace has also landed new contract wins including a deal to provide Malaysia's first HD service, as well as a second generation set-top box for BT Vision and a new range of Freeview products in the UK.
Pace added that a further drive on costs had boosted margins, while the company is also keeping a tight rein on its supply chain to ward off the risk of component shortages.
Shares edged 1% lower following its update on a sluggish day for the wider market.
Seymour Pierce analyst Ian Robertson held forecasts unchanged but said the stock looked "too cheap".
Source: The Press Association