Pace have fallen a lot over the last 6 months. The move to digital is near, do you think they can recover. Presently way off previous highs.

Pace profit warning


Set-top box manufacturer Pace said volume shipments and revenues have continued to meet expectations but operating profit is likely to be below targets.

Q1 2011 revenues are up 24% on Q1 2010, however, profitability has been impacted due to the following factors:-

o Pace has built inventory and purchased components ahead of schedule to ensure that it can deliver on customer orders within a tight supply chain environment. This has increased costs;

o The Japanese Tsunami has further exacerbated the supply chain environment in the period and increased risk for the year;

o Profitability in the Pace Europe business unit during the period has been below expectations, despite this unit having achieved its revenue and volume targets;

o Insufficient demand for Pace Networks products, which resulted in the closure of this division as a standalone business unit.

The Board has reviewed the potential impact of the above factors on the rest of the 2011 financial year. In the first half the Board now expects operating margins to be at around 5.5%. In the second half the Board is confident that Pace will return to close to its medium term 8% operating margin target. For the full year the Board expects operating profit to be below management expectations and in the range of $150m - $170m (97m - 110m1).

During this period the build-up of inventory ahead of schedule has caused a higher than planned cash outflow. The Board expects cash to return to prior-year-end levels by the half year.

The Pace Americas business unit has performed ahead of management plan in the period. The 2Wire acquisition integration programme has proceeded as expected with the Americas 2Wire business fully integrated into a new Americas Telco customer account team (CAT), which has performed well.

Pace Europe has continued to win business, for example new contracts with Tata Sky in India and Net Servicos in Brazil. Pace also marked its one millionth shipment of standard definition set-top boxes to the Net Servicos business. It was announced by the European Commission on 14 April that Pace had won its long-running case with the European Court to prevent a change of classification by the European Commission to impose duty charges on set-top boxes with a recording function.

Pace Enterprise has continued to build its businesses in telecom gateways and software and services outside of the Americas. Following the closure of Pace Networks, its existing customers and related opportunities will be managed through Pace Europe.

As previously stated Pace will provide details of its dollar conversion by the end of May.

Commenting on today's announcement, Neil Gaydon, CEO, said:

"It is clear from today's statement that despite revenues and product shipments being on track, we have made a disappointing start to the financial year with our profitability. We have taken action and are making changes to improve our second half performance and beyond and to ensure we return to our 8% operating margin target.

"Although we will now not be able to make up this first half under-performance in the second half we continue to drive long-term growth and profitability. The demand for our products and technologies continues to grow, ensuring our ongoing market leadership."

hyleo - i am out here now - i noticed at least 1 broker target reduced to 80p an hour or 2 after my last post here - hence swift exit before my profit disappeared - looks like others must have read the same later - interesting tomorrow not made up my mind here yet

gl

RNS Number : 4986G

Pace PLC

12 May 2011

Pace plc: AGM Statement

Saltaire, UK, 12 May 2011: Pace plc has today held its Annual General Meeting. At the meeting Pace's Chairman, Mike McTighe, gave the following statement:

"As we reported in our Interim Management Statement on Tuesday 10 May, since the start of 2011, volume shipments and revenues have continued to meet Pace's expectations. Due to a number of factors detailed in that statement the Board now expects full year operating profit to be in the range of $150m - $170m (GBP97m - GBP110m)[1].

"The Board is disappointed in this expected outcome for 2011 and will be looking at lessons that need to be learned, and ensuring they are implemented. At the same time the Board continues to be confident in the fundamentals of the business, the management team's ability to deliver against the Group's business objectives and the ongoing opportunities within our global markets for digital and broadband technology and services."

No longer a penny share (for now).

Firmly away from a quid.

Getting up ahead of steam in the last hour - up 7.6% hmmm.

On edit :- Well that was the kiss of death !

Statement re appointment of new Chairman

Saltaire, 31 May 2011: Pace plc today announces the proposed appointment of Allan Leighton as its new Non-executive Chairman and the retirement of Mike McTighe, who will be stepping down after ten years as Non-executive Director including five as Chairman.

The Board is pleased to have recruited Allan Leighton, former CEO of Asda and former Non-executive Chairman of the Royal Mail. Allan has today joined the Board as a Non-executive Director and is expected to be appointed Chairman over the summer months, allowing a period for Mike and Allan to undertake an orderly transition of responsibilities.

Gap to be filled but U know what they say about profit warnings coming in 3s. Certainly didnt like the way this company were having to reduce margins at last results. Will keep an eye out on it but not for me until more positive news.

Goldfinger - agreed. I'm in from mid 90s and 102 with stop in place, so I'm happy. These made me quite a lot of money late last century!

Has done for me aswel Skinny but looking at chart weve had 2 profit warnings so third may be on its way. Like U say tight stop loss.

RNS Number : 0297L

Pace PLC

26 July 2011

Pace plc Interim Results for the six months ended 30 June 2011

Pace on track to meet revised May 2011 guidance

Saltaire, UK, 26 July 2011: Pace, a leading developer of technologies, products and services for global broadband and broadcast markets, announces its results for the six months ended 30 June 2011.

Financial Highlights1

-- On track to meet revised May 2011 guidance

-- Revenues increased 21% to $1,187.1m (six months ended 30 June 2010: $978.2m)

o Increase acquisition-related; organic revenue down 3.5%

-- Gross margin 19.0% (six months ended 30 June 2010: 18.6%)

o Organic gross margin 15.6% (six months ended 30 June 2010: 18.5%)

o Acquisitions gross margin 31.7% (pro forma six months ended 30 June 2010: 27.5%)

-- Profit before interest, tax, and amortisation (EBITA) $68.4m, giving return on sales of 5.8% (six months ended 30 June 2010: $73.3m, return on sales 7.5%)

-- Basic EPS of 7.1c (six months ended 30 June 2010: 16.5c), with adjusted(2) basic EPS of 17.1c (six months ended 30 June 2010: 17.9c)

-- Interim dividend increased to 1.25c (six months ended 30 June 2010: 1.12c)

-- Net debt at $293.2m (at 31 December 2010: $311.1m)

Operating Highlights

-- Progress made since May 2011 IMS update:

o Inventory management has been normalised, with the majority of the financial impact absorbed in H1

o The Networks business has been re-sized and is no longer loss-making

o Impact of the Japanese Tsunami on potential availability of components has been largely mitigated;

however a small number of at-risk components remain

o Initial corrective measures have been implemented to address the profitability levels in Pace Europe

-- Acquisition-related synergies were achieved earlier and are greater than anticipated

-- Strategic review announced June 2011 underway; aiming to conclude around the time of the Group's Q3 IMS

Commenting on the results, Neil Gaydon, Chief Executive Officer, said:

"Our first half results put Pace on track to meet its revised May 2011 profit guidance3 of $150-170m for FY 2011. Progress is being made on each of the issues identified in May, and we continue to address those issues not fully resolved, particularly in Pace Europe.

"Acquisition-related synergies have been achieved ahead of plan. Additionally, this period has seen continued free cash flow generation, leading to a reduced net debt position of $293.2m.

"The strategic review announced last month is underway, with focus on Pace's strategy and opportunities for business improvements, aiming to conclude around the time of the Group's Q3 IMS."

Outlook

Given the Group's first half performance, including corrective actions identified and implemented, the Board reaffirms its May profit guidance of $150-170m for Full Year 2011.

Directors are selling shares

RNS Number : 5290Q

Pace PLC

20 October 2011

Pace plc

Update on the effect of Western Digital's Thailand factory closure and 2011 Operating profit guidance

Saltaire, UK, 20 October 2011

Following the recent announcement by Western Digital Corporation that it has suspended production of hard disk drives at its manufacturing facilities in Thailand as a result of severe flooding, Pace has completed an initial assessment of the potential impact on its 2011 business. Because Western Digital is the major supplier of hard disk drives to Pace, this will negatively impact expected shipments of products with hard disk drives from this supplier during the remainder of this year.

Pace estimates the worst case impact on 2011 operating profit to be $9.5m, before taking account of possible mitigating actions. As a result, Pace's operating profit for 2011 is now likely to fall below previous guidance of $150m-$170m.

Pace will provide its upcoming interim management statement, together with an update on its strategic review, on 17 November 2011.

There will be an analysts' call this morning at 9am BST.

Out of auction down 13.3%

Profit warning on its way for Pace.

It will interesting to see how the analyst call goes this morning.

On edit - from the last interims.

Given the Group's first half performance, including corrective actions identified and implemented, the Board reaffirms its May profit guidance of $150-170m for Full Year 2011.

I've had a small punt @81.06.

High risk!

Harry - its great buying for yields - sometimes you have to get the blood moving :-)

Its only small - and as you can tell from earlier posts - I've been in and out of these since the mid 1990s.

Volume is up for the first time after it fell below 100p