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 Micro Technology PLC
19 December 2007


Pace Micro Technology plc


Pace agrees to acquire the set top box and connectivity solutions business of
Royal Philips Electronics


Pace Micro Technology plc ('Pace'), a leading digital TV technology company,
today announces that it has entered into a conditional agreement to acquire the
set-top box and connectivity solutions business ('the Philips STB and CS
Business') of Royal Philips Electronics ('Philips') (the 'Acquisition'). The
Philips STB and CS Business employs approximately 335 staff predominantly based
in France and is a leading designer and supplier of a range of digital TV
products including satellite, cable, terrestrial and IPTV set-top box products.
The proposed transaction values the business at up to 95.0 million (68.0m).

Pace and the Philips STB and CS Business each have over 20 years experience in
the digital set-top box market. The combined business will be a global top three
set-top box company(1) with a strong customer and product portfolio.

The Philips STB and CS Business has long-established relationships with a number
of key additional payTV operators in multiple geographies, major IPTV customers
and a strong international retail business. As part of this transaction, Pace
will be entitled to utilise the Philips brand in retail distribution for an
agreed range of products for the next three years.

Commenting on the acquisition, Neil Gaydon, Chief Executive Officer of Pace
said:

'Based on 2006 performance, this deal will create a company with pro forma
revenues of over US$1.0bn, producing approximately 8.5m set top boxes a year.
Pace and the Philips STB and CS Business combined technologies, expertise and
customer reach will create a leading centre of excellence in the set-top box
industry. There is a strong strategic fit from customer, product, geographic,
culture and scale perspectives. We have minimal customer overlap and the
combined group will have a significantly enhanced technological position.

'The Acquisition brings capabilities in IPTV, terrestrial, retail and
connectivity products, which will extend the strong position we have built
through relationships with leading payTV operators. We also believe there is
potential for improved efficiencies by utilising the operating model and
business structure we have built at Pace over the last two years.'

Details of the proposed transaction(2)

The proposed transaction values the business at up to 95.0 million (68.0m).
The consideration for the Acquisition will be satisfied by the issue of 68.0m
new Pace shares to Philips at completion and up to a further 1.9m new Pace
shares on or shortly after completion together with a further 5m (3.6m) in
cash over 3 years from completion. At completion, Philips will hold
approximately 22.5% per cent. of the enlarged share capital of Pace, of which
17% is subject to a one year lock-in from the date of completion. There is also
a cash adjustment mechanism based on the net indebtedness and working capital
position of the Philips STB and CS Business at completion. The agreement is
conditional upon, inter alia, the conclusion of the consultation procedure by
the Philips STB and CS Business with its Works Council in relation to the
Acquisition, certain anti-trust approvals being obtained and Pace shareholders
approving the Acquisition.

The Philips STB and CS Business turnover and EBITDA for the year ended 31
December 2006 were 357.2m and a loss of 39.3m, and for the year ended 31
December 2005 were 473.6m and a profit of 16.4m respectively. Gross assets(3)
as at 31 December 2006 were 100.9m. These figures have been extracted from
Philips STB and CS Business management accounts, prepared under US GAAP, and
when reconciled to Pace's accounting policies under IFRS may differ from those
shown above. The Board of Pace believes that the operational performance of the
Philips STB and CS Business has improved significantly during 2007 over 2006,
and will benefit further from increased efficiencies after completion. The Pace
Board will not alter and the senior management of the Philips STB and CS
Business will remain within the enlarged group.

The Acquisition is classified as a 'reverse takeover' under the Listing Rules by
virtue of its size and is as a result conditional, inter alia, on the approval
of Pace shareholders which will be sought at a General Meeting of Pace expected
to take place in March 2008 following posting of the requisite circular to Pace
shareholders and publication of the prospectus. As the Acquisition is classified
as a 'reverse takeover', the ordinary shares of Pace will be suspended from
trading from the date of this announcement. The shares will re-commence trading
on the posting of the circular to shareholders and publication of the
prospectus.

Current Trading

Pace's last market update on 19 October 2007 stated that Pace was on track to
meet the Board's expectations for the shortened financial year for the seven
months to 31 December 2007. The Board confirms that Pace continues to perform in
line with its expectations for this financial period. In addition, the Board is
confident in the outlook and prospects for Pace for the year ending 31 December
2008.

Analyst and investor conference call

A conference call for analysts and investors hosted by Neil Gaydon, CEO, and
Stuart Hall, CFO, will be held at 12:00pm UK time today. To access the call,
dial +44 (0) 1452 561 263 and quote reference number 28833961. Slides will be
available from the IR section of the Pace website -

www.pacemicro.com

- from
11.45am UK time. A recording of the call will be available for replay from
1:30pm by dialling 0145 255 0000 and quoting reference number 28833961.



For further information, please contact:

Pace Micro Technology plc +44 (0) 1274 532000
Neil Gaydon Chief Executive Officer
Stuart Hall Chief Financial Officer
Helen Kettleborough Director of Corporate Communications

NM Rothschild & Sons Ltd
Scott Sheldon +44 (0) 207 280 5000
David Forbes +44 (0) 113 200 1900

Hoare Govett Ltd
Alexander Garton +44 (0) 207 678 8000

Brunswick Group LLP + 44 (0) 207 404 5959
Fiona Laffan
Tim Williamson
Raphael Mazet


About Pace Micro Technology

Pace Micro Technology plc (pic.l) is a leading technology developer for the
global payTV industry. Pace's main focus is on creating intelligent and
innovative products and services that benefit our customers and fuel the
development of digital TV. Over the last 25 years, Pace has developed one of the
world's most experienced specialist engineering teams and is now the partner of
choice for leading payTV operators across the globe.

Pace's international headquarters are in Saltaire, West Yorkshire, UK, with
further offices in the USA, France, India and Hong Kong. For more information on
Pace, please visit

www.pacemicro.com

.


Disclaimer

This announcement has been issued by, and is the sole responsibility of, Pace.

N M Rothschild & Sons Ltd, which is authorised and regulated in the United
Kingdom by the Financial Services Authority, is acting as financial
adviser and sponsor to Pace and no-one else in connection with the matters
referred to herein and will not be responsible to anyone other than Pace for
providing the protections afforded to clients of N M Rothschild & Sons Ltd or
for giving advice in relation to such matters.


--------------------------

(1) According to latest figures from IMS Research on global set-top box shipment
data for 2006.

(2) Acquisition consideration based on the 10-day average closing price of
Pace's ordinary shares of 92.10 pence as of 18 December 2007. Foreign exchange
rate of 1: 1.40.

(3) Gross assets represent total current and non-current assets, as outlined in
LR10 (UKLA)



This information is provided by RNS
The company news service from the London Stock Exchange

I suspect this is reasonably good news; although how long the UK-operation will remain is - - - - .
The name Philips gives an air of respect and should improve their market penetration. But you have to wonder what "value" they saw.....they could have used one of their existing designs surely?

Or - is this a move to prevent a Competitor getting a foothold, ah ha . . . ?

Pace is taking over a respectable brand which is well known in Europe and Asia, reoving them from the list of competitors, and use Philips production facility. There is little overlap in thier operating morket.
I see the merger has already been done. See "Pace V-Box will be produced by Philips (Model number DIT9719)" @ http://www.radioandtelly.co.uk/btvision/box.html.

Pace plc Trading Update
7 April 2009: "Pace plc, the leading independent developer of digital TV technologies for the global payTV industry is today announcing a very significant upgrade on its current performance expectations for 2009.

Since announcing preliminary results on 3 March 2009, demand for Pace's products has increased across many of the Group's global markets and technologies. Pace's improved market position, the breadth of its product offering and track record for innovation and delivery means Pace is increasingly viewed as a supplier of choice by many of its payTV operator customers. This combination along with strong market demand and enhanced competitive position has resulted in further orders from new and existing customers to fulfil consumer demand for digital and high definition services. At the same time Pace has continued to benefit from its programme of operational synergies and business efficiencies to improve margin performance across the Group.

Consequently, Pace now expects that its performance will result in a very significant increase on management's expectations for 2009 and also that it will be in a strong position as it enters 2010. The market for high-end products is growing rapidly, even in an advanced market such as Western Europe, less than 2% of television households are so far subscribing to a high definition TV service (Screen Digest data, April 2009). The Pace Board recognises that these factors have created an exceptionally positive situation for Pace, which is expected to continue, reflecting the strong foundations established over the last three years."

The Brokers following this one obviously like it and on a forward P/E of just over 7 there is certainly room for this one to double and more.....

Pace PLC

FORECASTS
2009 2010

Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Altium Securities
20-04-09 BUY 76.90 18.30 0.80 94.20 22.10 1.00

KBC Peel Hunt Ltd
15-04-09 BUY 74.31 17.25 2.00 86.16 19.93 3.00

Milkstone Ltd
09-04-09 BUY 70.97 16.55 1.50 86.60 19.83 1.80

ABN AMRO [A]
30-03-09 BUY 42.00 9.67 0.90 50.30 11.54 1.00

FinnCap [A]
05-03-09 BUY 44.70 13.00 0.90 54.30 15.90 0.90

Singer Capital Markets Ltd [A]
06-11-08 BUY 23.70 5.60

2009 2010
Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Consensus 74.31 17.25 1.50 86.38 19.88 1.80

1 Month Change 34.01 7.73 0.60 35.48 8.27 0.80
3 Month Change 52.82 12.26 1.50 52.78 12.01 1.80

Notes to forecasts (07 April 09) A flag refers to outlook

GROWTH
2008 (A) 2009 (E) 2010 (E)

Norm. EPS -14.10% 68.11% 15.25%
DPS % % 20.00%

INVESTMENT RATIOS
2008 (A) 2009 (E) 2010 (E)

EBITDA 55.57m 93.58m 107.26m

EBIT 32.17m m m

Dividend Yield % 0.98% 1.17%

Dividend Cover x 11.50x 11.04x

PER 14.96x 8.90x 7.72x

PEG -1.06f 0.13f 0.51f

Net Asset Value PS 5.77p p p

yesterdays AGM presentation....

http://www.pace.com/media/corporate/PDF/090422_agm.pdf

Zak Mir PRO TAer at SC across the road as just given this analysis on PIC....



Zak Mir



Reged: 28/06/07
Posts: 766
Re: CHART ATTACK - Longs and Shorts.
#444126 - 23/04/09 07:01 AM Edit Reply Quote



A major uptrend in force here. I would expect another gap higher in the next week or two.

Strong BUY from hemscott..

http://www.hemscott.com/companies/company-summary.do?companyId=3113

Recent Broker note from KBC Peel Hunt... a forward P/E of just under a miserly 8, far too cheap IMHO.

Pace PLC

SUMMARY CHARTS DIRECTOR DEALINGS FORECASTS WIRES
2009 2010

Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

KBC Peel Hunt Ltd
27-04-09 BUY 74.31 17.25 2.00 86.16 19.93 3.00

Milkstone Ltd [A]
23-04-09 BUY 70.97 16.55 1.50 86.60 19.83 1.80

Altium Securities
22-04-09 BUY 76.90 18.30 0.80 94.20 22.10 1.00

ABN AMRO [A]
30-03-09 BUY 42.00 9.67 0.90 50.30 11.54 1.00

FinnCap [A]
05-03-09 BUY 44.70 13.00 0.90 54.30 15.90 0.90

2009 2010
Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Consensus 75.62 17.78 1.39 90.22 21.03 1.99

1 Month Change 36.17 8.24 0.49 39.32 9.38 0.99
3 Month Change 53.80 12.70 56.73 13.19

Notes to forecasts
(07 April 09) A flag refers to outlook


GROWTH
2008 (A) 2009 (E) 2010 (E)

Norm. EPS -14.10% 73.27% 18.28%
DPS % % 43.16%

INVESTMENT RATIOS

2008 (A) 2009 (E) 2010 (E)

EBITDA 55.57m 111.00m 120.94m

EBIT 32.17m m m

Dividend Yield % 0.84% 1.20%

Dividend Cover x 12.79x 10.57x

PER 16.18x 9.34x 7.89x

PEG -1.15f 0.13f 0.43f

Net Asset Value PS 5.77p p p

Thursday, May 07, 2009

FinnCap raises Pace target price as drive to digital should benefit company

Broker FinnCap has increased its price target for set-top box maker Pace PLC (LSE: PIC) to 253 pence a share from 180p on the back of resilient first quarter results from US cable operator Comcast and Paces perception as supplier of choice by many of the PayTV operators.

In a note, the broker said; Clearly Pace is a technology leader in the digital space and actually only ships digital equipment, so any trend to digital should be read as positive for Pace.

It cited Pace shipping more than 1 million analogue to digital converters or digital television adapters (DTAs) in the Portland, Seattle and San Francisco Bay as part of Comcast's All-Digital initiative as an indication for the markets potential.

Given the increasing visibility for Pace and the encouraging signs from the PayTV industry for digital transmission in general and high definition (HD) content in particular, we are confident Pace will continue to grow strongly to 2010, FinnCap added.

A summary of latest Broker positions.....

Pace PLC

FORECASTS
2009 2010

Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Altium Securities
01-05-09 BUY 76.90 18.30 0.80 94.20 22.10 1.00

Milkstone Ltd [A]
30-04-09 BUY 70.97 16.55 1.50 86.60 19.83 1.80

KBC Peel Hunt Ltd
29-04-09 BUY 74.31 17.25 2.00 86.16 19.93 3.00

ABN AMRO [A]
30-03-09 BUY 42.00 9.67 0.90 50.30 11.54 1.00

FinnCap [A]
05-03-09 BUY 44.70 13.00 0.90 54.30 15.90 0.90

2009 2010
Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Consensus 75.63 17.78 1.39 90.25 21.04 1.98
1 Month Change 0.12 0.05 -0.01 0.17 0.02 -0.02
3 Month Change 53.82 12.70 1.39 56.75 13.19 1.98

Notes to forecasts
(07 April 09) A flag refers to outlook


GROWTH
2008 (A) 2009 (E) 2010 (E)

Norm. EPS -14.10% 73.27% 18.34%
DPS % % 42.45%

INVESTMENT RATIOS

2008 (A) 2009 (E) 2010 (E)

EBITDA 55.57m 111.00m 120.94m

EBIT 32.17m m m

Dividend Yield % 0.75% 1.06%

Dividend Cover x 12.79x 10.63x

PER 18.13x 10.46x 8.84x

PEG -1.29f 0.14f 0.48f

Net Asset Value PS 5.77p p p

Lets not forget that quality broker analysis of just a few days ago....

Thursday, May 07, 2009

FinnCap raises Pace target price as drive to digital should benefit company

Broker FinnCap has increased its price target for set-top box maker Pace PLC (LSE: PIC) to 253 pence a share from 180p on the back of resilient first quarter results from US cable operator Comcast and Paces perception as supplier of choice by many of the PayTV operators.

In a note, the broker said; Clearly Pace is a technology leader in the digital space and actually only ships digital equipment, so any trend to digital should be read as positive for Pace.

It cited Pace shipping more than 1 million analogue to digital converters or digital television adapters (DTAs) in the Portland, Seattle and San Francisco Bay as part of Comcast's All-Digital initiative as an indication for the markets potential.

Given the increasing visibility for Pace and the encouraging signs from the PayTV industry for digital transmission in general and high definition (HD) content in particular, we are confident Pace will continue to grow strongly to 2010, FinnCap added.

14 was the peak. Can it pass this time?

Brokers with their backing behind the company and a forward P/E of just 8-9 way undervalued imho....

Pace PLC

FORECASTS
2009 2010

Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

KBC Peel Hunt Ltd
15-05-09 BUY 74.31 17.25 2.00 86.16 19.93 3.00

Altium Securities
01-05-09 BUY 76.90 18.30 0.80 94.20 22.10 1.00

Milkstone Ltd [A]
30-04-09 BUY 70.97 16.55 1.50 86.60 19.83 1.80

ABN AMRO [A]
30-03-09 BUY 42.00 9.67 0.90 50.30 11.54 1.00

FinnCap [A]
05-03-09 BUY 44.70 13.00 0.90 54.30 15.90 0.90

2009 2010
Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Consensus 75.60 17.77 1.40 90.17 21.01 2.00

1 Month Change 0.11 0.05 0.00 0.12 0.00 -0.01
3 Month Change 53.78 12.68 1.40 56.73 13.18 2.00

Notes to forecasts
(07 April 09) A flag refers to outlook


GROWTH
2008 (A) 2009 (E) 2010 (E)

Norm. EPS -14.10% 73.21% 18.22%
DPS % % 42.87%

INVESTMENT RATIOS
2008 (A) 2009 (E) 2010 (E)

EBITDA 55.57m 111.00m 120.94m

EBIT 32.17m m m

Dividend Yield % 0.79% 1.13%

Dividend Cover x 12.68x 10.49x

PER 17.25x 9.96x 8.42x

PEG -1.22f 0.14f 0.46f

Net Asset Value PS 5.77p p p

PIC toying with 2

Nice break through of a flag formation on PIC PACE with good volume. The arrow points to where the SP as broken through....

"

I see Milkstone???? have slapped a broker Buy on PIC over the last couple of days 86.6 pre tax for 2010, rather interesting.....

Pace PLC

FORECASTS
2009 2010

Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Milkstone Ltd [A]
18-06-09 BUY 70.97 16.55 1.50 86.60 19.83 1.80

Thomson, Pace seek DTA waivers from FCC mayo101

http://www.cedmagazine.com/News-Thomson-Pace-DTA-waivers-FCC-061909.aspx

Thomson, Pace seek DTA waivers from FCC
By Mike Robuck
CedMagazine.com - June 19, 2009
Add Thomson and Pace to the list of companies that are seeking waivers for their digital terminal adapters (DTAs) from the Federal Communications Commission.

Like Cisco and Motorola (story here), Pace and Thomson filed for the waivers after Evolution Broadband was granted its three-year waiver earlier this month for its DMS-1002 and DMS-1002 CA boxes with DTAs, which have a price range of $44-$50 per box (story here).

Evolutions waiver request was the first of its kind at the time, since it was an equipment vendor rather than a cable operator seeking exemption from the integrated set-top box decree by the FCC that went into effect in July of 2007.

The waiver allows Evolution to sell its boxes without the more expensive CableCards that were required by the separable security mandate.

In the FCCs Evolution ruling, it said it would expedite similar waiver requests from other DTA vendors, which include Cisco, Motorola, Thomson and Pace, in order to meet the low-cost, limited-capability standard set forth in the FCCs 2005 Deferral Order.

On Thursday, the FCCs Media Bureau issued notices for public comment on Pace and Thomsons waiver requests. The public comment period lasts until June 29.

Pace filed a request for a waiver pursuant to the FCCs streamlined process for its DC50X and DC50Xu DTAs, while Thomson filed on its DCI104 and DCI105 DTAs.

Comcast has been a big proponent of DTAs as it moves analog channels over to digital in order to reclaim bandwidth. Thomson, Pace and Motorola have provided DTAs to Comcast (story here).

Cable operators can reclaim between 250 MHz and 300 MHz in each system that goes all-digital. If a typical cable system has 79 analog channels and the operator decides to move 59 of those channels to digital, while perhaps leaving 20 or so as a life-line analog service for some select markets, it would reclaim 354 MHz.

Given 354 MHz of reclaimed spectrum in the example above and the fact that, on average, 10 standard-definition MPEG-2 digital programs can be inserted into one 6 MHz slot this yields enough bandwidth for nearly 590 channels.

Further to yesterdays post re- to Broker notes very interesting to see 2 latest notes out last week with Altium underlining.....

"We expect a trading update for the half to June in early July and would not rule out further upgrades for the year."

BROKER CALL Altium remains buyer of Pace; sees possible upgrades later
16 June, 2009 09:17:34 AM


Broker maintains its buy stance on Pace with a target price of 250p after the company hosted a teach-in and product demonstration for analysts and investors last night.

"Overall, our impression from the event was that the planets remain aligned for Pace and that there is still plenty of growth to come in the business in the next 2-3 years. We expect a trading update for the half to June in early July and would ot rule out further upgrades for the year."

And other broker reporting.....

BROKER CALL Pace initiated buy at WHIreland
16 June, 2009 09:12:33 AM


Broker initates Pace with a buy recommendation and target price of 235p, saying that it sees a 28% upside to the share price.

"At this point in the cycle, we suggest Pace can easily justify a 20% premium to our blended peer group valuation which suggests a target price of 235p."...ENDS

Obviously if the company are going to update come early July with further upgrades possible, brokers are going to be conservative at the moment.

Full Broker List...

Pace PLC

FORECASTS
2009 2010

Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Milkstone Ltd [A]
18-06-09 BUY 70.97 16.55 1.50 86.60 19.83 1.80

Altium Securities
16-06-09 BUY 76.90 18.30 0.80 94.20 22.10 1.00

KBC Peel Hunt Ltd
12-06-09 BUY 74.31 17.25 2.00 86.16 19.93 3.00

ABN AMRO
05-06-09 BUY 72.82 16.77 0.90 84.86 19.48 1.00

FinnCap [A]
05-06-09 BUY 44.70 13.00 0.90 54.30 15.90 0.90

2009 2010
Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Consensus 74.31 17.25 0.85 85.46 19.69 1.00

1 Month Change -1.28 -0.52 -0.56 -4.68 -1.31 -1.01
3 Month Change 34.01 7.73 -0.05 34.56 8.08 0.00

Notes to forecasts
(07 April 09) A flag refers to outlook


GROWTH
2008 (A) 2009 (E) 2010 (E)

Norm. EPS -14.10% 68.11% 14.14%
DPS % % 17.65%

INVESTMENT RATIOS

2008 (A) 2009 (E) 2010 (E)

EBITDA 55.57m 93.66m 104.57m

EBIT 32.17m m m

Dividend Yield % 0.42% 0.50%

Dividend Cover x 20.29x 19.69x

PER 19.49x 11.59x 10.16x

PEG -1.38f 0.17f 0.72f

Net Asset Value PS 5.77p 62.03p 78.34p ...............................ends


a full deck of Buys rather rare in the present climate.