Pace outperforms expectations with strong 2013

Pace CEO, Mike Pulli

Set-top provider Pace performed above expectations in 2013, delivering increased operating profits through top-line growth and operational efficiency, according to its full-year 2013 results.

Pace CEO Mike Pulli said the firm had a “sustainable high level of cash generation,” made good strategic progress and said there is “significant opportunity for further improvement.”

He added that Pace is on-course to complete its integration of Aurora Networks by the end of Q2 2014 and deliver the expected synergy benefits. It agreed to buy optical networking for access networks leader Aurora Networks for US$310 million (€226 million) in October.

“I am excited about the acquisition of Aurora Networks, which will enable Pace to widen out into network infrastructure and build deeper, more embedded relationships with our customers,” said Pulli.

For the year, Pace reported revenues of US$2.47 billion, up 2.7% compared to 2012, while adjusted EBITDA was up 22.5% year-on-year at US$193.6m. Profit after tax was up 65.6% to US$96.7m.

Gateway revenues were down 19.9% US$375.8m, though Pace said that demand for traditional set-top boxes remains strong. It also said that it started shipping Mediaroom enabled DVRs last year, serving the IPTV segment where it had previously been under-represented.

“Considerable progress has been made in delivering on our strategy in 2013 and there remains further opportunity in 2014 to build on this success to develop and improve the performance of the company,” the company said.