Pace profits up despite revenue drop

Mike Pulli

Set-top box maker and gateway technology specialist Pace reported a 13.6% drop in revenue in the first half the year, but higher profits thanks in part to its purchase of Aurora Networks.

Announcing its results for the six months ended 30 June 2014, Pace said that improved revenue mix, supply chain efficiency and increased operational efficiency also helped boost profits.

Overall revenues were down to US$1.14 billion (€850 million), in line with management expectations. Gross profit was up 5.4% to US$245.8 million, while adjusted EBITA was up 9.9% to US$106.3 million.

“Pace is continuing to evolve into a more profitable, cash generative business with a broader spread of customers. As expected, revenue was lower than the comparable period, however, we have delivered strong profit and cash flow growth through the contribution of Aurora, a better mix of revenue, improving supply chain effectiveness and improving operating efficiency,” said Pace CEO Mike Pulli.

“H1 2014 has seen a period of intense development activity with a number of major new products being launched at the end of the half and early in the second half, supporting our expectation of strong revenue growth in H2 2014.”