Pace raises full-year profit guidance

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Set-top box maker Pace said it expected full-year profit and cash flow to exceed previous guidance, driven by new product launches and contract wins.

The company, whose customers include Sky Deutschland AG and AT&T Inc, said its operating margin for 2014 was expected to be no less than 8.5 per cent, a rise from 7.8 per cent in 2013.

Cash flow was projected at more than $200 million (£117m), an increase from the previous estimate of more than $185 million.

The Saltaire-based company’s revenue fell 13.6 per cent in the first half ended June 30, while gross profit rose 5.4 per cent to $245.8m.

Pace announced an interim dividend of 2.25 cents per share, up from 1.83 cents a year earlier.