Revenues at a pace for set-top box firm

Set-top box maker Pace said full-year revenue was expected to rise 6 per cent, driven by increased demand for its new products.

Pace, which is based in Saltaire, near Bradford, develops technologies and products for PayTV and broadband service providers.

The company, whose three major customers are Comcast, AT&T Inc and DirecTV, expects full year revenue to be up 6 per cent to $2.61bn for the year ended December 31, following a record fourth quarter.

Mike Pulli, CEO, said: “Pace has performed very well in 2014 with a particularly strong second half to the year. We have launched a record number of products across the globe and continue to lead the market in both product innovation and the service we deliver to our customers.”

Underlying operating margin is expected to be no less than 9.2 per cent, 1.4 percentage points ahead of 2013.

In 2013, Pace acquired US-based network gear maker Aurora Networks for £191m in cash. Mr Pulli said the acquisition had performed above expectations.

He said: “The board are confident that, through Aurora, potential further acquisitions and the ongoing delivery of our strategic plan, Pace will further strengthen its position as a market leading solutions provider for the PayTV and broadband industries.

“We have good momentum and are confident of making further progress in 2015 and beyond.”

In the fourth quarter, Pace was chosen by long-term customer, Net Brazil, a leading cable operator in Brazil, to provide next generation high definition set-top boxes. Preliminary results will be announced on March 3 for the Saltaire-based firm.