6th Sep 2005 11:31
Pace Micro Technology PLC06 September 2005 Agm statement 2005 Sir Michael Bett, Chairman of Pace Micro Technology plc, gave the followingupdate at the Company's AGM today: "In accordance with our long-term strategy, Pace Micro Technology hasestablished itself as a major player in the US market through new contracts withComcast, the US's largest provider of cable, entertainment and communicationsproducts and services, and DIRECTV, the leading provider of satelliteentertainment and interactive services in the US. These contracts followed aseries of other important business wins elsewhere in the world with companiesthat have included Foxtel in Australia, Premiere in Germany and UGC in TheNetherlands. The current financial year has started with shipments and margins during thefirst quarter in line with our plan. We have experienced some delays in productdevelopment but these delays, typical of new product projects, have not impactedour expectations for the year as a whole. As stated in our preliminaryannouncement in July, the overall outcome for this year is particularlydependent on good project execution, with second half revenues expected to besignificantly ahead of first half revenues. Given our shipments will now bemore concentrated in the second half than previously expected, the first halfresult, which was expected to be below breakeven, will be commensuratelyaffected. There is also the possibility that some shipments may move into thenext financial year. The Pace management team is, of course, highly focussed onensuring its customer delivery targets are met. The Board is optimistic about a number of new payTV market opportunities andtechnology projects the Company is pursuing. Moreover, we will be making anumber of new product announcements about our high definition and mobileproducts at the International Broadcasting Convention in Amsterdam later thisweek, a major European exhibition for TV technology. Pace is making good progress with raising productivity throughout the businessand we expect to see an increasing proportion of engineering work taking placeoutside the UK and US. Our most skilled in-house engineers will focus on moreadvanced projects that will enable Pace to improve its long-termcompetitiveness. As competition in Pace's payTV markets remains intense, wehave continued to explore new technology opportunities in other markets. We areespecially interested in new ventures that can offer us the potential foradditional recurring revenue streams and are making good progress on this front. John Dyson who has been with Pace for almost eight years and Chief Executive forthe last three years, has decided, after discussion with the Board, to announcehis intention to retire from the Board. John will continue as Chief Executiveuntil a replacement is found and after a suitable handover period. The Board isvery grateful to John who has done an excellent job steering the Company througha particularly difficult time and leading the Group into a strong position toattack the next phase of its growth. The Board has asked John to continue to beinvolved with the Group by acting as a part-time executive chairman of newventures and I am sure he will bring us success in our new markets. In conclusion I am confident that Pace is in very good shape. We have a growingshare of the US market, a sustained share of the European market and there are anumber of new opportunities in the US, Europe and the Far East, which we areactively pursuing. -ends- Contacts for further information: Pace Micro Technology plcJohn Dyson/Helen Kettleborough01274 538005 / 07887 634083 Citigate Dewe RogersonGinny Pulbrook020 7282 2945 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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