30th May 2006 07:03
Pace Micro Technology PLC30 May 2006 Pace Market update The Board of Pace Micro Technology plc is providing the following update inadvance of the Company's financial year-end on the 3rd June 2006. The Company has made important progress on its US products, however due tofurther delays in completing final development and testing involving both Paceand third party software, the Board now believes that shipments on theseproducts will commence in the first half of the Company's new financial year.This has consequences for both the current and following financial year. In Europe, volume shipments commenced of Pace's new cable set-top for UPC in TheNetherlands, which is part of the Liberty Global group. Pace has also startedshipping high definition set-top boxes to Sky Italia. This is Pace's secondEuropean MPEG-4 high definition rollout, following the first with Premiere inGermany earlier this year, which is enabling these operators to meet demandahead of the FIFA World Cup. As a result of the delays in the US, the Board now expects a loss before tax andexceptional items of around £15m on revenues in the region of £180m. Pace, along with other set top box manufacturers and broadcasters has noted thepotential re-interpretation by European Union customs authorities of customsregulations that could result in the extension of import duties to interactiveset-top boxes manufactured outside, but imported into, the EU. The industry isworking together on this issue. As a result of the above factors and the knock on effect of the delays inshipments of US products, there is a higher than usual degree of uncertainty inpredicting the outcome in respect of the 2006/07 financial year. Depending onthe view to be taken by the Board in respect of the outcome of the 2006/07 year,there may also be some impact on carrying values at the current year-end, inparticular with reference to the carrying value of goodwill and developmentexpenditure capitalised under IAS38. Pace's new executive management team is reviewing all aspects of the Company'soperations with a view to improving efficiencies in all areas, in particularproduct development and delivery. The Company continues to have strong customerrelationships with some of the world's largest payTV operators, which alongsidethe Company's technology and product roadmaps, give the Board confidence thatPace remains in a strong position to capitalise on the anticipated growth ofhigh definition broadcasting in payTV markets worldwide. -ends- Media Contacts: Ginny Pulbrook, Citigate Dewe Rogerson, 020 7638 9571Helen Kettleborough, Pace Micro Technology plc, 01274 538005 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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