Pace Micro Technology has said that it has returned to profitability following an upturn in the demand for pay-TV technology. A 60% increase in shipments to clients including BSkyB, NTL, and the all important US supply deal with cable giant Time Warner helped push pre-tax profits up to £1.4 million compared with a loss of £8.9m in the previous year. In total 1.8 million set-top boxes were delivered. Revenues more than doubled from £78.9 million to £180.2m with the US contributing 50% of the total.
A new box for the UK cable market is now in test while a new box for Kabel Deutschland is expected to commence shipments later in the year. Pace is also continuing to ship product to UPC in the Netherlands as the leading European operator continues to upgrade its home market.
Pace, which no longer manufacturers product at its Saltaire headquarters, is studying a potential reinterpretation of European customs regulations that could lead to the extension of import duties to interactive set-top boxes manufactured outside the Union. (JC)