Pace CEO Neil Gaydon has warned that fluctuations in global exchange rates could effect the company’s profitability during 2009. In a trading update, the company highlighted recent reports suggesting that in an economic slowdown consumers turned to home entertainment, saying that it chimed with its own experience.
However, the company had no control over global currency markets that were beginning to impact across the electronics hardware industry. “Demand for Pace’s products has been strong, and we are on target to meet 2008 expectations. The ongoing transition to digital TV and consumer demand for high quality home entertainment is a very positive driver for Pace’s business and we expect strong revenue growth to continue in 2009. As a result of the recent fluctuation in exchange rates, the Board believes it is prudent to revise down expectations for 2009 profitability,” Gaydon said in a statement.
The company has embarked on a cost review exercise and is maintaining its exchange rate hedging programme to better manage its currency exposure.
In recent months Pace has commenced shipments of a new HD PVR to MultiChoice in South Africa as well as its analogue convertor product to US cablenet Comcast.
