PACE MICRO SAYS PROFITS WILL BENEFIT FROM SET-TOP BOOM.
11/23/98
Computergram International
COPYRIGHT 1998 ComputerWire Inc.
Shares in Pace Micro Technology Plc, the UK set-top box manufacturer, jumped 21% to 83.5 pence after it revealed that pre-tax profits for the year are likely to beat market expectations of 7m pounds. With orders from all the major players in the recent launch of digital TV in the UK, Pace has had to take on extra workers to cope with the booming demand in the run- up to Christmas. It signals a rapid turn around at Pace which reported losses of 12.1m pounds in its last financial year.
Pace Micro
Robert Cole
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11/21/98
The Times of London
News International
2W
Page 28
(Copyright 1998)
PACE Micro Technology, the manufacturer of digital television set- top boxes, had a troubled entry to the stock market two years ago. Investors became overexcited at the prospect of the British digital television revolution and pushed Pace's shares to a high of 241 1/2p, only to bale out en masse when the digital roll-out was delayed. Pace's share price suffered further when disputes emerged over the rights to some of its technology.
A management shake-up followed but now, with Pace shares trading at a more realistic 83p (up 14p on yesterday's upbeat trading statement), the company looks much better balanced.
Its reputation was bolstered by making sure that Pace was the only set-top box manufacturer to have its products in the shops for the launch of both BSkyB and ONdigital services.
It is, of course, early days and investors could be caught again. Not only is Pace reliant on the speedy acceptance of digital television, it will also soon face tough competition from the likes of Sony. With earnings per share of 3.4p forecast for this year, Pace trades on a p/e multiple of 24. Given the risks still involved, this is not cheap. But buy nonetheless. |
