& cplSiteName &

Pace Boasts Stronger Than Expected Gains

Alan Breznick
1/9/2014
50%
50%

More than a week into the new year, Pace is still celebrating the good times that it enjoyed in 2013.

Pace plc announced Thursday that it expects to exceed the financial guidance targets for 2013 that it gave to Wall Street earlier. The big British set-top box maker, which recently surpassed Cisco Systems Inc. (Nasdaq: CSCO) as the world's top set-top manufacturer, said its overall revenues, underlying operating margin, free cash flow, and possibly other key business metrics will all come in higher than originally anticipated.

Specifically, Pace said it now expects to clock $2.46 billion in total revenues for 2013, up 2.4% from about $2.4 billion in 2012 and higher than its previous guidance. It expects its underlying operating margin to be at least 7.7%, up from 6.6% in 2012 and higher than estimated before. And it expects to generate more than $200 million in free cash flow, up from $182.7 million in 2012 and higher again than originally expected.

In addition, Pace said its adjusted EBITA will amount to at least $190 million, up 20% from $158.1 million in 2012. The vendor also expects to boost its cash and debt positions when it announces its preliminary 2013 earnings on March 4. (See Pace Provides Preliminary 2013 Results.)

Pace credited its guidance gains to making "good progress" in the execution of its strategic plan last year. That plan called for the vendor to maintain its overall leadership in set-tops, media servers, and gateways, while also making inroads in such "previously under-penetrated markets" as IPTV and European cable. In addition, the plan called for Pace to expand further into software, services, and integrated solutions and achieve greater operational efficiencies.

Finally, Pace noted that its recent acquisition of Aurora Networks is "an important step" in its evolution to more than a set-top maker. The $310 million deal, which closed earlier this week, will enable Pace to branch into the cable optical transport and access network markets. As a result, the company will be able to compete with the two cable vendor heavyweights, Arris Group Inc. (Nasdaq: ARRS) and Cisco Systems Inc. (Nasdaq: CSCO), on a broader basis. (See Pace Picks Up Speed.)

"Pace has performed above expectations in 2013," said Pace CEO Mike Pulli in a prepared statement. "We are confident about our trajectory and are focused on making further progress in 2014."

— Alan Breznick, Cable/Video Practice Leader, Light Reading

(4)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
albreznick
50%
50%
albreznick,
User Rank: Blogger
1/13/2014 | 12:59:32 PM
Re: 2014 Outlook
Agreed, Dan. Now I wonder who they will target in 2014. I have a feeling another deal will be in the works. 
albreznick
50%
50%
albreznick,
User Rank: Blogger
1/13/2014 | 12:58:50 PM
Re: 2014 Outlook
Agreed, Dan. Now I wonder who they will target in 2014. I have a feeling another deal will be in the works. 
DOShea
50%
50%
DOShea,
User Rank: Blogger
1/12/2014 | 3:11:08 PM
Re: 2014 Outlook
It's been an interesting six or seven years for this company in terms of M&A, going back to a few much earlier acquisitions--Latens, 2Wire and Bewan--in addition to the Aurora deal.
albreznick
50%
50%
albreznick,
User Rank: Blogger
1/9/2014 | 7:33:05 PM
2014 Outlook
So 2013 was a big year for Pace. Now the question is what will 2014 bring. It could be the year that Pace really does battle with Cisco and Aris for cable vendor supremacy, especially if Pace can help Aurora grow to a new level and make another key acquisition. Will be interesting to see how Arris and Cisco respond to Pace's aggressive ways.   
From The Founder
Kicking off BCE 2017, Light Reading founder Steve Saunders lays blame for NFV's slow ramp-up and urges telecom to return to old-fashioned standards building and interoperability.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Interviews
Masergy: It's Time for SD-WAN Options

6|28|17   |   03:09   |   (0) comments


Paul Ruelas, director of network products for Masergy, explains how adding SD-WAN has changed the service mix for his company's customers. In some cases, the change is incremental, enabling more granular customer control. Masergy's newest version, SD-WAN Go, gives up some of those controls for a streamlined version targeting mid-sized customers with the most ...
Women in Comms Introduction Videos
Intel Ushers in the Revolutionary 5G Era

6|28|17   |   5:00   |   (1) comment


5G will bring job opportunities for women in telco and IT, as well as a whole new era of communications for consumers and industries of all kinds, says Caroline Chan, vice president and general manager of the 5G Infrastructure Division at Intel.
LRTV Custom TV
VeEX at ANGA COM

6|27|17   |     |   (0) comments


At ANGA COM 2017, Cyrille Morelle, president and CEO of VeEX, updates Alan Breznick with VeEX's new products and technology. This includes VeSion cloud-based platform for network monitoring, AT2500-3G advanced spectrum analyzer and MTTplus-900 WiFi Air Expert module. He also comments on DOCSIS 3.1 deployment and Remote PHY technology.
LRTV Custom TV
The Overall Objective Is to Win the Game

6|26|17   |     |   (0) comments


SCTE•ISBE's Chris Bastian discusses Energy 2020's success to date and the importance of a flexible approach that allows for changes in specific strategies in order to reach significant milestones.
LRTV Interviews
CenturyLink: Let's Get Past SD-WAN Hype

6|23|17   |   04:02   |   (0) comments


Technology becomes a "shiny object" unless it's properly focused on solving business needs for enterprise customers, says Bill Grubbs, network solutions architect for CenturyLink. He explains to Light Reading why SD-WAN deployments have to be tailored to specific needs – and more.
Women in Comms Introduction Videos
Infinera's Sales Director Paints Tech's Big Picture

6|21|17   |   4:14   |   (1) comment


Shannon Williams, Infinera's director of sales, shares how she achieves work's many balancing acts -- between her role and the broader company, today and tomorrow's tech and more.
LRTV Custom TV
SD-WAN Innovation & Trends

6|20|17   |     |   (0) comments


Versa CEO Kelly Ahuja discusses with Carol Wilson the current status and trends in the SD-WAN market, Versa's innovation around building a software platform with broad contextualization, and the advantages that startups can bring to the SD-WAN market.
LRTV Interviews
Ovum's Dario Talmesio on 5G in Europe

6|20|17   |   02:16   |   (0) comments


At 5G World 2017, Dario Talmesio, principal analyst and practice leader on Ovum's fixed and mobile telecoms European team, explains the emerging trends amongst European operators as they prepare for 5G.
LRTV Custom TV
Putting Power on a Pedestal

6|19|17   |     |   (0) comments


ARRIS's John Ulm says a major accomplishment of SCTE•ISBE's Energy 2020 program is increased focus on power cost and consumption, including inclusion of energy requirements in operators' RFPs and RFIs.
LRTV Custom TV
Gigabit Access: The Last-Mile Pipe for All Future Services

6|19|17   |     |   (0) comments


A Gigabit access platform being deployed today must be able to deliver all types of services to an increasing number of devices. A non-blocking architecture is necessary to support the ever-increasing growth in bandwidth demand. The Huawei Gigabit access solution is based on a distributed design that is fully scalable to deliver a unprecedented performance.
LRTV Custom TV
Key Factors to Successfully Deploy an SD-WAN Service

6|19|17   |     |   (0) comments


As service providers transition their SD-WAN solution from trials and limited deployments into production at large scale, there are important considerations to successfully operationalize these solutions and realize their full potential, without adding complexity, introducing uncertainty or disrupting current business operations. Sunil Khandekar, CEO and Founder ...
LRTV Custom TV
IoT Solutions: Rational Exuberance

6|19|17   |     |   (0) comments


IoT solutions are morphing from hype into viable business opportunities. Huawei has the platform and ecosystem support to help carriers successfully address new business opportunities in the IoT space.
Upcoming Live Events
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Montcalm Marble Arch
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 30, 2017, The Westin Times Square
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
No Imagination: UK Chip Biz Goes Up for Sale
Iain Morris, News Editor, 6/22/2017
Does AT&T Deserve Time Warner?
Mari Silbey, Senior Editor, Cable/Video, 6/23/2017
Hulu Is Greatest Threat to Pay-TV Providers – Study
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 6/27/2017
Calix: Russo's Not-So-Overnight Success?
Carol Wilson, Editor-at-large, 6/28/2017
Verizon Takes 'One Fiber' to More Cities
Mari Silbey, Senior Editor, Cable/Video, 6/22/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Following a recent board meeting, the New IP Agency (NIA) has a new strategy to help accelerate the adoption of NFV capabilities, explains the Agency's Founder and Secretary, Steve Saunders.
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
Animals with Phones
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.