Pace FY 2014 Guidance On Track
Saltaire, UK, April 24, 2014--Pace today released a statement by management on its interim results for the period January 1, 2014 to April 23, 2014. Profitability of Pace was in line with management expectation and continues to have robust cash flow, according to the statement.
At its Annual General Meeting Allan Leighton, Pace Chairman said: "I am pleased to report that Pace has made a good start to the new financial year. Forecast demand for both current and new products is building as the year progresses, giving the Board confidence that the company is on track to achieve the guidance of c. US$ 2.7bn revenue for the year."
'In line with our expectations, revenue in the period was lower than the same period in 2013 reflecting the impact of dual-sourcing of Media Servers and Gateways. Gross margins in the period are well ahead of Q1 2013 due to the positive impact of improved revenue mix, procurement benefits and Aurora. Operating costs, excluding Aurora, continue to trend down reflecting on-going improvements in operating efficiency," added Leighton.
Revenues for 2014 expected to be c. US$ 2.7 Billion, up from US$2.47 Billion in 2013. Operating margin for 2014 is expected to be c. 8.5% (2013: 7.8%). Strong cash flow will continue, and Pace expects to generate in excess of US$ 185m of free cash flow (2013: $209m).
The Group will be announcing its half year results for the period ending 30 June 2014 on 29 July 2014.
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