Mike McTighe, Chairman of Pace Micro Technology plc, gave the following
update at the Company’s AGM today:
“I am pleased to say that the business is on track to meet the Board’s
expectations for the 2006/7 financial year, with orders and shipments
flowing across all regions.
Competition between payTV operators to retain and acquire new
subscribers is strong and is driving demand for our new and existing products as the migration to digital continues. Consumer demand is growing for solutions that offer high definition and PVR. The major issues from last year regarding new product delivery to our US customers are now largely resolved and shipments to these customers are ramping up.  We have also secured new business from both new and existing customers in the rest of the world, which supports our outlook for the year.
“The new management team, led by Chief Executive Neil Gaydon, remains
focused on profitability through the improvement of gross margins,
maintaining the pressure on costs and ensuring on time product delivery.
This year’s implementation of a new company structure, which has reshaped Pace’s business more around our customers, has been a key enabler towards achieving these goals.
“These changes will allow us to deepen existing customer relationships,
place us in a stronger position to secure new business and
operationally will ensure greater effectiveness in the design, manufacture and delivery of new products. We expect to see the full benefits come through
over the next 12 to 24 months, given the nature of product development
cycles in our industry.
“There is still much work to do, but the changes that have been made are
already creating a more motivated and accountable organisation, thereby
enabling more predictable engineering delivery.  I would like to thank
all Pace employees for their hard work in supporting the restructure,
while continuing to meet ongoing customer needs.
“In conclusion, Pace has turned the corner after a difficult period and
is beginning to make solid progress.”