North American business is being credited with helping U.K.-based Pace Plc (LSE: PIC) generate revenues "in line with management expectations and ahead of last year," the company said in an interim management statement.
The results, the company said, were "driven largely by the launch of and strong demand for next-generation media server products in North America." Second half revenue from these products is expected to be about $180 million, or 16 percent higher than the same quarter a year ago.
"The pay TV market continues to show resilience despite the uncertain economic conditions and previously feared disruptive threats from new over-the-top (OTT) market entrants," the company said, noting that its "major customers" have performed well.
Among those customers is Comcast (Nasdaq: CMCSA), which is using the XG Media server for its new X1 service, and DirecTV (Nasdaq: DTV), whose Genie advanced whole home HD DVR is fed by Pace media server technology. Additionally, a global partnership with TiVo (Nasdaq: TIVO) will soon result in field trials which will be launched to port TiVo software to Pace's set-top boxes and gateways enabling Pace to "pursue significant worldwide opportunities during 2013."
Pace has also "made significant steps" in transforming its product supply chain, said CEO Mike Pulli, predicting the changes will help when "executing our strategy and becoming a more profitable, cash-generative company with a broader commercial opportunity."
Overall, Pulli said, demand for the media server product line "underpins our strong revenue growth in H2 2012" and the "widening out strategy continues to build momentum with wins and deployments across the globe."
- Pace issued an interim management statement (.pdf)
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