Pace warns of second half loss and impact on jobsChris DrucePace Micro Technology has said that it expects to make a loss from trading operations in the second half of the financial year ending June 1, 2002.
The UK set-top box manufacturer said this was due to the difficult trading environment faced by all digital TV operators globally, and although no detail has been released at present, it confirmed it is considering cutting jobs from its 950 strong workforce (three-quarters of which are based in the UK).
Pace recently launched a digital TV adapter, priced at just under one hundred pounds, which allows consumers access to free-to-air digital TV channels from providers such as the BBC. Although the company claimed the unit had been well received, it has cut its targets of 100, 000 sales for the unit by the end of May to half that amount.
Although ITV Digital set-top boxes only account for two per cent of Pace’s total sales, a spokeswoman for the company said: “The whole situation is potentially creating confusion for the consumer. We’re very confident of the devices long-term future and have decided simply to take a prudent view on production at the moment.”
Pace said it was also working with NTL, one of its biggest customers, to resolve difficulties. Although no further comment was forthcoming, NTL signed a deal with Samsung electronics in March for the supply of digital set-top boxes, robbing Pace of its sole supplier status.