Pace Micro Technology Plc has warned that it will not be able to produce digital set-top boxes for British Sky Broadcasting’s digital service before the end of its fiscal year in May, raising doubts over whether the broadcaster will be able to meet its launch date of Spring 1998. Pace is one of four manufacturers to share in the one million set-top box order from BSkyB and is still in the running to produce boxes for rival British Digital Broadcasting. In a terse statement, BSkyB said that it is still on track for a launch in the second quarter of 1998 and that it is confident that there will be significant volumes available for the key fourth-quarter selling period. But originally BSkyB suggested an April start date while the indications now are of a launch in June. The broadcaster also confirmed that that Societe Europeene des Satellites would be providing a spare Astra satellite to ensure BSkyB meets its launch date (CI No 3,322), adding that it would give a more detailed status report on the launch of the digital operation when it releases interim results in February. Meanwhile Shipley, West Yorkshire based Pace continues to suffer as it awaits the take off of digital TV and absorb the impact of changes in set-top box technology in its European markets. The company reported interim losses of 12.3m pounds on revenue down 23.1% at 86.9m pounds, the first under the leadership of new chief executive Malcolm Miller who was appointed to the post in October (CI No 3,262). The company was left with a stack of redundant boxes after French broadcaster Canal Plus acquired two of its customers; Netherlands based Nethold and Telepui of Italy and promptly switched the conditional access system from Irdeto to SECA. Pace announced it would write off 3m pounds as a result and set aside a further 5m pounds to cover payment of royalties in an infringement of payments case that it is currently contesting with unnamed parties. A further figure of just over 1m pounds was also set aside for an unresolved commercial dispute with Australian broadcaster Australis. Despite the delays in the BSkyB project a spokesperson for Pace commented that the company had a broad spectrum of international interests, saying that the UK accounted for 17.4% of total revenue compared with a European figure of 13.5% and Latin America 32%.
