Pace has announced that it has reached an agreement with NTL to resume supplies of set-top-boxes (STBs). The company is also reportedly planning to cut more than 10% of its workforce when it issues annual figures in July.
Shipments of STBs were suspended in March following concerns over the ability of NTL to pay Pace for the boxes. At the time, Pace’s CEO Malcolm Miller said: It’s impossible to get credit insurance right now, and we don’t intend to take the risk on ourselves. We cannot get further credit insurance so we don’t intend to ship. We have a very good relationship with NTL, but if we can’t get credit insurance they understand it’s impossible for us to give them product.
An existing order of 300,000 boxes will be shipped over a 13 months period terminating in 2003. Notably, the agreement includes additional software projects and enhanced service and repair provisions.
Pace noted that the move will have limited impact on its current year revenues; and it does not expect to revise its expectations for their financial performance this year.
Meanwhile, Pace is reportedly planning to cut more than 10% of its workforce when it issues annual figures in July. The company, which has issued four profits warnings in eight months, employs about 950 staff, three-quarters of them in the UK.