Pace takes a hammering

Poor forecasts and job cuts on the way...

Shares in set-top box manufacturer Pace Micro Technology have fallen by almost a quarter this morning after it reported disappointing year-end results and announced job cuts. Pace said profits for the year plunged by 70 per cent to £13.1m on falling sales. The firm reported revenues of £351.8m compared to £523.6m last year. It said it would make a loss in the first half of next year, and would cut a fifth of its workers - about 180 staff. The firm blamed the bad news on the continuing instability in the digital TV market, with one of its biggest customer, NTL, filing for bankruptcy earlier this year. Shares fell over 23 per cent in early trading to 37.5p. The sharp fall from Pace mirrored falls for other technology companies as markets opened weakly. Vodafone fell two per cent as the FTSE as a whole slipped back.