Pace Micro Technology had a difficult second half of 2005, recording a loss of 8.9 million British pounds ($15.7 million) for the 26 weeks which ended Dec 3. At the same stage last year, the operator recorded a profit of 4.7 million pounds ($8.3 million). Revenues also were disappointing at 78.9 million pounds ($139.3 million) in the second half of 2005, compared to 150 million pounds ($264.7 million) in the same period in 2004.

The declines can be attributed to a drastic reduction in shipments of set-top boxes, which fell from 2.1 million in the second half of 2004 to 1.1 million in the second half of 2005. Pace blamed the setbacks on “new product introduction and some shipment delays due to industry-wide component shortages.”