Pace, a technology developer for payTV and broadband service providers, said it will likely take an impact of USD 9.5 million on its 2011 operating profit as a result of the severe flooding in Thailand. The operating profit for the full year is now expected to fall below the previous guidance of USD 150-170 million. The company lowered its guidance after Western Digital Corporation announced it has suspended production of hard disk drives at its manufacturing facilities in Thailand due to the flooding. Western Digital is the major supplier of hard disk drives to Pace, which said the move will negatively impact expected shipments of products with hard disk drives from this supplier during the rest of the year. Pace made its statement after completing an initial assessment of Western Digital's announcement on its 2011 business. Pace will provide its upcoming interim management statement, together with an update on its strategic review, on 17 November.
