Last year’s tsunami and floods in Japan and Thailand continue to weigh heavily on set-top box manufacturer Pace, which saw its profit halve last year.
The natural disasters cost Pace £22.8m ($36m) of revenue and £5.7m ($9m) of operating profit in 2011.
The Yorkshire-headquartered firm said while the situation was improving the impact of component shortages would continue to be felt during 2012.
Profit for the 12 months to December 2011 stood at £34.5 million ($54.7m), down from £69.8 ($110.2m) last year.
Full year revenue, which was up by 11.9% to £1.4bn ($2.3bn), was entirely attributable to companies acquired by the business in 2010.
Without the acquisitions, year-on-year revenue fell by 7.1%.
Revenue in 2012 is expected to be “broadly flat”, with the impact of hard drive shortages on 2012 EBITA up to £22.1m ($35m).
Chief executive Mike Pulli said the results were in line with guidance issued by the company last year, when Pace slashed profit expectations.
He said: “Our focus on operational improvement and efficiency is already starting to deliver tangible results and will contribute further to our future competitive advantage…we are now firmly focused on execution and delivering a fitter, more profitable business with strong cash flow.”
Revenues in Europe dropped by 19% to £289.8 ($457.7m) last year due to a decline in the set top box business as Pace ceased retail sales and pulled out of Italy.
The European market was described as “characterised by high levels of HD and personal video recorder (PVR) penetration, addition of hybrid services and increasing levels of home networking”.
In a call with analysts, Pulli played down the threat of OTT, which he described as a complimentary service.
“It’s an add-on, or extension to, premium channels,” he said. “‘TV everywhere’ is another misnomer in our space.
“The underlying theme of ‘TV everywhere’ is that viewers are already paid subscribers.
“You might be able to watch TV on the move but you have to pay someone; it might allow you to watch on different devices but you still have to pay the bill.”