Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,262.56 89.32 0.55%
S&P 500 1,842.98 12.37 0.68%
NASDAQ 4,034.16 11.47 0.29%
Ticker Volume Price Price Delta
STOXX 50 3,091.52 -40.05 -1.28%
FTSE 100 6,541.61 -42.15 -0.64%
DAX 9,173.71 -165.46 -1.77%
Ticker Volume Price Price Delta
NIKKEI 14,382.76 385.95 2.76%
TOPIX 1,162.20 26.11 2.30%
HANG SENG 22,841.54 170.28 0.75%

Entropic Reaffirms and Narrows Guidance Range for Q2 2013; Restructures to Improve Operational Efficiencies



Entropic Reaffirms and Narrows Guidance Range for Q2 2013; Restructures to
Improve Operational Efficiencies

SAN DIEGO, July 2, 2013 (GLOBE NEWSWIRE) -- Entropic (Nasdaq:ENTR), a world
leader in semiconductor solutions for the connected home, today narrowed its
previously announced financial guidance for the second quarter of 2013 to the
low end of the revenue range. Entropic now expects revenue of approximately
$70 million and is reaffirming prior guidance for non-GAAP earnings per share
of $0.00 for the second quarter.

Entropic also announced it is implementing a restructuring plan designed to
refine business operations with the goal of driving long-term profitable
growth. In connection with the corporate restructuring plan, Entropic is
making strategic organizational changes across its marketing and business
operations to focus on key vertical markets, streamline global manufacturing
resources, and consolidate several engineering activities to drive
efficiencies.

Entropic anticipates the restructuring plan will be substantially completed
within the next month. The restructuring plan is expected to result in a
reduction in force of approximately 70 employees, constituting approximately
10 percent of Entropic's global workforce. Once fully implemented, Entropic
estimates that the full annualized costs associated with the 70 employees will
be approximately $9 million. Entropic has plans to reinvest these savings in
the development of new products and programs. 

"The restructuring activities are designed to maximize engineering
efficiencies, optimize business operations and align our investments with key
vertical market requirements," said Patrick Henry, president and chief
executive officer, Entropic. "It also gives us an opportunity to increase
investment in strategic areas with more long-term growth potential, including
analog mixed-signal and software."

Entropic estimates it will incur pre-tax GAAP charges of approximately $1.7
million in connection with this restructuring plan, the majority of which will
be recorded during the second quarter of 2013.

Entropic will release financial results for the second quarter 2013, and host
a conference call for analysts and investors on July 31, 2013. At that time,
Entropic will review its second quarter results and provide an outlook for the
third quarter of 2013. Details on the conference call will be announced, prior
to that date.

About Entropic

Entropic™ (Nasdaq:ENTR) is a world leader in semiconductor solutions for the
connected home. Entropic transforms how traditional HDTV broadcast and
IP-based streaming video content is seamlessly, reliably, and securely
delivered, processed, and distributed into and throughout the home. Entropic's
next-generation Set-top Box (STB) System-on-a-Chip (SoC) and Connectivity
solutions enable Pay-TV operators to offer consumers more captivating
whole-home entertainment experiences by transforming the way digital
entertainment is delivered, connected and consumed – in the home and on the
go. For more information, visit Entropic at: www.entropic.com.

The Entropic logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=4255

Non-GAAP Financial Measures

This press release contains non-GAAP earnings per share. Non-GAAP earnings per
share can be reconciled to GAAP earnings per share by excluding the effects of
all forms of stock-based compensation, transaction and integration costs
related to Entropic's Trident Microsystems and PLX Technology transactions,
amortization of intangible assets, the loss related to equity method
investment, the impact of fair value adjustments related to contingent
consideration payable in Entropic's acquisition of PLX Technology assets, the
cash tax difference and restructuring charges. Management uses non-GAAP
financial measures to manage Entropic's business, including setting operating
budgets and executive compensation plans. Non-GAAP measures are also used to
(i) supplement the financial results and forecasts reported to Entropic's
board of directors, (ii) evaluate Entropic's operating performance, (iii)
compare Entropic's performance to internal forecasts, and (iv) manage
Entropic's business and benchmarking performance internally. Non-GAAP measures
have been made available to stockholders consistently in the past to provide
transparency on how management manages Entropic's operating performance.
Management believes that non-GAAP operating measures are useful to investors,
when used as a supplement to GAAP measures, in evaluating Entropic's ongoing
operational performance. Non-GAAP financial measures disclosed by Entropic
should not be considered in isolation or a substitute for, or superior to, the
financial information prepared and presented in accordance with GAAP, and the
financial results calculated in accordance with GAAP and reconciliations to
those financial statements should be carefully evaluated. The non-GAAP
financial measures used by Entropic may be calculated differently from, and
therefore may not be comparable to, similarly titled measures used by other
companies.

Forward-Looking Statements

Statements in this press release that are not strictly historical in nature
constitute "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995.  Such statements include, but are
not limited to, statements regarding the expected costs of the restructuring
plan, the goals and expected benefits of the restructuring plan, including the
operating expense reductions and engineering efficiencies, Entropic's ability
to make strategic investments and continue product development, Entropic's
growth opportunities and expectations for future revenue and earnings per
share. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause Entropic's actual results to
be materially different from historical results or from any results expressed
or implied by such forward-looking statements. These factors include, but are
not limited to, risks and uncertainties associated with estimating revenues
and earnings per share prior to Entropic closing its books and verifying such
information; Entropic's ability to successfully implement its restructuring
plan to leverage synergies and optimize its resources; the impact of the
restructuring plan on Entropic's business, including a potential adverse
effect on revenues and Entropic's other financial results; unanticipated
charges not currently contemplated that may occur as a result of the
restructuring plan, Entropic's dependence on a limited number of supply chain
partners for the manufacture of its products and other factors that could
affect its ability to meet customer demand; Entropic's dependence on a limited
number of customers for a substantial portion of its revenues; risks
associated with adverse U.S. and international economic conditions; the
ability of Entropic's customers or the service providers who purchase their
products to successfully compete and continue to grow in their markets; the
continued development of the market for High Definition (HD) video and other
multi-media content delivery and networking solutions; risks associated with
competing against larger and more established companies and Entropic's ability
to compete successfully in the connected home entertainment market; risks
associated with timely development and introduction of new or enhanced
products including those associated with IP Video delivery; risks related to
international operations; risks related to intellectual property, including
third party licensing or patent infringement claims; risks associated with
acquisitions including their integration into Entropic's existing operations;
and other factors discussed in the "Risk Factors" section of Entropic's
Quarterly Report on Form 10-Q for the quarter ended March 31, 2013.  All
forward-looking statements are qualified in their entirety by this cautionary
statement. Entropic is providing this information as of the date of this press
release and does not undertake any obligation to update any forward-looking
statements contained in this press release as a result of new information,
future events or otherwise.

Copyright© 2013 Entropic. All rights reserved. All other product or company
names mentioned are used for identification purposes only and may be
trademarks of their respective owners.

CONTACT: Investor Contact:
         Debra Hart
         +1 858.768.3852
         debra.hart@entropic.com
        
         Media/Industry Analyst Contact:
         Chris Fallon
         + 1 858.768.3827
         chris.fallon@entropic.com

Entropic Logo
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement