Entropic lowers Q3 guidance, launches strategic review

Wednesday 17 September 2014 | 11:05 CET | News

Entropic, a provider of semiconductor systems for the connected home, has launched a strategic evaluation process in a bid to enhance shareholder value. The company intends to consider a wide range of alternatives and hired Barclays to help.

The evaluation comes as Entropic lowered its financial guidance for the third quarter on the back of less-than-expected seasonal strength at the Direct Broadcast Satellite (DBS) Outdoor Unit (ODU) business, and continuing weakness in legacy set-top box (STB) system-on-a-chip (SoC) products. The semiconductor group now expects Q3 revenues at USD 3 million, the non-GAAP loss per share at USD 0.15 and the GAAP loss per share at USD 0.28.

Entropic added that it was making good progress on its previously announced restructuring plan and cost reduction efforts and expects to be on the lower end of its previous guidance for operating expenses. Softness is expected to continue in the fourth quarter, due to delays in new product deployments.

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