& cplSiteName &

Entropic Cuts 6 Percent Amid Growing Pains

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
12/3/2012
50%
50%

Chip vendor Entropic Communications Inc. (Nasdaq: ENTR) has cut 40 employees, or 6 percent of its total, due to growing pains brought on by two recent acquisitions.

The decision was made Nov. 28, as Entropic decided "to rebalance its operations," according to an 8-K filed Monday.

Entropic says the move will result in a pre-tax restructuring charge of $0.9 million in the fourth quarter and full annualized costs of roughly $4.2 million.

Entropic is changing from a Multimedia over Coax Alliance (MoCA) specialist to a broad set-top chipset company that will compete more directly with the likes of Broadcom Corp. (Nasdaq: BRCM), STMicroelectronics NV (NYSE: STM), Sigma Designs Inc. (Nasdaq: SIGM) and, to a degree, and Intel Corp. (Nasdaq: INTC).

Much of that evolution has come through recent acquisitions. Five months ago, Entropic put up $8 million to buy the assets of PLX Technology, a company that specialized in direct broadcast satellite technology and chips. It closed a much larger $65 million acquisition of set-top chipmaker Trident Microsystems about eight months ago. The Trident deal added 365 employees, essentially doubling Entropic's headcount.(See Entropic Buys Satellite Tech, Entropic Sweetens Pot to Win Trident and Entropic Readies Its Run at Broadcom .)

Entropic was not immediately available Monday to say which part of the company was hit hardest by the job cuts.

Entropic is one of the chipmakers that's gunning for the XI3, an IP-only HD client box specified by Comcast Corp. (Nasdaq: CMCSA, CMCSK), which is already using Entropic in its Skype TV product.

Pace plc 's first stab at the XI3 is based on Broadcom silicon. Humax Co. Ltd. has also developed a version of the XI3 that recently passed through the Federal Communications Commission (FCC) . (See Comcast Puts Entropic Inside Its IPTV Client, Comcast Taps Entropic SoC for Skype TV, Meet Comcast's IP-Only Set-Top and Comcast's IP-Only Set-Top Unveiled.)

— Jeff Baumgartner, Site Editor, Light Reading Cable

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
12/5/2012 | 5:16:34 PM
re: Entropic Cuts 6 Percent Amid Growing Pains


Entropic still isn't being too specific on which areas got trimmed, but they confirmed that it's due mostly to those two recen acquisitions, that they're still evaluating how things are to shake out, and that they believe the moves will keep anticipated margins on track. Here's their follow-up statement:


"Regarding the re-allocation, as part of our integration process from our STB SoC and digital channel stacking switch asset acquisitions, we continue to evaluate our global corporate structure to ensure we have the right resource profile – across the company - to execute on our long-term product roadmap and business objectives. 


"As with any major integration, where the company has doubled in size and market opportunity, we need to stay disciplined and controlled in our execution. As we have done over the past 10-years of our company’s history – we will remain diligent in our approach to fulfilling our product roadmap and integration efforts, and remain fiscally responsible.


"By managing-to-plan, minimizing redundancies and optimizing synergies across the company, we took a deliberate approach to ensure we are still on-track to hit our long-term model for operating margins of 18-20% by Q4 2014."


 


###


 

Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
NEXT COURSE
Wednesday, September 14, 1:00PM EDT
What Is Agile?
Kent J. McDonald, Product Owner, Agile Alliance
UPCOMING COURSE SCHEDULE
Friday, September 16, 1:00PM EDT
How to Implement Agile
Alan Bateman, Director, Agile Transformation
Wednesday, September 21, 1:00PM EDT
What Is DevOps?
Colin Kincaid, CTO, Service Provider, Cisco
Friday, September 23, 1:00PM EDT
How to Implement DevOps
,
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
Between the CEOs
CEO Chat: UXP's Gemini Waghmare

8|26|16   |     |   (0) comments


Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
LRTV Custom TV
F5 Virtual Network Function Integrations With Partner Orchestration Platform

8|24|16   |   6:38   |   (0) comments


F5's Kishore Patnam, product manager for F5's service provider solutions, discusses why service providers are moving towards virtualization and how his clients are utilizing F5's solutions.
Between the CEOs
CEO Chat: Intel's Alexis Black Bjorlin

8|17|16   |   06:23   |   (0) comments


Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Telecom Innovators Video Showcase
Accelerating Telecom Digital Transformation With Nominum DNS

8|1|16   |   12:04   |   (0) comments


Light Reading's Steve Saunders gets an update from Nominum CEO Gary Messiana on how his company is helping carriers on the digital transformation journey.
LRTV Custom TV
Reinventing Operations for a Virtual, Software-Defined World

7|28|16   |   5:23   |   (0) comments


Heavy Reading Senior Analyst Jim Hodges speaks with Accenture's Larry Socher and Matt Anderson about what service providers must do to transform their business to get the benefits of SDN and NFV including: leveraging DevOps, introducing real-time OSS and implementing analytics.
Women in Comms Introduction Videos
Fujitsu Sales Leader Shares Lessons Learned

7|27|16   |   5:12   |   (1) comment


As Fujitsu's only female sales leader, Annie Bogue knows the importance of asking for what you want, being flexible (she's been relocated five times), keeping a meticulous calendar, 'leaning in,' working harder than everyone else around you, being aware and more.
Telecom Innovators Video Showcase
VeEX Test & Measurement Solutions

7|25|16   |   08:57   |   (0) comments


Cyrille Morelle, president and CEO of VeEX Inc., talks test and measurement with Light Reading's Steve Saunders at BCE 2016. This includes innovative products such as VeSion Cloud-Based platform for network monitoring; MTTplus Modular Test platform for Access, Business, Carrier Ethernet, Transport and Core services; and OPX-BOX+ for Fiber Optics.
LRTV Custom TV
VeEX: Live From BCE 2016

7|25|16   |   03:20   |   (0) comments


VeEX's Senior Director of Business Development, Perry Romano, explains how VeEX provides tools to help install, maintain, monitor and manage network infrastructure efficiently and effectively. The portfolio of products on display include the RXT-6000, MTTplus and TX300s.
LRTV Custom TV
Real-Time Telemetry & Analytics for Intelligent SDN Orchestration

7|25|16   |   03:09   |   (0) comments


Packet Design CEO Scott Sherwood discusses how real-time network telemetry and analytics are enabling a new breed of SDN orchestration applications.
From the Founder
The Russo Report: Driving Disruption

7|25|16   |   07:44   |   (2) comments


In the first episode of a four-part series, Light Reading Founder and CEO Steve Saunders and Calix President and CEO Carl Russo drive around town discussing the disruptive mega-changes in the communications industry and where hope lies for service providers to meet the escalating demands of the cloud.
LRTV Custom TV
NetScout: Maximizing Enterprise Cloud for Digital Transformation

7|20|16   |   04:53   |   (0) comments


Light Reading Editor Mitch Wagner talks to NetScout CMO Jim McNiel about maximizing the benefits of enterprise cloud and digital transformation while minimizing potential pitfalls with a proper monitoring and instrumentation strategy.
Women in Comms Introduction Videos
Ciena's VP Offers a Career Crash Course

7|20|16   |   4:14   |   (2) comments


How did Ciena's Vice President of Sales, Angela Finn, carve out her career path? Simple, she tells WiC. She stayed true to her company, customers and principles. She shares her advice for women on how to be authentic and credible, as well as for companies that want to make a real change to their culture and practices.
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 1, 2016, The Westin Times Square, New York, NY
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
Google Fiber Can't Be Called a Failure
Carol Wilson, Editor-at-large, 8/26/2016
FirstNet: A Billion-Dollar Boondoggle?
Dan Jones, Mobile Editor, 8/26/2016
WiCipedia: Should Men Be Included? & Olympians Face Discrimination
Eryn Leavens, Special Features & Copy Editor, 8/26/2016
Is There No Stopping Huawei?
Iain Morris, News Editor, 8/26/2016
Google Fiber Downsizing Not Confirmed
Mari Silbey, Senior Editor, Cable/Video, 8/25/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Animals with Phones
Live Digital Audio

Bridging the tech skills gap is a major challenge for service providers and suppliers alike today – and the challenge is two-fold when it comes to increasing the number of women in the comms space. Level 3 Communications has made it a priority to overcome both challenges by implementing several unique programs focused on building the right candidates from within – in addition to filling the funnel by supporting STEM and other education programs. During this radio show, you’ll learn about these programs from Mary Beth McGrath, SVP of Global Talent Management at Level 3, and the best ways to bridge your own skills gap so that you are motivated and equipped for change. Plus you’ll have the chance to ask Mary Beth your questions live on the air.