& 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."


 


###


 

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.
LRTV Interviews
ETSI's CTO Talks NFV, 5G & NGP

12|5|16   |   09:45   |   (0) comments


Adrian Scrase, CTO at standards body ETSI, talks about the various initiatives and specifications developments related to NFV, 5G and NGP (next-generation protocols) that will underpin next-gen networks.
Women in Comms Introduction Videos
Korn Ferry Consultant: How to Find, Cultivate & Be the Best Talent

11|30|16   |   4:10   |   (1) comment


Erin Callaghan, a managing consultant for Korn Ferry Futurestep, shares strategies for companies to improve how they recruit and for women to ensure they don't get lost in the pipeline.
LRTV Custom TV
We Can Make the World More Sustainable

11|29|16   |     |   (0) comments


GeSI is a global e-Sustainability Initiative organization bringing together 40 big multinational companies around the world. According to GeSI's report, information and communication technology can make the world more sustainable. Luis Neves, chairman of GeSI, shared with us his opinion at Ultra-broadband Forum (UBBF2016).
LRTV Custom TV
Finding a New Way to Engage Customers & Drive Revenue

11|29|16   |     |   (0) comments


Mobile revenues are declining. Digicel, a player in the Caribbean telecommunications/entertainment space, has found a new way to engage customers and drive revenue. John Quinn, CTO of Digicel, shared with us its story at Ultra-broadband Forum (UBBF2016)
LRTV Custom TV
Do You Really Need Gigabit Infrastructure?

11|29|16   |     |   (0) comments


Altibox is the biggest fiber-to-the-home (FTTH) player and the largest provider of video and TV in Norway. They started out with zero customers in 2002. Now they have close to half a million households and companies attached to their FTTH business. Nils Arne, CEO of Altibox shared with us their story and insight on 5G at Ultra-broadband Forum (UBBF2016).
LRTV Custom TV
BTís Openreach Strategy & Its Updates in 2016

11|29|16   |     |   (0) comments


A lot of developments at Openreach this year in terms of strategy and planned investments. Peter Bell, CIO of Openreach BT, shared with us the updates of Openreach at Ultra-broadband Forum (UBBF2016).
LRTV Custom TV
ITU: The Broadband Is Our Future

11|29|16   |     |   (0) comments


At Ultra-broadband Forum, Houlin Zhao, Secretary General of ITU, discussed how important it is for countries, companies and everybody to be working together to help to build the broadband and digital economies (UBBF2016).
LRTV Custom TV
Tackling 5G in Dallas

11|28|16   |     |   (0) comments


Here are our highlights of the 5G North America show in Dallas, Texas with Light Reading's Dan Jones.
LRTV Interviews
Cox Prepping for Virtualization Trials

11|14|16   |     |   (0) comments


In this video interview, Cox's Jeff Finkelstein discusses MSO's plans to test managed business services in early 2017 and tackle Distributed Access Architectures.
LRTV Custom TV
Drivers & Potential of NGP

11|11|16   |     |   (0) comments


ETSI has created an Industry Specification Group to work on Next Generation Protocols (NGP ISG), looking at evolving communications and networking protocols to provide the scale, security, mobility and ease of deployment required for the connected society of the 21st century. The NGP ISG will identify the requirements for next generation protocols and network ...
LRTV Custom TV
Huawei IP 2020 for Future Networks

11|11|16   |     |   (0) comments


Future Networks should satisfy many requirements such as high throughput, extremely low latency, flexible mobility, intrinsic security, networking automation, and so forth. The Chief Architect of Huawei Future Networks addresses a holistic solution, i.e., IP 2020, to achieve these requirements for various future life scenarios (e.g., autonomous driving, tactile ...
LRTV Custom TV
Digital Object Architecture

11|11|16   |     |   (0) comments


Digital Object Architecture provides a basic information infrastructure that can facilitate interoperability between or among different systems, processes, and other information resources, including different identity management systems. Digital objects are networked objects that are named by digital object identifiers and instantiated by an infrastructure service ...
Upcoming Live Events
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
Cable Nodes Becoming a Choke Point
Brian Santo, Senior editor, Test & Measurement / Components, Light Reading, 12/5/2016
Apple Seeds 5G? Seeks 'Multi-Gigabit' Chip Designer
Dan Jones, Mobile Editor, 11/30/2016
Altice Plans FTTH for Entire US Footprint
Iain Morris, News Editor, 11/30/2016
Altice FTTH Bill Could Hit Almost $9.6B in US
Iain Morris, News Editor, 12/1/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Eyal Waldman, CEO of Mellanox Technologies, speaks to Steve Saunders, CEO of Light Reading, for an exclusive interview about the 100 GB cable challenge, cybersecurity and much more.
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.
Live Digital Audio

Even when there's a strong pipeline of female talent in the comms industry, it tends to leak all the way to the top. McKinsey & Company says women experience pipeline leakage at three primary points: being unable to enter, being stuck in the middle or being locked out of the top. Each pipeline pain point presents its own challenges, but also opportunities to stop the leak. Wireless operator Sprint is making a conscious effort to improve its own pipeline from new recruits to the C-suite, and it wants the rest of the industry to do the same. In this Women in Comms radio show, WiC Board Member and Sprint Vice President of Enterprise Sales Nelly Pitocco will give us her take on the industry's pipeline challenges. Pitocco, who joined Sprint in May and has spent 20 years in the comms industry, will also offer solutions, share how Sprint is tackling the challenge within its own organization and take your questions live on air.