Light Reading

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
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."


 


###


 

Flash Poll
From The Founder
Networks of the future will rely on "white box" switches and servers rather than proprietary hardware and that's going to alter the shape of the communications industry. Who says so? John Chambers.
LRTV Huawei Video Resource Center
eLTE Rapid Meets the Need for Speed

3|26|15   |   4:45   |   (0) comments


Designed especially for emergency and dedicated ad hoc local mobile communications coverage, Huawei's eLTE Rapid solution can deliver trunked voice, video and data coverage for multiple users over a 6km range and be set up in just 15 minutes, explains Huawei's Norman Frisch.
LRTV Huawei Video Resource Center
On Videos: Challenges & Opportunities

3|26|15   |   5:56   |   (0) comments


Most everything is now connected. And along with 4K and 4G technologies, everyone could be creating and broadcasting video contents. Users are expecting better video experience with any screen, anywhere and anytime. Operators will meet new challenges, but also see some big opportunities.
LRTV Custom TV
JDSU: Delivering Dynamic Networks for a Personalized Experience

3|26|15   |   5:59   |   (0) comments


Light Reading speaks to JDSU at Mobile World Congress 2015 about new solutions in the areas of HetNets, VoLTE, backhaul, virtualization, big data analytics, and real-time intelligence.
LRTV Custom TV
Smarter Service Chaining & New Ways to Benefit From Qosmos Technology

3|25|15   |   03:11   |   (0) comments


David Le Goff, director of strategic and product marketing at Qosmos, explains how the company has added application awareness to subscriber information to make service chaining more efficient and reduce costs for networking and infrastructure. In addition, Qosmos technology, which has been delivered as C libraries, is now also available as a virtual machine, ...
Between the CEOs
Qosmos CEO: The Changing Face of DPI

3|24|15   |   13:53   |   (0) comments


LR CEO and Founder Steve Saunders sits down with the head of Qosmos to talk about the changing state of the art in deep packet inspection technology, including its role in SDN and NFV architectures. Also, how the comms market is becoming more like the automotive industry.
LRTV Huawei Video Resource Center
FC Schalke Scores With Its Agile Stadium

3|24|15   |   6:23   |   (0) comments


Top German soccer club FC Schalke 04 has deployed a new, agile WiFi network from Huawei in its Veltins-Arena stadium and is reaping the benefits in terms of customer satisfaction and business opportunities, explains marketing chief Alexander Jobst.
LRTV Huawei Video Resource Center
Huawei’s Insights on Mobile Video

3|24|15   |   7:51   |   (0) comments


More people than ever are now watching videos on smartphones. Seventy percent of mobile traffic will be video traffic until 2018. In this video, Huawei's exports give their insights on mobile video in terms of business model, network planning and 4G network construction.
LRTV Documentaries
The Rise of Industry 4.0

3|24|15   |   02:26   |   (8) comments


Are you ready for the fourth industrial revolution? It's a big deal for influential operators such as Deutsche Telekom.
LRTV Huawei Video Resource Center
Getting Connected With eLTE

3|23|15   |   06:04   |   (0) comments


Trunked radio communications have entered the 4G LTE world, and with Huawei's eLTE solution, can now deliver a full range of data and video services as well as push-to-talk voice, explains Huawei's Norman Frisch.
LRTV Huawei Video Resource Center
Funkwerk’s on Track With Huawei

3|19|15   |   3:23   |   (0) comments


GSM-R technology specialist Funkwerk and Huawei have forged a partnership that is benefiting both parties, notes Funkwerk's Gottfried Winter.
LRTV Documentaries
How EANTC Tested Cisco's Virtualization Solutions

3|18|15   |   5:49   |   (0) comments


Carsten Rossenhövel, managing director of independent test lab EANTC, tells Light Reading founder and CEO Steve Saunders about the innovative approach his team had to take when validating Cisco's service provider virtualization and cloud solutions.
LRTV Huawei Video Resource Center
Converged Communications: Working Simply & Smartly

3|17|15   |   03.24   |   (0) comments


Edwin Diender, CTO of Huawei's Enterprise Switch & Communications division, outlines the four main pillars of Huawei's unified communications portfolio and explains how the addition of 4K video capabilities has helped Huawei develop a groundbreaking videoconferencing solution.
Upcoming Live Events
April 14, 2015, The Westin Times Square, New York City, NY
May 5, 2015, Hyatt McCormick Place, Chicago, IL
May 6, 2015, Georgia World Congress, Atlanta, GA
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 10, 2015, Chicago, IL
All Upcoming Live Events
Infographics
Hot Topics
Women in Tech Coming Into Focus
Sarah Thomas, Editorial Operations Director, 3/20/2015
Will Open Source Groups Keep Windows Open?
Carol Wilson, Editor-at-large, 3/20/2015
Google Hires Wall Street's Most Influential Woman as CFO
Dan Jones, Mobile Editor, 3/24/2015
The Rise of Industry 4.0
Ray Le Maistre, Editor-in-chief, 3/24/2015
Net Neutrality Suits: Only The Beginning?
Alan Breznick, Cable/Video Practice Leader, 3/24/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
LR CEO and Founder Steve Saunders sits down with the head of Qosmos to talk about the changing state of the art in deep packet inspection technology, including its role in SDN and NFV architectures.
Chattanooga’s EPB publicly owned utility comms company has become a poster child for how to enable a local economy using next-gen networking technology. Steve Saunders, Founder of Light Reading, sits down with Harold DePriest, president and CEO of EPB, to learn how EPB is bringing big time tech to small town America.
Cats with Phones
Interspecies Phone Love Click Here
"No, you hang up."
"No, YOU hang up."