Light Reading
The cut of 40 employees comes seven months after the set-top silicon company's headcount doubled via its acquisition of Trident Microsystems

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
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Documentaries
EE: The Road to 5G

12|16|14   |   16:02   |   (1) comment


Andy Sutton, the principal network architect at UK mobile operator EE, explains how his company is using Wembley stadium as a wireless test bed and how that's helping EE to plan the evolution to 5G.
LRTV Huawei Video Resource Center
Highlights of Huawei's NFV Open Cloud Forum 2014

12|16|14   |     |   (0) comments


Huawei hosted its inaugural NFV Open Cloud Forum during the SDN & OpenFlow World Congress 2014 in Düsseldorf, Germany. The Forum brought together technology thought leaders, senior executives and telecom professionals from global carriers, industry associations, as well as other partner companies in the ecosystem, to exchange views on and collectively explore how ...
LRTV Custom TV
Realizing Operators' Digital Vision

12|16|14   |   5:23   |   (0) comments


Leveraging technology is fundamental to digital transformation but understanding customers and serving them really well is at the heart of digital businesses. TM Forum lists the following as the strategic pillars of the digital business: business agility and rapid innovation, operational agility and effectiveness, IT and data centricity, plus customer centricity. ...
LRTV Documentaries
US Cellular Injects Analytics Into LTE

12|16|14   |   2:57   |   (1) comment


US Cellular's Mario Vela explains how the operator uses analytics for network planning and what comes next as the carrier looks to eke more value out of its metrics.
LRTV Interviews
How Cox Biz Plans to Keep Growing

12|15|14   |     |   (1) comment


Steve Rowley, SVP of Cox Business, details how the third-biggest US MSO intends to boost its revenues to $2 billion and beyond over the rest of the decade
LRTV Huawei Video Resource Center
Interview With Bill Zhang, Director of SoftCOM Product Management, Huawei

12|15|14   |   2:50   |   (0) comments


Bill Zhang elaborated on Huawei's open philosophy in NFV solution development and network architecture design at the SDN & OpenFlow World Congress 2014.
LRTV Huawei Video Resource Center
Event Highlights: Huawei at SDN & OpenFlow World Congress 2014

12|15|14   |   3:43   |   (0) comments


Huawei joined the 2014 SDN & OpenFlow Congress as one of the key sponsors and contributors. At the event, Huawei reinforced the openness and flexibility of its network infrastructure strategies, and provided updates on its SDN and NVF innovations. Through participations at the exhibitions, forums and speeches, Huawei encouraged the industry to "think bigger and ...
LRTV Interviews
How Cable Biz Services Hit $10B Mark

12|12|14   |     |   (1) comment


Cable operators reached $10 billion in annual business services revenues by delving deeper into their vertical markets and expanding beyond the smallest firms.
LRTV Documentaries
Mediacom Aims to Test Connected Tractors

12|11|14   |   05:07   |   (3) comments


Cable business service provider is taking its services to the 'agribusiness' sector in partnership with farm equipment specialist John Deere and is getting involved in Gigabit Cities developments.
LRTV Interviews
TWC Business Looks Beyond $3B

12|10|14   |     |   (0) comments


TWC Business Services chief Phil Meeks explains how his unit has reached $3 billion in annual revenues and what its plans are for next year.
LRTV Documentaries
AT&T's New Security Strategy

12|10|14   |   02:36   |   (1) comment


AT&T's Chief Security Officer Ed Amoroso explains how his company is wrapping virtual security layers around micro network domains.
LRTV Documentaries
2020 Vision: A First View

12|9|14   |   02:25   |   (3) comments


At the 2020 Vision Executive Summit in Iceland, unique Heavy Reading research shows that comms service providers are optimistic about the next five or so years.
Upcoming Live Events
February 10, 2015, Atlanta, GA
April 14, 2015, New York City, NY
May 6, 2015, McCormick Convention Center, Chicago, IL
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Hot Topics
Vodafone to Ride T-Mobile Back Into US
Dan Jones, Mobile Editor, 12/12/2014
1-Gig: Coming to a Small Town Near You
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 12/17/2014
Cisco Makes Big Analytics Push
Mitch Wagner, West Coast Bureau Chief, Light Reading, 12/11/2014
Gardner's Departure a Cautionary Tale
Carol Wilson, Editor-at-large, 12/12/2014
T-Mobile Lights Up 27 Wideband LTE Cities
Sarah Reedy, Senior Editor, 12/15/2014
Like Us on Facebook
Twitter Feed
Upcoming Webinars
Webinar Archive