SAN DIEGO, April 28, 2008 (PRIME NEWSWIRE) -- Entropic Communications, Inc. (Nasdaq:ENTR), a leading provider of silicon solutions to enable connected home entertainment, today reported its first quarter results for the period ended March 31, 2008. Entropic reported first quarter net revenues of $42.0 million, an increase of 4.5% compared with $40.2 million in the fourth quarter of 2007 and 110% higher than in the first quarter of 2007. The revenues in the first quarter of 2008 included revenues related to the acquisition of RF Magic, compared with the first quarter of 2007 which was prior to the acquisition.
In accordance with U.S. generally accepted accounting principles (GAAP), the company's first quarter net loss was $3.9 million, or ($0.06) per share (basic and diluted) on 66.7 million weighted average shares outstanding. This compares with GAAP net loss of $0.5 million, or ($0.02) per share (basic and diluted) on 27.5 million weighted average shares outstanding, in the fourth quarter of 2007. Non-GAAP net income in the first quarter was $3.2 million, or $0.04 per diluted share on 73.6 million shares outstanding, compared to net income of $3.2 million, or $0.05 per diluted share on 68.1 million average shares outstanding, in the fourth quarter of 2007. The increase in GAAP and non-GAAP weighted average shares outstanding between the two periods is attributable to the company's initial public offering which occurred late in the fourth quarter of 2007.
"Our home networking business continues to strengthen and we saw further diversification within the DBS Outdoor Unit business as our Channel Stacking Switch products continued to ramp," noted Patrick Henry, Chairman and Chief Executive Officer of Entropic Communications. "We reported our sixteenth consecutive quarter of revenue growth and our third consecutive quarter of non-GAAP net income. We are off to a fabulous start to the year and see increasing momentum in our served markets."
Three months ended
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(In millions, except Mar. 31, Dec. 31, Mar. 31,
per share data) 2008 2007 2007
Net revenues $42.0 $40.2 $20.0
GAAP net loss ($3.9) ($0.5) ($1.1)
GAAP net loss per share (basic
and diluted) ($0.06) ($0.02) ($0.21)
Non-GAAP net income (loss)(1) $3.2 $3.2 ($0.7)
Non-GAAP net income (loss)
per share(1) $0.04 $0.05 ($0.02)
1. Please refer to the financial statements portion of this press
release for an explanation of the non-GAAP financial measures
contained in the table above and a reconciliation of such
measures to the comparable GAAP financial measures.
First Quarter Highlights
* Partnered with Actioncable to deliver cost-effective multimedia services over the existing cable infrastructure for China MSO deployments in the SiChuan Province * Announced that Earda Electronics will use Entropic's RF4800 single chip silicon tuners to deliver Digital Video Broadcast over Cable (DVB-C) Tuner Modules * Expanded our partnership with Browan to deliver enhanced broadband communication services to several additional cities in China using Entropic's c.LINK broadband access product solutions * Partnered with Jiuzhou Electronics to deliver next generation digital set-top boxes using Entropic's silicon tuners * Consolidated our San Diego facilities into new 90,000 square foot corporate headquarters
Other Recent News
* Expanded our product offering and technical talent with the April 3, 2008 acquisition of Vativ Technologies, a fabless semiconductor company that designs and markets HDMI compliant chips that are sold into consumer electronics equipment
For More Information
Entropic management will be holding a conference call today, April 28, 2008, at 2:00 p.m. Pacific Time/5:00 p.m. Eastern Time to discuss the company's results for the first quarter and to provide guidance for the second quarter. You may access the conference call via any of the following:
Teleconference: 719-325-4866 Conference ID: 2212423 Web Broadcast: http://ir.entropic.com/events.cfm Replay: 719-457-0820
About Entropic Communications
Entropic Communications, Inc. is a leading fabless semiconductor company that designs, develops and markets system solutions that enable connected home entertainment. The company's technologies significantly change the way high-definition television-quality video and other multimedia content such as movies, music, games and photos are brought into and delivered throughout the home. For more information please visit: www.entropic.com.
The Entropic Communications logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=4255
Forward Looking Statements
Statements in this press release that are not strictly historical in nature constitute "forward-looking statements." Such statements include, but are not limited to, statements regarding increasing momentum in our served markets, continued strengthening in our home networking business, expanded business activities and partnerships in China and the anticipated benefits of the Vativ Technologies acquisition. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause Entropic's actual results to be materially different from historical results or from any results expressed or implied by such forward-looking statements. These factors include, but are not limited to, our dependence on a limited number of customers for a substantial portion of our revenues; the ability of our customers or the service providers who purchase their products to successfully compete and continue to grow in their markets; the continued development of the market for HD video and other multi-media content delivery and networking solutions based on the MoCA standard; the effects of competition; risks related to international operations including political and economic conditions in foreign markets; our ability to effectively integrate acquired businesses and realize the anticipated financial and strategic benefits from businesses we acquire; risks associated with adverse U.S. and international economic conditions; and other factors discussed in the "Risk Factors" section of Entropic's Annual Report on Form 10-K for the fiscal year ended December 31, 2007. All forward-looking statements are qualified in their entirety by this cautionary statement. Entropic is providing this information as of the date of this release and does not undertake any obligation to update any forward-looking statements contained in this release as a result of new information, future events or otherwise.
Entropic Communications(r) and the stylized Entropic "curve" logo are either trademarks or registered trademarks of Entropic Communications, Inc. in the United States and/or other countries.