SAN DIEGO, Dec. 19, 2008 (GLOBE NEWSWIRE) -- Entropic Communications, Inc. (Nasdaq:ENTR), a leading provider of silicon solutions to enable connected home entertainment, today updated its guidance for its fourth quarter of 2008 which was previously provided on October 28, 2008. The Company now expects fourth quarter revenue to range between $29.3 million and $29.7 million, a decline of 6 percent to 8 percent from the company's revenue of $31.7 million in the third quarter ended September 30, 2008. The Company's previous guidance for the fourth quarter was for revenue to range between $32 million and $33 million. The revision in guidance resulted largely from Entropic accommodating customer requests to reschedule backlog into 2009 due to the weak macroeconomic environment.
Additionally, the Company is currently performing an impairment analysis of its goodwill and intangible assets as part of our annual impairment assessment. Based on the preliminary results of this analysis, we have identified a potential impairment for accounting purposes and currently expect to have a write off in the fourth quarter.
Entropic expects to release financial results for the fourth quarter 2008 and host a conference call for analysts and investors during the first week of February. At that time, we will review the quarterly results and provide an outlook for the first quarter of 2009. Details for the conference call will be announced prior to that date.
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.
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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 our revenue forecast and our impairment analysis. 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; risks associated with adverse U.S. and international economic conditions; 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; risks associated with competing against larger and more established companies and our ability to compete successfully in the market for MoCA-compliant chipsets; risks associated with timely development and introduction of new or enhanced products; risks related to international operations including political and economic conditions in foreign markets; and other factors discussed in the "Risk Factors" section of Entropic's Quarterly Report on Form 10-Q for the quarter ended September 30, 2008. 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.