Entropic To Explore Strategic Alternatives; Sees Q3 Below View - Quick Facts

(RTTNews) - Entropic (ENTR) said that its Board has authorized the evaluation of strategic alternatives to enhance shareholder value. The Board intends to consider a wide range of alternatives available to the Company. The company has engaged investment bank Barclays in connection with its efforts.

The company said it has not set a timetable for completion of this process and does not intend to disclose further developments unless and until its Board approves a specific action or otherwise concludes the review of strategic alternatives.

Entropic also announced revised financial guidance for the third quarter of 2014.

The company is making good progress on its previously announced restructuring plan and cost reduction efforts and therefore expects to be on the lower end of its previous guidance for operating expenses. The Company now expects non-GAAP loss per share of approximately $0.15, and GAAP loss per share of approximately $0.28, for the third quarter.

Entropic now expects revenue for the third quarter to be approximately $43 million, due primarily to less seasonal strength than was anticipated in the Company's Direct Broadcast Satellite or DBS Outdoor Unit or ODU business, and to a lesser degree further weakness in legacy set-top box (STB) system-on-a-chip (SoC) products.

Analysts polled by Thomson Reuters expect the company to report a loss of $0.11 per share and revenues of $50.22 million for the third-quarter. Analysts' estimates typically exclude special items.

"We will give financial guidance for the fourth quarter on our next earnings call at the end of October, but based on our current forecast, we expect continued softness in the fourth quarter as we are again seeing new product deployment delays," said David Lyle, chief financial officer, Entropic.