Entropic cuts outlook on delay in set-top box orders
Monday, March 18, 2013 Entropic cuts outlook on delay in set-top box orders Entropic Communications Inc, which designs chipsets for video and broadband multimedia applications, cut its outlook for the first quarter as a U.S. pay-TV service provider delayed orders for set-top boxes. Shares of the company were down 8.2% at $4.27 U.S. by the close on Monday. Entropic's chips are used in set-top boxes made by network gear makers such as Cisco Systems Inc and Motorola Solutions Inc. Service providers including Verizon Communications Inc, DirecTV and Time Warner Cable Inc deploy these set-top boxes. Entropic said the delay in orders were related to high-definition digital terminal adapters set-top boxes, which enable service providers to deliver HD content to their basic subscribers. Benchmark Co said it believes the service provider delaying set-top box orders is Comcast Corp. Entropic now expects first-quarter revenue of $74 million to $76 million U.S., down from its previous range of $79 million to $81 million U.S. It expects a profit of up to one cent U.S. per share, excluding items, compared with its previous forecast of two cents U.S. per share. The company expects to release first-quarter results on or around April 30.