Entropic lowers 1st-quarter outlook, shares sink
Entropic says change in customer plans will hurt 1Q revenue, shares fall sharply in trading
SAN DIEGO (AP) -- Entropic, which makes chips for home entertainment networks, said Monday that its fiscal first-quarter results will come in below its previous forecast.
The San Diego-based company said one of its television service customers changed their deployment plans for use of high-definition digital terminal adapters, which ultimately hurt Entropic's anticipated revenue.
Entropic now expects revenue between $74 million and $76 million for the period. That's down from its prior forecast of revenue between $79 million and $81 million. It anticipates its adjusted earnings will be flat to 1 cent per share. Its prior forecast was for adjusted earnings of 2 cents per share.
Analysts polled by FactSet, on average, were expecting the company to earn 2 cents per share on revenue of $79.7 million for the period.
The company is scheduled to report its first-quarter results on April 30.
Shares of the Entropic fell 32 cents, or 6.9 percent, to $4.33 by midday on the news. Its shares have traded in a 52-week range of $3.40 to $6.64.
