Entropic Cuts 6% of WorkforceSet-Top and Home Networking Silicon Maker Lays Off 40 Employees 12/03/2012 12:27 PM Eastern
Entropic Communications laid off 40 employees, or about 6% of its workforce, as the vendor of set-top and home networking silicon said it looks to “rebalance its operations” following a pair of acquisitions earlier this year.
The company, in a regulatory filing Monday, said the layoffs are "an attempt to leverage synergies from its acquisitions, optimize resources around the projects and customers that drive the maximum growth of its businesses, and meet its financial objectives."
Entropic completed its $65 million acquisition of Trident Microsystems’ set-top box system-on-a-chip business this year, which more than doubled its head count to about 700 employees. That deal officially closed in April 2012 following a bankruptcy auction.
Then in July Entropic acquired direct broadcast satellite intellectual property and corresponding technologies from PLX Technology in a deal worth up to $8 million.
"As with any major integration, where the company has doubled in size and market opportunity, we need to stay disciplined and controlled in our execution," Entropic said in a statement. "As we have done over the past 10 years of our company’s history we will remain diligent in our approach to fulfilling our product roadmap and integration efforts, and remain fiscally responsible."
Entropic said the cuts occurred Nov. 28, according to an 8-K filing Monday with the Securities and Exchange Commission.
The company estimates that it will save about $4.2 million annually with the layoffs. Entropic expects to incur a pre-tax restructuring charge of approximately $0.9 million in the fourth quarter of 2012. Entropic said it remains on-track to hit its "long-term model" for operating margins of 18% to 20% by the fourth quarter of 2014.
San Diego-based Entropic is a co-founder of the Multimedia over Coax Alliance (MoCA), a widely adopted technology for in-home HD video delivery over coaxial cable.
Operators that have deployed equipment with Entropic's chips include Comcast, Cox Communications, DirecTV, Dish Network, Time Warner Cable, Liberty Global and Verizon Communications.