Entropic Communications raised its revenue outlook for the third quarter of 2010, as major cable and satellite TV providers expand their rollout of multiroom DVR set-tops that use the company's chips.
The San Diego-based company -- the top supplier of chips for Multimedia over Coax Alliance (MoCA) home networking -- now expects sales for the quarter ending Sept. 30 to be between $60 million and $61 million, up 47% to 50% sequentially. Previously Entropic had expected revenue of $51 million to $53 million.
"Through impressive execution by our operations team and supply chain partners, we were able to capitalize on upside demand from our customers in the quarter," Entropic president and CEO Patrick Henry said in a statement. "We are seeing continued market expansion with new product ramps at many tier-1 pay-TV service providers, which is driving increased demand for our home networking and direct broadcast satellite solutions."
Also Monday, Entropic said it now anticipates a higher accrual rate for variable compensation based on its updated full-year projections for revenue and profitability, which will result in modestly higher operating expenses in the third quarter than previously expected.
The company expects net income per share for the third quarter to be $0.13 to $0.14. Entropic plans to issue financial results for the third quarter 2010 during the last week of October, when it will provide guidance for the fourth quarter.
Entropic posted sales of $40.7 million for the second quarter, which ended June 30, up 56% year over year, and net income of $3.1 million (versus a net loss of $4.3 million in the year-prior period).