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SAN DIEGO, July 2, 2013 (GLOBE NEWSWIRE) --
Entropic (Nasdaq:ENTR), a world leader in semiconductor solutions for the connected home, today narrowed its previously announced financial guidance for the second quarter of 2013 to the low end of the revenue range. Entropic now expects revenue of approximately $70 million and is reaffirming prior guidance for non-GAAP earnings per share of $0.00 for the second quarter.
Entropic also announced it is implementing a restructuring plan designed to refine business operations with the goal of driving long-term profitable growth. In connection with the corporate restructuring plan, Entropic is making strategic organizational changes across its marketing and business operations to focus on key vertical markets, streamline global manufacturing resources, and consolidate several engineering activities to drive efficiencies.
Entropic anticipates the restructuring plan will be substantially completed within the next month. The restructuring plan is expected to result in a reduction in force of approximately 70 employees, constituting approximately 10 percent of Entropic's global workforce. Once fully implemented, Entropic estimates that the full annualized costs associated with the 70 employees will be approximately $9 million. Entropic has plans to reinvest these savings in the development of new products and programs.
"The restructuring activities are designed to maximize engineering efficiencies, optimize business operations and align our investments with key vertical market requirements," said Patrick Henry, president and chief executive officer, Entropic. "It also gives us an opportunity to increase investment in strategic areas with more long-term growth potential, including analog mixed-signal and software."
Entropic estimates it will incur pre-tax GAAP charges of approximately $1.7 million in connection with this restructuring plan, the majority of which will be recorded during the second quarter of 2013.
Entropic will release financial results for the second quarter 2013, and host a conference call for analysts and investors on July 31, 2013. At that time, Entropic will review its second quarter results and provide an outlook for the third quarter of 2013. Details on the conference call will be announced, prior to that date.