The chipmaker said it engaged Barclays (BCS) as it considers a wide range of alternatives available. The company did not specify what those alternatives might be.
Entropic Communications also lowered its third quarter guidance due to less seasonal strength in the Direct Broadcast Satellite Outdoor Unit business and weakness in legacy set-top box system-on-a-chip products. The company now expects revenue of about $43 million for the third quarter, and a non-GAAP loss of about 15 cents a share.
Must Read: Warren Buffett's 25 Favorite Stocks
The company expects more softness in the fourth quarter due to new product deployment delays.
TheStreet Ratings team rates ENTROPIC COMMUNICATIONS INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate ENTROPIC COMMUNICATIONS INC (ENTR) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself."