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Entropic Communications Reports Fourth Quarter and Fiscal Year 2008 Results
Conference Call to be Webcast Today at 2:00 p.m. Pacific Time
SAN DIEGO February 5, 2009 - Entropic Communications, Inc. (Nasdaq: ENTR), a leading provider of silicon solutions to enable connected home entertainment, today reported its fourth quarter and fiscal year results for the period ended December 31, 2008.
Entropic reported fourth quarter net revenues of $29.5 million, a decrease of 7 percent compared with $31.7 million in the third quarter of 2008 and 26 percent lower than in the fourth quarter of 2007.
During the fourth quarter, the company performed an annual review of its goodwill and long-lived assets to determine if any of these assets were impaired. Based on a combination of factors, including the current economic environment, Entropics operating results, and a sustained decline in Entropics market capitalization, the Company recorded a non-cash charge of $113.2 million in the fourth quarter of 2008 to write down the carrying amount of goodwill and certain intangible assets. The goodwill and intangible asset impairment charges do not affect the Companys day-to-day business operations, cash balance or long-term competitive position. Reflecting these charges, the Company reported a net loss for the fourth quarter of $118.9 million, or ($1.74) per share (basic and diluted). On a non-GAAP basis, without the effect of the goodwill and intangible asset impairment charges as well as other non-GAAP adjustments, net loss in the fourth quarter was $0.4 million, or ($0.01) per share (basic and diluted).
Net revenues for the year ended December 31, 2008 were $146.0 million, an increase of 19 percent from the $122.5 million reported for the year ended December 31, 2007. Net revenues in the year ended December 31, 2008 included a full twelve months of revenue from the acquisition of RF Magic, versus six months of revenue for the year ended December 31, 2007, as the acquisition closed on June 30, 2007. Net loss computed in accordance with GAAP for the year ended December 31, 2008 was $136.4 million, or ($2.01) per share (basic and diluted), compared with GAAP net loss of $32.1 million, or ($2.47) per share (basic and diluted), for the year ended December 31, 2007.
Although the current macroeconomic environment is challenging, we remain positive about our mid- and long-term prospects. Our largest end customers are financially strong and appear to be faring well despite the economy, and we continue to see momentum for additional service provider deployments and retail opportunities of our MoCA® home networking solutions, said Patrick Henry, president and CEO of Entropic Communications. While we have experienced a slow down in demand for our products as both our direct and end customers scale back inventory, we believe the market for our home networking products will expand as more service providers deploy MoCA solutions, and our fundamental strategy is unchanged. We continue to add to our product portfolio and remain committed to our ongoing product development efforts and prudent management of our resources.
The following information was filed by Entropic Communications Inc (ENTR) on Thursday, February 5, 2009 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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