Wed, Apr. 22, 4:57 PM
Wed, Feb. 4, 9:13 AM
Tue, Feb. 3, 5:37 PM
Tue, Feb. 3, 4:45 PM
- Broadband/consumer electronics RF chipmaker MaxLinear (NYSE:MXL) is acquiring satellite/home networking chipmaker Entropic (NASDAQ:ENTR) for $287M ($181M net of cash). The price is equal to $3.01/share, representing an 11% premium to Entropic's Tuesday close.
- Entropic shareholders will get $1.20/share in cash and 0.22 MaxLinear shares for each share they own. They'll own 35% of the post-merger company.
- MaxLinear: "The acquisition will add significant scale to MaxLinear's analog/mixed-signal business, expanding its addressable market and enhancing the strategic value of MaxLinear's offerings ... MaxLinear sees immediate cross-selling opportunities and longer-term platform integration opportunities with Entropic's leading MoCA [home networking] technology."
- The company also highlights Entropic's portfolio of 1.5K patents and patent applications. $20M/year in cost synergies are expected in year 1; the deal is expected to close in Q2.
- Separately, MaxLinear is affirming its Q4 revenue guidance (earnings arrive on Feb. 9), and guiding for FQ1 revenue of $34M-$35M, above a $33.7M consensus. Entropic, which has been struggling in recent quarters, has just posted a slight Q4 beat and guided for Q1 revenue of $45M-$46M, above a $40M consensus.
- MXL +3.6% AH. The chip industry has been rapidly consolidating over the last 18 months.
Tue, Feb. 3, 4:30 PM
Mon, Feb. 2, 5:35 PM
Wed, Jan. 7, 4:32 PM
- Taiwanese ODM Wistron is launching a Ethernet-to-coax USB adapter for DirecTV users that relies on an Entropic (NASDAQ:ENTR) MoCA home networking chip. The product enables 4K streaming to any DirecTV-capable set without the need for a set-top.
- Entropic, which has seen a lot of bad news over the last couple of years, closed sharply higher today. Yesterday (day 1 of CES), the company unveiled a low-power MoCA 2.0 USB adapter reference design, and a partnership with Qualcomm's Atheros (Wi-Fi/connectivity chip) unit to create a home networking reference design involving both Wi-Fi and MoCA 2.0.
Dec. 16, 2014, 1:19 PM
- Broadcom (BRCM -0.8%) has launched a solution for satellite outdoor units (ODUs) declared to be the first such offering to integrate GPS connectivity.
- The solution pairs Broadcom's BCM4551 satellite transmission IC with its BCM4771 GPS receiver IC. The 4551 is uses an advanced 28nm manufacturing process, and the 4771 integrates a baseband processor and CPU with RF circuitry; Broadcom claims an industry-leading circuit board footprint for the latter.
- Hard-luck rival Entropic (ENTR -9.1%) has plunged following the announcement. Entropic is only a month removed from announcing it's cutting 40% of its workforce, and plans to end set-top SoC product development after struggling to compete against Broadcom and STMicroelectronics.
Dec. 3, 2014, 1:48 PM
- The Philadelphia Semi Index (SOXX +1.7%) is making fresh highs after Microchip (MCHP +4.1%) slightly upped its calendar Q4 guidance, and stated it continues to "see an improvement in our bookings and billings since our earnings call on October 30, 2014."
- Chip stocks had also jumped following that earnings call, during which Microchip said it believed the inventory correction that triggered an Oct. 9 warning (and a major chip stock selloff) was mostly over. While a slew of chipmakers provided soft Q4 guidance after Microchip's warning, fears of a major correction didn't pan out.
- The group outperformed a bit yesterday after Cypress (CY +2.9%) announced it's merging with Spansion (CODE +2.5%), continuing the chip industry's consolidation wave. Several firms have upgraded Cypress and/or Spansion in response, praising the deal's cost synergies.
- Notable gainers include not only chipmakers, but also chip equipment, test/assembly, and IP licensing firms: ARMH +3.8%. AMBA +3%. MX +9%. MXIM +4.2%. AMCC +3.5%. ADI +3.1%. SIMG +3.7%. AMKR +4.2%. SPIL +3.3%. SYNA +2.7%. ATML +3.7%. ENTR +3.8%. AMAT +2.7%. KLAC +2.5%.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
- Last week: Chip stocks rally after ADI's earnings
Nov. 10, 2014, 8:03 AM
- Along with its Q3 results, Entropic (NASDAQ:ENTR) announces CEO Patrick Henry is resigning, and also leaving the board. He's being replaced by Ted Tewksbury, a director and once the CEO of fellow chipmaker IDT.
- Entropic is ending product development for set-top SoCs, a market where it has had a tough time competing against Broadcom and STMicroelectronics. The company will now focus on its MoCA (home networking), satellite outdoor unit, and broadband modem IC businesses.
- As part of its strategy shift, Entropic is cutting 200 jobs (40% of its workforce). It expects $9M-$11M in restructuring charges, and $44M/year in cost savings. Facilities in Shanghai, Belfast, and San Jose will be closed.
- The set-top business is still expected to "contribute meaningful revenue for the next three years or more," due to existing products/design wins. Entropic's exploration of "strategic alternatives" (previous) continues.
- Q3 results, PR
Nov. 10, 2014, 7:08 AM
Nov. 9, 2014, 5:30 PM
Sep. 16, 2014, 2:57 PM
- Tracking 60 semiconductor M&A deals since 2009, analyst Rajvindra Gill says the median enterprise value/sales ratio is 2x, and the mean 2.4x. The average 1-day premium takeout price has been 31%.
- Given Entropic's (ENTR +8%) recent struggles, Gill puts a conservative 1.5x revenue estimate on the stock and comes up with a number around $4.50 per share. Murata's purchase of PSMI last month is a good comp, and that was done at 2.1x EV/Sales, representing a 62.5% premium to the previous price.
- Previously: Entropic up 7.7% as strategic options to be explored
Sep. 16, 2014, 9:24 AM
- The Board intends to consider a wide range of possibilities and Barclays has been retained to assist.
- The announcement comes as the company - citing less seasonal strength than expected in the DBS and ODU businesses - cuts Q3 guidance, now forecasting revenue of $43M, and a non-GAAP loss of about $0.15 per share.
- Source: Press Release
- ENTR +7.7% premarket
Sep. 16, 2014, 9:20 AM
Jul. 31, 2014, 2:27 PM
- Though Entropic's (NASDAQ:ENTR) Q2 revenue was nearly in-line, the chipmaker guided on its CC (transcript) for Q3 revenue of $49M-$51M, -11% Y/Y at the midpoint and below a $51.9M consensus.
- EPS guidance of -$0.11 is slightly above a -$0.12 consensus thanks to expected gross margin improvement (53%-54% in Q3 vs. 52.5% in Q2)
- Entropic, which announced huge job cuts last month, expects chip sales for outdoor satellite units (ODUs) to get a lift from seasonality, but adds this will be offset by weak sales of "legacy" set-top SoCs.
- Q2 results were pressured by seasonal weakness in satellite ODU chip and set-top SoC sales, and a drop in sales of MoCA home networking chips for Verizon deployments.
- Entropic claims strong interest in a next-gen MoCA solution from multiple OEMs, and says it's working with satellite providers to design new channel stacking switches (CSS - part of Entropic's ODU offerings) into next-gen hardware.
- Q2 results, PR
ENTR vs. ETF Alternatives
Entropic Communications Inc provides semiconductor solutions. The Company transform how traditional HDTV broadcast and Internet protocol, or IP,-based streaming video content is distributed throughout the homes.
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