March 18 Entropic Communications Inc,
which designs chipsets for video and broadband multimedia
applications, cut its outlook for the first quarter as a
customer delayed orders.
The company's revenue will be hurt by a change in deployment
plans by a U.S. pay-TV service provider for high-definition
digital terminal adapters set top boxes that use Entropic's
High-definition digital terminal adapters enable service
providers deliver HD content to their basic subscribers.
Shares of San Diego, California-based Entropic were down 3
percent in trading before the bell. They closed at $4.65 on the
Nasdaq on Friday.
"The revised deployment plan will slow down the initial ramp
of HD-DTAs and has therefore resulted in excess inventory in the
channel," the company said in a statement.
Entropic now expects first-quarter revenue of between $74
million and $76 million, down from its previous range of $79
million to $81 million.
It expects a profit of up to 1 cent per share, excluding
items, compared with its previous forecast of 2 cents per share.
The company expects to release first-quarter results on or
around April 30.