GlobeNewswire
2012-04-12
Complementary Acquisition Significantly Expands and
Diversifies Revenue and Product Mix, Accelerates Penetration
in the Global Connected Home Entertainment Market
SAN DIEGO, April 12, 2012 (GLOBE NEWSWIRE) -- Entropic Communications,
Inc. (Nasdaq:ENTR), a world leader in semiconductor solutions for the
connected home, today announced it has completed the acquisition of
Trident Microsystems' set-top box (STB) system-on-a-chip (SoC)
business.
With the completion of this acquisition, Entropic gains greater scale,
an expanded product line, deeper technical expertise, and a broader
global customer base. The acquired assets include Trident's complete
STB product portfolio, comprised of a comprehensive suite of digital
STB components and system solutions for the worldwide satellite,
terrestrial, cable and IPTV markets. The STB offering includes STB
SoCs, DOCSIS modems, interface devices and media processors. In
addition, these products feature a range of ARM application
processor-based SoCs that have been optimized for leading Web
technologies, in addition to traditional Standard-Definition STBs and
advanced High-Definition STBs.
"This transaction is a watershed event for Entropic and will have a
major impact on the scope and scale of our business going forward,"
said Patrick Henry, president and CEO of Entropic. "The acquisition
expands our presence in the connected home entertainment market by
providing us with complementary assets, intellectual property, patents,
core competencies and products that address a much larger available
market, while expanding our international presence and diversifying our
revenue base. Our best-in-class MoCA solutions, including MoCA2,
combined with Trident's STB system-on-a-chip business creates the only
pure-play company focused on connected home solutions for the world's
premier cable, telco and satellite service providers."
Mark Samuel, former senior vice president and general manager of the
Set-Top Box Business Unit of Trident Microsystems, joins Entropic as
senior vice president, Set-Top Box Business Unit, reporting to Patrick
Henry. Approximately 365 global employees will immediately become part
of Entropic.
The transaction, originally announced on January 4, 2012, closed
effective as of April 12, 2012. As a result of the acquisition,
Entropic's results for its second quarter of fiscal year 2012, which
will end on June 30, 2012, will include approximately eleven weeks of
Trident STB business activity. Entropic management will provide more
detailed information about the combined company's outlook during its
next regularly scheduled earnings announcement scheduled for April 24,
2012. At that time, the Company will review its quarterly results and
provide financial guidance for the second quarter of 2012, including
the impact of the Trident STB SoC acquisition.
About Entropic Communications
Entropic Communications, Inc. (Nasdaq:ENTR) is a leading global
provider of silicon and software solutions to enable connected home
entertainment. The Company transforms how traditional HDTV broadcast
and streaming video content is seamlessly, reliably, and securely
delivered, processed, and distributed into and throughout the home.
Entropic's next-generation home connectivity and set-top-box
system-on-a-chip (SoC) solutions enable Pay-TV service providers to
offer consumers a more captivating whole-home entertainment experience
by delivering new, high-performing ways to connect, engage, and enjoy
multimedia content. For more information, visit Entropic at:
www.entropic.com.
The Entropic Communications logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=4255
Forward-Looking Statements
Statements in this press release that are not strictly historical in
nature constitute "forward-looking statements." Such statements
include, but are not limited to, statements regarding the anticipated
benefits of the proposed acquisition. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors which
may cause Entropic's actual results to be materially different from
historical results or from any results expressed or implied by such
forward-looking statements. These factors include, but are not limited
to, the risk that the acquisition will require Entropic to invest
substantially more in the acquired business, or in integrating the
acquired business with Entropic's existing operations, than presently
anticipated; risks associated with integrating a newly acquired
business which is larger, more geographically dispersed and
substantially more complex than Entropic's existing business;
Entropic's reliance on key employees of the acquired business and the
risk that Entropic will not be able to retain such employees; risks
that Entropic's systems, infrastructure and personnel may not be
adequate to effect a rapid and orderly integration of the acquired
business; risk that anticipated benefits of the acquisition will not be
realized; risks associated with the dependence of the acquired business
on a limited number of suppliers and customers; risks associated with
entering into a new business segment; risks associated with
international operations; technology risks; competition; the risk that
the market for HD video and multimedia content delivery solutions may
not develop as Entropic anticipates; and other factors discussed in the
"Risk Factors" section of Entropic's Annual Report on Form 10-K for the
year ended December 31, 2011. All forward-looking statements are
qualified in their entirety by this cautionary statement. Entropic is
providing this information as of the date of this release and does not
undertake any obligation to update any forward-looking statements
contained in this release as a result of new information, future events
or otherwise.
CONTACT: Investor Contact:
Debra Hart
Director, Investor Relations
+1 858.768.3852
debra.hart@entropic.com
Media Contact:
Robbin Lynn
Marketing Communications Manager
+1 760.579.2261
robbin.lynn@entropic.com
Media/Industry Analyst Contact:
Chris Fallon
Finn Partners for Entropic Communications
+1 917.974.1667
chris@finnpartners.com