Entropic discontinues set-top box SoC product developmentMonday, November 10th, 2014
SAN DIEGO — In Entropic’s quarterly results, the company announced a refocused strategy and restructuring plan. Entropic announced a strategy to refocus on its core Connectivity businesses, which include MoCA® (Multimedia over Coax Alliance), direct broadcast satellite outdoor unit (DBS ODU) and broadband access.
Entropic (Nasdaq:ENTR) will continue to pursue design wins for all set-top box system-on-a-chip (SoC) products in production or already commercialized and will continue to invest to support those programs, but the Company will discontinue all new set-top box SoC product development. Entropic believes the set-top box SoC business will contribute meaningful revenue for the next three years or more, based on design wins currently in the pipeline and the products it has already brought to market.
To advance its refocused strategy, Entropic is implementing a restructuring plan that it expects to substantially complete within the current quarter. The restructuring plan is expected to result in a workforce reduction of approximately 200 positions, constituting approximately 40 percent of Entropic’s global workforce and includes closing facilities in Shanghai, China, Belfast, Northern Ireland and San Jose, California.
Entropic also announced that its Board of Directors has appointed board member Dr. Ted Tewksbury as interim President and Chief Executive Officer, effective immediately. Dr. Tewksbury succeeds Patrick Henry, who is leaving the Company and stepping down from Entropic’s Board of Directors.