Entropic Communications raises 2nd-qtr outlook

Reuters News
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Posted: Jun 27, 2012 9:09 AM
Entropic Communications raises 2nd-qtr outlook

(Reuters) - Chipmaker Entropic Communications Inc raised its second-quarter outlook on increased demand for its home networking and direct broadcast satellite products, sending its shares up 24 percent in premarket trading.

The company now expects second-quarter revenue of $81 million to $82 million, up from its earlier forecast of $75 million to $77 million.

Entropic said it expects to break even on a per share for the quarter.

Excluding items, the company now sees earnings of about 8 cents per share, up from its prior forecast of 3 cents per share.

Analysts on average were expecting earnings of 3 cents per share, excluding items, on revenue of $76.1 million, according to Thomson Reuters I/B/E/S.

Shares of the company rose to $5.05 in trading before the bell on Wednesday. They closed at $4.08 on Tuesday on the Nasdaq.

(Reporting by Neha Alawadhi in Bangalore; Editing by Sriraj Kalluvila)