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Entropic Cuts Jobs And CEO

Entropic Communications Inc. made a big change at the top on the same day it reported large-scale layoffs and a quarterly loss.

The board of the communications chipmaker appointed Theodore Tewksbury, 57, to the job of interim CEO on Nov. 6, the same day it terminated CEO Patrick Henry without cause, according to a securities filing. Both decisions were effective Nov. 10.

Henry, 51, leaves his seat on the board of directors in addition to the top executive’s seat. He had been CEO of Entropic (Nasdaq: ENTR) since September 2003, and led the company through its initial public offering and several acquisitions.

Also on Nov. 6, the board approved a restructuring plan which halted the development of new set-top box chips. Approximately 200 positions — or 40 percent of Entropic’s workforce — will be eliminated. The business plans to close facilities in San Jose; Belfast, Northern Ireland; and Shanghai. In a securities filing, the company said it will take a pre-tax charge between $9 million and $11 million to cover the restructuring.

The company said it implemented its plan so it can come to profitability sooner.

Entropic also reported Nov. 10 that it had a net loss of $27.6 million on revenue of $43.2 million during the third quarter. During the same quarter one year ago, it reported a net loss of $11.9 million on revenue of $56.4 million.

Shares of Entropic closed up more than 8 percent Nov. 10, at $2.71.

Tewksbury, Entropic’s new CEO, has been on the company board since 2010.

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