Entropic Communications Inc. Q1 2008 Earnings Call Transcript

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2008-05-30 07:59:11.0

Tags: Call Transcript, Service Provider, Earnings, MoCA, Business Services, Cable, Telecommunications, Personal Technology, Seeking Alpha

Question-and-Answer Session

Operator

Thank you.

(Operator Instructions) We'll take our first question today from Daniel Amir, Lazard Capital Markets.

Daniel Amir - Lazard Capital Markets

Hi. Good afternoon and congratulations on the good results.

David Lyle

Thanks, Daniel.

Daniel Amir - Lazard Capital Markets

A couple of questions here. First of all, I guess can you expand a bit more on, I guess the cable trend towards MoCA here? Looks like Time Warner has joined. You talked about in the past that a couple of more service providers should ramp up. Can you expand a bit where they stand? What should we expect here? And is there an expectation basically that all the cable guys will be rolling out MoCA-enabled products here in the near-term?

Patrick Henry

Yes, Daniel, it's Patrick. Thanks a lot for the nice comments. With respect to future deployments of MoCA with the major tier one U.S. service providers, we really can't comment further than what we talked about in the prepared remarks on the call.

Up to this point, Verizon is the only tier one service provider that has announced that they've launched MoCA based products. But we do see great momentum with the MoCA standard with additional major service providers, including DIRECTV and Time Warner Cable joining the alliance.

Daniel Amir - Lazard Capital Markets

Okay. And on the tuner business, I guess, can you a bit expand kind of what the opportunity is here now that I guess you have the Vativ acquisition? It looks like it's not contributing the revenues here this year, but what markets are we going after in terms of what's the opportunity here and kind of in the future here in terms of diversification of your revenue base?

Patrick Henry

Yes, so in the tuner market, our primary success to-date has really been in the China and kind of greater Asia market, including some of the [silicon] tuner manufacturers that are looking to move from discreet tuner modules to integrated silicon tuner modules, so we have design activities underway there with DVB-T as well as with DVB-C.

On the HTMI product lines, Vativ did have some design commits from some major Japanese and Korean consumer electronics companies and part of the job in Entropic is to convert those design commits to design wins and then eventually to production. So that's a focus of our sales team.

I think one of the challenges that Vativ had, which is a smaller company, it wasn't perceived as necessarily a stable platform that some of the major consumer electronics companies would like to see. Entropic immediately resolved that problem and we really see the Vativ products as something we're bolting additional products under our existing channels.

 

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