Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of media networking specialist Entropic Communications (Nasdaq: ENTR) fell more than 11% below last night's closing price after an unexciting earnings report.

So what: Entropic beat both the analyst revenue target and the earnings target. In addition, next-quarter guidance on both counts was stronger than the analyst forecasts.

Now what: It doesn't seem fair to punish Entropic so harshly, especially with a strong outlook on the near future. The company has little competition in its core operations, which is to make networking chips for MoCA-compliant media networks such as multi-room DVR systems marketed by Verizon (NYSE: VZ) under the FiOS brand. Digital media is the future, and Entropic looks likely to play an important part in that market evolution.

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Editor's note: This article has been updated to reflect that Entropic did not miss analyst revenue estimates. The Fool regrets the error.