Not long after reporting a lackluster Q1, Entropic Communications (NASDAQ: ENTR ) has announced a restructuring initiative. The plan consists of the company "making strategic organizational changes across its marketing and business operations to focus on key vertical markets, streamline global manufacturing resources, and consolidate several engineering activities to drive efficiencies."
It is expected to result in a thinning of the firm's workforce by around 70 employees, or roughly 10% of its global total. The full annualized costs of those workers are estimated at $9 million, the savings of which the company will reinvest into developing new products and programs.
Entropic also fine-tuned the guidance for its current Q2 2013. It now believes its key figures will come in on the low end of its previously announced range. This means revenue of around $70 million. EPS on a non-GAAP basis is anticipated to be $0.00.
The company is scheduled to release its Q2 results on July 31.