UPDATE: J.P. Morgan Lowers Entropic's PT

According to a research report published this morning, J.P. Morgan has lowered Entropic Communications' ENTR PT from $8 to $6.50. In the report, J.P. Morgan commented, " Entropic reported 1Q results which were above our estimates and consensus. 4Q revenue of $59.1 mm came in above management's prior guidance of $57-58mm. Pro forma EPS (excl. SBC) of $0.12 was in line with our estimate and a penny better than consensus expectations. The company also announced completion of its asset purchase of Trident's set-top-box system-on-a-chip (SoC) business. Unfortunately, supply chain constraints (given concerns on the financial viability of the set-top-box business prior to the acquisition) impacted the segment's near-term revenue contribution, and the settop-box gross margins were lower than our expectations, which is resulting in a 6-month push-out of earnings accretion and a return to LT margin targets by 6 mos relative to prior expectations." J.P. Morgan maintains its Neutral rating on Entropic, which closed yesterday at $4.75.