Entropic Communications has reported its third quarter results for the period ended September 30, 2010. Entropic reported third quarter net revenues of $61.3 million, an increase of 51 percent compared with $40.7 million in the second quarter of 2010 and an increase of 98 percent compared to $31.0 million in the third quarter of 2009.

In accordance with U.S. generally accepted accounting principles (GAAP), the company's third quarter net income was $11.3 million, or $0.15 per share. This compares with GAAP net income of $3.1 million, or $0.04 per share in the second quarter of 2010. Non-GAAP net income in the third quarter was $14.5 million, or $0.18 per share, compared to non-GAAP net income of $6.1 million, or $0.08 per share in the second quarter of 2010.

"Entropic recorded its sixth consecutive quarter of revenue growth and posted record revenue and profitability for the quarter," said Patrick Henry, president and chief executive officer of Entropic Communications. "During the quarter we benefitted from increasing adoption of our MoCA home networking products by multiple Pay-TV service providers as well as a solid ramp in our solutions for the direct broadcast satellite market. We believe we are in the very early stages of a multi-year market expansion in the connected home entertainment market and are well positioned for continued revenue and earnings growth."

Recent Highlights

  --  Entropic ranked #44 as the fastest growing company in North America, and is the fastest growing semiconductor company on Deloitte's 2010 Technology Fast 500. For the San Diego region, Entropic ranked #3 in the fastest growing company category.

  --  In early October, Entropic completed a follow-on offering of 10.75 million shares of its common stock, raising net proceeds of approximately $99.1 million after deducting underwriting discounts and commissions and estimated offering expenses.

  --  Entropic expanded its Board of Directors with the addition of Ted Tewksbury, president and chief executive officer of Integrated Device Technology, Inc. (IDT) and Bob Bailey, chairman of the board of PMC Sierra. Each is a seasoned executive in the semiconductor industry, offering expertise in mixed signal and analog application-specific standard products. With CEO and board experience, and strong operations and engineering background, both Tewksbury and Bailey are significant assets to the Entropic Board; complementing the expertise of the Company's current board members.

  --  Via Embratel, the premium telecommunications carrier in Brazil, deployed Entropic's Channel Stacking Switch (CSS) technology to deliver direct-broadcast satellite (DBS) entertainment services to consumers' homes via a single cable wire infrastructure. By adopting Entropic's CSS technology, Via Embratel can better serve customers in multiple-dwelling unit (MDU) environments by supporting multiple tuners over a single cable, enabling easy plug-and-play set-top box (STB) upgrades, and reaching potential new subscribers previously unserviceable due to      access limitations or wiring restrictions.

  --  Robust Electronics, a leading manufacturer of top end televisions for the European market, announced selection of Entropic's EN4020 multi-mode hybrid silicon tuner .With its internal design, the EN4020 allows the complete lineup of MINERVA televisions to operate regardless of      broadcast service -- digital video broadcast terrestrial (DVB-T), digital video broadcast cable (DVB-C), or analog. A single chip solution, the EN4020 delivers high performance and enables significant cost reduction by simplifying design complexity and drastically lowering      development costs. Deliveries of the MINERVA TV line are scheduled to begin in late 2010.

  --  Entropic expanded and strengthened its supplier capacity agreement with silicon foundry, TowerJazz to assure high-volume production for Entropic's family of outdoor unit (ODU) silicon, which comprises both its CSS and Band Translation Switch (BTS) products, as well as its     multi-mode silicon TV tuner products.