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Entropic Communications Reports First Quarter Results
Conference Call to be Webcast Today At 2:00 p.m. Pacific Time

SAN DIEGO, Apr 30, 2009 (GlobeNewswire via COMTEX News Network) -- Entropic Communications, Inc. (Nasdaq:ENTR), a leading provider of silicon solutions to enable connected home entertainment, today reported its first quarter results for the period ended March 31, 2009. Entropic reported first quarter net revenues of $24.1 million, a decrease of 18% compared with $29.5 million in the fourth quarter of 2008 and 43% lower than in the first quarter of 2008.

In accordance with U.S. generally accepted accounting principles (GAAP), the company's first quarter net loss was $8.7 million, or ($0.13) per share (basic and diluted). This compares with GAAP net loss of $118.9 million, or ($1.74) per share (basic and diluted) in the fourth quarter of 2008. Non-GAAP net loss in the first quarter was $4.2 million, or ($0.06) per share (basic and diluted), compared to non-GAAP net loss of $0.4 million, or ($0.01) per share (basic and diluted) in the fourth quarter of 2008.

"During the quarter, we saw strong momentum in support of the MoCA standard and our MoCA products," noted Patrick Henry, president and CEO of Entropic Communications. "Entropic's product positioning in our target markets is excellent, our end customers continue to show strength, and we have some solid new design wins and product cycles that we expect to ramp later this year."

                                                Three months ended
                                           ---------------------------
 (In millions, except per share data)      Mar. 31,  Dec. 31,  Mar. 31,
                                             2009      2008      2008
 Net revenues                                $24.1     $29.5     $42.0
 GAAP net loss                               ($8.7)  ($118.9)    ($3.9)
 GAAP net loss per share (basic and
  diluted)                                  ($0.13)   ($1.74)   ($0.06)

 Non-GAAP net (loss) income (1)              ($4.2)    ($0.4)     $3.2
 Non-GAAP net (loss) income per share (1)   ($0.06)   ($0.01)    $0.04

  1. Please refer to the financial statements portion of this press
   release for an explanation of the non-GAAP financial measures
   contained in the table above and a reconciliation of such measures
   to the comparable GAAP financial measures.

 Recent Highlights

 * Delivered samples of our third-generation (MoCA 1.1), 65nm,
   single-chip c.LINK solution for MoCA home networking providing
   higher performance, a smaller footprint and lower overall system
   costs to our customers
 * Conducted a live demonstration of our c.LINK MoCA solution working
   in conjunction with our Channel Stacking Switch (CSS) technology on
   a single cable network at the recently held ASTRA Industry Days
 * Extended our collaboration with Cavium Networks to align roadmaps
   and deliver second and third generation solutions with enhanced
   features and capabilities to meet the future needs of service
   provider customers
 * Partnered with Texas Instruments to create multiple DOCSIS 3.0
   embedded media terminal adapter (eMTA) and gateway development
   platforms optimized for triple-play and next-generation IP services
   that utilize MoCA 1.1 for the home network
 * Confirmed that Time Warner Cable plans to deploy new MoCA-certified
   set-top boxes with Entropic's MoCA chipsets embedded to deliver
   multi-room DVR and other connected home entertainment services to
   its subscriber base later this year
 * Announced that Cox Communications will deploy new MoCA-certified
   set-top boxes with Entropic's MoCA chipsets embedded to deliver
   multi-room DVR and other connected home entertainment services to
   its subscriber base later this year

For More Information

Entropic management will be holding a conference call today, April 30, 2009, at 2:00 p.m. Pacific Time/5:00 p.m. Eastern Time to discuss the company's results for the first quarter and to provide guidance for the second quarter. You may access the conference call via any of the following:

 Teleconference:  719-325-4803

 Conference ID:   5444194

 Web Broadcast:   http://ir.entropic.com/events.cfm

 Replay:          719-457-0820

About Entropic Communications

Entropic Communications, Inc. is a leading fabless semiconductor company that designs, develops and markets system solutions that enable connected home entertainment. The company's technologies significantly change the way high-definition television-quality video and other multimedia content such as movies, music, games and photos are brought into and delivered throughout the home. For more information please visit: www.entropic.com.

The Entropic Communications logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4255

Forward Looking Statements

Statements in this press release that are not strictly historical in nature constitute "forward-looking statements." Such statements include, but are not limited to, statements regarding momentum for the MoCA standard and our MoCA products, our product positioning, the financial position of our end customers, and our expectations regarding design wins and product cycles. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause Entropic's actual results to be materially different from historical results or from any results expressed or implied by such forward-looking statements. These factors include, but are not limited to, our dependence on a limited number of customers for a substantial portion of our revenues; risks associated with adverse U.S. and international economic conditions; the ability of our customers or the service providers who purchase their products to successfully compete and continue to grow in their markets; the continued development of the market for HD video and other multi-media content delivery and networking solutions based on the MoCA standard; risks associated with competing against larger and more established companies and our ability to compete successfully in the market for MoCA-compliant chipsets; risks associated with timely development and introduction of new or enhanced products; risks related to international operations including political and economic conditions in foreign markets; and other factors discussed in the "Risk Factors" section of Entropic's Annual Report on Form 10-K for the year ended December 31, 2008. All forward-looking statements are qualified in their entirety by this cautionary statement. Entropic is providing this information as of the date of this release and does not undertake any obligation to update any forward-looking statements contained in this release as a result of new information, future events or otherwise.

Entropic Communications(r) and the stylized Entropic "curve" logo are either trademarks or registered trademarks of Entropic Communications, Inc. in the United States and/or other countries.

                  ENTROPIC COMMUNICATIONS, INC.
        GAAP Condensed Consolidated Statements of Operations
 (In thousands, except for share information and footnote disclosures)

                                              Three Months Ended
                                       -------------------------------
                                       March 31,   Dec 31,   March 31,
                                         2009       2008       2008
                                       ---------  ---------  ---------
                                      (unaudited)(unaudited)(unaudited)

 Net revenues                          $  24,123  $  29,531  $  41,988
 Cost of net revenues                     11,904     15,397     22,837
                                       ---------  ---------  ---------
 Gross profit                             12,219     14,134     19,151
 Operating expenses:
  Research and development                13,323     12,876     13,313
  Sales and marketing                      3,637      3,672      4,144
  General and administrative               2,689      2,890      3,523
  Amortization of purchased intangibles       16        713        596
  Restructuring charge (benefit) (1)       1,124        (19)     1,079
  Impairment of goodwill
   and intangible assets (2)                 208    113,193         --
                                       ---------  ---------  ---------
   Total operating expenses               20,997    133,325     22,655
                                       ---------  ---------  ---------
 Loss from operations                     (8,778)  (119,191)    (3,504)
 Other income (expense), net                  59         80       (198)
                                       ---------  ---------  ---------
 Loss before income taxes                 (8,719)  (119,111)    (3,702)
                                       ---------  ---------  ---------
 Income tax provision (benefit)               17       (168)       154
                                       ---------  ---------  ---------
 Net loss attributable
  to common stockholders               $  (8,736) $(118,943) $  (3,856)
                                       =========  =========  =========

 Net loss per share attributable
  to common stockholders
  (basic and diluted)                  $   (0.13) $   (1.74) $   (0.06)
                                       =========  =========  =========

 Weighted average shares
  (basic and diluted)                     68,799     68,239     66,662
                                       =========  =========  =========


 (1) During the three months ended March 31, 2009, the Company recorded
     restructuring charges of $1,124,000 related to a restructuring
     plan implemented in March 2009 to improve its operating cost
     structure which included a reduction-in-force and the closing of
     its France location and one of its Israel locations. Additional
     costs are expected to be recorded in the second quarter as the
     Company completes the plan. During the three months ended
     December 31, 2008, the Company recorded a restructuring charge
     adjustment of $19,000 related to the August 2008 restructuring
     plan to improve its operating cost structure which included a
     reduction-in-force. During the three months ended March 31, 2008,
     the Company recorded restructuring charges of $1,079,000 related
     to exiting the lease agreement for the Company's former
     headquarters in San Diego, California, as well as related charges
     for the impairment of property and equipment and other long
     term assets.

 (2) During the three months ended March 31, 2009, the Company recorded
     an impairment charge on intangible assets of $208,000. The Company
     determined that the intangible assets associated with the
     acquisition of Arabella were fully impaired as the developed
     technology acquired would no longer be used in the ongoing
     business operations. During the three months ended December 31,
     2008, the Company performed an impairment analysis on goodwill and
     purchased intangible assets and recorded an impairment charge of
     $88,081,000 and $25,112,000, respectively, as the carrying value
     of these assets exceeded the fair value at December 31, 2008.


                    ENTROPIC COMMUNICATIONS, INC.
              GAAP Condensed Consolidated Balance Sheets
                           (In thousands)

                                                  March 31,   Dec 31,
                                                     2009       2008
                                                  ---------  ---------
                                                 (unaudited)
 ASSETS
 Current assets:
  Cash and cash equivalents                       $  30,602  $  30,071
  Marketable securities                                 849      4,339
  Accounts receivable, net                           17,181     13,915
  Inventory                                          14,979     18,693
  Prepaid expenses and other current assets           3,345      2,785
                                                  ---------  ---------
   Total current assets                              66,956     69,803
  Property and equipment, net                        12,802     13,046
  Intangible assets, net                              2,839      3,469
  Other long-term assets                                262        284
                                                  ---------  ---------
   Total assets                                   $  82,859  $  86,602
                                                  =========  =========
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities:
  Accounts payable and accrued expenses           $  10,440  $   7,873
  Accrued payroll and benefits                        3,559      3,498
  Deferred revenues                                     185        467
                                                  ---------  ---------
   Total current liabilities                         14,184     11,838
 Long-term liabilities:
  Stock repurchase liability                            677        784
  Other long-term liabilities                         3,088      3,231
                                                  ---------  ---------
   Total long-term liabilities                        3,765      4,015
 Stockholders' equity                                64,910     70,749
                                                  ---------  ---------
   Total liabilities and stockholders' equity     $  82,859  $  86,602
                                                  =========  =========


                   ENTROPIC COMMUNICATIONS, INC.
          Unaudited Reconciliation of Non-GAAP Adjustments
 (In thousands, except for share information and footnote disclosures)

 This press release contains the following non-GAAP financial measures:
 net (loss) income and net (loss) income per share. The presentation of
 such measures is not intended to be considered in isolation or as a
 substitute for, or superior to, the financial information prepared and
 presented in accordance with GAAP. Our non-GAAP net (loss) income and
 net (loss) income per share exclude the items listed below.

 The following table sets forth such non-GAAP measures for the
 applicable periods as well as the reconciliation of such measures to
 the directly comparable GAAP measures for the periods shown.

                                             Three Months Ended
                                       -------------------------------
                                       March 31,   Dec 31,   March 31,
                                         2009       2008       2008
                                       ---------  ---------  ---------
 GAAP net loss attributable
  to common shareholders               $  (8,736) $(118,943) $  (3,856)
 Non-GAAP adjustments:
  Stock-based compensation:
   Cost of net revenues                       16         78         46
   Research and development                1,522      1,627      1,758
   Sales and marketing                       368        453        623
   General and administrative                902        875      1,197
                                       ---------  ---------  ---------
    Total stock-based compensation         2,808      3,033      3,624
 Acquisition-related items:
  Amortization of purchased
   intangible assets:
    Cost of net revenues                     406      1,590      1,240
    Operating expenses                        16        713        596
   Impairment of goodwill & intangible
    assets                                   208    113,193         --
  Restructuring charge (benefit)           1,124        (19)     1,079
  Write off of debt issuance costs            --         --        476
                                       ---------  ---------  ---------
  Total of non-GAAP adjustments            4,562    118,510      7,015
                                       ---------  ---------  ---------
 Non-GAAP net (loss) income            $  (4,174) $    (433) $   3,159
                                       =========  =========  =========

 GAAP weighted average shares (basic)     68,799     68,239     66,662
  Non-GAAP adjustment for dilutive
   shares (a)                                 --         --      6,980
                                       ---------  ---------  ---------
 Non-GAAP weighted average shares
  (diluted)                               68,799     68,239     73,642
                                       =========  =========  =========

 GAAP net loss per share (basic and
  diluted)                             $   (0.13) $   (1.74) $   (0.06)
  Non-GAAP adjustments detailed
   above (a)                                0.07       1.73       0.10
                                       ---------  ---------  ---------
 Non-GAAP net (loss) income per share
  (diluted)                            $   (0.06) $   (0.01) $    0.04
                                       =========  =========  =========

 (a)  Shares included for calculating diluted earnings per share for
      periods with non-GAAP net income.  For the periods shown with a
      net loss, no shares were included for the diluted earnings per
      share calculation, as including such shares would be
      antidilutive.


                 ENTROPIC COMMUNICATIONS, INC.
       Unaudited Non-GAAP Supplemental Financial Information
             (In thousands, except percentage data)

 The following table sets forth certain non-GAAP financial measures
 used in calculating Entropic's non-GAAP net (loss) income for the
 periods presented. Such non-GAAP financial measures are based upon
 Entropic's unaudited consolidated statements of operations for the
 periods presented and give effect to certain adjustments identified in
 the table. The presentation of such non-GAAP financial measures is not
 intended to be considered in isolation or as a substitute for, or
 superior to, the financial information prepared and presented in
 accordance with GAAP. In addition, investors should not rely on the
 results of prior periods as an indication of Entropic's future
 performance.

                                               Three Months Ended
                                       -------------------------------
                                       March 31,   Dec 31,   March 31,
                                         2009        2008      2008
                                       ---------  ---------  ---------

 NET REVENUES                          $  24,123  $  29,531  $  41,988

 COST OF NET REVENUES:
 GAAP cost of net revenues             $  11,904  $  15,397  $  22,837
   Less:
    Stock-based compensation expense          16         78         46
    Amortization of
     developed technology                    406      1,590      1,240
                                       ---------  ---------  ---------
 Non-GAAP cost of net revenues         $  11,482  $  13,729  $  21,551
                                       =========  =========  =========

 GROSS PROFIT:
 GAAP gross profit                     $  12,219  $  14,134  $  19,151
   Add:
    Stock-based compensation expense          16         78         46
    Amortization of
     developed technology                    406      1,590      1,240
                                       ---------  ---------  ---------
 Non-GAAP gross profit                 $  12,641  $  15,802  $  20,437
                                       =========  =========  =========

  GAAP gross margin                        50.7%      47.9%      45.6%
  Non-GAAP gross margin                    52.4%      53.5%      48.7%

 OPERATING EXPENSES:
 GAAP operating expenses               $  20,997  $ 133,325  $  22,655
   Less:
    Stock-based compensation expense       2,792      2,955      3,578
    Amortization of purchased
     intangibles                              16        713        596
    Restructuring charge (benefit)         1,124        (19)     1,079
    Impairment of goodwill
     & intangible assets                     208    113,193         --
                                       ---------  ---------  ---------
 Non-GAAP operating expenses           $  16,857  $  16,483  $  17,402
                                       =========  =========  =========

 OTHER INCOME (EXPENSE), NET:
 GAAP other income (expense), net      $      59  $      80  $    (198)
   Add:
    Write off of debt issuance costs          --         --        476
                                       ---------  ---------  ---------
 Non-GAAP other income, net            $      59  $      80  $     278
                                       =========  =========  =========

 INCOME TAX (PROVISION) BENEFIT        $     (17) $     168  $    (154)

 RESEARCH AND DEVELOPMENT EXPENSE:

 GAAP research and development         $  13,323  $  12,876  $  13,313
   Less:
    Stock-based compensation expense       1,522      1,627      1,758
                                       ---------  ---------  ---------
 Non-GAAP research and development     $  11,801  $  11,249  $  11,555
                                       =========  =========  =========

 SALES AND MARKETING EXPENSE:

 GAAP sales and marketing              $   3,637  $   3,672  $   4,144
   Less:
    Stock-based compensation expense         368        453        623
                                       ---------  ---------  ---------
 Non-GAAP sales and marketing          $   3,269  $   3,219  $   3,521
                                       =========  =========  =========

 GENERAL AND ADMINISTRATIVE EXPENSE:

 GAAP general and administrative       $   2,689  $   2,890  $   3,523
   Less:
    Stock-based compensation expense         902        875      1,197
                                       ---------  ---------  ---------
 Non-GAAP general and administrative   $   1,787  $   2,015  $   2,326
                                       =========  =========  =========

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: Entropic Communications

Entropic Communications
         Investor Contact:
         Debra Hart, Director, Investor Relations
           858.768.3852
           debra.hart@entropic.com
         Media Contact:
         Corporate Communications
         Susan Huberman
           858.768.3711
           susan.huberman@entropic.com
         
         The Ardell Group
         Media Contact:
         Angela Edgerton
         858.792.2941
         angela@ardellgroup.com

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