President And CEO Interview: Entropic Communications, Inc. (ENTR) - Patrick C. Henry
August 23, 2010 - The Wall Street Transcript has just published Semiconductors Report offering a timely review of the Semiconductor Equipment sector. This Special Report contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. Please find an excerpt below.
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Patrick C. Henry, President and CEO, brings more than 25 years of high-technology experience to Entropic. He has served in executive management roles in companies ranging from small, innovative startups to large multinationals. Prior to Entropic, he served as President and CEO of Pictos Technologies, a developer of digital imaging products, from which he exited after completing a multimillion-dollar sale of the company to ESS Technology. Before that, Mr. Henry was CEO of LinCom Wireless, a chip company focused on 802.11 wireless LAN products. Mr. Henry also served as a Vice President and General Manager at LSI Logic, and he was a Senior Vice President at C-Cube Microsystems, a pioneer in the development of digital video ICs. He has also held sales and marketing management positions at Hyundai Electronics America (now Hynix) and AMD. Mr. Henry holds an MBA from the University of Southern California a bachelor's degree in engineering science and mechanics with high honors from the Georgia Institute of Technology.
TWST: Let's start out with a brief overview of the history and evolution of Entropic Communications.
Mr. Henry: Entropic (ENTR) was founded in 2001, when a group of engineers with roots at Linkabit, ComStream and Conexant formed Entropic Communications. Their vision was to create a solution that would move large quantities of high-definition video into and throughout the home. The developmental product was the basis for what we now call the MoCA standard, which stands for multimedia over coax alliance. And although its application wasn't entirely clear at its inception, we can proudly say - 10 years later - that the development of Entropic and its leading MoCA technology have spurred the development of how multiroom DVR and IPTV video delivery services are transferred within the home environment. You can even say that MoCA is doing for wired connections within the home what Wi-Fi did for mobility - making this an exciting time in the company's history. Additionally, this same IP has enabled us to create a high-speed broadband access product line, again to help move high-definition content throughout the home network.In early 2007, we acquired venture-backed startup RF Magic, a maker of radio frequency specialty chips.
We combined our home networking semiconductor technology and broadband access products with RF Magic's unique line of silicon TV tuners and direct broadcast satellite (DBS) technologies to round out the product line Entropic offers global satellite, and pay-TV service providers and original equipment manufacturers today. Looking to grow Entropic, we took the company public in December 2007 and were one of the last two technology companies to go public before the economic recession. We had initial struggles during the downturn but by broadening our customer base, diversifying our product portfolio and continuing to grow the company by investing in research and development, we emerged a stronger company in 2009 and have had consistent profitability ever since. Over the last several quarters, we've grown our profitability as well as earnings and revenues. We are on what I like to call our second wave of growth. To provide some historical perspective, we see our first wave of growth having started in 2006, with Verizon deploying our MoCA technology for its pay-TV, triple-play broadband service called FiOS, which brings high-speed fiber to the customer premise, or home.
This was a significant move for Entropic, as it was our first sizable public announcement for Entropic's MoCA deployment being used to move large content files within the home environment. Additionally, at the same time, DISH Networks was beginning to deploy our satellite outdoor unit (ODU) chips to simplify the installation required to support simultaneous reception of multiple channels from multiple satellites over a single cable. Today we believe we have entered our second wave of growth, as our MoCA silicon has been deployed by major North American pay-TV service providers, including Verizon, Comcast, Time Warner Cable, Cox Communications and DIRECTV. Our silicon for the satellite outdoor unit market is being deployed by DIRECTV and DISH Network, as well as leading Canadian and European service providers. We've broadened our customer base while growing our product lines and have truly added scale to the company.
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