The value of small cap stock for Entropic Communications, Inc. (NASDAQ:ENTR) rose during trading on Wednesday, as the company adjusted its outlook for the current quarter after it resolved several key supply chain issues.
Reuters reported that the company recently acquired a set-top box business, and after some tinkering with the supply chain, Entropic reversed its position on the potential profitability of the new line.
"Through impressive execution by our operations team and supply chain partners, we were able to resolve some key supply chain constraints related to our set-top box system-on-chip business ahead of schedule," the company's chief executive Patrick Henry told the news outlet.
Entropic, which purchased this box-top arm of the business from Trident Microsystems Inc. in April, forecast second-quarter revenue of $81 million to $82 million, an increase from the previously forecast $75 million to $77 million.
According to a release, the adjustments to the supply chain also increased the earnings per share forecast for the company.
Stock for Entropic rose $1.20 to $5.28 at 1:23 p.m. on June 27, an increase of 29.4 percent.