Zoran narrows 2nd-quarter loss, but sales of digital TV products still fall short of hopes

Zoran’s 2Q loss misses view, revenue outlook weak

SUNNYVALE, Calif. — Chipmaker Zoran Corp. on Monday reported a narrower second-quarter loss but the result missed Wall Street expectations due to weakness in its digital television division and the company’s third-quarter outlook disappointed investors.

For April through June, the company’s loss totaled $6.7 million, or 13 cents per share, compared with a loss of $13.8 million, or 27 cents per share, a year ago. Excluding amortization charges, stock options expenses and other items, the company said its loss totaled 8 cents per share.

Revenue slipped 9 percent to $93.4 million from $102.7 million in the year-ago quarter. The company said sales of chips for digital cameras were better than expected, but digital television products fell short.

Analysts were expecting a smaller loss of 7 cents per share on revenue of $92.2 million, according to a Thomson Reuters poll.

Zoran makes chips used in video and audio applications on personal computers, as well as chips for digital cameras, digital video recorders, TV sets and mobile phones.

For the current third quarter, Zoran forecast an adjusted loss of 3 cents to 6 cents per share on $98 million to $103 million in revenue. That’s well below the adjusted earnings of 9 cents per share and $110.7 million in revenue that analysts have predicted.

“Our outlook for DTV for the remainder of the year has been substantially reduced, primarily due to customer program delays and customer share loss to tier-1 brands,” said Dr. Levy Gerzberg, president and CEO.

Shares dropped $1.02, or 10 percent, in aftermarket trading on the results, having earlier closed the regular session down a penny at $9.77.