(Adds details from conference call)
April 21 (Reuters) - Chipmaker Zoran Corp ZRAN.O posted a narrower first-quarter net loss, helped by growth in its digital televisions (DTV) business and mobile phone processor products, and forecast second-quarter revenue above market estimates, sending its shares up 14 percent.
The company, which makes audio and video chips, said it was well-positioned to benefit from the return of favorable market trends later in the year.
Zoran reported a fall in gross margin in the first quarter due to pricing pressure and product mix, a company executive said in a conference call with analysts.
However, it forecast an improvement in DTV and mobile phone margins for the rest of the year.
For the first quarter, net loss narrowed to $4.7 million, or 9 cents a share, compared with $5.9 million, or 12 cents a share, a year ago.
However, excluding items, Zoran earned 7 cents a share, which was in line with analysts' average estimate.
Revenue rose 7 percent to $109 million. Analysts on average expected $106.3 million, according to Reuters Estimates.
First-quarter gross margin fell to 47 percent, compared with 52.1 percent in the previous quarter.
Zoran, which draws more than 80 percent of its revenue from Asia, forecast second-quarter earnings of 14 cents to 18 cents a share, excluding items, on revenue between $130 million and $135 million.
Analysts were expecting earnings of 17 cents a share, before special items, on revenue of $125.7 million.
Shares of Zoran, which competes with Cirrus Logic (CRUS.O) and LSI Logic Corp (LSI.N), were trading at $14.31 after the bell. They closed at $12.59 Monday on Nasdaq. (Reporting by Purwa Naveen Raman in Bangalore; Editing by Himani Sarkar, Vinu Pilakkott)