April 21, 2008 / 9:07 PM / 11 years ago

UPDATE 2-Zoran Q1 loss narrows; sees Q2 rev above Street view

(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)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below