Friday, July 29, 2011

Bethel Finances: Zoran's Q2 loss widens

www.bethelfinance.com

Zoran Corp. (Nasdaq: ZRAN) did better than expected in the second quarter of 2011 - although the company's net loss widened, it was in the analysts' consensus of $0.43 per share. The company also predicts a lower net loss on higher revenue for the third quarter.

Zoran's revenue fell to $82.9 million for the second quarter from $93.4 million for the corresponding quarter of 2010. The company edged the analysts' revenue consensus of $82.6 million.

GAAP-based net loss more than quadrupled to $25.5 million ($0.51 per share) for the second quarter from $6.7 million for the corresponding quarter. Non-GAAP net loss quintupled to $21.3 million ($0.43 per share) from $4 million for the corresponding quarter.

In its guidance, Zoran expects non-GAAP loss per share of $0.07-0.12 on $100-105 million for the third quarter. The guidance is less than the analysts' consensus of a loss per share of $0.13, and in line with the revenue consensus of $102 million.

Zoran president and CEO Dr. Levy Gerzberg is confident that the company's pending merger with CSR plc (LSE: CSR) is on track. He said, "We are pleased with the improving performance we are seeing in our core markets and remain confident that the pending combination with CSR will enhance and accelerate design-win activity of our proprietary technologies and market leading products."

Zoran's share price fell 0.3% yesterday to $8.44, giving a market cap of $422 million.

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