Zoran Corp. (Nasdaq: ZRAN) has published better than expected preliminary results for the fourth quarter of 2010. The company expects $68.8 million revenue, compared with its guidance of $60-65 million. It expects a non-GAAP loss per share of $0.30-0.33, compared with its guidance of $0.39-0.43 ($19.4-21.3 million).
The fourth quarter results mean that Zoran posted $351.9 million revenue in 2010, 7.4% less than in 2009. The non-GAAP loss rose to $21.9 million from $12.7 million. Zoran added that the results do not include the effect of the acquisition of Microtune Inc., which was completed on December 1, 2010.
Zoran expects GAAP-based revenue of $74.2 million for the fourth quarter of 2010, which includes one month of revenue from Microtune, and a GAAP loss per share of $0.67-0.70.
Zoran will announce results for the fourth quarter and full year 2010 on February 3, 2011.
Zoran is in a power struggle with shareholder Ramius LLC unit Ramius Value and Opportunity Advisors LLC, which wants to oust Zoran's board of directors.
Zoran president and CEO Dr. Levy Gerzberg said, "Our fourth quarter 2010 results validate the execution of the restructuring plan undertaken by Zoran during the second half of 2010. In addition, we are seeing design momentum beginning to build within DTV and have recently secured two top-tier wins for our System-on-a-chip and FRC solutions, one of which will be shipping to the European market. Typically, 80-90% of design wins for products that will ship in the fourth quarter of 2011 and 2012 are awarded in the current design cycle. As we move through this critical cycle, with our new universal platforms addressing the higher-end segments of the DTV market, we are very optimistic that our ongoing designs for customers will translate into additional top-tier design wins."
On Friday, Ramius announced that it had filed an investor presentation with the US Securities and Exchange Commission (SEC), in connection with its consent solicitation seeking to remove and replace six Zoran directors with its own nominees. Ramius alleges that Zoran has underperformed in the long term, that Ramius's proposal to enhance Zoran's value is better than the company's current plan, and that Ramius's nominees are more qualified to oversee a turnaround than the current directors. Ramius owns 9.3% of Zoran.
Zoran's share price rose 1.4% on Friday to $8.86, giving a market cap of $445 million.
Published by Globes [online], Israel business news - www.globes-online.com - on January 23, 2011
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