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Unedited press release follows:
Zoran Corporation Announces Preliminary Results for Fourth Quarter 2010
Fourth Quarter Results Exceed Mid-Point of Prior Guidance by 11 Percent
Company Gains Momentum in Current DTV Design Cycle, Secures Wins From Two Top-Tier Customers
SUNNYVALE, CA–(January 21, 2011) – Zoran Corporation (NASDAQ: ZRAN) today announced that revenues for the fourth quarter ended December 31, 2010 were $68.8 million, as compared to the mid-point of its previously announced guidance of $62.5 million. Net loss per share for the quarter is expected to be in the range of approximately $0.30 to $0.33 per share, as compared to Zoran’s previously announced guidance of a net loss per share of between $0.39 to $0.43 per share. Net loss excludes the amortization of acquired intangible assets, acquisition related revenues and expenses, stock-based compensation expenses, and an adjustment for the tax provision to a non-GAAP rate.
The aforementioned preliminary results do not include any impact of the Company’s acquisition of Microtune, including the purchase price and related acquisition costs, or any revenues or expenses incurred following completion of the transaction on December 1, 2010.
“Our fourth quarter 2010 results validate the execution of the restructuring plan undertaken by Zoran during the second half of 2010,” said Dr. Levy Gerzberg, president and chief executive officer of Zoran. “In addition, we are seeing design momentum beginning to build within DTV and have recently secured two top-tier wins for our SoC and FRC solutions, one of which will be shipping to the European market. Typically, 80 to 90 percent of design wins for products that will ship Q4 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.”
Zoran will announce results for the fourth quarter and full year 2010 on February 3, 2011. As promptly as practicable following the announcement, the Company will mail to stockholders a Consent Revocation Statement, incorporating the Company’s fiscal 2010 results, in opposition to the Consent Solicitation Statement filed by Ramius Value and Opportunity Advisors LLC, a subsidiary of Ramius LLC.
GAAP revenues for the fourth quarter of 2011, which includes one month of Microtune revenues, are expected to be $74.2 million with GAAP loss per share, which includes all of the adjusting items in the table below, of approximately $0.67 to $0.70.
Items Excluded from non-GAAP Results
Three Months Ended December 31, 2010
Amortization of intangible assets $ 400
Restructuring expense 2,400
Acquisition expense 2,100
Shareholder consent expense 1,100
Operating expenses related to stock based compensation 3,300
Provision for income taxes 8,400
Total adjustments between GAAP and Non-GAAP $ 17,700
About Zoran Corporation
Zoran Corporation, based in Sunnyvale, California, is a leading provider of digital solutions in the growing digital entertainment and digital imaging markets. With two decades of expertise developing and delivering digital signal processing technologies, Zoran has pioneered high-performance digital audio and video, imaging applications, and Connect Share Entertain™ technologies for the digital home. Zoran’s proficiency in integration delivers major benefits for OEM customers, including greater capabilities within each product generation, reduced system costs, and shorter time to market. Zoran-based DTV, set-top box, broadband receiver (silicon tuners), Blu-ray Player, digital camera, and multifunction printer products have received recognition for excellence and are now in hundreds of millions of homes and offices worldwide. With headquarters in the U.S. and additional operations in China, France, Germany, India, Israel, Japan, Korea, Taiwan and the U.K., Zoran may be contacted on the World Wide Web at www.zoran.com or at 408-523-6500.