Zoran Corporation Reports Fourth Quarter and Full Year 2010 Results

Thursday, February 3rd, 2011 
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SUNNYVALE, CA — Zoran Corporation (NASDAQ: ZRAN), a leading provider of digital solutions for applications in the digital entertainment and digital imaging markets, today reported results for its fourth quarter ended December 31, 2010.

Revenues for the fourth quarter, which includes Microtune revenues subsequent to the closing of the acquisition on November 30, 2010 of $5.4 million, were $74.2 million, compared to $99.3 million last quarter and $93.3 million for the fourth quarter of 2009. The Company reported a fourth quarter GAAP net loss of $32.9 million, or $0.67 per share, which compares with a GAAP net loss of $4.1 million, or $0.08 per share, for the previous quarter and GAAP net loss of $2.9 million, or $0.06 per share, for the fourth quarter of the prior year.

Non-GAAP net loss for the fourth quarter, including the impact of Microtune, was $15.2 million, or $0.31 per share, which excludes $398 thousand of amortization of acquired intangible assets, $2.4 million of restructuring expenses, $2.1 million of acquisition related expenses, $1.1 million related to shareholder consent revocation activities, $3.3 million of stock-based compensation expenses, and includes an adjustment of $8.4 million for the tax provision to a non-GAAP rate. Excluding Microtune, non-GAAP net loss would have been $14.6 million, or $0.30 per share. This compares with a non-GAAP net loss of $810 thousand, or $0.02 per share, for the previous quarter, and a non-GAAP net income of $514 thousand, or $0.01 per diluted share for the same period last year.

For the full year ended December 31, 2010, revenues were $357.3 million, compared to $380.1 million for 2009. GAAP net loss for 2010 was $47.6 million, or $0.95 per share, compared to a GAAP net loss of $33.0 million or $0.64 per share for the prior year. Non-GAAP net loss for 2010 was $21.5 million, or $0.43 per share. This compares with a non-GAAP net loss of $12.7 million, or $0.25 per share for 2009.

Recent Highlights

  • Zoran’s revenues by product line for the fourth quarter of 2010 were 45 percent Digital Camera, 22 percent Printer Imaging, 13 percent DTV, 12 percent STB (includes broadband receivers) and 8 percent DVD
  • Zoran Demonstrates New Connected, Full HD and 3D Solutions for DTVs, Set-Top Boxes, Digital Cameras and Printers at CES 2011
  • Zoran’s SupraHD® 788 Processor Powers Toshiba’s New Ultra Thin LED Internet Connected TV Series
  • Zoran Boosts Performance of Its Breakthrough Frame Rate Converter Technology for Worldwide 2D and 3D TV Markets
  • Zoran Completes Acquisition of Microtune, Inc
  • Microtune’s New High-Quality CMOS Silicon Tuner Family Invigorates Cable’s Next Generation of Multi-Tuner Set-Tops
  • Microtune DOCSIS 3.0 Chipset Enables Internet, Voice and IPTV in AVM’S New FRITZ!Box 6360 Wireless Cable Modem
  • Zoran Joins MoCA

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