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 second quarter
ended June 30, 2011.
Revenues for the second quarter of 2011 were $82.9 million,
compared to $84.9 million for the previous quarter and $93.4
million for the second quarter of 2010. The Company reported a
second quarter GAAP net loss of $25.5 million, or $0.51 per share,
which compares with a GAAP net loss of $30.4 million, or $0.62 per
share, for the previous quarter and a GAAP net loss of $6.7
million, or $0.13 per share, for the second quarter of the prior
year.
Non-GAAP net loss for the second quarter was $17.7 million, or
$0.36 per share, which excludes $1.3 million of amortization of
acquired intangible assets, $994 thousand of restructuring
expenses, $1.7 million of acquisition related expenses, $3.3
million of stock-based compensation expenses, and includes an
adjustment of $377 thousand for the tax provision to a non-GAAP
rate. This compares with a non-GAAP net loss of $21.3 million, or
$0.43 per share, for the previous quarter, and a non-GAAP net loss
of $4.0 million, or $0.08 per share for the same period last
year.
"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," said Dr.
Levy Gerzberg, president and chief executive officer of Zoran. "The
highly competitive and rapidly changing consumer electronics
markets continue to require feature-rich capabilities while
reducing the silicon footprint. Joining forces with CSR will enable
Zoran to effectively meet this demand and leverage scale and
complementary capabilities between the two companies. We continue
to believe this merger is in the best interests of Zoran's
shareholders, customers and employees."
Recent Highlights
- Zoran's revenues by product line for the second quarter of 2011
were 28 percent Digital Camera, 24 percent STB (includes broadband
receivers), 19 percent Printer Imaging, 16 percent DTV and 13
percent DVD
- Zoran introduces optimized interactive IP set-top products for
service operators
- Zoran's IPS print language software is licensed for use in a
new HP enterprise Inkjet printer
- Zoran demonstrates new DTV, Set-Top-Box, silicon tuner, digital
camera and printer platforms at Computex
- Zoran selects RT-RK to port Android to its SoCs.
Future Outlook
The following forward-looking statements are based on our
current expectations and actual results may differ materially.
Zoran currently expects revenues for the third quarter of 2011
to range between $100 million and $105 million, with gross margins
ranging between 49.5 and 50.5 percent. The Company expects to
record a third quarter GAAP net loss in the range of $0.17 to $0.22
per share on approximately 50 million shares. On a non-GAAP basis,
which excludes acquisition-related expenses and amortization costs
and stock-based compensation expenses, the Company expects to
record a third quarter net loss of $0.07 to $0.12 per share.
Use of Non-GAAP Financial Information
In addition to reporting financial results in accordance with
generally accepted accounting principles, or GAAP, Zoran provides
non-GAAP financial information, including non-GAAP net income
(loss) and non-GAAP EPS that excludes charges such as amortization
of acquired intangible assets, acquisition related expenses,
stock-based compensation expense, restructuring expense,
shareholder consent revocation expenses, and associated income tax
adjustments. Non-GAAP results are reconciled to GAAP results on the
attached Schedule.
The Company believes that its non-GAAP financial information
provides useful information to management and investors regarding
financial and business trends relating to its financial condition
and results of operations because it excludes items that management
considers to be outside of the Company's core operating results.
The Company believes that this non-GAAP financial information, in
combination with the Company's financial results calculated in
accordance with GAAP, provides investors with additional
perspective and a more meaningful understanding of the Company's
ongoing operating performance. In addition, the Company's
management uses these non-GAAP measures to review and assess the
financial performance of the Company, to determine executive
officer incentive compensation, and to plan and forecast
performance in future periods. The Company's non-GAAP financial
information, is not prepared in accordance with GAAP, is not an
alternative to GAAP financial information, and may be calculated
differently than non-GAAP financial information disclosed by other
companies.
Company Profile
Zoran Corporation, based in Sunnyvale, California, is a leading
provider of digital solutions for the digital entertainment and
digital imaging markets. With over 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 receivers (silicon
tuners), DVD, 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.
Forward-Looking Statements This press
release includes forward-looking statements that reflect the
Company's current views of future events and future financial
performance, including the chief executive officer quotations, and
the material presented under "Future Outlook," including statements
regarding the Company's future results of operation including in
the third quarter of 2011, business prospects, and statements
regarding potential design wins, the prospects of various business
lines, and expectations regarding the prospects of the combined
Company/CSR after the closing of the transaction.. These
forward-looking statements are subject to many risks and
uncertainties that could cause actual results to differ materially
from what is currently expected, including risks associated with
the earthquake and related nuclear accident in Japan; risks
associated with the Company's ability to acquire new, and increase
its business from current, customers; potential declines in the
Company's sales as a result of the continuing global economic
slowdown that could continue to reduce demand for consumer
electronic and other products; the impact of Cisco's decision to
discontinue its Flip product line on the Company's results of
operations, including that new customers may not buy COACH products
as anticipated, inability to close or delays in closing the CSR
transaction due to failure of or any delay in the satisfaction of
any condition precedent or otherwise; continued tightening in
global credit markets, which could result in insolvency of key
suppliers, customers, or retailers and customer inability to
finance purchases of our products; the rapidly evolving markets for
the Company's products and uncertainty regarding the pace and
direction of development of those markets; the impact of further
ASP declines; the Company's dependence on sales to a limited number
of large customers; cost and length of time required for new
product development; timing and impact of new product introductions
by the Company and its competitors, and of transitions away from
older products; intense competition in the Company's markets and in
the markets in which its customers operate; the Company's reliance
on other parties for wafer supplies, product assembly and testing,
and manufacturing capacity; the effects of changes in revenue and
product mix on the Company's gross margins; fluctuations in tax
rate caused by projections of the geographic sources of Company
income; dependence on key personnel; reliance on international
operations, particularly operations in Israel; the possibility of
disruption from any future proxy fight, or threat thereof, making
it more difficult to maintain business and operational
relationships; disruption or uncertainty caused by future
shareholder actions or litigation; Please refer to the discussion
of the risks and uncertainties under the caption "Risk Factors" and
elsewhere in Forms 10-K, 10-Q and 8-K filed by the Company with the
SEC for further information regarding risks and uncertainties that
could cause actual results or events to differ materially from
those contained in the forward-looking statements included in this
press release. The Company assumes no obligation to update any
forward-looking statements as a result of new information or future
events or developments, except as required by law.
Zoran the Zoran logo and SupraHD are trademarks or registered
trademarks of Zoran Corporation and/or its subsidiaries in the
United States and/or other countries. All other brands or names may
be claimed as property of others.
ZORAN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- --------------------
2011 2010 2011 2010
--------- --------- --------- ---------
Revenues:
Hardware product revenues $ 71,287 $ 82,721 $ 144,164 $ 161,771
Software and other revenues 11,564 10,649 23,607 22,050
--------- --------- --------- ---------
Total revenues 82,851 93,370 167,771 183,821
Costs and expenses:
Cost of hardware product
revenues 40,285 45,190 81,211 88,910
Research and development 34,605 29,043 69,890 55,157
Selling, general and
administrative 29,451 24,890 61,446 47,901
Amortization of intangibles 1,347 109 2,858 218
Acquisition related expenses 1,702 - 4,009 -
Restructuring expense 994 - 2,835 -
Shareholder consent revocation
expense - - 1,860 -
IP licensing related
settlements - - - 1,115
--------- --------- --------- ---------
Total costs and expenses 108,384 99,232 224,109 193,301
Operating loss (25,533) (5,862) (56,338) (9,480)
Interest and other income, net 666 2,100 1,533 4,449
--------- --------- --------- ---------
Loss before income taxes (24,867) (3,762) (54,805) (5,031)
Provision for income taxes 587 2,900 1,015 5,600
--------- --------- --------- ---------
Net loss $ (25,454) $ (6,662) $ (55,820) $ (10,631)
========= ========= ========= =========
Basic and diluted net loss per
share $ (0.51) $ (0.13) $ (1.13) $ (0.21)
========= ========= ========= =========
Shares used to compute basic and
diluted net loss per share 49,814 50,364 49,448 50,769
========= ========= ========= =========
ZORAN CORPORATION
NON-GAAP ADJUSTMENTS TO NET LOSS
(in thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
--------------------- ---------------------
2011 2010 2011 2010
-------- -------- -------- --------
GAAP net loss $(25,454) $ (6,662) $(55,820) $(10,631)
Adjusting items to GAAP
net loss:
Operating expenses
related to stock
based compensation
expense 3,304 (a) 2,440 (a) 7,249 (a) 4,636 (a)
Amortization of
intangibles 1,347 (b) 109 (b) 2,858 (b) 218 (b)
Acquisition related
expenses 1,702 (c) - 4,009 (c) -
Restructuring expense 994 (d) - 2,835 (d) -
Shareholder consent
revocation expense - - 1,860 (e) -
IP licensing related
settlements - - - 1,115 (f)
Provision for income
taxes 377 (g) 100 (g) (1,985)(g) (800)(g)
-------- -------- -------- --------
Non-GAAP net loss $(17,730)(h) $ (4,013)(h) $(38,994)(h) $ (5,462)(h)
======== ======== ======== ========
Non-GAAP basic and
diluted net loss per
share $ (0.36)(h) $ (0.08)(h) $ (0.79)(h) $ (0.11)(h)
======== ======== ======== ========
Shares used to compute
non-GAAP basic and
diluted net loss per
share 49,814 50,364 49,448 50,769
======== ======== ======== ========
(a) This adjustment reflects the stock-based compensation
expense recorded under ASC 718-10. The Company excludes this item
when it evaluates the continuing operational performance of the
Company as management believes this GAAP measure is not indicative
of its core operating performance. (see (h) below)
(b) This adjustment represents the amortization of intangible
assets associated with the acquisition of Let It Wave, Inc. in June
2008 and Microtune, Inc. in November 2010. Such amortization
expense does not impact the Company's cash flows and is excluded by
management when evaluating its core operating performance. (see (h)
below)
(c) This adjustment represents acquisition expenses associated
with the pending merger with CSR plc and the acquisition of
Microtune, Inc. which was completed during the fourth quarter of
2010. The Company excludes this item when it evaluates the
continuing operational performance of the Company as management
believes this GAAP measure is not indicative of its core operating
performance. (see (h) below)
(d) This adjustment reflects various restructuring expenses
recorded by the Company in order to reduce ongoing operating costs.
The Company excludes these items when it evaluates the continuing
operational performance of the Company as management believes this
GAAP measure is not indicative of its core operating performance.
(see (h) below)
(e) This amount represents the shareholder consent revocation
expenses associated with our Starboard, formerly known as Ramius,
shareholder. The Company excludes these items when it evaluates the
continuing operational performance of the Company as management
believes this GAAP measure is not indicative of its core operating
performance. (see (h) below)
(f) This adjustment reflects non-recurring expenses associated
with IP licensing related settlements. The Company excludes this
item when it evaluates the continuing operational performance of
the Company as management believes this GAAP measure is not
indicative of its core operating performance. (see (h) below)
(g) This adjustment represents the difference between the
non-GAAP income tax rate and the GAAP income tax rate. This
adjustment is made by the Company when it evaluates its continuing
operational performance. (see (h) below)
(h) The Company believes that its non-GAAP financial information
provides useful information to management and investors regarding
financial and business trends relating to its financial condition
and results of operations because it excludes charges that
management considers to be outside of the Company's core operating
performance. The Company believes that this non-GAAP net loss, in
combination with the Company's financial results calculated in
accordance with GAAP, provides investors with additional
perspective and a more meaningful understanding of the Company's
ongoing operating performance. In addition, the Company's
management uses these non-GAAP measures to review and assess the
financial performance of the Company, to determine executive
officer incentive compensation and to plan and forecast performance
in future periods. The Company's non-GAAP net loss is not prepared
in accordance with GAAP, is not an alternative to GAAP financial
information, and may be calculated differently than non-GAAP
financial information disclosed by other companies.
ZORAN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
June 30, December 31,
2011 2010
------------- -------------
ASSETS
Current assets:
Cash and short-term investments $ 241,465 $ 261,266
Accounts receivable, net 22,000 22,815
Inventory 41,554 48,139
Prepaid expenses and other current
assets 19,110 22,379
------------- -------------
Total current assets 324,129 354,599
Property and equipment, net 15,876 16,959
Other assets 76,701 82,006
Intangible assets, net 53,109 53,825
------------- -------------
Total assets $ 469,815 $ 507,389
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 32,167 $ 25,158
Accrued expenses and other liabilities 41,046 42,236
------------- -------------
Total current liabilities 73,213 67,394
Long term liabilities 39,793 38,517
Stockholders' equity:
Common stock 50 49
Additional paid-in capital 868,776 857,154
Accumulated other comprehensive income 995 1,467
Accumulated deficit (513,012) (457,192)
------------- -------------
Total stockholders' equity 356,809 401,478
Total liabilities and stockholders'
equity $ 469,815 $ 507,389
============= =============
Zoran Corporation: Karl Schneider Chief Financial Officer
(408) 523-6500 Email Contact Bonnie McBride (Investors) (415)
454-8898 Email Contact Company Web Site: www.zoran.com
Grafico Azioni Zoran Corp. (MM) (NASDAQ:ZRAN)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Zoran Corp. (MM) (NASDAQ:ZRAN)
Storico
Da Giu 2023 a Giu 2024