GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Zoran Corp. Reports Operating Results (10-Q)

August 05, 2009 | About:
insider

Zoran Corp. (ZRAN) filed Quarterly Report for the period ended 2009-06-30.

Zoran Corporation develops and markets integrated circuits integratedcircuit cores and software for digital video and audio compression applications. The Company\'s products are used in a variety of video and audio products addressing PC and consumer multimedia markets. Current applications for Zoran integrated circuit products include professional and consumer video editing systems filmless digital cameras PC-based and stand-alone video CD and digital video disc players and digital audio systems. Zoran Corp. has a market cap of $598.9 million; its shares were traded at around $11.6 with and P/S ratio of 1.4. Zoran Corp. had an annual average earning growth of 112.6% over the past 5 years.

Highlight of Business Operations:

Hardware product revenues for the three months ended June 30, 2009 were $92.2 million, compared to $113.6 million for the comparable period of the prior year. Hardware product revenues decreased $17.0 million or 16% in the Consumer segment and $4.4 million or 65% in the Imaging segment. Total units shipped for products in the Consumer segment decreased by 13% and average selling price decreased by 4% compared to the same period of the prior year. Within the Consumer segment, hardware product revenues for DVD products decreased by $4.5 million or 24%. Total DVD products units shipped decreased by 15% and average selling price decreased by 11% compared to the same period of the prior year. Hardware product revenues for Mobile products decreased by $17.4 million or 33%. Total units shipped for Mobile products decreased by 22% and average selling price decreased by 14% compared to the same period of the prior year. Partially offsetting the decreases in hardware product revenues for DVD and Mobile products was an increase of $4.9 million or 14% for DTV products. Total DTV products units shipped increased by 21% principally due to increased shipment from new products, which was partially offset by decrease in average selling price by 6% compared to the same period of the prior year. The decrease in Imaging hardware product revenues was primarily due to a 74% decrease in unit shipments due to the decrease in demand as a result of the economic downturn. We believe that the recent worldwide recession has adversely affected the markets that our customers serve, and we expect this impact may continue to reduce sales of our products until the economy begins to recover.

Hardware product revenues for the six months ended June 30, 2009 were $148.1 million compared to $207.9 million for the comparable period of the prior year. Hardware product revenues decreased $49.8 million or 26% in the Consumer segment and $9.9 million or 67% in the Imaging segment. The decrease in revenues in the Consumer segment was primarily due to a decrease in total units shipped for products in the Consumer segment by 26% compared to the same period of the prior year. Within the Consumer segment, hardware product revenues for DVD products decreased by $19.9 million or 48%. Total DVD products units shipped decreased by 40% and average selling price decreased by 12% compared to the same period of the prior year. Hardware product revenues for Mobile products decreased by $32.1 million or 36%. Total units shipped for Mobile products decreased by 26% and average selling price decreased by 13% compared to the same period of the prior year. Partially offsetting the reduced hardware product revenues for DVD and Mobile products was an increase of $2.2 million or 3% for DTV products. Total units shipped for DTV products increased by 9% from

new products, which was partially offset by decrease in average selling price by 5% compared to the same period of the prior year. The decrease in Imaging hardware product revenues was primarily due to a 76% decrease in unit shipments due to the decrease in demand as a result of the economic downturn.

Cost of hardware product revenues were $54.3 million for the three months ended June 30, 2009, compared to $68.4 million for the same period in 2008. The decrease in cost of hardware product revenues of $14.0 million or 21% was primarily due to a decrease in total units shipped by 17%. The remaining decrease was due to lower costs for our integrated circuits primarily in our DTV products.

Cost of hardware product revenues were $90.3 million for the six months ended June 30, 2009, compared to $126.1 million for the same period in 2008. The decrease in cost of hardware product revenues of $35.8 million or 28% was primarily due to a decrease in total units shipped of 30% compared to the same period in 2008. Cost of hardware product as percentage of hardware product revenues remained fairy consistent in the six months ended June 30, 2009 compared to the same period of prior year.

Read the The complete ReportZRAN is in the portfolios of Richard Pzena of Pzena Investment Management LLC.

Rating: 2.4/5 (5 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide