Monday, Zoran, Corp. (ZRAN), a provider of digital solutions to digital entertainment and imaging markets, posted a narrower loss in the fourth quarter from the year ago on higher revenue from hardware product sales.
Zoran's fourth-quarter net loss narrowed to $2.9 million or $0.06 per share from net loss of $20.2 million or $0.40 per share for the year-ago period. Results for the current quarter includes $107,000 of amortization of acquired intangible assets and $2.6 million of stock-based compensation expenses.
Excluding these items, non-GAAP net income was $0.5 million or $0.01 per share, compared to non-GAAP net loss of $10.5 million or $0.21 per share for the prior-year period. This year's results include an adjustment of $760,000 for the tax provision to a non-GAAP rate. On an average, 13 analysts polled by Thomson Reuters expected net loss of $0.03 per share for the quarter. Analysts' estimates typically exclude one-time items.
Fourth-quarter revenue increased to $93.3 million from $74.7 million in the year-earlier quarter; comparable to analysts' revenue expectations of $94.01 million for the quarter.
The company said that it received 37% revenue from digital camera sales, 29% revenue from DTV sales, including set-top-box sales, 15% from DVD sales, 15% from printer imaging and 4% from mobile phone processors.
Segment-wise, revenue from its hardware products increased to $81.77 million from $59.80 million, while revenue from its software products and other sources decreased to $11.55 million from $14.88 million in the year-ago quarter.
For the fourth-quarter, cost of hardware product sales increased to $46.34 million from $36.41 million,
selling, general and administrative expenses increased to $23.17 million from $21.01 million and R&D costs decreased to $26.95 million from $30.34 million in the year-ago quarter. The company's total costs and expenses rose to $96.58 million from $87.87 million in the prior-year period.
For the full-year, Zoran reported a narrower loss of $33.0 million or $0.64 per share from a net loss of $215.7 million or $4.20 per share last year. Last year's results include a $22.4 million charge from R&D costs and a non-cash charge of $167.6 million for impairment of intangible assets.
Non-GAAP net loss was $12.7 million or $0.25 per share, compared to non-GAAP net income of $8.4 million or $0.16 per share in the prior year. For the full year, Wall Street had expected a net loss of $0.29 per share.
Revenue declined to $380.1 million from $438.5 million last year; comparable to analysts' estimates of $380.87 million this year.
Looking ahead, Zoran expects a first-quarter net loss in the range of $0.06 to $0.10 per share. Excluding amortization costs and compensation expenses, the company expects a non-GAAP net loss of $0.02 to $0.05 per share on revenue between $90 million and $94 million.
Analysts expect the company to report net loss of $0.09 per share on revenues of $88.91 million for the first quarter.
ZRAN closed Monday's regular trading session at $11.76, up $0.27 or 2.35%, on a volume of 1.39 million shares. In after-market trading, ZRAN shares fell $0.76 or 6.46% to $11.00.
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