Zoran posts 3Q profit against year-earlier loss

Zoran reports adjusted profit and revenue ahead of estimates, but gives weak 4Q outlook

• On 5:57 pm EDT, Monday October 26, 2009

SUNNYVALE, Calif. (AP) -- Chip maker Zoran Corp. on Monday reported a profit in the third quarter against a year-earlier loss, when it took $167.6 million in impairment charges.

Zoran said it earned $4.9 million, or 9 cents per share. That compares with a loss of $154.2 million, or $3.01 per share, a year earlier. Excluding restructuring charges and other one-time items, Zoran said profit grew to 17 cents per share. Revenue slipped 8 percent, to $115.5 million from $126.1 million, due to lower hardware and software revenue.

According to Thomson Reuters, analysts expected a profit of 4 cents per share and revenue of $109.2 million.

Zoran said its sales improved from the second quarter of 2009, with strong demand for hi-definition televisions and digital cameras. But it said worldwide consumer spending is still weak.

The company's fourth-quarter forecasts were below analyst expectations, and in aftermarket trading, Zoran shares fell $1.15, or 11.3 percent, to $9.02. In the regular session, the stock added 13 cents to $10.17.