To: Stoctrash who wrote (34156 ) 7/6/1998 5:55:00 PM From: John Rieman Respond to of 50808
After the close, Zoran issues warning............................newsalert.com Zoran Corporation Announces Preliminary Second Quarter Results PR Newswire - July 06, 1998 17:26 Jump to first matched term SANTA CLARA, Calif., July 6 /PRNewswire/ -- Zoran Corporation (Nasdaq: ZRAN), a leading provider of integrated circuits (ICs) and software for digital video and audio compression applications, today announced that operating results for the second quarter ended June 30, 1998 will be lower than analysts' published expectations. Based on preliminary results, revenues for the quarter are expected to be between $6.7 million and $7.1 million. The Company expects to record a net loss between $(0.8) million and $(1.2) million or $(0.09) and $(0.12) per diluted share for the second quarter. The Company expects to report final operating results for the second quarter on Thursday, July 23, 1998. Commenting on the announcement, President and Chief Executive Officer Dr. Levy Gerzberg said, "We believe three primary factors contributed to our disappointing financial results: the uncertainties and delay surrounding the launch of Windows98, the continued slower-than-anticipated ramp up in the DVD industry, and industry-wide inventory surpluses, which are being worked through now. "The uncertainties regarding the release of Windows98 has affected most segments of the PC industry. It appears that some of our larger customers over-estimated their hardware needs in the first quarter as shipments of our JPEG devices, used primarily in video editing and imaging systems, declined significantly in the second quarter. Additionally, shipments of our MPEG devices, used primarily in DVD products, also fell from the first quarter levels, indicating continued softness in the DVD market and reflecting the lingering economic crisis in Asia. "Despite these disappointments, there were signs of positive activity during the quarter," continued Dr. Gerzberg. "Shipments of our audio chips continue to increase, and although revenue from software licensing and development remained relatively flat on a sequential basis, we are seeing an increased interest in our software products since the release of Windows98 and our recent announcement with Intel."