SAN JOSE, Calif. - Zoran Inc. once again urged all stockholders to reject Ramius’ efforts to take control of the board and company.
Ramius, the hedge fund, has turned up the takeover heat on Zoran. Last month, Ramius (New York) delivered a letter to Zoran's directors and Levy Gerzberg, president and CEO, saying it believed the company's shares are deeply undervalued, primarily due to long-term fundamental underperformance and repeated missed expectations for revenue growth and profitability. The hedge firm was seeking to take control of the company's board.
Zoran has rejected that offer several times. On Tuesday (Feb. 8), Zoran issued a letter, which will be mailed to its stockholders. It rejects Ramius' takeover efforts.
Last week, Zoran, a g provider of digital solutions for applications in the digital entertainment and digital imaging markets, reported results for its fourth quarter ended Dec. 31, 2010.
Revenues for the fourth quarter, which includes Microtune revenues subsequent to the closing of the acquisition on Nov. 30, 2010 of $5.4 million, were $74.2 million, compared to $99.3 million last quarter and $93.3 million for the fourth quarter of 2009. The company reported a fourth quarter GAAP net loss of $32.9 million, or minus $0.67 per share, which compares with a GAAP net loss of $4.1 million, or minus $0.08 per share, for the previous quarter and GAAP net loss of $2.9 million, or minus $0.06 per share, for the fourth quarter of the prior year.
For the full year ended Dec. 31, 2010, revenues were $357.3 million, compared to $380.1 million for 2009. GAAP net loss for 2010 was $47.6 million, or minus $0.95 per share, compared to a GAAP net loss of $33.0 million or minus $0.64 per share for the prior year.
The company is currently expecting first quarter 2011 revenues to range between $81 million and $85 million, with gross margins ranging between 54 and 54.5 percent. The company expects to record a first quarter GAAP loss in the range of $0.46 to $0.49 per share on approximately 49 million shares.