MANHASSET, N.Y. Two suppliers of semiconductors for digital multimedia, Zoran Corp. and PortalPlayer Inc., posted mixed results for their first fiscal 2005 quarters ended March.
Zoran (Sunnyvale, Calif.), posted a net loss of $18.8 million, or 43 cents per share, on sales of $73.9 million, compared with a loss of $10 million, or 23 cents per share, on sales of $80.6 million in the year-ago quarter. Zoran, however, did narrow its loss from $30.1 million on revenue of $74.8 million the previous quarter.
"During the first quarter we saw indications that our DVD business is strengthening, and that progress is being made in working through the over supply of inventory that has affected the worldwide DVD industry," said Dr. Levy Gerzberg, Zoran's president and chief executive, in a statement. "Going forward, we expect these trends to continue as we work to return to profitability and growth throughout 2005."
On Wednesday, Zoran attempted to strengthen its leadership by appointing former Motorola and Freescale executive Ray Burgess
to its Board of Directors. Zoran expects to leverage Burgess' experience in digital ICs for the digital multimedia and entertainment markets.
Zoran projects second quarter 2005 revenue of $86 to $90 million with a GAAP net loss of 30 to 35 cents per share.
PortalPlayer (Santa Clara, Calif.) fared better, posting net earnings of $7.8 million, or 31 cents per share on sales of $44.5 million, compared with a $2.4 million loss on sales of $10.2 million a year ago.
"In the first quarter of 2005, we focused on demonstrating innovative new features and technologies to our customers and introducing two new semiconductor devices that we believe will contribute significantly to our growth the rest of the year," said Gary Johnson, president and chief executive.
PortalPlayer projects second quarter sales of $41.6 to $47.6 million, with net earnings of 19 to 25 cents per share.