Zoran closes development center, cuts 40 Israel jobs

Zoran lost $215 million in 2008 and predicts a weak first quarter in 2009.

Zoran Corp. (Nasdaq: ZRAN) is closing its R&D center in Kfar Netter and consolidating it with the center in Haifa. The move will result in 40 layoffs of the company's 500 employees in Israel. Zoran has 1,400 employees worldwide.

Zoran declined to comment on the report.

The developer of processors for digital cameras and digital entertainment systems is run by founder, president and CEO Dr. Levy Gerzberg. The company gave a weak guidance for the first quarter, predicting a non-GAAP loss per share of $0.48-0.53 on $50-55 million revenue, below the market consensus of a non-GAAP loss per share of $0.33 on $60 million revenue.

The company posted a GAAP-based net loss of $215.7 million ($4.20 per share) in 2008, compared with a net profit of $66.2 million in 2007. The non-GAAP net profit was $8.4 million ($0.16 per share), down from $70.9 million in 2007. Revenue fell 13.6% to $438.5 million revenue in 2008 from $507.4 million in 2007.

Zoran's share rose 5.5% on Friday to close at $6.87, giving a market cap of $351 million.

Published by Globes [online], Israel business news - www.globes-online.com - on February 9, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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