Zoran ( ZRAN) reported better-than-expected revenue for its second quarter ended June 30 but issued top-line guidance Monday that falls short of the Wall Street consensus.

Excluding proceeds from a legal settlement, Zoran posted revenue of $122.3 million in the most recently completed quarter, up from $95.1 million a year ago. Analysts surveyed by Thomson First Call were forecasting revenue of $119.8 million in the latest quarter.

Zoran didn't release earnings figures, because it is in the process of reviewing its stock options practices. The company expects to file a form 10-Q with the Securities and Exchange Commission following the review.

For the third quarter ending in September, Zoran expect to post revenue of $130 million to $134 million, short of the Thomson First Call estimate of $138.3 million.

Revenue growth in the third quarter will be driven "primarily by growth in products serving the DVD and DTV markets," the company said.

In the second quarter, 34% of Zoran's revenue came from the DVD market; 31% came from digital cameras, 18% came from digital television, 15% from imaging and 2% from other sources "Our financial position continues to improve, and our cash and short-term investments increased to $265 million from $218 million at the end of the first quarter."

The stock closed at $19.73 Monday. In after-hours trading, it fell $2.24, or 11.4%, to $17.49.