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Zoran Rallies on Guidance

The company beats estimates in the second quarter and raises them for the third.

Shares of



shot up 14% after the company gave guidance that trumped analyst estimates while also beating expectations for the just-reported second quarter.

The stock jumped $1.99, to $15.94, in postclose trading, reversing a trading day loss of 15 cents, or 1.1%. In regular Tuesday trading, Zoran closed at $13.95.

The Sunnyvale, Calif.-based chipmaker, which makes silicon that goes into DVD recorders and digital cameras, posted a second-quarter loss of $6.1 million, or 14 cents a share. The loss, which includes charges of $12.5 million related to the company's acquisition of Oak Technology, compares with a year-ago loss of $4.2 million, or 15 cents a share.

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Excluding special charges, Zoran delivered net income of $6.3 million, or 14 cents a share, besting the consensus estimate for a dime in earnings.

For the same period last year, pro forma income stood at $5.2 million, or 18 cents a share.

Second-quarter revenue totaled $103.7 million, up 29 percent and ahead of analyst expectations for $92.6 million.

For the third quarter, Zoran forecast revenue in the range of $128 million to $133 million, well ahead of the consensus outlook for $109.7 million.

Pro forma earnings should come in between 27 cents and 30 cents, besting the consensus expectation for 25 cents.

Also after the close, Zoran forecast 2004 annual revenue growth of $435 million to $443 million. Pro forma earnings per share should notch 69 cents to 76 cents, the company said.

Both outpaced analyst expectations for earnings of 65 cents a share on revenue of $389 million.