As I have posted earlier and elsewhere, yesterday I sold off my shares of EELN and purchased shares of Zoran in my trading account. Let me review this company with you.
Zoran closed yesterday at $27.28 up $3.78 or 16.10% on the day. According to CNN.Money, Zoran "...develops and markets software, integrated circuits and IC Intellectual Property cores for digital audio and video applications enabled by compression."
On July 24, 2003, Zoran reported record revenue for the second quarter of 2003. According to the NYTimes on the Web, revenues for the second quarter of 2003 were $44.7 million compared with $34.0 million in 2002 and $37.8 million in the PRECEDING quarter.
Net income for the quarter was $4.2 million or $.15/diluted share compared with $1.0 million or $.04/share for the same quarter in 2002, and $193,000 or $.01 per diluted share for the preceding quarter (1st quarter, 2003).
Looking at some fundamental data on Morningstar.com, we find revenue growth from $44.9 million in 1997, $44.2 million in 1998, $61.7 million in 1999, $79.7 million in 2000, $107.7 million in 2001, and $149 million in 2002. If we extrapolated the current quarter, we should get revenue over $165 million in 2003.
Free cash flow is positive with $1 million in free cash flow in 2000, $9 million in 2001, $17 million in 2002 and $6 million in the trailing twelve months.
Balance sheet is PRISTINE with $136.9 million of CASH balanced against $33.1 million of current liabilities and NO long-term liabilities. In addition, ZRAN has $61.5 million of other current assets reported.
Yahoo.com reports that ZRAN has 27.5 million shares outstanding with 27.0 million shares that float for a market cap of $645.3 million. No dividend is paid. The p/e is a bit steep at 70.78. There are 5.50 million shares out short representing 5.39 days of average trading.
Overall, I like this stock a LOT. In fact, I purchased shares yesterday!
I hope everyone has a GREAT weekend....drop me a line at email@example.com if you have any questions, comments, suggestions, or words of encouragement!