UPDATE 1-Zoran posts narrower-than-expected Q2 loss

* Forecasts Q3 results above Wall Street view

* Q2 non-GAAP loss $0.08 vs est loss $0.22/shr

* Q2 revenue $102.7 mln beats estimates

* Says DVD market appears to have stabilized

* Shares up 3 pct

July 27 (Reuters) - Chipmaker Zoran Corp ZRAN.O reported a narrower-than-expected second-quarter loss, helped by increasing demand for low- to mid-range LCD TVs and higher-margin DVD products, and forecast third-quarter results above Wall Street estimates.

The DVD market appears to have stabilized and Zoran is benefiting from increasing demand for higher margin, value-add DVD products such as HDMI players and portables, Chief executive Levy Gerzberg said in a statement.

"While consumer spending has not yet reached previous levels, we are encouraged by these positive trends in our end markets."

Net loss in the second quarter narrowed to $13.8 million, or 27 cents a share, from $36.6 million, or 71 cents a share, a year earlier. Excluding items, the company posted a loss of 8 cents per share. Revenue fell 20 percent to $102.7 million.

Analysts on average were expecting a loss of 22 cents a share, excluding exceptional items, on revenue of $88.3 million, according to Reuters Estimates.

The company expects third-quarter results to range from breakeven to a loss of 5 cents per share. Excluding items, it expects a profit of 1 cent to 5 cents a share. Zoran forecast revenue of $105 million to $110 million for the period.

Analysts expect the company to post a loss of 3 cents a share, excluding exceptional items, on revenue of $101.9 million.

Shares of the company were up 3 percent at $11.50 in trading after the bell. They closed at $11.18 Monday on Nasdaq.

For alerts, please double click [ID:nWNBB3426] (Reporting by Mansi Dutta in Bangalore; Editing by Vinu Pilakkott)