Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Chip designer Zoran (Nasdaq: ZRAN) saw its shares plunge as deep as 20.5% below last night's close in intraday trading today.

So what: Last night's third-quarter report was bad, missing analyst targets on both the top and bottom lines. What's worse, management guidance now points to next-quarter sales about 35% below analyst estimates and 37% below the third quarter's results, followed by scary-looking losses.

Now what: Zoran admitted to losing market share in the connected TV and DVD player markets on top of heavy price erosion for the consumer-level end product in those segments. The company is now contemplating new market strategies, and investors are justly nervous about the outcome. Given what Zoran is saying about market trends, it would also behoove owners of Sigma Designs (Nasdaq: SIGM) and Trident Microsystems (Nasdaq: TRID) to take a second look at their holdings, as they are strong in markets closely related to the digital TV and set-top box sectors.

Interested in more info on Zoran? Add it to your watchlist by clicking here.

Fool contributor Anders Bylund holds no position in any of the companies discussed here. Sigma Designs is a Motley Fool Rule Breakers choice. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is investors writing for investors.