UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of November 2010
Commission File Number: 000-51606
VIMICRO
INTERNATIONAL CORPORATION
15/F Shining Tower
No. 35 Xueyuan Road, Haidian District
Beijing 100191, Peoples
Republic of China
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F
x
Form
40-F
¨
Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(1):
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes
¨
No
x
If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-
N/A
VIMICRO INTERNATIONAL CORPORATION
Form 6-K
TABLE OF CONTENTS
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
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VIMICRO INTERNATIONAL CORPORATION
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By:
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/
S
/ J
OHN
Z
HONGHAN
D
ENG
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Name:
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John Zhonghan Deng
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Title:
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Chairman and Chief Executive Officer
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Date: November 30, 2010
3
Exhibit 99.1
Vimicro Reports Third Quarter 2010 Financial Results
BEIJING November 29, 2010 Vimicro International Corporation (NASDAQ: VIMC) (Vimicro), a leading multimedia semiconductor and solution provider, today announced financial
results for the third quarter ended September 30, 2010.
Third Quarter 2010
Net revenue in the third quarter of 2010 was $26.5 million, compared to $26.4 million in the second quarter of 2010 and $20.5 million in the third quarter
of 2009. Revenue in the third quarter of 2010 reflects increased revenue from Vimicros surveillance business.
For the first nine months
of 2010, revenue totaled $73.0 million, a 48% increase compared to $49.2 million for the same period in 2009 primarily due to the Companys expanded product offerings in high growth markets.
Dr. John Deng, Vimicros Chairman and Chief Executive Officer, commented, In the third quarter, revenue from our new surveillance
business improved as a result of the Companys increased marketing efforts and new contract wins, but recognized revenue has not yet reached the levels originally forecast. Another contributing factor was the delayed release of our SVAC
standard, which was just recently approved by the Standardization Administration of China. Our notebook camera processor business remains solid as we maintain our leadership position in high-end notebooks. In mobile, we continued to ship volume
orders to large mobile OEMs and secured new customer contracts.
Gross margin in the third quarter of 2010 was 31% compared to 34% in
the previous quarter due to product mix within the quarter. Operating expenses remained flat sequentially at $13.9 million in the third quarter.
The Company recognized approximately $0.5 million of grants during the third quarter, and expects to recognize increased levels of grant benefits in the coming quarters. In addition, the Company initiated
cost control programs including cutting variable expenses, lowering IP purchases and halting investment in non-core product lines and projects. Collectively, these actions will help the Company to achieve its financial goals, while establishing a
more profitable operating model.
Third quarter 2010 net loss, prepared in accordance with U.S. Generally Accepted Accounting Principles
(GAAP), was $5.3 million, which included $1.1 million in share-based compensation expense, compared to a loss of $4.3 million, including $0.9 million in share-based compensation, in the second quarter. After excluding loss attributable to
non-controlling interest, net loss attributed to Vimicro was $3.8 million in the third quarter, or $0.10 loss per ADS (each representing four ordinary shares), compared to a net loss of $2.8 million, or $0.08 loss per ADS, in the second quarter of
2010.
Business Outlook
Vimicro anticipates fourth quarter revenue to range between $26 million and $28 million. Surveillance revenue is expected to increase, driven by new
product introductions and expanded sales and marketing efforts in multiple regions. The Company also anticipates a modest improvement in mobile sales volume and comparable volume in notebook products. The Company expects to achieve non-GAAP
breakeven in the coming quarters and further contribute to future profitability on a sustainable basis through aggressive growth efforts and SVAC adoption in the surveillance market, business restructuring and operating expense controls implemented
in the fourth quarter and first half of 2011.
4
Financial Results Conference Call and Webcast
Vimicro will host a conference call and Webcast November 29, 2010 at 6:30 p.m. Eastern Time to discuss the Companys recent results. Investors
and other interested parties may access the call by dialing
800.299.9630
(or
+1-617.786.2904
outside of the U.S.) with the pass code
42807962
, at least 10 minutes prior to the start of the call.
In addition, an audio Webcast will be available in the Investor Relations section of the Companys Web site at http://www.vimicro.com. Following the
live Webcast, an archived version will be available on the Companys Web site. A telephone replay of the call will also be available approximately two hours after the call and will be available until December 6, 2010 at midnight (ET). The
replay number is 888-286-8010 with a pass code of 71992356. International callers should dial +1-617-801-6888 and enter the same pass code at the prompt.
About Vimicro International Corporation
Vimicro International Corporation is a leading
multimedia semiconductor and solution provider that designs, develops and markets mixed-signal semiconductor products and system-level solutions that enable multimedia capabilities in a variety of products for the consumer electronics and
communications markets. Vimicro is also expanding business into the surveillance market with system-level solutions and semiconductor products. Vimicros ADSs, each of which represents four ordinary shares, are currently trading on the NASDAQ
Global Market under the ticker symbol VIMC.
Forward-Looking Statements
This announcement contains forward-looking statements. These statements are made under the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as will, expects, anticipates, future, intends, plans,
believes, estimates, confident and similar statements. Among other things, the quotations from management in this announcement, as well as Vimicros expectations and forecasts, contain forward-looking
statements. Vimicro may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on forms 20-F and 6-K, etc., in its annual report to shareholders, in press releases and other
written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Vimicros beliefs and expectations, are forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the
companys ability to develop and sell new mobile multimedia products; the expected growth of the mobile multimedia market; the companys ability to increase sales of notebook camera multimedia processors; the companys ability to
retain existing customers and acquire new customers and respond to competitive market conditions; the companys ability to respond in a timely manner to the evolving multimedia market and changing consumer preferences and industry standards and
to stay abreast of technological changes; the companys ability to secure sufficient foundry capacity in a timely manner; the companys ability to effectively protect its intellectual property and the risk that it may infringe on the
intellectual property of others; and cyclicality of the semiconductor industry. Further information regarding these and other risks is included in Vimicros annual report on Form 20-F filed with the Securities and Exchange Commission. Vimicro
does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release is as of the date hereof, and Vimicro undertakes no duty to update such information,
except as required under applicable law.
5
Non-GAAP Measures
To supplement the consolidated financial statements presented in accordance with GAAP, Vimicro uses non-GAAP measures of non-GAAP (loss)/income from operations, non-GAAP net (loss)/income attributed to
Vimicro International Corporation and non-GAAP diluted net (loss)/income per ADS, which are adjusted from the most directly comparable financial measures calculated and presented in accordance with GAAP to exclude amortization of share-based
compensation expenses. These non-GAAP financial measures are provided to enhance investors overall understanding of the companys financial performance as they exclude share-based expenses that are not expected to result in future cash
payments. The non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. A limitation of using these non-GAAP financial measures is that
these non-GAAP measures exclude share-based compensation charges that have been and will continue to be significant recurring expenses in our business for the foreseeable future. We compensate for these limitations by providing the relevant
disclosure of our share-based compensation charges in our reconciliations to the GAAP measures. For more information on the non-GAAP financial measures, please see the tables captioned Reconciliation of non- GAAP results of operations measures
to the nearest comparable GAAP measures set forth at the end of this release.
Vimicro believes that both management and investors
benefit from referring to these non-GAAP measures in assessing the performance of Vimicros liquidity and when planning and forecasting future periods. These non-GAAP financial measures also facilitate managements internal comparisons to
Vimicros historical liquidity. Vimicro computes its non-GAAP financial measures using the same consistent method from quarter to quarter. The accompanying tables have more details on the GAAP financial measures that are most comparable to
non-GAAP financial measures and the related reconciliations between financial measures.
Currency Translation
This announcement contains translations of certain RMB amounts into U.S. dollars. Unless otherwise noted, all translations from RMB to U.S. dollars are
based on the applicable exchange rates quoted by the Bank of China as of September 30, 2010, which was RMB 6.7011 to $1.00.
6
For further information about Vimicro, please contact:
Jack Guo, Acting CFO and Vice President
Phone:
+86-10-6894-8888 ext. 7379
Email: jackguo@vimicro.com
Shelton Group Investor Relations
Leanne K. Sievers, EVP
Phone: 949-224-3874
Email:
lsievers@sheltongroup.com
7
Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures (*)
(Amounts expressed in thousands of U.S. dollars, except per share data, unaudited)
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Three months
ended
September 30,
2010
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Three months
ended
June 30,
2010
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Three months
ended
September 30,
2009
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GAAP
Result
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Adjustment
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Non-GAAP
Results
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GAAP
Result
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Adjustment
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Non-GAAP
Results
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GAAP
Result
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Adjustment
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Non-GAAP
Results
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Loss from operations
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(5,715
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)
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1,067
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(4,648
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)
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(4,326
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)
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949
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(3,377
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)
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(4,963
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)
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1,126
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(3,837
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)
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Loss attributed to Vimicro International Corporation
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(3,770
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)
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1,067
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(2,703
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)
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(2,795
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)
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949
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(1,846
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)
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(3,137
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)
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1,126
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(2,011
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)
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Diluted loss per ADS
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(0.10
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)
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0.03
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(0.07
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)
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(0.08
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)
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0.03
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(0.05
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)
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(0.08
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)
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0.03
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(0.05
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)
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(*)
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The adjustment is to exclude non-cash for share-based compensation for employees and non-employees.
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8
Vimicro International Corporation
Consolidated Statement Of Operations And Comprehensive Income
(Amounts expressed in
thousands of U.S. dollars, except number of share data)
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2010 Q3
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2010 Q2
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2009 Q3
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(unaudited)
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(unaudited)
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(unaudited)
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Net revenue
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26,493
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26,368
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20,500
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Cost of revenue
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(18,284
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)
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(17,314
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)
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(14,692
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)
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Gross profit
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8,209
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9,054
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5,808
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Operating expenses:
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Research and development, net
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(7,823
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)
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(8,250
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)
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(6,322
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)
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Selling and marketing
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(2,336
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)
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(1,969
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)
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(1,323
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)
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General and administrative
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(3,765
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)
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(3,161
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)
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(3,126
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)
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Total operating expenses
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(13,924
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)
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(13,380
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)
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(10,771
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)
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Loss from operations
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(5,715
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)
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(4,326
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)
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(4,963
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)
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Other income:
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Interest income
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263
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292
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|
377
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Foreign exchange gain, net
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356
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|
54
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|
16
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Others, net
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7
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|
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|
199
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|
|
307
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|
|
|
|
|
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Loss before income taxes
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|
(5,089
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)
|
|
|
(3,781
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)
|
|
|
(4,263
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)
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Income taxes expense
|
|
|
(245
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)
|
|
|
(518
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)
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|
0
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|
|
|
|
|
|
|
|
|
|
|
|
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Net loss before share of gain of an unconsolidated affiliate
|
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(5,334
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)
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|
|
(4,299
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)
|
|
|
(4,263
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)
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Equity in profit of an unconsolidated affiliate, net of tax
|
|
|
0
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|
|
|
0
|
|
|
|
3
|
|
Net loss
|
|
|
(5,334
|
)
|
|
|
(4,299
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)
|
|
|
(4,260
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)
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Less: loss attributable to non-controlling interest
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(1,564
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)
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|
|
(1,504
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)
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|
|
(1,123
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)
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|
|
|
|
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|
Loss attributed to Vimicro International Corporation
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|
|
(3,770
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)
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|
|
(2,795
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)
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|
(3,137
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)
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|
|
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Other comprehensive income:
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Foreign currency translation adjustment
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1,102
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|
458
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|
84
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Unrealized gain on marketable equity securities
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380
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263
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911
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Other comprehensive income
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1,482
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721
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|
995
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Comprehensive loss
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(3,852
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)
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(3,578
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)
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(3,265
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)
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Less: comprehensive loss attributable to non-controlling interest
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|
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(1,107
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)
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|
|
(1,319
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)
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|
(1,126
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)
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|
|
|
|
|
|
|
|
|
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|
|
Comprehensive loss attributable to Vimicro International Corporation
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|
|
(2,745
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)
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|
|
(2,259
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)
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|
|
(2,139
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)
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|
|
|
|
|
|
|
|
|
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Loss per share
|
|
|
|
|
|
|
|
|
|
|
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|
Basic
|
|
|
(0.03
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)
|
|
|
(0.02
|
)
|
|
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
|
|
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Diluted
|
|
|
(0.03
|
)
|
|
|
(0.02
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)
|
|
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
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|
|
Loss per ADS
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
(0.10
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)
|
|
|
(0.08
|
)
|
|
|
(0.08
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
(0.10
|
)
|
|
|
(0.08
|
)
|
|
|
(0.08
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of ordinary shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
147,937,401
|
|
|
|
147,690,245
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|
|
|
148,483,022
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
147,937,401
|
|
|
|
147,690,245
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|
|
|
148,483,022
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of ADS outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
36,984,350
|
|
|
|
36,922,561
|
|
|
|
37,120,755
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
36,984,350
|
|
|
|
36,922,561
|
|
|
|
37,120,755
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of share-based compensation expenses are included in the following expense captions:
|
|
|
|
|
|
|
|
|
|
|
|
|
R&D
|
|
|
(503
|
)
|
|
|
(422
|
)
|
|
|
(510
|
)
|
S&M
|
|
|
(45
|
)
|
|
|
(50
|
)
|
|
|
(53
|
)
|
G&A
|
|
|
(519
|
)
|
|
|
(477
|
)
|
|
|
(563
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
(1,067
|
)
|
|
|
(949
|
)
|
|
|
(1,126
|
)
|
Note: Certain amounts in prior periods
were reclassified to conform to current period presentation.
9
Vimicro International Corporation
Consolidated Balance Sheets
(Amounts expressed in thousands of U.S. dollars, except number
of share data)
|
|
|
|
|
|
|
|
|
|
|
9/30/2010
|
|
|
12/31/2009
|
|
|
|
(unaudited)
|
|
|
(audited)
|
|
Assets
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
81,214
|
|
|
|
84,510
|
|
Short-term time deposits
|
|
|
12,235
|
|
|
|
43,935
|
|
Restricted cash
|
|
|
1,627
|
|
|
|
132
|
|
Marketable equity securities
|
|
|
1,198
|
|
|
|
543
|
|
Accounts receivable, net of provision for doubtful accounts
|
|
|
15,144
|
|
|
|
9,462
|
|
Notes receivable
|
|
|
478
|
|
|
|
|
|
Inventories
|
|
|
17,586
|
|
|
|
8,804
|
|
Prepayments and other current assets
|
|
|
7,714
|
|
|
|
4,155
|
|
Deferred tax assets
|
|
|
3
|
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
137,199
|
|
|
|
151,544
|
|
|
|
|
Property, equipment and software, net
|
|
|
9,743
|
|
|
|
9,015
|
|
Land use rights
|
|
|
20,512
|
|
|
|
10,905
|
|
Intangible assets, net
|
|
|
3,144
|
|
|
|
3,819
|
|
Goodwill
|
|
|
2,057
|
|
|
|
2,019
|
|
Other assets
|
|
|
979
|
|
|
|
973
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
173,634
|
|
|
|
178,275
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders Equity
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
6,194
|
|
|
|
4,958
|
|
Notes payable
|
|
|
244
|
|
|
|
|
|
Taxes payable
|
|
|
1,529
|
|
|
|
879
|
|
Advances from customers
|
|
|
605
|
|
|
|
649
|
|
Accrued expenses and other current liabilities
|
|
|
6,150
|
|
|
|
5,900
|
|
Deferred government grants
|
|
|
3,908
|
|
|
|
3,844
|
|
Deferred tax liabilities
|
|
|
57
|
|
|
|
0
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
18,687
|
|
|
|
16,230
|
|
Non-Current liabilities:
|
|
|
|
|
|
|
|
|
Deferred tax liabilities
|
|
|
30
|
|
|
|
196
|
|
Product warranty
|
|
|
90
|
|
|
|
25
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
18,807
|
|
|
|
16,451
|
|
|
|
|
Shareholders equity:
|
|
|
|
|
|
|
|
|
Ordinary shares, $0.0001 par value, 500,000,000 shares authorized, 148,024,068 and 147,643,168 shares issued and outstanding as
of September 30, 2010 and December 31, 2009, respectively
|
|
|
15
|
|
|
|
15
|
|
Additional paid-in capital
|
|
|
155,457
|
|
|
|
151,672
|
|
Treasury stock
|
|
|
(2,664
|
)
|
|
|
(2,664
|
)
|
Accumulated other comprehensive income
|
|
|
11,574
|
|
|
|
9,967
|
|
Accumulated deficit
|
|
|
(46,759
|
)
|
|
|
(35,786
|
)
|
Statutory reserve
|
|
|
2,782
|
|
|
|
2,782
|
|
|
|
|
|
|
|
|
|
|
Total shareholders equity attributable to Vimicro International Corporation
|
|
|
120,405
|
|
|
|
125,986
|
|
Noncontrolling interest
|
|
|
34,422
|
|
|
|
35,838
|
|
|
|
|
|
|
|
|
|
|
Total shareholders equity
|
|
|
154,827
|
|
|
|
161,824
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders equity
|
|
|
173,634
|
|
|
|
178,275
|
|
|
|
|
|
|
|
|
|
|
10
(MM) (NASDAQ:VIMC)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024
(MM) (NASDAQ:VIMC)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024