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
This Form 6-K is being incorporated by reference into the registrants Registration Statement on Form F-3 (File No. 333-166948), filed with the
Securities and Exchange Commission on May 19, 2010.
Third Quarter 2010 Financial Results
Vimicro International Corporation (Vimicro or the Company) reported its financial results for the third quarter ended
September 30, 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 reflected 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. 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. 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.
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.
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 filing.
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 filing
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.
2
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
September 30,
2010
|
|
|
Three months
ended
June 30,
2010
|
|
|
Three months
ended
September 30,
2009
|
|
|
|
GAAP
Result
|
|
|
Adjustment
|
|
|
Non-GAAP
Results
|
|
|
GAAP
Result
|
|
|
Adjustment
|
|
|
Non-GAAP
Results
|
|
|
GAAP
Result
|
|
|
Adjustment
|
|
|
Non-GAAP
Results
|
|
Loss from operations
|
|
|
(5,715
|
)
|
|
|
1,067
|
|
|
|
(4,648
|
)
|
|
|
(4,326
|
)
|
|
|
949
|
|
|
|
(3,377
|
)
|
|
|
(4,963
|
)
|
|
|
1,126
|
|
|
|
(3,837
|
)
|
Loss attributed to Vimicro International Corporation
|
|
|
(3,770
|
)
|
|
|
1,067
|
|
|
|
(2,703
|
)
|
|
|
(2,795
|
)
|
|
|
949
|
|
|
|
(1,846
|
)
|
|
|
(3,137
|
)
|
|
|
1,126
|
|
|
|
(2,011
|
)
|
Diluted loss per ADS
|
|
|
(0.10
|
)
|
|
|
0.03
|
|
|
|
(0.07
|
)
|
|
|
(0.08
|
)
|
|
|
0.03
|
|
|
|
(0.05
|
)
|
|
|
(0.08
|
)
|
|
|
0.03
|
|
|
|
(0.05
|
)
|
(*)
|
The adjustment is to exclude non-cash for share-based compensation for employees and non-employees.
|
3
Vimicro International Corporation
Consolidated Statement Of Operations And Comprehensive Income
(Amounts expressed in
thousands of U.S. dollars, except number of share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010 Q3
|
|
|
2010 Q2
|
|
|
2009 Q3
|
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
Net revenue
|
|
|
26,493
|
|
|
|
26,368
|
|
|
|
20,500
|
|
Cost of revenue
|
|
|
(18,284
|
)
|
|
|
(17,314
|
)
|
|
|
(14,692
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
8,209
|
|
|
|
9,054
|
|
|
|
5,808
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development, net
|
|
|
(7,823
|
)
|
|
|
(8,250
|
)
|
|
|
(6,322
|
)
|
Selling and marketing
|
|
|
(2,336
|
)
|
|
|
(1,969
|
)
|
|
|
(1,323
|
)
|
General and administrative
|
|
|
(3,765
|
)
|
|
|
(3,161
|
)
|
|
|
(3,126
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
(13,924
|
)
|
|
|
(13,380
|
)
|
|
|
(10,771
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations
|
|
|
(5,715
|
)
|
|
|
(4,326
|
)
|
|
|
(4,963
|
)
|
|
|
|
|
Other income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
263
|
|
|
|
292
|
|
|
|
377
|
|
Foreign exchange gain, net
|
|
|
356
|
|
|
|
54
|
|
|
|
16
|
|
Others, net
|
|
|
7
|
|
|
|
199
|
|
|
|
307
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes
|
|
|
(5,089
|
)
|
|
|
(3,781
|
)
|
|
|
(4,263
|
)
|
Income taxes expense
|
|
|
(245
|
)
|
|
|
(518
|
)
|
|
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss before share of gain of an unconsolidated affiliate
|
|
|
(5,334
|
)
|
|
|
(4,299
|
)
|
|
|
(4,263
|
)
|
Equity in profit of an unconsolidated affiliate, net of tax
|
|
|
0
|
|
|
|
0
|
|
|
|
3
|
|
Net loss
|
|
|
(5,334
|
)
|
|
|
(4,299
|
)
|
|
|
(4,260
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: loss attributable to non-controlling interest
|
|
|
(1,564
|
)
|
|
|
(1,504
|
)
|
|
|
(1,123
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss attributed to Vimicro International Corporation
|
|
|
(3,770
|
)
|
|
|
(2,795
|
)
|
|
|
(3,137
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment
|
|
|
1,102
|
|
|
|
458
|
|
|
|
84
|
|
Unrealized gain on marketable equity securities
|
|
|
380
|
|
|
|
263
|
|
|
|
911
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income
|
|
|
1,482
|
|
|
|
721
|
|
|
|
995
|
|
|
|
|
|
Comprehensive loss
|
|
|
(3,852
|
)
|
|
|
(3,578
|
)
|
|
|
(3,265
|
)
|
Less: comprehensive loss attributable to non-controlling interest
|
|
|
(1,107
|
)
|
|
|
(1,319
|
)
|
|
|
(1,126
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive loss attributable to Vimicro International Corporation
|
|
|
(2,745
|
)
|
|
|
(2,259
|
)
|
|
|
(2,139
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
(0.03
|
)
|
|
|
(0.02
|
)
|
|
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
(0.03
|
)
|
|
|
(0.02
|
)
|
|
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per ADS
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
(0.10
|
)
|
|
|
(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
|
|
|
|
148,483,022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
147,937,401
|
|
|
|
147,690,245
|
|
|
|
148,483,022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
4
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
|
|
|
|
|
|
|
|
|
|
|
5
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.
|
|
|
VIMICRO INTERNATIONAL CORPORATION
|
|
|
By:
|
|
/
S
/ J
OHN
Z
HONGHAN
D
ENG
|
Name:
|
|
John Zhonghan Deng
|
Title:
|
|
Chairman and Chief Executive Officer
|
Date: November 30, 2010
6
(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