BEIJING, July 29, 2011 /PRNewswire-Asia-FirstCall/ --
Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro"), a
leading multimedia semiconductor and surveillance solution
provider, today announced financial results for the first quarter
of 2011 ended March 31, 2011.
The Company also announced that it will release its
second-quarter 2011 financial results on Monday, August 8, after the market close and will
hold a conference call to discuss the results at 5:00 p.m. EDT.
(Logo: http://photos.prnewswire.com/prnh/20070528/CNM014LOGO
)
First-Quarter 2011 Results
Net revenue in the first quarter of 2011 was $13.0 million, compared to $18.9 million in the first quarter of 2010 and
$24.4 million in the fourth quarter
of 2010. (Figures from prior periods have been restated to
account for discontinued operations following the divestiture of
non-core IC businesses in December
2010.) The 30.9% year-over-year revenue decrease was
due to a product transition to a higher-performance, lower-cost
chip in our PC/notebook business, a decline in mobile multimedia
processor demand from specific carriers, and a combination of
seasonal factors, including the Chinese New
Year holiday, offset by a significant increase in
surveillance revenue. In the mobile multimedia processor
business, we experienced a sharp sequential and year-over-year
revenue decline, which was mainly due to lower orders received from
our carrier customers and technology trends favoring the
integration of multimedia functions into the baseband processor,
rather than using a separate multimedia-processor chip.
Cost of revenue in the first quarter was $8.9 million, compared with $12.4 million in the first quarter of 2010.
The gross margin in the first quarter was 31.7%, compared
with 34.2% in the year-ago quarter, the decrease owing to
differences in product mix.
Operating expenses in the first quarter of 2011 were
$13.4 million, as compared to
$11.8 million in the first quarter of
2010. Operating expenses increased year-over-year due to
higher levels of investment in the surveillance business.
The non-GAAP net loss attributable to Vimicro International
Corporation, excluding $0.9 million
in share-based compensation, was $5.0
million, or approximately $0.14 per ADS, compared to a loss of $4.0 million, or $0.07 per ADS from continuing operations in the
year-ago quarter. The GAAP net loss in the first quarter was
$7.9 million, as compared to
$6.4 million a year ago.
As of March 31, 2011, the Company
had cash and cash equivalents of approximately $64.0 million, short-term time deposits of
$12.5 million, and total current
assets of approximately $125.5
million. As of March 31,
2011, Vimicro had working capital of approximately
$100.6 million and no long-term debt
on its balance sheet.
Dr. John Deng, Vimicro's Chairman
and Chief Executive Officer, commented, "In the first quarter of
2011, our revenues declined due to seasonal, product, and customer
issues. We were pleased that surveillance revenues increased
year-over-year, validating our updated strategy and this new
product platform. Despite the lower revenue level, we continued to
make substantial investments in research and development and in our
sales and marketing team in order to ensure the success of our
emerging surveillance business. We believe the first quarter
will represent the revenue low-water mark for the year, and we
expect higher revenues in the second quarter due to stabilization
in our PC and notebook business, combined with higher revenues from
surveillance, which we expect to increase throughout the remainder
of the year."
Business Outlook
In the second quarter of 2011, revenues are expected to be
approximately $14 to $16 million.
The sequential increase in revenues in the second quarter is
expected to be driven by growth in the PC/notebook processor and
the surveillance business.
Second-Quarter Earnings Release and Conference Call
Information
The Company today also announced it plans to release its
second-quarter 2011 results on Monday,
August 8 after the market close. The Company will also
hold a conference call at 5:00 p.m.
EDT on Monday, August 8, 2011,
to discuss results for its second quarter ended June 30, 2011.
To participate in the live conference call, please dial the
following number five to ten minutes prior to the scheduled
conference call time: +1 (800) 599-9816. International callers
should dial +1 (617) 847-8705. When prompted by the operator,
mention conference pass code 65367263.
If you are unable to participate in the call at this time, a
replay will be available for 14 days starting on Monday, August 8, 2011, at 8:00 p.m. EDT. To access the replay, please dial
+1 (888) 286-8010, international callers dial +1 (617)
801-6888, and enter the pass code 27075169.
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. Vimicro's
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 Vimicro's 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 Vimicro's 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 company's ability to develop and sell
new mobile multimedia products; the expected growth of the mobile
multimedia market; the company's ability to increase sales of
notebook camera multimedia processors; the company's ability to
retain existing customers and acquire new customers and respond to
competitive market conditions; the company's 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 company's ability to secure sufficient
foundry capacity in a timely manner; the company's 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 Vimicro's 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.
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, inventory reserves related to divested
assets and discontinued operations. These non-GAAP financial
measures are provided to enhance investors' overall understanding
of the company's 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 Vimicro's liquidity and when planning and forecasting future
periods. These non-GAAP financial measures also facilitate
management's internal comparisons to Vimicro's 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
March 31, 2011, which was
RMB 6.5564 to $1.00.
- Financial tables follow -
Vimicro International
Corporation
|
|
|
|
|
|
|
|
Consolidated Statement Of
Operations And Comprehensive Income
|
|
|
|
|
|
|
|
(Amounts expressed in thousands
of U.S. dollars, except number of share data)
|
|
|
|
|
|
|
|
|
|
2011
Q1
|
|
2010
Q4
|
|
2010
Q1
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
13,029
|
|
24,373
|
|
18,864
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
(8,901)
|
|
(17,307)
|
|
(12,418)
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
4,128
|
|
7,066
|
|
6,446
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
Research and development, net
|
|
(7,198)
|
|
(7,109)
|
|
(7,652)
|
|
Selling and marketing
|
|
(2,290)
|
|
(2,270)
|
|
(1,373)
|
|
General and administrative
|
|
(3,872)
|
|
(3,893)
|
|
(2,761)
|
|
Total operating
expenses
|
|
(13,360)
|
|
(13,272)
|
|
(11,786)
|
|
Loss from operations
|
|
(9,232)
|
|
(6,206)
|
|
(5,340)
|
|
|
|
|
|
|
|
|
|
Other
income/(expense):
|
|
|
|
|
|
|
|
Interest income
|
|
187
|
|
220
|
|
299
|
|
Foreign exchange gain/(loss), net
|
|
274
|
|
259
|
|
(35)
|
|
Gain
on disposal of marketable equity securities
|
|
885
|
|
367
|
|
0
|
|
Others, net
|
|
4
|
|
94
|
|
312
|
|
|
|
|
|
|
|
|
|
Loss before income taxes and
share of gain/(loss) of an unconsolidated affiliate
|
|
(7,882)
|
|
(5,266)
|
|
(4,764)
|
|
|
|
|
|
|
|
|
|
Income taxes
benefit/(expense)
|
|
0
|
|
849
|
|
(172)
|
|
|
|
|
|
|
|
|
|
Net loss before share of
profit/(loss) of an unconsolidated affiliate
|
|
(7,882)
|
|
(4,417)
|
|
(4,936)
|
|
|
|
|
|
|
|
|
|
Net loss from continuing
operations
|
|
(7,882)
|
|
(4,417)
|
|
(4,936)
|
|
|
|
|
|
|
|
|
|
Loss from discontinued
operations, net of income tax
|
|
0
|
|
(3,876)
|
|
(1,500)
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
(7,882)
|
|
(8,293)
|
|
(6,436)
|
|
|
|
|
|
|
|
|
|
Less: loss attributable to
non-controlling interest
|
|
(1,925)
|
|
(2,110)
|
|
(1,285)
|
|
|
|
|
|
|
|
|
|
Loss attributed to Vimicro
International Corporation
|
|
(5,957)
|
|
(6,183)
|
|
(5,151)
|
|
|
|
|
|
|
|
|
|
Other comprehensive
loss/(income):
|
|
|
|
|
|
|
|
Foreign currency translation adjustment
|
|
346
|
|
942
|
|
33
|
|
Unrealized (loss)/gain on marketable equity
securities
|
|
(417)
|
|
257
|
|
13
|
|
|
|
|
|
|
|
|
|
Total comprehensive
loss
|
|
(7,953)
|
|
(7,094)
|
|
(6,390)
|
|
Less:
comprehensive loss attributable to non-controlling
interest
|
|
(1,601)
|
|
(1,720)
|
|
(1,285)
|
|
Comprehensive loss attributable
to Vimicro International Corporation
|
|
(6,352)
|
|
(5,374)
|
|
(5,105)
|
|
|
|
|
|
|
|
|
|
Loss per share - basic and
diluted
|
|
|
|
|
|
|
|
continuing
operations
|
|
(0.04)
|
|
(0.01)
|
|
(0.02)
|
|
discontinued operations
|
|
0.00
|
|
(0.03)
|
|
(0.01)
|
|
Total loss per share- basic and
diluted
|
|
(0.04)
|
|
(0.04)
|
|
(0.03)
|
|
|
|
|
|
|
|
|
|
Loss per ADS Basic and
Diluted
|
|
|
|
|
|
|
|
continuing
operations
|
|
(0.16)
|
|
(0.07)
|
|
(0.10)
|
|
discontinued operations
|
|
0.00
|
|
(0.10)
|
|
(0.04)
|
|
Total loss per ADS- basic and
diluted
|
|
(0.16)
|
|
(0.17)
|
|
(0.14)
|
|
|
|
|
|
|
|
|
|
Weighted average number of
ordinary shares outstanding
|
|
|
|
|
|
|
|
Basic
and Diluted
|
|
146,812,413
|
|
147,977,600
|
|
147,657,701
|
|
|
|
|
|
|
|
|
|
Weighted average number of ADS
outstanding
|
|
|
|
|
|
|
|
Basic
and Diluted
|
|
36,703,103
|
|
36,994,400
|
|
36,914,425
|
|
|
|
|
|
|
|
|
|
Components of share-based
compensation expenses
|
|
|
|
|
|
|
|
are included in
the following expense captions:
|
|
|
|
|
|
|
|
R&D
|
|
(327)
|
|
(461)
|
|
(532)
|
|
S&M
|
|
(24)
|
|
(39)
|
|
(56)
|
|
G&A
|
|
(559)
|
|
(384)
|
|
(575)
|
|
Total
|
|
(910)
|
|
(884)
|
|
(1,163)
|
|
|
|
|
|
|
|
|
Vimicro International
Corporation
|
|
Consolidated Balance
Sheets
|
|
(Amounts expressed in thousands
of U.S. dollars, except number of share data)
|
|
|
|
|
|
|
|
|
|
3/31/2011
|
|
12/31/2010
|
|
|
|
(unaudited)
|
|
(audited)
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
64,049
|
|
69,491
|
|
Short-term time
deposits
|
|
12,505
|
|
12,380
|
|
Restricted cash
|
|
5,269
|
|
4,958
|
|
Marketable equity
securities
|
|
577
|
|
1,436
|
|
Accounts and notes
receivable, net of provision for doubtful accounts of $418 and $394
as of December 31, 2010 and March 31, 2011, respectively
|
|
13,033
|
|
18,647
|
|
Amounts due from related
party
|
|
11,309
|
|
10,465
|
|
Inventories
|
|
14,529
|
|
13,751
|
|
Prepayments and other
current assets, net of provision for doubtful accounts of $18 and
$18 as of December 31, 2010 and March 31, 2011,
respectively
|
|
4,239
|
|
4,191
|
|
Deferred tax
assets
|
|
2
|
|
2
|
|
Total current
assets
|
|
125,512
|
|
135,321
|
|
Investment in an unconsolidated
affiliate
|
|
88
|
|
87
|
|
Property, equipment and
software, net
|
|
11,180
|
|
9,600
|
|
Land use rights
|
|
20,860
|
|
20,703
|
|
Intangible assets,
net
|
|
2,863
|
|
2,929
|
|
Goodwill
|
|
2,103
|
|
2,082
|
|
Other assets
|
|
1,212
|
|
1,203
|
|
Total assets
|
|
163,818
|
|
171,925
|
|
|
|
|
|
|
|
Liabilities and Shareholders'
Equity
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
5,733
|
|
7,378
|
|
Amounts due to related
party
|
|
5,305
|
|
4,848
|
|
Notes payable
|
|
0
|
|
30
|
|
Taxes payable
|
|
902
|
|
1,001
|
|
Advances from
customers
|
|
243
|
|
291
|
|
Accrued expenses and other
current liabilities
|
|
7,742
|
|
7,613
|
|
Deferred government
grant
|
|
5,016
|
|
4,550
|
|
Total current
liabilities
|
|
24,941
|
|
25,711
|
|
Non-Current
liabilities:
|
|
|
|
|
|
Deferred tax
liabilities
|
|
40
|
|
40
|
|
Product
warranty
|
|
178
|
|
142
|
|
Total
liabilities
|
|
25,159
|
|
25,893
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity:
|
|
|
|
|
|
Ordinary shares, $0.0001
par value, 500,000,000 shares authorized,
|
|
|
|
|
|
147,135,996 and
146,800,796 shares issued and outstanding
|
|
|
|
|
|
as of December 31, 2010
and March 31, 2011, respectively
|
|
15
|
|
15
|
|
Additional paid-in
capital
|
|
157,325
|
|
156,415
|
|
Treasury stock
|
|
(4,167)
|
|
(3,836)
|
|
Accumulated other
comprehensive income
|
|
11,989
|
|
12,383
|
|
Accumulated
deficit
|
|
(60,387)
|
|
(54,430)
|
|
Statutory
reserve
|
|
2,782
|
|
2,782
|
|
Total shareholders' equity
attributable to Vimicro International Corporation
|
|
107,557
|
|
113,329
|
|
Non-controlling
interest
|
|
31,102
|
|
32,703
|
|
Total shareholders'
equity
|
|
138,659
|
|
146,032
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
163,818
|
|
171,925
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Three months
ended
|
|
Three months
ended
|
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
|
|
2011
|
|
2010
|
|
2010
|
|
|
|
GAAP
|
|
|
|
Non-GAAP
|
|
GAAP
|
|
|
|
Non-GAAP
|
|
GAAP
|
|
|
|
Non-GAAP
|
|
|
|
Result
|
|
Adjustment
|
|
Results
|
|
Result
|
|
Adjustment
|
|
Results
|
|
Result
|
|
Adjustment
|
|
Results
|
|
|
Loss from
operations
|
(9,232)
|
|
910
|
|
(8,322)
|
|
(6,206)
|
|
884
|
|
(5,322)
|
|
(5,340)
|
|
1,163
|
|
(4,177)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/income attributed to
Vimicro International Corporation
|
(5,957)
|
|
910
|
|
(5,047)
|
|
(6,183)
|
|
884
|
|
(5,299)
|
|
(5,151)
|
|
1,163
|
|
(3,988)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss)/income per
ADS
|
(0.16)
|
|
0.02
|
|
(0.14)
|
|
(0.07)
|
|
0.02
|
|
(0.05)
|
|
(0.10)
|
|
0.03
|
|
(0.07)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) The adjustment is to exclude
non-cash for share-based compensation for employees and
non-employees.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company
Contacts:
Vimicro International
Corporation
Mr. Anan Liu, Investor Relations
Manager
Phone: +86 (10) 6894 8888 ext.
7453
E-mail: liuanan@vimicro.com
Ms. Sandy Song, IR Associate
Manager
Phone: +86 (10) 6894 8888 ext.
7401
E-mail: songzheng@vimicro.com
www.vimicro.com
|
Investor
Contacts:
CCG Investor
Relations
Mr. John Harmon, CFA, Sr.
Account Manager
Phone: +86 (10) 6561-6886 ext.
807 (Beijing)
E-mail: john.harmon@ccgir.com
Mr. Roger Ellis,
Partner
Phone: +1 (310) 954-1332 (Los
Angeles)
E-mail: roger.ellis@ccgir.com
www.ccgir.com
|
|
|
|
|
|
SOURCE Vimicro International Corporation