BEIJING, Aug. 8, 2011 /PRNewswire-Asia-FirstCall/ --
Vimicro International Corporation (NASDAQ: VIMC)
("Vimicro"), a leading multimedia semiconductor and IP-based
surveillance solution provider, today announced financial results
for the second quarter ended June 30,
2011.
(Logo: http://photos.prnewswire.com/prnh/20070528/CNM014LOGO
)
Second-Quarter 2011 Results
Net revenue in the second quarter of 2011 was $15.2 million, up 16.5% from $13.0 million in the first quarter of 2011 and
down 37.7% from $24.3 million in the
second quarter of 2010. (Figures from 2010 have been restated to
account for discontinued operations following the divestiture of
non-core IC businesses in December
2010.) The sequential increase was mainly due to the growth
in PC/notebook video processor business and the IP-based
surveillance business. The year-over-year decrease was due to a
product transition to a higher-performance, lower-cost chip in our
PC/notebook business and a sharp decline in mobile multimedia
processor sales, offset by a significant increase in IP-based
surveillance revenue.
Cost of revenue in the second quarter was $10.1 million, compared with $16.2 million in the second quarter of 2010. The
gross margin in the second quarter was 33.2%, up 1.6 percentage
points from 31.7% in the first quarter. The sequential increase in
gross margin was due to higher margins for PC/notebook and IP-based
surveillance products.
Operating expenses in the second quarter of 2011 were
$14.8 million, as compared to
$12.4 million in the second quarter
of 2010. Operating expenses increased year-over-year primarily due
to higher levels of investment to develop multiple IP-based
surveillance products, including platforms, network, storage,
cameras and chipsets.
The non-GAAP net loss attributable to Vimicro International
Corporation, excluding $0.7 million
in share-based compensation, was $5.6
million, or approximately $0.15 per ADS, compared to a loss of $2.6 million, or $0.05 per ADS from continuing operations in the
year-ago quarter. The GAAP net loss attributable to Vimicro
International Corporation in the second quarter was $6.3 million, as compared to a net loss of
$3.5 million a year ago.
As of June 30, 2011, the Company
had cash and cash equivalents of approximately $57.0 million, short-term time deposits of
$12.7 million, and total current
assets of approximately $112.0
million. As of June 30, 2011,
Vimicro had working capital of approximately $91.5 million and no long-term debt on its
balance sheet.
Dr. John Deng, Vimicro's Chairman
and Chief Executive Officer, commented, "We are encouraged by the
sequential revenue growth in the second quarter, particularly for
our emerging IP-based surveillance business, which had a record
quarter. With the inventory correction in the PC/notebook largely
behind us, we look forward to more normalized revenues for that
business, and we expect IP-based surveillance revenues to continue
to ramp throughout the remainder of the year. We are evaluating
options for the future of our mobile business, due to lower order
levels 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."
Business Outlook
In the third quarter of 2011, revenues are expected to be
approximately $18 to $20 million.
Financial Results Conference Call and Webcast
The Company will host 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 IP-based surveillance
market with system-level solutions and semiconductor products.
Vimicro's ADSs, each of which represents four ordinary shares,
trade 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
June 30, 2011, which was RMB 6.4716 to $1.00.
|
|
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
|
|
|
|
|
|
- Financial Tables Follow -
Vimicro
International Corporation
|
|
Consolidated
Balance Sheets
|
|
(Amounts
expressed in thousands of U.S. dollars, except number of share
data)
|
|
|
|
|
|
|
|
|
|
6/30/2011
|
|
12/31/2010
|
|
|
|
(unaudited)
|
|
(audited)
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
57,006
|
|
69,491
|
|
Short-term time
deposits
|
|
12,669
|
|
12,380
|
|
Restricted
cash
|
|
4,565
|
|
4,958
|
|
Marketable equity
securities
|
|
0
|
|
1,436
|
|
Accounts and notes
receivable, net of
provision for doubtful
accounts of
$418 and $394 as
of December 31, 2010
and June 30, 2011,
respectively
|
|
11,639
|
|
18,647
|
|
Amounts due from
related party
|
|
3,203
|
|
10,465
|
|
Inventories
|
|
17,306
|
|
13,751
|
|
Prepayments and
other current assets, net of
provision for doubtful
accounts
of $18 and $18 as
of December 31, 2010 and
June 30, 2011,
respectively
|
|
5,601
|
|
4,191
|
|
Deferred tax
assets
|
|
2
|
|
2
|
|
Total current assets
|
|
111,991
|
|
135,321
|
|
Investment in an unconsolidated
affiliate
|
|
89
|
|
87
|
|
Property, equipment and
software, net
|
|
13,384
|
|
9,600
|
|
Land use rights
|
|
21,071
|
|
20,703
|
|
Intangible assets,
net
|
|
2,804
|
|
2,929
|
|
Goodwill
|
|
2,131
|
|
2,082
|
|
Other assets
|
|
1,225
|
|
1,203
|
|
Total assets
|
|
152,695
|
|
171,925
|
|
|
|
|
|
|
|
Liabilities and Shareholders'
Equity
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
6,557
|
|
7,378
|
|
Amounts due to
related party
|
|
732
|
|
4,848
|
|
Notes
payable
|
|
0
|
|
30
|
|
Taxes
payable
|
|
814
|
|
1,001
|
|
Advances from
customers
|
|
542
|
|
291
|
|
Accrued expenses
and other current liabilities
|
|
6,808
|
|
7,613
|
|
Deferred
government grant
|
|
5,082
|
|
4,550
|
|
Total current liabilities
|
|
20,535
|
|
25,711
|
|
Non-Current
liabilities:
|
|
|
|
|
|
Deferred tax
liabilities
|
|
40
|
|
40
|
|
Product
warranty
|
|
229
|
|
142
|
|
Total liabilities
|
|
20,804
|
|
25,893
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity:
|
|
|
|
|
|
Ordinary
shares,$0.0001 par value, 500,000,000 shares authorized,
|
|
|
|
|
|
147,135,996 and 146,841,296 shares issued and
outstanding
|
|
|
|
|
|
as of December 31, 2010 and June 30, 2011,
respectively
|
|
15
|
|
15
|
|
Additional paid-in
capital
|
|
158,067
|
|
156,415
|
|
Treasury
stock
|
|
(4,167)
|
|
(3,836)
|
|
Accumulated other
comprehensive income
|
|
11,905
|
|
12,383
|
|
Accumulated
deficit
|
|
(66,688)
|
|
(54,430)
|
|
Statutory
reserve
|
|
2,782
|
|
2,782
|
|
Total shareholders' equity
attributable to Vimicro International Corporation
|
|
101,914
|
|
113,329
|
|
Non-controlling
interest
|
|
29,977
|
|
32,703
|
|
Total shareholders'
equity
|
|
131,891
|
|
146,032
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
152,695
|
|
171,925
|
|
|
|
|
|
|
|
|
|
|
|
|
Vimicro
International Corporation
|
|
Consolidated
Statement Of Operations And Comprehensive Income
|
|
(Amounts
expressed in thousands of U.S. dollars, except number of share
data)
|
|
|
|
2011
Q2
|
|
2011
Q1
|
|
2010
Q2
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
15,175
|
|
13,029
|
|
24,341
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
(10,130)
|
|
(8,901)
|
|
(16,154)
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
5,045
|
|
4,128
|
|
8,187
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
Research and development, net
|
|
(7,943)
|
|
(7,198)
|
|
(7,858)
|
|
Selling and marketing
|
|
(3,243)
|
|
(2,290)
|
|
(1,822)
|
|
General and administrative
|
|
(3,636)
|
|
(3,872)
|
|
(2,765)
|
|
Total operating
expenses
|
|
(14,822)
|
|
(13,360)
|
|
(12,445)
|
|
Loss from operations
|
|
(9,777)
|
|
(9,232)
|
|
(4,258)
|
|
|
|
|
|
|
|
|
|
Other
income/(expense):
|
|
|
|
|
|
|
|
Interest income
|
|
165
|
|
187
|
|
289
|
|
Foreign exchange gain, net
|
|
448
|
|
274
|
|
54
|
|
Gain
on disposal of marketable equity securities
|
|
633
|
|
885
|
|
0
|
|
Others, net
|
|
14
|
|
4
|
|
52
|
|
|
|
|
|
|
|
|
|
Loss before income taxes and
share of gain/(loss) of an unconsolidated affiliate
|
|
(8,517)
|
|
(7,882)
|
|
(3,863)
|
|
|
|
|
|
|
|
|
|
Income taxes
benefit/(expense)
|
|
(53)
|
|
0
|
|
(518)
|
|
|
|
|
|
|
|
|
|
Net loss before share of
profit/(loss) of an unconsolidated affiliate
|
|
(8,570)
|
|
(7,882)
|
|
(4,381)
|
|
|
|
|
|
|
|
|
|
Net loss from continuing
operations
|
|
(8,570)
|
|
(7,882)
|
|
(4,381)
|
|
|
|
|
|
|
|
|
|
Loss from discontinued
operations, net of income tax
|
|
0
|
|
0
|
|
(663)
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
(8,570)
|
|
(7,882)
|
|
(5,044)
|
|
|
|
|
|
|
|
|
|
Less: loss attributable to
non-controlling interest
|
|
(2,268)
|
|
(1,925)
|
|
(1,504)
|
|
|
|
|
|
|
|
|
|
Loss attributed to Vimicro
International Corporation
|
|
(6,302)
|
|
(5,957)
|
|
(3,540)
|
|
|
|
|
|
|
|
|
|
Other comprehensive
loss/(income):
|
|
|
|
|
|
|
|
Foreign currency translation adjustment
|
|
867
|
|
346
|
|
459
|
|
Unrealized (loss)/gain on marketable equity
securities
|
|
(549)
|
|
(417)
|
|
263
|
|
|
|
|
|
|
|
|
|
Total comprehensive
loss
|
|
(8,252)
|
|
(7,953)
|
|
(4,322)
|
|
Less:
comprehensive loss attributable to non-controlling
interest
|
|
(1,866)
|
|
(1,601)
|
|
(1,319)
|
|
Comprehensive loss attributable
to Vimicro International Corporation
|
|
(6,386)
|
|
(6,352)
|
|
(3,003)
|
|
|
|
|
|
|
|
|
|
Loss per share - basic and
diluted
|
|
|
|
|
|
|
|
continuing
operations
|
|
(0.04)
|
|
(0.04)
|
|
(0.02)
|
|
discontinued operations
|
|
0.00
|
|
0.00
|
|
(0.00)
|
|
Total loss per share- basic and
diluted
|
|
(0.04)
|
|
(0.04)
|
|
(0.02)
|
|
|
|
|
|
|
|
|
|
Loss per ADS Basic and
Diluted
|
|
|
|
|
|
|
|
continuing
operations
|
|
(0.17)
|
|
(0.16)
|
|
(0.08)
|
|
discontinued operations
|
|
0.00
|
|
0.00
|
|
(0.02)
|
|
Total loss per ADS- basic and
diluted
|
|
(0.17)
|
|
(0.16)
|
|
(0.10)
|
|
|
|
|
|
|
|
|
|
Weighted average number of
ordinary shares outstanding
|
|
|
|
|
|
|
|
Basic
and Diluted
|
|
146,820,790
|
|
146,812,413
|
|
147,690,245
|
|
|
|
|
|
|
|
|
|
Weighted average number of ADS
outstanding
|
|
|
|
|
|
|
|
Basic
and Diluted
|
|
36,705,198
|
|
36,703,103
|
|
36,922,561
|
|
|
|
|
|
|
|
|
|
Components of share-based
compensation expenses
|
|
|
|
|
|
|
|
are included in
the following expense captions:
|
|
|
|
|
|
|
|
R&D
|
|
(197)
|
|
(327)
|
|
(422)
|
|
S&M
|
|
(27)
|
|
(24)
|
|
(50)
|
|
G&A
|
|
(474)
|
|
(559)
|
|
(477)
|
|
Total
|
|
(698)
|
|
(910)
|
|
(949)
|
|
|
|
|
|
|
|
|
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
|
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
|
2011
|
|
2011
|
|
2010
|
|
|
GAAP
|
|
|
|
Non-GAAP
|
|
GAAP
|
|
|
|
Non-GAAP
|
|
GAAP
|
|
|
|
Non-GAAP
|
|
|
Result
|
|
Adjustment
|
|
Results
|
|
Result
|
|
Adjustment
|
|
Results
|
|
Result
|
|
Adjustment
|
|
Results
|
|
Loss from
operations
|
(9,777)
|
|
698
|
|
(9,079)
|
|
(9,232)
|
|
910
|
|
(8,322)
|
|
(4,258)
|
|
949
|
|
(3,309)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/income attributed to
Vimicro International Corporation
|
(6,302)
|
|
698
|
|
(5,604)
|
|
(5,957)
|
|
910
|
|
(5,047)
|
|
(3,540)
|
|
949
|
|
(2,591)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss)/income per
ADS
|
(0.17)
|
|
0.02
|
|
(0.15)
|
|
(0.16)
|
|
0.02
|
|
(0.14)
|
|
(0.08)
|
|
0.03
|
|
(0.05)
|
|
(*) The adjustment is to exclude
non-cash for share-based compensation for employees and
non-employees.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Vimicro International Corporation