BEIJING, Dec. 10, 2013 /PRNewswire/ -- Vimicro
International Corporation (NASDAQ: VIMC) ("Vimicro" or the
"Company"), a leading video processing IC and surveillance solution
provider, today announced that its subsidiary Shanxi Zhongtianxin
Science and Technology Co., Ltd. has received an order for a SVAC
(Surveillance Video and Audio Coding)-based technology solution,
valued at nearly USD $41 million, of
which Vimicro will receive approximately $16
million.
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The subsidiary received the order from the Baoding Public
Security Bureau for a city-wide SVAC-based surveillance network
project in Baoding city in Hebei
province. The network is being installed for security,
surveillance, and traffic monitoring. The system will be comprised
of several thousand video surveillance stations, and the project
represents the first phase of a multiyear deployment and includes
equipment and installation. Deployment will commence in the fourth
quarter of 2013.
The project will feature SVAC technology, which is a core
standard for video surveillance in China, co-developed by Vimicro and the
Ministry of Public Security, along with contributions from more
than 40 scientific research institutes, universities, and
security-industry companies. For the past two years, Vimicro
has installed many SVAC test sites across China and recently completed a successful
field-trial of the SVAC standard.
"We are pleased to receive this large SVAC solution order from
Baoding City, which represents our first major deployment in
Hebei province," commented Dr.
John Deng, Vimicro's Chairman and
Chief Executive Officer. "This order marks the continuing
acceptance of SVAC and validation of Vimicro's capabilities as we
expand throughout China."
Update to Business Outlook
In the fourth quarter of 2013, the Company expects revenues of
$3.5 to $4.5 million for its PC and
notebook image processor business line. For the surveillance
products business line, the Company expects to report at least
$9 to $11 million of revenue from
completed projects and expects to report additional revenue from
several new orders with a total value of approximately $20 million currently being executed over the
next couple of quarters. This figure includes the
contributions from the Baoding City contract, the contract in Tekes
County in the Xinjiang Uighur Autonomous Region, and one other
contract.
About Vimicro International Corporation
Vimicro International Corporation is a leading video processing
IC and surveillance 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 PC/notebook, consumer electronics and surveillance
applications. Vimicro has aggressively entered the surveillance
market with system-level solutions and semiconductor products to
capitalize on China's domestic
demand. Vimicro's ADSs each represent four ordinary shares and are
traded on the NASDAQ Global Market exchange 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.
SOURCE Vimicro International Corporation