BEIJING, Dec. 23, 2014 /PRNewswire/ -- Vimicro
International Corporation (NASDAQ: VIMC) ("Vimicro" or the
"Company"), a leading video surveillance technology and solution
provider in China, is issuing this
update to keep its shareholders apprised of the current status and
timing of its previously announced projects. The Company also
expects 2014 to be a profitable year primarily driven by on-track
project deliveries and its competitiveness in China's video surveillance market.
Vimicro Electronics Corporation ("Vimicro Tianjin") was
contracted by China Unicom to provide SVAC-compliant video
surveillance system, products and installation services to the
Police Traffic Control Detachment of Ziyang City, Sichuan Province ("Ziyang Project") in
September 2013, for approximately
USD 9 million. Ziyang Project was
already fully completed and received the satisfactory inspection
and acceptance by the customer.
Shanxi Zhongtianxin Science and Technology Co., Ltd.
("Zhongtianxin), a joint venture in which Vimicro holds 51%
interest, entered into a contract with the government of Baoding
City, Hebei Province to provide
SVAC-compliant system, products and installation services for
approximately RMB 250 million
("Baoding Project") in December 2013.
Baoding Project will be completed by December 31, 2014.
Zhongtianxin was contracted to provide SVAC-compliant video
surveillance system, products and installation to the Traffic
Police Detachment of Taiyuan ("Taiyuan Traffic Control") for
RMB 76 million in June 2014. Taiyuan Traffic Control project is on
track according to the project planning. The project is expected to
be completed in 2015.
Zhongtianxin won the competitive bid to provide SVAC-compliant
video surveillance system, products and installation services for
Taiyuan's Phase II Public Security Video Surveillance Information
System ("Taiyuan Phase II") with the estimated contract value of
RMB 220 million, following the
successful implementation of Phase I project in Taiyuan in 2013.
Taiyuan Phase II project is currently being implemented in
accordance with the project plan and is expected to be completed in
the first quarter of 2015.
Zhongtianxin is also on track in implementing newly obtained
projects in Chenzhou City, Hunan
Province and Xiaodianqu District of Taiyuan City,
Shanxi Province, for approximately
RMB 179 million and RMB 58.6 million, respectively. Both of these
contracts are expected to be completed in 2015.
"We are very pleased to announce profitability for the year of
2014, while reporting satisfactory implementation progress on some
of our completed and on-going projects at the end of a successful
year for Vimicro," commented by Peter
Li, CFO of Vimicro. "For the nine month period ended
September 30, 2014, the company
reported revenue growth at 58% compared with the same period of
last year, while our video surveillance business posted a 108%
growth on a year-on-year basis in the same period. In addition to
Vimicro's financial achievement, Vimicro is ranked fourth in the
Top 100 Security and Surveillance Manufacturers released by China
Public Security Magazine recently, after Hikvision, Dahua, and
Huawei."
John Deng, Chairman and CEO of
Vimicro, further commented, "The year of 2014 will mark a milestone
year for the company by turning profitable after several
consecutive years of net loss. We owe our current success in 2014
to our strong focus in our new video surveillance business by
transformation and divesture of non-core businesses over the past
few years. We will continue to deliver solid solutions and project
implementation to our customers' satisfaction, based on our
proprietary video surveillance technology and product suites. We
believe our customer satisfaction, together with our leading edge
on SVAC video surveillance national standard, will ensure our
continued and greater success in China's robust video surveillance industry in
2015 and beyond, to realize long-term value for our
shareholders."
About Vimicro International Corporation
Vimicro International Corporation (NASDAQ: VIMC) is a leading
video surveillance technology and solution provider that designs,
develops and markets a full range of video surveillance products
and solutions to governments, private enterprises, and consumers in
China. Vimicro co-developed SVAC
(Surveillance Video and Audio Coding), the national video
surveillance technological standard, which demonstrates its unique
strengths in proprietary multimedia IC technology, making it a
leader in China's fast-growing
security and surveillance market. Vimicro is headquartered in
Beijing, China and has
subsidiaries and offices throughout China and in Silicon Valley. 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.
Contact:
Vimicro International Corporation
Investor Relations
Phone: +8610-5884-8898
E-mail: ir@vimicro.com
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SOURCE Vimicro International Corporation