BEIJING, Oct. 24 /Xinhua-PRNewswire-FirstCall/ -- Vimicro International Corporation (Nasdaq: VIMC), a leading fabless semiconductor company that designs and develops multimedia semiconductor products and solutions, today announced preliminary financial results for the third quarter of 2008 as well as the approval of a stock repurchase plan by the Company's Board of Directors.
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For the three months ended September 30, 2008 the Company expects net revenue to be approximately $ 24.9 million, which is at the high-end of the Company's previously announced guidance range of $21 million to $25 million. The Company also announced that for the third quarter of 2008 it expects a non-GAAP net income of approximately $0.3 million, or diluted earnings per ADS (each representing four ordinary shares) of approximately $0.01, and a GAAP net loss of approximately $1.1 million, or diluted loss per ADS of approximately $0.03.
Additionally, the Company announced that its Board of Directors has approved a stock repurchase plan by which Vimicro may repurchase up to $25 million of its American Depository Shares (ADSs). The transactions will be made at prices the Company deems to be attractive and may be made in the open market or in privately negotiated transactions as permitted by and in accordance with the applicable law, including Rule 10b-18 under the U.S. Securities Exchange Act of 1934. The plan does not obligate Vimicro to acquire any particular number of ADSs, may be suspended at any time at Vimicro's discretion and is subject to a number of factors including market conditions and applicable legal requirements.
Vimicro plans to report its third quarter 2008 financial results on or about November 5, 2008 following the close of the market. Details regarding the conference call to discuss the Company's third quarter results will be distributed via separate press release.
About Vimicro International Corporation
Vimicro International Corporation is a worldwide leading fabless semiconductor company that designs, develops and markets proprietary embedded multimedia signal processing chips and solutions that enable multimedia applications for mobile phones over 2.5G/3G networks and PCs over broadband Internet. 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: our limited history of achieving net profit; our growth strategies; our future business development, results of operations and financial condition; our ability to develop and sell mobile multimedia processors that meet changing consumer preferences and industry standards; decrease in the demand for our notebook and PC camera multimedia processors and third-party image sensors which we bundle with some of our PC camera multimedia processors; that multimedia opportunities associated with the 3G build out in China will make a significant contribution to our longer-term growth; our ability to increase our penetration of the PC and notebook multimedia markets; our ability to secure sufficient foundry capacity in a timely manner; our ability to maintain existing customers and attract new customers; and the expected growth of the mobile multimedia processor market. Further information regarding these and other risks is included in our 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 October 24, 2008, 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, including non-GAAP net income and non-GAAP diluted net 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 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 our third quarter 2008 financial results when the results are released.
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 rate quoted by the Bank of China as of September 30, 2008, which was RMB 6.8183 to US$1.00.
For further information about Vimicro, please contact:
Investor Contact:
Emilie Deng
Investor Relations Manager
Tel: +86-10-6894-8888 x7143
Email: denglifan@vimicro.com
Shelton Group
Ryan Bright
Tel: +1-972-239-5119 x159
Email: rbright@sheltongroup.com
