BEIJING, Aug. 25 /PRNewswire-Asia/ -- Vimicro International Corporation (Nasdaq: VIMC) ("Vimicro"), a leading multimedia semiconductor and solution provider, today announced financial results for the second quarter ended June 30, 2009.
(Logo: http://www.prnasia.com/sa/200705282028.jpg )
Second Quarter 2009 Financial Results
Net revenue in the second quarter of 2009 was $18.7 million, which was within the company's guidance range of $18 million to $19 million, compared to $23.1 million in the second quarter of 2008. Revenue increased 87 percent from the $10.0 million reported in the first quarter of 2009. The sequential increase in second quarter revenue was driven by an increase in demand for the company's products as supply chain inventory began to normalize and the global economic environment continued to improve.
Second quarter net loss, prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP), was $8.2 million, or $0.24 diluted loss per ADS (each representing four ordinary shares). GAAP results included
one-time $5.7 million in share-based compensation expense. The second quarter GAAP loss compares to a net loss of $6.6 million, or a loss of $0.19 per ADS, in the first quarter of 2009 and a net loss of $1.0 million, or a loss of $0.03 per ADS, in the second quarter of 2008.
"Our revenue in the second quarter improved substantially from the first quarter due to increased demand for our PC products, with notebook camera processor sales increasing 123% over the prior quarter," commented Dr. John Deng, Vimicro's Chairman and Chief Executive Officer. "We have seen substantial improvements in our current business categories."
Dr. Deng continued, "Looking forward, we remain focused on gaining more market share in notebook business as well as additional growth opportunities and other strategic initiatives. We will continue our R&D commitments to capture the growth opportunities in the fast growing 3G market and surveillance market in China."
Business Outlook
For the third quarter of 2009, Vimicro expects revenue to range between $18 million and $20 million.
Financial Results Conference Call and Webcast
Vimicro will host a conference call and Webcast today August 24, 2009 at 6:00 p.m. Eastern Time to discuss the Company's second quarter 2009 results. Investors and other interested parties may access the call by dialing
800-901-5247 (or +1-617-786-4501 outside of the U.S.) with the pass code 67425820, at least 10 minutes prior to the start of the call.
In addition, an audio Webcast will be available in the Investor Relations section of the Company's Web site at http://www.vimicro.com . Following the live Webcast, an archived version will be available on the Company's Web site. A telephone replay of the call will also be available approximately two hours after the call and will be available until September 24, 2009 at midnight (ET). The replay number is 888-286-8010 with a pass code of 41307316. International callers should dial +1-617-801-6888 and enter the same pass code at the prompt.
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 PC and 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.
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, 2009, which was RMB 6.8319 to $1.00.
Vimicro International Corporation
Consolidated Balance Sheets
(Amounts expressed in thousands of U.S. dollars, except number of share
data)
06/30/2009 12/31/2008
(unaudited) (audited)
Assets
Current assets:
Cash and cash equivalents 72,043 58,215
Short-term time deposits 62,940 14,885
Restricted cash -- 73,157
Available-for-sale securities 1,548 731
Accounts receivable, net 6,801 7,131
Inventories 9,923 13,430
Prepayments and other current assets 3,113 2,431
Deferred tax assets 2 2
Total current assets 156,370 169,982
Investment in an associate 168 168
Property, equipment and software, net 8,316 8,736
Land use rights 9,384 7,365
Other assets 929 947
Total assets 175,167 187,198
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable 4,095 8,074
Taxes payable 1,214 1,345
Advances from customers 63 56
Accrued expenses and other current
liabilities 3,776 4,870
Total current liabilities 9,148 14,345
Non-current liabilities:
Deferred tax liabilities 31 31
Total liabilities 9,179 14,376
Shareholders' equity:
Ordinary shares, $0.0001 par value,
500,000,000 shares authorized,
148,564,600 and 137,778,145
shares issued and outstanding
as of June 30, 2009 and December
31, 2008, respectively 15 14
Additional paid-in capital 149,591 142,681
Treasury stock (1,650) (1,650)
Accumulated other comprehensive
income 10,472 9,435
Accumulated deficit (32,049) (17,019)
Statutory reserve 2,782 2,782
Total parent shareholders'
equity 129,161 136,243
Noncontrolling interest 36,827 36,579
Total shareholders' equity 165,988 172,822
Total liabilities and
shareholders' equity 175,167 187,198
Vimicro International Corporation
Consolidated Statements of Income
(Amounts expressed in thousands of U.S. dollars, except number of share
data)
2009 Q2 2009 Q1 2008 Q2
(unaudited) (unaudited) (unaudited)
Net revenue 18,717 10,022 23,145
Cost of revenue (13,393) (7,140) (16,425)
Gross profit 5,324 2,882 6,720
Operating expenses*
Research and
development, net (7,371) (5,965) (4,840)
Sales and marketing (1,129) (992) (1,108)
General and
administrative (6,019) (2,856) (2,777)
Total operating
expenses (14,519) (9,813) (8,725)
Loss from
operations (9,195) (6,931) (2,005)
Other income/(expense):
Interest income 387 352 609
Foreign exchange gain, net 2 9 333
Gain on disposal of
available-for-sale
securities 512 -- --
Others, net 53 (17) 14
Loss before income taxes (8,241) (6,587) (1,049)
Income taxes expense -- -- --
Net loss (8,241) (6,587) (1,049)
Less: Noncontrolling
Interest 135 67 --
Loss attributed to
ordinary shareholders (8,376) (6,654) (1,049)
Other comprehensive
income/(loss):
Foreign currency
translation
adjustment 73 (35) 1,484
Unrealized gain on
available-for-sale
securities 315 730 --
Other comprehensive income
before noncontrolling
interest: 388 695 1,484
Less: Noncontrolling
Interest in other
comprehensive income 53 (7) --
Other comprehensive income
after noncontrolling
interest: 335 702 1,484
Comprehensive (loss)/
income (8,041) (5,952) 435
Loss per share
-Basic (0.06) (0.05) (0.01)
-Diluted (0.06) (0.05) (0.01)
Loss per ADS
-Basic (0.24) (0.19) (0.03)
-Diluted (0.24) (0.19) (0.03)
Weighted average number
of ordinary shares
outstanding
-Basic 138,706,574 137,772,235 140,660,796
-Diluted 138,706,574 137,772,235 140,660,796
Weighted average number
of ADS outstanding
-Basic 34,676,643 34,443,059 35,165,199
-Diluted 34,676,643 34,443,059 35,165,199
*Components of share-
based compensation
expenses are included
in the following expense
captions:
Research and development (1,634) (538) (603)
Sales and marketing (70) (86) (208)
General and
administrative (3,963) (613) (501)
