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Vimicro Reports Fourth Quarter 2009 and Fiscal Year 2009 Financial Results
May 12, 2010 (04:05 PM EDT)
BEIJING, May 12 /PRNewswire-Asia-FirstCall/ -- Vimicro International Corporation (Nasdaq: VIMC) ("Vimicro"), a leading multimedia semiconductor and solution provider, today announced financial results for the fourth quarter and year ended December 31, 2009.
Fourth Quarter 2009
Net revenue in the fourth quarter of 2009 was $23.7 million as compared to $20.5 million reported in the third quarter of 2009 and $22.2 million in the fourth quarter of 2008. The 16 percent sequential increase in revenue was due to continued increases in demand for the Company's multimedia processors as well as increased traction from its new products in the surveillance and mobile phone markets. The Company also benefited from improved product purchasing trends globally and in the domestic Chinese market.
Fourth quarter 2009 net loss, prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP), was $1.6 million, or $0.02 loss per ADS (each representing four ordinary shares), which included $0.9 million in share-based compensation expense. The fourth quarter 2009 GAAP loss compares to a net loss of $4.3 million, or a loss of $0.08 per ADS, in the third quarter of 2009 and a net loss of $8.3 million, or a loss of $0.24 per ADS, in the fourth quarter of 2008.
"Fourth quarter revenue continued to improve representing the third consecutive quarter of growth since the first quarter 2009 low point in the economic cycle," commented Dr. John Deng, Vimicro's Chairman and Chief Executive Officer. "In addition to strong sales of our notebook camera products during the quarter, Vimicro continued to make significant progress towards leveraging our core technology expertise to further penetrate the growing markets of 3G mobile, home & entertainment and surveillance. Our investments and alliances in 3G multimedia and mobile TV are beginning to reflect in our results as shipments have started to ramp. Additionally, our SVAC surveillance standard is now in the final review process with the Chinese government, which provides a strong competitive advantage for Vimicro as a standards leader in the rapidly growing surveillance market."
Fiscal Year 2009
For the fiscal year ended December 31, 2009, net revenue was $73.0 million as compared to $86.5 million for the fiscal year ended December 31, 2008. The decline in annual revenue was due in part to the global economic conditions in early 2009, which impacted pricing and volume of mobile multimedia and other products. This decline was partially offset by an increase in sales of notebook camera processors as well as revenue generated from sales of security and surveillance products. Fiscal year 2009 net loss, prepared in accordance with U.S. GAAP, was $20.7 million, which included $9.0 million in share-based compensation expense, compared with a net loss of $13.6 million in fiscal year 2008, which included $6.3 million in share-based compensation expense. Diluted loss per ADS for fiscal year 2009 was $0.52, compared to a diluted loss per ADS of $0.39 in fiscal year 2008.
Dr. Deng continued, "Although 2009 was a challenging year, we established a solid foundation through business acquisitions, product development and other new initiatives in order to set the stage for top-line improvement in 2010. Our strategic investments combined with our continued efforts towards product innovation and our leadership in multimedia technologies is expected to accelerate revenue growth in 2010 and beyond."
Vimicro has received strong orders of its notebook cameras and mobile multimedia processors in the first quarter of this year. For the first quarter of 2010, the Company is providing preliminary revenue estimates and expects revenue to be between $19 and $20 million, representing approximately 100% growth over the $10.0 million reported in the first quarter of 2009. In first quarter of 2008 and 2007, Vimicro reported revenue of $16.2 million and $16.9 million respectively. The first quarter is typically a seasonally slower period primarily due to the Chinese New Year holiday and consumer purchasing trends.
Financial Results Conference Call and Webcast
Vimicro will host a conference call and Webcast tomorrow, May 13, 2010 at 6:00 p.m. Eastern Time to discuss the Company's recent results. Investors and other interested parties may access the call by dialing 800-659-1942 (or +1-617-614-2710 outside of the U.S.) with the pass code 43304821, 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 May 25, 2010 at midnight (ET). The replay number is 888-286-8010 with a pass code of 37628807. 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."
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.
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 December 31, 2009, which was RMB 6.8282 to $1.00.
For further information about Vimicro, please contact: Investor Contacts: Eddie Fan, Senior Investment Manager Phone: +86-10-6894-8888 ext. 7299 Email: firstname.lastname@example.org Shelton Group Investor Relations Leanne K. Sievers, EVP Phone: +1-949-224-3874 Email: email@example.com Vimicro International Corporation Consolidated Balance Sheets (Amounts expressed in thousands of U.S. dollars, except number of share data) 12/31/2009 9/30/2009 12/31/2008 (unaudited) (unaudited) (audited) Assets Current assets: Cash and cash equivalents 84,510 85,816 58,215 Short-term time deposits 43,935 43,930 14,885 Restricted cash 132 -- 73,157 Marketable equity securities 543 2,500 731 Accounts receivable, net of provision for doubtful accounts 9,462 8,195 7,131 Inventories 8,804 9,644 13,430 Prepayments and other current assets 4,155 2,595 2,431 Deferred tax assets 3 2 2 Total current assets 151,544 152,682 169,982 Investment in unconsolidated affiliate -- -- 168 Property, equipment and software, net 9,015 10,303 8,736 land use rights 10,905 9,431 7,365 Intangible assets, net 3,819 4,952 -- Goodwill 2,019 -- -- Other assets 973 2,018 947 Total assets 178,275 179,386 187,198 Liabilities and Shareholders' Equity Current liabilities: Accounts payable 4,958 4,558 8,074 Taxes payable 879 1,711 1,345 Advances from customers 649 309 56 Accrued expenses and other current liabilities 5,900 4,198 4,870 Deferred government grants 3,844 4,392 -- Total current liabilities 16,230 15,168 14,345 Non-Current liabilities: Deferred tax liabilities 196 31 31 Product warranty 25 -- -- Total liabilities 16,451 15,199 14,376 Commitments and contingencies Shareholders' equity: Ordinary shares,$0.0001 par value, 500,000,000 shares authorized, 137,778,145 and 147,643,168 shares issued and outstanding as of December 31, 2008 and 2009, respectively 15 15 14 Additional paid-in capital 151,672 150,716 142,681 Treasury stock (2,664) (2,438) (1,650) Accumulated other comprehensive income 9,967 11,470 9,435 Accumulated deficit (35,786) (35,186) (17,019) Statutory reserve 2,782 2,782 2,782 Total shareholders equity attributable to Vimicro International Corporation 125,986 127,359 136,243 Noncontrolling interest 35,838 36,828 36,579 Total shareholders' equity 161,824 164,187 172,822 Total liabilities and shareholders' equity 178,275 179,386 187,198 Vimicro International Corporation Consolidated Statement Of Operations And Comprehensive Income (Amounts expressed in thousands of U.S. dollars, except number of share data) 2009 Q4 2009 Q3 2008 Q4 (unaudited) (unaudited) (unaudited) Net revenue 23,732 20,500 22,176 Cost of revenue (16,673) (14,692) (17,521) Gross profit 7,059 5,808 4,655 Operating expenses: Research and development, net (6,706) (6,322) (8,238) Selling and marketing (1,867) (1,323) (1,539) General and administrative (2,838) (3,126) (3,569) Total operating expenses (11,411) (10,771) (13,346) Loss from operations (4,352) (4,963) (8,691) Other income/(expense): Interest income 321 377 397 Foreign exchange (loss)/gain, net (34) 16 39 Gain on disposal of available-for- sale securities 1,949 -- -- Others, net 614 307 252 Loss before income taxes and share of gain/(loss) of an unconsolidated affiliate (1,502) (4,263) (8,003) Income taxes expense (91) -- (305) Net loss before share of gain/(loss) of an unconsolidated affiliate (1,593) (4,263) (8,308) Equity in profit/(loss) of an unconsolidated affiliate, net of tax -- 3 -- Net loss (1,593) (4,260) (8,308) Less: loss attributable to non- controlling interest (993) (1,123) -- Loss attributed to Vimicro International Corporation (600) (3,137) (8,308) Other comprehensive loss/(income): Foreign currency translation adjustment (29) 84 (161) Unrealized (loss)/gain on marketable equity securities (1,472) 911 (29) Other comprehensive loss/(income) (1,501) 995 (190) Total comprehensive loss (3,094) (3,265) (8,498) Less: comprehensive loss attributable to non-controlling interest (990) (1,126) -- Comprehensive loss attributable to Vimicro International Corporation (2,104) (2,139) (8,498) Loss per share Basic (0.00) (0.02) (0.06) Diluted (0.00) (0.02) (0.06) Loss per ADS Basic (0.02) (0.08) (0.24) Diluted (0.02) (0.08) (0.24) Weighted average number of ordinary shares outstanding Basic 147,518,482 148,483,022 139,193,972 Diluted 147,518,482 148,483,022 139,193,972 Weighted average number of ADS outstanding Basic 36,879,621 37,120,755 34,798,493 Diluted 36,879,621 37,120,755 34,798,493 Components of share-based compensation expenses are included in the following expense captions: R&D (437) (510) (743) S&M (52) (53) (176) G&A (437) (563) (901) Total (926) (1,126) (1,820) FY2009 FY2008 (unaudited) (audited) Net revenue 72,971 86,497 Cost of revenue (51,898) (61,814) Gross profit 21,073 24,683 Operating expenses: Research and development, net (26,364) (24,585) Selling and marketing (5,311) (5,049) General and administrative (14,839) (12,285) Total operating expenses (46,514) (41,919) Loss from operations (25,441) (17,236) Other income/(expense): Interest income 1,437 2,371 Foreign exchange (loss)/gain, net (7) 1,144 Gain on disposal of available-for- sale securities 2,461 -- Others, net 957 387 Loss before income taxes and share of gain/(loss) of an unconsolidated affiliate (20,593) (13,334) Income taxes expense (91) (305) Net loss before share of gain/(loss) of an unconsolidated affiliate (20,684) (13,639) Equity in profit/(loss) of an unconsolidated affiliate, net of tax 3 (1) Net loss (20,681) (13,640) Less: loss attributable to non- controlling interest (1,914) -- Loss attributed to Vimicro International Corporation (18,767) (13,640) Other comprehensive loss/(income): Foreign currency translation adjustment 93 4,097 Unrealized (loss)/gain on marketable equity securities 484 (29) Other comprehensive loss/(income) 577 4,068 Total comprehensive loss (20,104) (9,572) Less: comprehensive loss attributable to non-controlling interest (1,869) -- Comprehensive loss attributable to Vimicro International Corporation (18,235) (9,572) Loss per share Basic (0.13) (0.10) Diluted (0.13) (0.10) Loss per ADS Basic (0.52) (0.39) Diluted (0.52) (0.39) Weighted average number of ordinary shares outstanding Basic 143,182,200 140,261,311 Diluted 143,182,200 140,261,311 Weighted average number of ADS outstanding Basic 35,795,550 35,065,328 Diluted 35,795,550 35,065,328 Components of share-based compensation expenses are included in the following expense captions: R&D (3,119) (2,613) S&M (261) (852) G&A (5,575) (2,811) Total (8,955) (6,276) 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 December 31, 2009 GAAP Adjustment Non-GAAP Result Results Loss from operations (4,352) 926 (3,426) (Loss)/income attributed to Vimicro International Corporation (600) 926 326 Diluted (loss)/income per ADS (0.02) 0.03 0.01 Three months ended September 30, 2009 GAAP Adjustment Non-GAAP Result Results Loss from operations (4,963) 1,126 (3,837) (Loss)/income attributed to Vimicro International Corporation (3,137) 1,126 (2,011) Diluted (loss)/income per ADS (0.08) 0.03 (0.05) Three months ended December 31, 2008 GAAP Adjustment Non-GAAP Result Results Loss from operations (8,691) 1,820 (6,871) (Loss)/income attributed to Vimicro International Corporation (8,308) 1,820 (6,488) Diluted (loss)/income per ADS (0.24) 0.05 (0.19) Twelve months ended December 31, 2009 GAAP Adjustment Non-GAAP Result Results Loss from operations (25,441) 8,955 (16,486) (Loss)/income attributed to Vimicro International Corporation (18,767) 8,955 (9,812) Diluted (loss)/income per ADS (0.52) 0.25 (0.27) Twelve months ended December 31, 2008 GAAP Adjustment Non-GAAP Result Results Loss from operations (17,236) 6,276 (10,960) (Loss)/income attributed to Vimicro International Corporation (13,640) 6,276 (7,364) Diluted (loss)/income per ADS (0.39) 0.18 (0.21) (*) The adjustment is to exclude non-cash for share-based compensation for employees and non-employees.
SOURCE Vimicro International Corporation