Vimicro announces 2012 financial results

Vimicro International, an image processing IC and surveillance solution provider announced financial results for the fourth quarter and full year ended December 31, 2012.

Full-year Highlights:

1) Net revenues from continuing operations increased 20.7 percent to US$71.2 million. 2) Surveillance revenue grew 47.0 percent to $17.8 million from $12.1 million in the prior year. 3) Gross margins increased to 36.6 percent from 34.8 percent in the prior year. 4) Net income from continuing operation attributable to Vimicro was $1.38 million, or $0.04 per diluted earnings per share (ADS).

Fourth-quarter Highlights:

1. Net revenues grew 14-percent to US$18.8 million from $16.5 million from continuing operations in the year-ago quarter.
2. Gross margins expanded to 37.7 percent as compared to 34.9 percent in the year-ago quarter.
3. Vimicro remained profitable on an adjusted basis for the third consecutive quarter, with adjusted net income attributable to Vimicro of $2.6 million, or $0.08 per diluted ADS.

"In 2012, we saw the success of strategic decisions we made to refocus Vimicro on our surveillance business and streamline our cost structure,” said John Deng, Chairman and CEO of Vimicro. “We turned profitable in the second quarter, and Vimicro was also profitable on an adjusted basis for the year.” Revenues grew again on an annual basis in 2012, and surveillance revenues grew a healthy 47 percent. The company has now established a solid financial foundation, upon which it can continue to invest in the development of SVAC-based products and which we expect to deliver future growth and profitability for our shareholders.

For the first quarter of 2013, Vimicro expects seasonally lower revenues in security-surveillance and lower revenues year-over-year in its PC and notebook multimedia processor business, alongside a temporary decline of orders from a major PC and notebook customer.