Vimicro (NASDAQ-VIMC) Q3-2012 Update

Thu, 2012-11-08

application/pdf iconvimc-q3-2012-report-2012-11-08-blackore-research.pdf

Title: Vimicro (NASDAQ-VIMC) Turnaround story continues; first GAAP profit since 2007; upgrade to OVERWEIGHT with US$1.90 target

Synopsis: Vimicro recorded its first GAAP profit of US$2.9 million since 2007 as a result of continuous growth in revenue and improvement in cost structure. For the second consecutive quarter, Vimicro delivered better-than-expected results, which reinforces our confidence that the management team is on track to transition the company. We upgrade Vimicro to Overweight from Neutral with a target price of US$1.90 with 38.7% upside.

Report length: 5 pages (excluding legal disclaimer)

Miller Chu
Peter Fang, CFA