Vimicro (NASDAQ-VIMC) Q4-2012 Update part 1

Thu, 2013-05-02

application/pdf iconvimc-q4-2012-report-2013-05-02-blackore-research.pdf

Title: Vimicro (NASDAQ-VIMC) Full-year 2012 top-line below our expectation but within guidance; Overweight rating and target price unrevised

Synopsis: Vimicro reported US$71.2 million in top-line sales for 2012, which is lower than our expectation of US$77.0 million, but slightly above management’s US$70 million guidance. Sales were below our forecast mainly due to the lower-than-expected growth in the security and surveillance market, especially in Q4-2012. We had forecasted US$7.9 million in sales from security and surveillance for Q4-2012, while Vimicro reported US$4.1 million. Management has indicated that there is a US$3.0 million delay is sales recognition that is attributable to this segment. Despite the slowdown, we believe that growth potential within this segment will remain strong.

Report length: 4 pages (excluding legal disclaimer)

Miller Chu
Peter Fang, CFA