Vimicro International Corporati (NASDAQ:VIMC)

BEIJING, Dec. 18, 2015 /PRNewswire/ -- Vimicro International Corporation (VIMC) ("Vimicro" or the "Company"), a leading video surveillance technology and solution provider in China, announced today the completion of the merger (the "merger") with Vimicro China Acquisition Limited ("Merger Sub"), a wholly-owned subsidiary of Vimicro China (Parent) Limited ("Parent"), pursuant to the Agreement and Plan of Merger dated September 15, 2015 (as amended on November 3, 2015, the "Merger Agreement"), by and among Parent, Merger Sub and the Company. As a result of the merger, the Company ceased to be a publicly traded company and became a wholly-owned subsidiary of Parent.  

Under the terms of the Merger Agreement, each of the Company's ordinary shares, par value US$0.0001 per share (the "Shares"), issued and outstanding immediately prior to the effective time of the merger has been cancelled in exchange for the right to receive US$3.375 in cash without interest, and each of the Company's American depositary shares, each representing four Shares (the "ADSs") issued and outstanding immediately prior to the effective time of the merger has been cancelled in exchange for the right to receive US$13.50 in cash without interest (less US$0.05 per ADS cancellation fee), other than (i) Shares (including Shares represented by ADSs) owned by Parent, Merger Sub or the Company (as treasury shares, if any), or by any direct or indirect wholly-owned subsidiary of Parent, Merger Sub or the Company, in each case immediately prior to the effective time of the merger, (ii) Shares (including Shares represented by ADSs) reserved (but not yet allocated) by the Company for settlement upon exercise of any options to purchase Shares outstanding under the Company's 2004 Share Option Plan or 2005 Share Incentive Plan (including any amendment and modification thereto) (the "Company Options"), (iii) the Shares and ADSs beneficially owned (as determined pursuant to Rule 13d-3 under the Securities Exchange Act of 1934, as amended) by any of Dr. Zhonghan (John) Deng, Vimicro Beijing Corporation, Mr. Zhaowei (Kevin) Jin, Vimicro Shenzhen Corporation, Dr. Xiaodong (Dave) Yang, Vimicro Tianjin Corporation and Alpha Spring Limited, but excluding (a) 2,356,434 Shares and 108,325 ADSs beneficially owned by Dr. Xiaodong (Dave) Yang, (b) 4,453,192 Shares and 15,000 ADSs beneficially owned by Dr. Zhonghan (John) Deng, and (c) 1,391,851 Shares and 100,000 ADSs beneficially owned by Mr. Zhaowei (Kevin) Jin, and/or (iv) any Shares that are issued and outstanding immediately prior to the effective time of the merger and are held by a holder of Shares who has validly exercised and not lost its rights to dissent from the merger pursuant to Section 238 of the Cayman Companies Law (the Shares described under (i) through (iv) above are collectively referred to herein as the "Excluded Shares").

Shareholders of record as of the effective time of the merger who are entitled to the merger consideration will receive a letter of transmittal and instructions on how to surrender their share certificates and uncertificated shares in exchange for the merger consideration. Shareholders should wait to receive the letter of transmittal and instructions before surrendering their share certificates and uncertificated shares. As soon as practicable after the date of this announcement, J.P. Morgan Chase Bank, N.A., in its capacity as ADS depositary (the "ADS Depositary") will call for the surrender of all ADSs (other than any ADS that represents Excluded Shares) for delivery of the merger consideration. Upon the surrender of ADSs, the ADS Depositary will pay to the surrendering holders US$13.50 per ADS surrendered in cash without interest (less US$0.05 per ADS cancellation fee) and net of any applicable withholding taxes.

The Company also announced today that it has requested that trading of its ADSs on the NASDAQ Global Market (the "NASDAQ") be suspended. The Company requested the NASDAQ to file Form 25 with the United States Securities and Exchange Commission (the "SEC") notifying the SEC of the delisting of its ADSs on the NASDAQ and the deregistration of the Company's registered securities. The Company intends to terminate its reporting obligations under the Securities Exchange Act of 1934, as amended, by filing Form 15 with the SEC. The Company's obligations to file or furnish with the SEC certain reports and forms, including Form 20-F and Form 6-K, will be suspended immediately as of the filing date of the Form 15 and will cease once the deregistration becomes effective.

In connection with the merger, Duff & Phelps, LLC and Duff & Phelps Securities, LLC (together, "Duff & Phelps") is serving as financial advisors to the special committee of the board of directors of the Company (the "Special Committee"). Kirkland & Ellis is serving as U.S. legal advisor to the Special Committee and Maples and Calder is serving as Cayman Islands legal advisor to the Company. Duane Morris & Selvam LLP is serving as legal advisor to Duff & Phelps.

Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, LLP is serving as U.S. legal advisor to the buyer group for the merger consisting of Dr. Zhonghan (John) Deng, founder, chairman and chief executive officer of the Company, Mr. Zhaowei (Kevin) Jin, co-chief executive officer and a board member of the Company, Dr. Xiaodong (Dave) Yang and Mr. Shengda Zan.

BEIJING, Dec. 15, 2015 /PRNewswire/ -- Vimicro International Corporation (VIMC) ("Vimicro" or the "Company"), a leading video surveillance technology and solution provider in China, announced today that, at an extraordinary general meeting held today, the Company's shareholders voted in favor of, among others, the proposal to authorize and approve the previously announced Agreement and Plan of Merger dated September 15, 2015 (as amended on November 3, 2015, the "Merger Agreement") and among Vimicro China (Parent) Limited ("Parent"), Vimicro China Acquisition Limited ("Merger Sub") and the Company and the plan of merger between Merger Sub and the Company required to be filed with the Registrar of Companies of the Cayman Islands (the "Plan of Merger"), pursuant to which Merger Sub will be merged with and into the Company with the Company continuing as the surviving company as a wholly-owned subsidiary of Parent after the merger (the "merger"), and to authorize and approve any and all transactions contemplated by the Merger Agreement, including the merger.

Immediately after the completion of the merger, Parent will be ultimately beneficially owned by Dr. Zhonghan (John) Deng, founder, chairman and chief executive officer of the Company, Mr. Zhaowei (Kevin) Jin, co-chief executive officer and a board member of the Company, Dr. Xiaodong (Dave) Yang and Mr. Shengda Zan.

Approximately 58.93% of the Company's total outstanding voting ordinary shares (including ordinary shares represented by the Company's American depositary shares ("ADSs")) voted in person or by proxy at today's extraordinary general meeting. Of the voting power represented by these ordinary shares voted in person or by proxy at the extraordinary general meeting, approximately 98.57% were voted in favor of the proposal to authorize and approve the Merger Agreement and the Plan of Merger and any and all transactions contemplated by the Merger Agreement, including the merger. A two-thirds majority of the voting power represented by the ordinary shares of the Company present and voting in person or by proxy at the extraordinary general meeting was required for authorizing and approving the merger.

The parties currently expect to complete the merger as soon as practicable, subject to the satisfaction or waiver of the conditions set forth in the Merger Agreement. Upon completion of the merger, the Company will become a privately held company and its ADSs will no longer be listed on the NASDAQ Global Market.

BEIJING, November 5, 2015 /PRNewswire/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading video surveillance technology and solution provider in China, today announced that it has called an extraordinary general meeting of shareholders (the "EGM"), to be held on December 15, 2015 at 10 a.m. (Hong Kong time), at 26th Floor, Gloucester Tower, The Landmark, 15 Queen's Road, Central, Hong Kong, to consider and vote on, among other matters, the proposal to authorize and approve the previously announced agreement and plan of merger dated as of September 15, 2015 (as may be amended from time to time in accordance with its terms, the ''Merger Agreement''), among the Company, Vimicro China (Parent) Limited ("Parent") and Vimicro China Acquisition Limited ("Merger Sub"), the plan of merger required to be filed with the Registrar of Companies of the Cayman Islands, substantially in the form attached as Exhibit A to the Merger Agreement (the ''Plan of Merger''), and the transactions contemplated thereby, including the Merger (as defined below).

Pursuant to the Merger Agreement and the Plan of Merger, Merger Sub will be merged with and into the Company (the "Merger") with the Company continuing as the surviving corporation. If completed, the proposed Merger would result in the Company becoming a privately-held company and the American depositary shares ("ADSs") of the Company (each representing four ordinary shares of the Company ("Shares")) will no longer be listed on the Nasdaq Stock Market and the American depositary shares program for the ADSs will terminate. The Company's board of directors, acting upon the unanimous recommendation of a special committee of the Company's board of directors composed entirely of independent directors, authorized and approved the Merger Agreement, the Plan of Merger and the transactions contemplated thereby (including the Merger) and resolved to recommend that the Company's shareholders and ADS holders vote FOR, among other things, the proposal to authorize and approve the Merger Agreement, the Plan of Merger and the transactions contemplated thereby (including the Merger).

BEIJING, November 2, 2015 /PRNewswire/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading video surveillance technology and solution provider in China, today announced that Mr. Peter Li, CFO of the Company, has resigned from the Company due to personal reasons, effective October 31, 2015.

"Peter has been a great addition to the Vimicro team. He played a leading role in bringing Vimicro's video surveillance story to domestic Chinese investors through collaboration with leading Chinese brokerage houses, resulting in dramatic expansion of company's valuation. We are grateful for his evangelist role as our CFO and extend our best wishes to his new endeavors!" commented by Dr. John Deng, Chairman and CEO of Vimicro.

Mr. Peter Li, the departing CFO, commented, "It is a great honor to be part of an exciting growth story and high caliber team. Vimicro is well-positioned for the next phase of growth. I wish the company well in its growth strategy and initiatives."

Mr. Peter Li will remain as the Company's senior advisor to ensure smooth transition.

BEIJING, Sept. 15, 2015 /PRNewswire/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading video surveillance technology and solution provider in China, today announced that it has entered into a definitive Agreement and Plan of Merger (the "Merger Agreement") with Vimicro China (Parent) Limited ("Parent") and Vimicro China Acquisition Limited ("Merger Sub"), pursuant to which Parent will acquire Vimicro (the "Transaction") for US$3.375 per ordinary share of the Company (a "Share") or US$13.50 per American depositary share, each representing four Shares (an "ADS"). This amount represents a premium of 9.5% over the Company's closing price of US$12.33 per ADS on June 19, 2015, the last trading day prior to June 22, 2015, the date that the Company announced that it had received a "going-private" proposal, and a premium of 15.4% to the volume-weighted average closing prices of the Company's ADSs during the 90 trading days prior to June 22, 2015.

Immediately after the completion of the Transaction, Parent will be ultimately beneficially owned by Dr.Zhonghan (John) Deng, founder, chairman and chief executive officer of the Company, Mr. Zhaowei (Kevin) Jin, co-chief executive officer and a board member of the Company, Dr. Xiaodong (Dave) Yang and Mr.Shengda Zan (collectively, the "Buyer Group").  To date, the Buyer Group beneficially owns, in the aggregate, approximately 41% of the outstanding Shares (excluding outstanding options of the Company).

The Company's board of directors (the "Board"), acting upon the unanimous recommendation of a special committee of the Board (the "Special Committee"), approved the Merger Agreement and the Transaction and resolved to recommend that the Company's shareholders vote to authorize and approve the Merger Agreement and the Transaction. The Special Committee, which is composed solely of independent directors of the Company who are unaffiliated with Parent, Merger Sub or any member of the Buyer Group or management of the Company, exclusively negotiated the terms of the Merger Agreement with the Buyer Group with the assistance of its independent financial and legal advisors.

Prior to the approval of the Merger Agreement by the Board, the Board approved and the Company has executed and delivered Amendment No. 2 to the Rights Agreement, dated December 12, 2008, as amended by Amendment No. 1 to Rights Agreement, dated June 18, 2015 (as so amended, the "Rights Agreement"), by and between RBC Corporate Services Hong Kong Limited (formerly known as RBC Dexia Corporate Services Hong Kong Limited), as rights agent. The Rights Amendment, among other things, renders the Rights Agreement inapplicable to the Merger Agreement and the transactions contemplated thereby.

The Transaction is subject to various closing conditions, including a condition that the Merger Agreement be authorized and approved by an affirmative vote of shareholders representing two-thirds or more of the Shares present and voting in person or by proxy as a single class at a meeting of the Company's shareholders convened to consider the authorization and approval of the Merger Agreement. The Buyer Group have agreed to vote all of the Shares beneficially owned by them in favor of the authorization and approval of the Merger Agreement and the Transaction. If completed, the Transaction will result in the Company becoming a privately-held company and its ADSs will no longer be listed on the NASDAQ Global Market.

The Buyer Group intends to fund the Transaction from the proceeds of a loan to be provided by Alpha Spring Limited pursuant to a commitment letter dated September 15, 2015.

Second-Quarter 2015 Financial Results

BEIJING, July 16, 2015 /PRNewswire/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading video surveillance technology and solution provider in China, today announced that its joint venture, Shanxi Zhongtianxin Science and Technology Co. Ltd. ("Zhongtianxin"), won four contracts to provide SVAC-compliant video surveillance cameras and system of traffic control and monitoring to the Traffic Police Detachment of Taiyuan City, aggregated to RMB 79.85 million, or USD 12.88 million approximately.

Zhongtianxin is a joint venture in which Vimicro holds a 51% stake. The contracts awarded are:

• a contract to cover East of Shenglidongjie 23 streets of video surveillance valued at RMB 23.55 million, or USD 3.80 million approximately;
• a contract to cover North Road of Zhongxinjie 15 streets of video surveillance valued at RMB 19.46 million, or USD 3.14 million approximately;
• a contract to cover South of Taihang Road 9 streets of video surveillance valued at RMB 30.72 million, or USD 4.95 million approximately;
• a contract to cover Taiyu Road (South Station Front) 6 streets of video surveillance valued at RMB 6.12 million, or USD 0.99 million approximately.

The contract wins have completed Publicity Periods of Taiyuan Municipal Government. Zhongtianxin has received the official Winning Notifications of Competitive Bid.

BEIJING, July 6, 2015 /PRNewswire/ -- Vimicro International Corporation ("Vimicro" or the "Company") (NASDAQ: VIMC), a leading video surveillance technology and solution provider, today announced that a special committee of independent directors of the Company's board of directors (the "Special Committee") has retained Duff & Phelps, LLC and Duff & Phelps Securities, LLC (collectively referred to as "Duff & Phelps") as its financial advisor and Kirkland & Ellis ("Kirkland & Ellis") as its legal counsel.

As previously announced, the Company's board of directors formed the Special Committee to consider a "going-private" transaction (the "Transaction") for $3.375 in cash per ordinary share or $13.50 in cash per American depositary share (each representing four ordinary shares), proposed by Dr. Zhonghan (John) Deng, the Company's founder, chairman and chief executive officer and, Zhaowei (Kevin) Jin, the Company's co-chief executive officer in a preliminary non-binding proposal letter, dated June 21, 2015.

Duff & Phelps and Kirkland & Ellis will assist the Special Committee in its work in connection with the Transaction and any potential alternatives. No decisions have been made by the Special Committee with respect to the Company's response to the Transaction. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.

BEIJING, June 23, 2015 /PRNewswire/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading video surveillance technology and solution provider in China, today announced that its joint venture, Shanxi Zhongtianxin Science and Technology Co. Ltd. ("Zhongtianxin"), won a competitive bid for the provision of SVAC-compliant video surveillance cameras and system to Jincheng Municipal Government in Shanxi Province, with an estimated contract value of RMB 136.2 million, or USD $22 million approximately.

Zhongtianxin is a joint venture in which Vimicro holds a 51% stake. The bid is for the construction of Public Security Video Surveillance System, "Tianwang Project", in Jincheng City of Shanxi Province. The competitive bid winning has completed seven-day Publicity Period of Jincheng Municipal Government.

BEIJING, June 22, 2015 /PRNewswire/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading video surveillance technology and solution provider in China, today announced that its Board of Directors (the "Board") has received a non-binding proposal letter, dated June 21, 2015, from Dr. Zhonghan (John) Deng, founder, chairman and chief executive officer of the Company, and Zhaowei (Kevin) Jin, co-chief executive officer and a board member of the Company (the "Buyer Group") to acquire all of the outstanding ordinary shares of the Company not already owned by the Buyer Group for US$13.50 in cash per American depositary share ("ADS", each representing four ordinary shares), or approximately US$3.375 per ordinary share, which represents an approximately 22.7% premium above the average closing price of the Company's ADSs over the last 90 trading days (the "Transaction"). A copy of the proposal letter is attached hereto as Exhibit A.

The Board has formed a special committee consisting of independent directors to consider this proposal.

The Board cautions the Company's shareholders and others considering trading in its securities that the Board just received the non-binding proposal letter from the Buyer Group and no decisions have been made with respect to the Company's response to the Transaction. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.

First-Quarter 2015 Financial Results

• Net revenue in the first quarter of 2015 was $19.2 million, as compared to net revenue of $16.4 million in the year-ago quarter and $32.4 million in the fourth quarter of 2014.
• In the first quarter of 2015, non-GAAP net loss attributable to Vimicro was $1.5 million, or approximately $0.05 loss per ADS on a diluted basis, as compared to a non-GAAP net loss attributable to Vimicro of $3.3 million, or $0.14 loss per diluted ADS in the year-ago quarter.

Dr. John Deng, Vimicro's Chairman and Chief Executive Officer, commented, "We are pleased to report a solid financial and operational result for the first quarter of 2015, by achieving 41.3% growth in video surveillance business in a seasonally slow quarter in the year. During this quarter, the policy environment in government spending sector of China's video surveillance market continued to have positive developments, in which the video surveillance network build-out and proprietary chip and algorithm technology will be placed in higher priority of the governments. We believe Vimicro will benefit directly from the trend of expedited video surveillance network build-out and adoption of domestic IT technology and national standard. We were making significant progresses at various aspects of our marketing and sales initiatives in both traditional and new geographic regions. We continued to communicate our corporate story to investor base by attending two investor conferences in China. We are excited that SVAC national standard has been receiving more recognition and attention in the industry, given the ever heightened public security concerns and surveillance data security awareness. As a co-lead developer of SVAC national video surveillance standard and the only video surveillance total solution provider in China with proprietary chip technology, Vimicro will capitalize on its first-mover advantages to further establish itself in China's fast-growing video surveillance market, to create long-term value for shareholders."

Business Outlook

For the second quarter of 2015, the Company expects the total net revenues in the range of $29 million to $31 million.

Fourth-Quarter 2014 Financial Results

• Net revenue in the fourth quarter of 2014 was $32.4 million, as compared to net revenue of $21.4 million in the year-ago quarter and $27.6 million in the third quarter of 2014.
• non-GAAP net income attributable to Vimicro was $3.4 million, or approximately $0.12 per ADS on a diluted basis, as compared to a non-GAAP net loss attributable to Vimicro of $0.8 million, or $0.03 loss per diluted ADS in the year-ago quarter.

Dr. John Deng, Vimicro's Chairman and Chief Executive Officer, commented, "The year of 2014 was marked a milestone year of our solid foothold established in China's video surveillance industry due to our proven SVAC-compliant technology and solution and the continued adoption of SVAC national standard across the country, evidenced by our achievement of turning profitable after consecutive years of loss and the phenomenal growth of our video surveillance business at 94.3%. We successfully brought Vimicro story back home to Chinese investors in 2014, resulting in much improved valuation multiples and recently acquired coverage of two local Chinese brokerage firms, culminating in the successful private placement financing of $50 million at significant premium. SVAC national standard has been receiving more recognition and attention in the industry, given the ever heightened concerns and awareness of national security and surveillance data security. We believe Vimicro will benefit directly from the trend of expedited adoption of domestic IT technology and national standard going into 2015 and beyond. As a co-leading developer of SVAC national video surveillance standard and the only proven provider of SVAC-compliant technology and solution, Vimicro will capitalize on its first-mover advantages to further establish itself in China's fast-growing video surveillance market, to create long-term value for shareholders."

Dr. John Deng, Vimicro's Chairman and Chief Executive Officer, continued, "Vimicro's board of directors congratulate Kevin's promotion. Kevin played a significant and vital role in leading Vimicro's successful transformation to a leading video surveillance technology and solution provider in China. Kevin will work with me in corporate strategy and overseeing overall corporate functions going forward."

Business Outlook

For the first quarter of 2015, the Company expects the total net revenues in the range of $19 million to $20 million.

BEIJING, March 9, 2015 /PRNewswire/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading video surveillance technology and solution provider in China, announced today that it has closed the premium private placement financing announced on February 5, 2015, with Alpha Spring Limited (the "Investor"), a British Virgin Island company owned by Zongyi Group ("Zongyi").

Pursuant to the stock purchase agreement, the Company issued 20 million ordinary shares at a price of US$2.50 per ordinary share, the equivalent of US$10.00 per ADS, for an approximate aggregate purchase price of US$50 million. The ordinary shares issued to the Investor are subject to a one-year lock-up period.

"We are pleased to see the swift and successful closing of the private placement transaction with Zongyi Group." commented Dr. John Deng, Chairman & CEO of Vimicro, "Seeing the tremendous market opportunity in the coming years, we believe sufficient capital will enable our market expansion and corporate strategy execution. As the only proven provider of SVAC technology and solutions in the marketplace, Vimicro will continue to leverage its first-mover advantages to capitalize on the trend of SVAC national standard adoption by the government, to further establish itself as a leading player in China's video surveillance market, and to create long-term value for our shareholders."

BEIJING, February 5, 2015 /PRNewswire/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading video surveillance technology and solution provider in China, announced today that Alpha Spring Limited (the "Investor"), a British Virgin Island company owned by Zongyi Group ("Zongyi"), has entered into a stock purchase agreement with Vimicro.

Pursuant to the stock purchase agreement entered into on February 5, 2015, Zongyi agrees to make a US$50 million investment in Vimicro, with a purchase price of US$2.50 per ordinary share, the equivalent of US$10.00 per ADS. Immediately after the closing of the transaction, Zongyi will hold 20 million ordinary shares of Vimicro, approximately 16.3% equity ownership of the Company. The ordinary shares will be subject to a one-year lock-up period. Upon closing and subject to the terms and conditions of the stock purchase agreement, the Company will grant customary registration rights to the Investor. The closing of the investment is subject to customary closing conditions.

"We are very pleased to have secured US$50 million financing priced at significant premium from a well-established local Chinese investment company, which is a strong validation of Vimicro's leading positioning in China's video surveillance industry," commented Dr. John Deng, Chairman & CEO of Vimicro. "Seeing the tremendous market opportunity in the coming years, we believe sufficient capital will enable our market expansion and corporate strategy execution. As the only proven provider of SVAC technology and solutions in the marketplace, Vimicro will continue to leverage its first-mover advantages to capitalize on the trend of SVAC national standard adoption by the government, to further establish itself as a leading player in China's video surveillance market, and to create long-term value for our shareholders."

Mr. Shengda Zan, Chairman & President of Zongyi Group, commented," We are quite delighted to be able to obtain a meaningful ownership in Vimicro upon our due diligence and channel checks, in which process we got to know the management team at a personal level. Vimicro fits perfectly to our investment strategy for its proprietary technology and distinguished competency. We are mostly excited about Vimicro's unique advantages in its addressable market, and confident of its execution and performance for years to come."

BEIJING, Dec. 23, 2014 /PRNewswire/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading video surveillance technology and solution provider in China, is issuing this update to keep its shareholders apprised of the current status and timing of its previously announced projects. The Company also expects 2014 to be a profitable year primarily driven by on-track project deliveries and its competitiveness in China's video surveillance market.

Vimicro Electronics Corporation ("Vimicro Tianjin") was contracted by China Unicom to provide SVAC-compliant video surveillance system, products and installation services to the Police Traffic Control Detachment of Ziyang City, Sichuan Province("Ziyang Project") in September 2013, for approximately USD 9 million. Ziyang Project was already fully completed and received the satisfactory inspection and acceptance by the customer.

Shanxi Zhongtianxin Science and Technology Co., Ltd. ("Zhongtianxin), a joint venture in which Vimicro holds 51% interest, entered into a contract with the government of Baoding City, Hebei Province to provide SVAC-compliant system, products and installation services for approximately RMB 250 million ("Baoding Project") in December 2013. Baoding Project will be completed by December 31, 2014.

Zhongtianxin was contracted to provide SVAC-compliant video surveillance system, products and installation to the Traffic Police Detachment of Taiyuan ("Taiyuan Traffic Control") for RMB 76 million in June 2014. Taiyuan Traffic Control project is on track according to the project planning. The project is expected to be completed in 2015.

Zhongtianxin won the competitive bid to provide SVAC-compliant video surveillance system, products and installation services for Taiyuan's Phase II Public Security Video Surveillance Information System ("Taiyuan Phase II") with the estimated contract value of RMB 220 million, following the successful implementation of Phase I project in Taiyuan in 2013. Taiyuan Phase II project is currently being implemented in accordance with the project plan and is expected to be completed in the first quarter of 2015.

Zhongtianxin is also on track in implementing newly obtained projects in Chenzhou City, Hunan Province and Xiaodianqu District of Taiyuan City, Shanxi Province, for approximately RMB 179 million and RMB 58.6 million, respectively. Both of these contracts are expected to be completed in 2015.

"We are very pleased to announce profitability for the year of 2014, while reporting satisfactory implementation progress on some of our completed and on-going projects at the end of a successful year for Vimicro," commented by Peter Li, CFO of Vimicro. "For the nine month period ended September 30, 2014, the company reported revenue growth at 58% compared with the same period of last year, while our video surveillance business posted a 108% growth on a year-on-year basis in the same period. In addition to Vimicro's financial achievement, Vimicro is ranked fourth in the Top 100 Security and Surveillance Manufacturers released by China Public Security Magazine recently, after Hikvision, Dahua, and Huawei."

John Deng, Chairman and CEO of Vimicro, further commented, "The year of 2014 will mark a milestone year for the company by turning profitable after several consecutive years of net loss. We owe our current success in 2014 to our strong focus in our new video surveillance business by transformation and divesture of non-core businesses over the past few years. We will continue to deliver solid solutions and project implementation to our customers' satisfaction, based on our proprietary video surveillance technology and product suites. We believe our customer satisfaction, together with our leading edge on SVAC video surveillance national standard, will ensure our continued and greater success in China's robust video surveillance industry in 2015 and beyond, to realize long-term value for our shareholders."

BEIJING, December 9, 2014 /PRNewswire/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading video surveillance technology and solution provider in China, today announced that its Taiyuan facility at Zhongtianxin Science and Technology Co. Ltd. ("Zhongtianxin") begins mass production of video surveillance cameras and products.

During its pre-production trial runs, Zhongtianxin hosted a series of local government's inspection visits headed by Mr. Yangsheng Lou, Deputy Secretary of the Provincial Party Committee of Shanxi in July and Mr. Zhenglong Wu, Secretary of the Municipal Party Committee of Taiyuan this month. Vimicro's proprietary technology and products received highly appraisals and recognition from visiting officials.

Zhongtianxin is joint venture in which Vimicro holds a 51% stake, with the remaining 49% owned by Shanxi Guoxin Investment Co., a Shanxi provincial government-owned investment company.

BEIJING, December 4, 2014 /PRNewswire/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading video surveillance technology and solution provider in China, today announced that its joint venture, Shanxi Zhongtianxin Science and Technology Co. Ltd. ("Zhongtianxin"), won a competitive bid for the provision of SVAC-compliant video surveillance system and products to Xiaodianqu District in Taiyuan City of Shanxi Province, with an estimated contract size of RMB 58.6 million, or USD $ 9.5 million approximately.

Zhongtianxin is a joint venture in which Vimicro holds a 51% stake, with the remaining 49% owned by Shanxi Guoxin Investment Co., a Shanxi provincial government-owned investment company. The bid is for the construction of "Public Security Video & Image Information System Project" in Xiaodianqu District in Taiyuan City of Shanxi Province.

"We are pleased to have won the competitive bid in Xiaodianqu District in Taiyuan City to supply SVAC-compliant video surveillance system and products," commented Dr. John Deng, Vimicro's Chairman and Chief Executive Officer. "The winning of this bid is a testament of expanded SVAC-compliant video surveillance system roll-out from municipalities to districts in Shanxi Province. As the only proven provider of SVAC technology and solutions in the marketplace, Vimicro will continue to leverage its first-mover advantages to capitalize on the megatrend of SVAC national standard adoption, to further establish itself in China's video surveillance market."

Third-Quarter 2014 Financial Results

• Net revenue in the third quarter of 2014 was $27.6 million, as compared to net revenue of $24.2 million in the year-ago quarter and $24.0 million in the second quarter of 2014.
• Income/ (loss) per ADS Diluted Share was 0.12 vs. last years quarter of  0.06.

Dr. John Deng, Vimicro's Chairman and Chief Executive Officer, commented, "We are very pleased to report a solid financial and operational result for the third quarter. For the nine-month period ended September 30, 2014, we achieved significant non-GAAP net income of $3 million and $0.11 per diluted ADS, while maintaining a decent revenue growth of 57.9% on a year-over-year basis, driven by strong growth in our video surveillance business. With continued contract wins from our traditional territories such as Shanxi Province, and entrance into new geographic base such as Hunan Province, we are seeing greater demand for SVAC-compliant video surveillance products across the country. We are confident that our financials will continue to show satisfactory results going forward, while benefiting from China's mega-trend of expedited adoption of domestic IT technology and national standard. As a co-leading developer of SVAC national video surveillance standard and the only proven provider of SVAC-compliant technology and solution, Vimicro will capitalize on its first-mover advantages to further establish itself in China's robust video surveillance market. "

BEIJING, October 27, 2014 /PRNewswire/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading video surveillance technology and solution provider in China, today announced that it will participate in the 2014 China International Exhibition on Public Safety and Security to be held at Beijing International Exhibition Centre from October 28 to 31. The Company's full product line will be showcased at booth number E2C67 in Exhibition Hall E2.

The Company will launch the next generation of its flagship Starlight Camera and its 718 and 736 chips at its product release press conference in E306 of Complex Building 2^nd Floor at 14:30 on October 28, when the newly released Starlight Camera will be staged against the prevailing similar cameras from leading video surveillance manufacturers on the quality of picture and image. The Starlight Camera is a HD video surveillance camera designed for low-illumination condition enabling normal color image under 0.01 Lux and workable image under 0.001 Lux, supporting both SVAC and H.264 with 1080P/25 fps, propelled by Vimicro's proprietary image processing chip.

The successful implementation of the SVAC-compliant video surveillance system in Taiyuan will be showcased by the Department of Public Security of Shanxi Province at the Exhibition Area of Successful Application of Technology in Public Security, sponsored by the Ministry of Public Security of China. Following successful implementation of the Phase I Tianwang city-wide video surveillance project in Taiyuan, Vimicro is contracted to supply the SVAC-compliant video surveillance system and products for Taiyuan's Phase II Tianwang.

BEIJING, October 23, 2014 /PRNewswire/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading video surveillance technology and solution provider in China, today announced that its joint venture, Shanxi Zhongtianxin Science and Technology Co. Ltd. ("Zhongtianxin"), won a competitive bid to provide SVAC-compliant video surveillance cameras and system to Chenzhou Municipal Government in Hunan Province on October 22, 2014, subject to a seven day public notification period. The contract value of this bid is RMB179 million, or USD29.2 million approximately.

Zhongtianxin is joint venture in which Vimicro holds a 51% stake, with the remaining 49% owned by Shanxi Guoxin Investment Co., a Shanxi provincial government-owned investment company. The bid is for the project of providing total solution from cameras to back-end system including police related applications, from Police Geographic Information System (PGIS) to face detection/recognition, based on cloud computing.

"We are very pleased to have won the bidding to supply our SVAC-compliant video surveillance products and system to Chenzhou in Hunan Province, which signals the first city-wide adoption of SVAC national standard in Hunan Province," commented Dr. John Deng, Vimicro's Chairman and CEO, "Chenzhou's SVAC project will be the role model of SVAC adoption and its application in improving public security and management for other municipalities in Hunan Province. As the only proven provider of SVAC technology and solutions in the marketplace, Vimicro will continue to leverage its first-mover advantages to capitalize on the megatrend of SVAC national standard adoption by the government, to further establish itself as a leading player in China's video surveillance market."

BEIJING, Oct. 16, 2014 /PRNewswire/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading video surveillance technology and solution provider in China, today announced that its joint venture, Shanxi Zhongtianxin Science and Technology Co. Ltd. ("Zhongtianxin"), has won two competitive bids to provide SVAC-compliant video surveillance cameras and system to Taiyuan Municipal Government in Shanxi Province, with the total estimated contract value of RMB244 million, or USD39.80 million approximately.

Zhongtianxin is a joint venture in which Vimicro holds a 51% stake, with the remaining 49% owned by Shanxi Guoxin Investment Co., a Shanxi provincial government-owned investment company. One competitive bid is for Taiyuan's Phase II Public Security Video Surveillance Information System with the contract value of RMB 220 million, which Vimicro has already started the project-related works. This project is expected to be completed by early 2015. The other one bid is for twenty-one road video surveillance of traffic control and monitoring with the contract value of RMB 24 million.

"We are very pleased to have won these two competitive bids to supply our SVAC-compliant video surveillance products and system to Phase II Tianwang in Taiyuan City and traffic control and monitoring, following our successful implementation of Phase I," commented Dr. John Deng, Vimicro's Chairman and CEO, "Phase II implementation of Tianwang will further enhance local government's management of public safety and security, which will be a role model for SVAC national standard adoption for other cities in Shanxi Province and the country at large. As the only proven provider of SVAC technology and solutions in the marketplace, Vimicro will continue to leverage its first-mover advantages to capitalize on the megatrend of SVAC national standard adoption by the government, to further establish itself as a leading player in China's video surveillance market."

BEIJING, September 30, 2014 /PRNewswire/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading video surveillance technology and solution provider in China, today announced that its joint venture, Shanxi Zhongtianxin Science and Technology Co. Ltd. ("Zhongtianxin"), has won a contract to provide SVAC-compliant video surveillance cameras and system to the Traffic Police Detachment of Taiyuan for RMB76 million, or USD12.4 million approximately. The project is expected to be completed by early 2015.

"We are pleased to have won this contract to supply our SVAC-compliant video surveillance products and system to the Taffic Police Detachment of Taiyuan, following our successful implementation of Phase I of Tiawang," commented Dr. John Deng, Vimicro's Chairman and CEO. "This contract win validates further adoption of SVAC national video surveillance standard from public security video surveillance system to local traffic control monitoring in Shanxi Province. As the only proven provider of SVAC technology and solutions in the marketplace, Vimicro will continue to leverage its first-mover advantages to capitalize on the megatrend of SVAC national standard adoption by the government, to further establish itself as a leading player in China's video surveillance market."

Peter Li, CFO of Vimicro, commented, "In the meantime, we have won the competitive bidding of Phase II Tiawang for Taiyuan City of Shangxi Province, which will be announced at future due time."

BEIJING, September 30, 2014 /PRNewswire/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading video surveillance technology and solution provider in China, today announced that its joint venture, Shanxi Zhongtianxin Science and Technology Co. Ltd. ("Zhongtianxin"), has reached an Agreement on Project Financing and Strategic Cooperation with CITIC Bank Taiyuan Branch, including a revolving credit line up to RMB400 million, or $65 million approximately.

Pursuant to the agreement, CITIC Bank Taiyuan Branch will provide a revolving line of credit of RMB400 million to Zhongtianxin, provided that Zhongtianxin meets CITIC's credit line borrowing conditions.

Dr. John Deng, Vimicro's Chairman and CEO, commented, "We are pleased to have secured a RMB 400 million credit line, which will be of great asset for Vimicro to continue the pace of SVAC-compliant video surveillance market expansion in our stronghold provinces of Shanxi and Hebei."

BEIJING, September 10, 2014 /PRNewswire/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading video surveillance technology and solution provider, today announced that it has reached a Letter of Intent to form a strategic alliance with Inspur Group (Inspur) to cooperate and coordinate efforts in China's video surveillance market in the areas of solution and application development, maintenance and services, sales and marketing. The jointly developed total solutions consist of Vimicro's video surveillance technology and solutions and Inspur's servers and storage and its expertise in cloud computing.

"We are pleased to have formed a strategic alliance with Inspur, which will enable our video surveillance total solutions to become domestic from both the hardware and software perspective and further expand our footprint in China's video surveillance market. As China's leading provider of proprietary server and storage solutions, Inspur will bring to the table its industry-renowned technology in data center and cloud computing and its existing client base," commented Dr. John Deng, Vimicro's Chairman and CEO. "As the only proven SVAC-compliant video surveillance technology and solution provider, Vimicro will continue to capitalize on the mega-trend of China's adoption of domestic technology and standards to establish itself as a leading player in China's robust video surveillance market."

Second-Quarter 2014 Financial Results

• - Non-GAAP net income of $2.8 million, as compared to non-GAAP net loss of $5.5 million year over year, and non-GAAP net loss of $3.3 million quarter over quarter
• -Non-GAAP diluted EPS at $0.10 per ADS reported for the quarter or $0.19 per diluted ADS in the year-ago quarter.

Dr. John Deng, Vimicro's Chairman and Chief Executive Officer, commented, "We are very pleased to report a solid financial and operational result for the second quarter. We achieved significant quarterly revenue growth of more than 100% year-over-year, and turned profitable with meaningful net profit reported for the quarter, which further demonstrates continued strong growth in our video surveillance business. With the increasing number of SVAC adoption orders, continued penetration into existing geographic bases and expansion of our SVAC adoption into new territories and industries, we have begun seeing our strong execution and right strategy reflected in our financials in the second quarter. Vimicro is benefiting from China's mega-trend of expedited adoption of domestic IT technology and national standard. We are seeing greater demand for video surveillance products due to ever greater concerns and priority placed on public security by the government in the wake of recent events. We are fully committed to continuous enhancement of our competency and competitiveness by investing in research and development of core chip and algorithm technology for video surveillance market. As a co-leading developer of SVAC national video surveillance standard and the only proven provider of SVAC-compliant technology and solution, Vimicro will capitalize on its first-mover advantages to further establish itself in China's robust video surveillance market.

Business Outlook

For the third quarter of 2014, the Company continues to expect total revenues of $25 million to $27 million.

BEIJING, August 19, 2014 /PRNewswire/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading video surveillance technology and solution provider in China, today announced that its joint venture, Shanxi Zhongtianxin Science and Technology Co. Ltd. ("Zhongtianxin"), has won a competitive bid for the provision of SVAC-compliant video surveillance cameras and systems to Wanbolin District in Taiyuan City of Shanxi Province, with an estimated contract size of RMB31 million, or USD5 million approximately.

Zhongtianxin is joint venture in which Vimicro holds a 51% stake, with the remaining 49% owned by Shanxi Guoxin Investment Co., a Shanxi provincial government-owned investment company. The bid is for the construction of "Public Security Video & Image Information Systems Project" in Wanbolin District in Taiyuan City of Shanxi Province.

"We are pleased to have won the competitive bid in Wanbolin District in Taiyuan City to supply SVAC-compliant video surveillance products and systems. As the only proven SVAC technology and solution provider in the marketplace, Vimicro is working with Shanxi Provincial Government to roll out SVAC-compliant video surveillance systems across the province," commented Dr. John Deng, Vimicro's Chairman and Chief Executive Officer. "The winning of this bid will serve as a model for the implementation of SVAC-compliant video surveillance systems in other districts in Taiyuan City. Vimicro will capitalize on the megatrend of the expedited adoption of domestic IT technology and national standard, leveraging on its leading position in SVAC national video surveillance standard, to create long-term shareholders' value."

BEIJING, August 12, 2014 /PRNewswire/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading video surveillance technology and solution provider, today announced revised revenue guidance for the second quarter ended June 30, 2014, from the previously provided range of US $19 million to US $21 million to the range of US $23 million to US $24 million.

Dr. John Deng, Vimicro's Chairman and CEO, commented: "Vimicro is seeing more business opportunities in China's video surveillance market driven by the mega-trend of expedited domestic IT technology and equipment adoption initiated by the government. As the only proven provider of SVAC- compliant video surveillance technology and solutions in China, Vimicro will further expand its foothold in China's video surveillance market, leveraging on its proprietary chip technology and total video surveillance solutions, to create long-term value for our shareholders."

Mr. Peter Li, CFO of Vimicro, added: "We expect to be profitable for the second quarter of 2014. The earnings result for the second quarter ended June 30, 2014 will be released around August 28, 2014."

BEIJING, Aug. 12, 2014 /PRNewswire/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading video surveillance technology and solution provider, today announced the appointment of Grant Thornton, China member firm of Grant Thornton International ("Grant Thornton") as its independent registered public accounting firm, effective August 12, 2014. Grant Thornton has replaced the Company's previous independent registered public accounting firm, Ernst & Young Hua Ming LLP ("Ernst & Young").

Ernst & Young's report on the Company's consolidated financial statements for the past two years did not contain any adverse opinion or a disclaimer of opinion and was not qualified or modified as to uncertainty, audit scope, or accounting principles. In the Company's two most recent fiscal years and subsequent interim period preceding the appointment of the new auditor, there have not been any disagreements between Vimicro and Ernst & Young on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures that would have caused Ernst & Young to make reference to the subject matter of the disagreement in connection with its report on the Company's consolidated financial statements. The appointment of Grant Thornton to replace Ernst & Young has been approved after thorough evaluation by the audit committee, with the concurrence of the board of directors of the Company. Grant Thornton has begun providing services to the Company and is working closely with Ernst & Young to ensure a seamless transition.

"We have had a positive working relationship with Ernst & Young and appreciate their services during the past few years," commented Dr. John Deng, Vimicro's Chairman and CEO. "Moving forward, the board believes thatGrant Thornton will offer our shareholders a strong combination of quality services, dedicated resources, and cost-efficiency. We look forward to working with Grant Thornton."

BEIJING, July 2, 2014 /PRNewswire/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading video surveillance technology and solution provider, today announced that it has won a competitive bid for the provision of SVAC-compliant video surveillance products to Handan Municipal Government in Hebei Province, with an estimated contract size of RMB 23 million, or USD $ 3.7 millionapproximately.

"We are pleased to have won the bid in Handan of Hebei Province. Following the adoption of SVAC in Baoding City, Handan is the second city in Hebei to adopt SVAC national video surveillance technology standard. Chinais launching a nationwide, hierarchical and full-coverage video surveillance network -- 'Skynet', which will employ big data analysis and cloud computing to link towns, cities and provinces. SVAC national standard promulgated in 2011 is expected to be incorporated in the 'Skynet' project that is being rolled out on a nation-wide basis," commented Dr. John Deng, Vimicro's Chairman and CEO. "As one of the only two co-leading developers of SVAC national standard and the only SVAC-compliant video surveillance technology and solution provider, Vimicro will continue to leverage its first-mover advantages to capitalize on the megatrend of SVAC national standard adoption by the government, to further establish itself as a leading player in China's video surveillance market."

BEIJING, June 30, 2014 /PRNewswire/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading video surveillance technology and solution provider, today announced that it won two competitive bids to supply SVAC-compliant video surveillance camcorders and systems to Maoming City in Guangdong Province valued at RMB 10 million and Lanzhou City in Gansu Province valued at RMB 20 million, with estimated aggregated contract value of RMB 30 million, or USD 4.8 million approximately.

"We are pleased to announce winning of two competitive bids from Maoming of Guangdong Province and Lanzhou of Gansu Province, demonstrating the expansion of our SVAC adoption territory into two more provinces. China's SVAC (Surveillance Video and Audio Coding) national video surveillance technology standard, promulgated in 2011, was co-developed by Vimicro and The First Research Institute of Ministry of Public Security of China. In early 2014, Guangdong province was officially selected as the lead demonstration of provincial-wide adoption of SVAC national standard. Maoming's competitive bid winning is a prelude to a stream of SVAC projects to be carried out by various cities and districts in Guangdong within the next 12 to 18 months," commented Dr. John Deng, Vimicro's Chairman and CEO. "Riding on the megatrend of SVAC national standard adoption across China, Vimicro will leverage its first-mover advantages based on its proprietary multimedia IC technology to further penetrate a wider array of geographic areas and industries, to create long-term value for our shareholders."

BEIJING, June 26, 2014 /PRNewswire/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading video surveillance technology and solution provider, today announced that its joint venture, Shanxi Zhongtianxin Science and Technology Co., Ltd. (Zhongtianxin), has won two contracts to provide SVAC-compliant video surveillance products and systems for traffic control in Taiyuan City, aggregated to USD 14.21 million approximately.

Zhongtianxin is a 51% joint venture owned by Vimicro, and 49% owned by Shanxi Guoxin Investment Co., a state-owned investment company of Shanxi Province. One contract is to cover 28 streets of video surveillance valued at RMB 76.68 million, orUSD 12.37 million approximately, with the other covering 3 streets valued at RMB 11.42 million, or USD 1.84 million approximately. SVAC is China's national video surveillance technology standard, standing for Surveillance Video and Audio Coding, promulgated in May 2011.

"We are pleased to announce two contract wins to supply SVAC-compliant video surveillance products for traffic control in Taiyuan. As one of the only two co-leading developers of China's SVAC national standard and the only SVAC technology and solution provider, Vimicro is working with various cities in Shanxi to roll out SVAC-compliant video surveillance systems for public security in an orderly manner. Along with this orderly roll-out, we are also seeing a great opportunity of SVAC adoption in other sectors and applications in these cities, such as traffic control and commercial use. The two contract wins is a validation of this opportunity captured in expanded SVAC adoption to other sectors," commented Dr. John Deng, Vimicro's Chairman and CEO. "We will continue to leverage our first-mover advantages in China's SVAC national standard adoption to further penetrate China's video surveillance market, from both geographic and sector perspectives, to create long-term value for our shareholders.".

First-Quarter 2014 Financial Results

• Net revenue in the first quarter of 2014 was $16.4 million, as compared to net revenue of $7.9 million in the year-ago quarter and $21.4 million in the fourth quarter of 2013.
• non-GAAP net loss attributable to Vimicro International Corporation was $3.3 million, or approximately $0.14 per ADS on a diluted basis, as compared to a non-GAAP net loss attributable to Vimicro of $2.2 million, or $0.08 per diluted ADS in the year-ago quarter.

Dr. John Deng, Vimicro's Chairman and Chief Executive Officer, commented, "We are pleased with our results in the first quarter of 2014, which demonstrate continued strong growth in our core Surveillance Solutions Products business line. As a co-leading developer of China's national SVAC (Surveillance Video and Audio Coding) video surveillance technology standard, Vimicro is benefiting greatly from the central government's push for nationwide SVAC adoption at the provincial and municipal levels, while remaining fully committed to expanding the application of SVAC across different industries. Our strategic alliance with State Grid Hunan Electric Power Corporation is a strong testament of our progress in this aspect. Looking ahead, we expect to receive another sizable SVAC order later this quarter, as well as participate in the large upcoming SVAC demonstration in Guangdong province in a significant way in the second half of this year, as we continue to expand beyond the strong base of cities and provinces we established last year with new orders and geographies to capitalize on the fast-growing market for SVAC products."

Business Outlook

For the second quarter of 2014, the Company continues to expect total revenues of $19 million to $21 million, as compared to revenues of $11.1 million in the second quarter of 2013.

BEIJING, May 27, 2014 /PRNewswire/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading video surveillance technology and solution provider in China, today announced that the Company has signed a strategic alliance agreement with State Grid Hunan Electric Power Corporation to jointly develop video surveillance applications and systems for the electric power industry based on China's national SVAC (Surveillance Video and Audio Coding) video surveillance technology standard.

Dr. John Deng, Vimicro's Chairman and CEO, commented, "We are pleased to form this strategic alliance with the State Grid Hunan Electric Power Corporation, which is a testament of the adoption of the SVAC national video surveillance technology standard by China's electric power industry. As a co-leading developer of China's SVAC national standard, Vimicro has continued this leadership in China's fast growing security and surveillance market, leveraging our proprietary multimedia processor technology. Given heightened concerns for public security in China and the central government's push for the nationwide adoption of this national standard, Vimicro will continue to benefit from the accelerated adoption of SVAC-compliant video surveillance products by a growing number of provinces and industries. We also aim to further leverage our first-mover advantage and brand recognition in China's marketplace in order to create long-term value for our shareholders," concluded Dr. Deng.

Fourth-Quarter 2013 Financial Results

• Net revenue in the fourth quarter of 2013 was $21.4 million, as compared to net revenue of $18.8 million in the year-ago quarter
• Non-GAAP net loss attributable to Vimicro International Corporation was $0.8 million, or approximately $0.03 per ADS on a diluted basis, as compared to a non-GAAP net income from continuing operations attributable to Vimicro of $2.6 million, or a net income of $0.08 per diluted ADS in the year-ago quarter.

Business Outlook for the First and Second Quarters of 2014

For the first quarter of 2014, the Company continues to expect total revenues of $15 to $17 million, as compared to revenues of $7.9 million in the first quarter of 2013.

For the second quarter of 2014, the Company expects total revenues of $19 to $21 million, as compared to revenues of $11.1 million in the second quarter of 2013.

BEIJING, April 28, 2014 /PRNewswire/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading video surveillance technology and solution provider in China, today announced the appointment of Mr. Peter Li as Chief Financial Officer and Vice President of Finance, effective April 30, 2014.

Mr. Li is an experienced chief financial officer and management professional, with more than twenty years' experience working with NASDAQ-listed and other technology companies. Before joining Vimicro, he served as CFO of Hollysys Automation Technology, a NASDAQ-listed provider of automation and control applications in China. Before that, he was a director and partner of CS China Acquisition Corporation, an acquisition company that completed an initial public offering, also on the NASDAQ. Prior to that, Mr. Li served as CFO of Yucheng Technologies, a NASDAQ-listed IT service provider to the banking industry in China. He earned a master's degree in Educational Administration from the University of Toronto and a B.A. from Beijing's Foreign Studies University. He is also a Certified General Accountant (CGA) in Canada.

"We are very excited to have Peter join Vimicro team, and we look forward to benefiting from his substantial experience as CFO at NASDAQ listed companies in the areas of corporate financial management and reporting, internal controls, M&A, capital markets, and maintaining strong relationships with investors as Vimicro continues to expand its presence in China's security and surveillance market at an accelerated pace. We believe Peter's strong track record of shareholder value creation will be a great asset for Vimicro's growth strategy going forward," commented Dr. John Deng, Chairman and CEO of Vimicro.

Mr. Peter Li noted, "I am honored to be part of Vimicro team and excited by its growth prospects in China's fast-growing surveillance market.  Dr. Deng and his team have demonstrated both vision and persistence in successfully transforming Vimicro into a surveillance-solution provider with proprietary technology and defining the national standard. I look forward to the challenge of leading Vimicro in communicating its story with investors, while growing the company and increasing long-term shareholder value."

BEIJING, April 21, 2014 /PRNewswire/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading video processing IC and surveillance solution provider, today announced that the Company signed an agreement regarding SVAC-compliant chips with the First Research Institute of the Ministry of Public Security. The signing ceremony was held on April 18 in Beijing and was attended by: Party Secretary Mr. Wang Gang, Director Mr. Qiu Baoli, Deputy Director Ms. Chen Zhaowu, etc. of the First Research Institute of Ministry of Public Security; Vimicro's CEO, Dr. Zhonghan (John) Deng, and the President Mr. Zhaowei (Kevin) Jin.

The SVAC (Surveillance Video and Audio Coding) surveillance standard represents one of the most important achievements in the field of security and surveillance monitoring and it is the only codec specifically designed for security surveillance needs. SVAC was promulgated in 2011 as a national standard, and it was initiated and co-developed by the First Research Institute of the Ministry of Public Security and Vimicro, under the leadership of the Ministry of Public Security and the Ministry of Industry and Information Technology, with the goal of ensuring national safety and security. To-date, SVAC has been implemented in Shanxi and Hebei provinces and in other regions to provide public security, urban management, and in other large-scale industrial applications. Recently, the Ministry of Public Security selected Guangdong Province as the first province for a national SVAC standard demonstration running through October 2014, along with video collection points funded by Guangdong provincial government, which together will comprise a uniform implementation of the SVAC national standard.

With SVAC's mature technology and increasing recognition, the total surveillance market is at approximately 300 billion Yuan (approximately USD $50 million) in 2012 and is estimated to be growing at an annual growth rate of approximately 20%. The close cooperation between Vimicro and First Research Institute of the Ministry of Public Security will continue to develop future SVAC national standards with the respect to core chips, safety programs, promotions, and other system features, which will benefit from both parties' common resources, common strengths, and the promotion of development of future SVAC-compliant products, as well as system applications and industrial processes using video surveillance. Moreover, SVAC sets an example for the cooperation between government and industry on the development of national standards, the promotion of domestic high-tech industries, and the achievement of major successes.

BEIJING, March 3, 2014 /PRNewswire/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading video processor and surveillance solution provider, today updated its guidance for the fourth quarter of 2013 and provided guidance for the first quarter of 2014.

The Company now expects total revenues of $21 to $22 million in the fourth quarter of 2013, versus previous guidance of total revenues of $13.5 to $15.5 million and a backlog of $20 million. This updated revenue figure includes a portion of the $20 millionbacklog; the remainder of the backlog will be applied during the first and second quarters of 2014.

In addition, the Company expects revenues of $15 to $17 million in the first quarter of 2014, as compared to $7.9 million in the first quarter of 2013.

BEIJING, December 19, 2013 /PRNewswire/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading video processing IC and surveillance solution provider, today announced that it has entered into a purchase and sale agreement (the "Agreement") with General Atlantic investment funds ("General Atlantic") to repurchase ordinary shares and ADSs (the "Securities") held by General Atlantic. The Securities owned by General Atlantic represent 19.6% of the Company's outstanding shares as of the date of the Agreement.

The Company agreed to repurchase an aggregate of 18,531,786 ordinary shares at a price of US $0.4925 per share and 1,000,934 ADSs at a price of US $1.97 per ADS held by General Atlantic pursuant to the Agreement. The total consideration for the transaction is approximately US$11.1 million, which will be funded from the Company's working capital. The ADSs and ordinary shares subject to the Agreement represent the entire equity interest held by General Atlantic in the Company as of the date of the Agreement. The transaction is comprised of two tranches, with the first tranche closing on the date of the Agreement and the second tranche closing no later than January 31, 2014. The prices of the ordinary shares and ADSs for the second tranche may be subject to adjustment if the closing occurs afterJanuary 15, 2014.

BEIJING, December 11, 2013 /PRNewswire/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading video processing IC and surveillance solution provider, today announced that its subsidiary Shanxi Zhongtianxin Science and Technology Co., Ltd. has received an order for a SVAC (Surveillance Video and Audio Coding)-based technology solution, valued at nearly USD $41 million, of which Vimicro will receive approximately $16 million.

The subsidiary received the order from the Baoding Public Security Bureau for a city-wide SVAC-based surveillance network project in Baoding city in Hebei province. The network is being installed for security, surveillance, and traffic monitoring. The system will be comprised of several thousand video surveillance stations, and the project represents the first phase of a multiyear deployment and includes equipment and installation. Deployment will commence in the fourth quarter of 2013.

The project will feature SVAC technology, which is a core standard for video surveillance in China, co-developed by Vimicro and the Ministry of Public Security, along with contributions from more than 40 scientific research institutes, universities, and security-industry companies. For the past two years, Vimicro has installed many SVAC test sites across China and recently completed a successful field-trial of the SVAC standard.

"We are pleased to receive this large SVAC solution order from Baoding City, which represents our first major deployment in Hebei province," commented Dr. John Deng, Vimicro's Chairman and Chief Executive Officer. "This order marks the continuing acceptance of SVAC and validation of Vimicro's capabilities as we expand throughoutChina."

Third-Quarter 2013 Financial Results

• Net revenue in the third quarter of 2013 was $24.2 million, as compared to net revenue of $21.7 million in the year-ago quarter and $11.1 million in the second quarter of 2013.
• Income/(loss) per ADS basic and diluted was $0.06 vs. last years quarter of $0.04

Dr. John Deng, Vimicro's Chairman and Chief Executive Officer, commented, "We were pleased to see a return to year-over-year revenue growth and profitability in the third quarter, primarily due to strong performance from our surveillance business, which more than offset lower sales to our global PC manufacturer customers. At the end of the third quarter, we received a sizable surveillance order, which marks Vimicro's expansion into Sichuan province. We look forward to seeing continuing momentum as we receive additional large orders and expand geographically."

Business Outlook

For the fourth quarter of 2013, the Company expects revenues of $3.5 to $4.5 million for its PC and notebook image processor business line. For the surveillance business, the Company expects to report at least $9 to $11 million of revenue from completed projects and also expects to report additional revenue from several new orders with a total value of approximately$20 million currently being executed over the next couple of quarters.

BEIJING, September 30, 2013 /PRNewswire/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading video-processing IC and surveillance solution provider, today announced that its subsidiary Vimicro Electronics Corporation ("ZXDZ") has received an order for a SVAC (Surveillance Video and Audio Coding)-based technology solution, valued at approximately USD $9 million.

ZXDZ placed a successful bid for a city-wide surveillance network project in Ziyang city in Sichuan province, which will be based on SVAC and deployed in cooperation with China Unicom. The network is being installed for the assurance of public security, and total spending on the project will be approximately $14.5 million, of which around$9 million will be contracted to ZXDZ. The system will be comprised of hundreds of video surveillance stations installed in the city, and the project is expected to be completed by the end of the calendar year. This project represents the first phase of a larger installation in Ziyang city and in the surrounding county.

The project will feature SVAC technology, which is a core standard for video surveillance in China, co-developed by Vimicro and the Ministry of Public Security along with contributions from more than 50 scientific research institutes, universities, and security-industry companies. During the past two years, Vimicro has installed several SVAC test sites across China and recently completed a successful field-trial of the SVAC standard.

"We are pleased to have been selected to provide this major video-surveillance system in Ziyang city in Sichuanprovince. This project represents the first safe-city project in Sichuan province to fully adopt the SVAC technology standard, and it also marks SVAC's geographic adoption beyond Shanxi province," commented Dr. John Deng, Vimicro's Chairman and Chief Executive Officer. "The project is another key validation of the national video surveillance standard and of Vimicro's technology and capabilities, as the SVAC test sites we have deployed throughout China are now turning into substantial orders."

Second-Quarter 2013 Financial Results

• Net revenue in the second quarter of 2013 was $11.1 million, as compared to net revenue of $19.5 million
• Gross profit in the second quarter was $4.2 million, as compared with $7.1 million in the year-ago quarter and $1.6 million in the first quarter of 2013.
• Non-GAAP net loss attributable to Vimicro International Corporation was $5.5 million, or approximately $0.19 per ADS on a diluted basis, as compared to a non-GAAP net income from continuing operations attributable to Vimicro of $1.1 million, or $0.04 per diluted ADS in the year-ago quarter. Non-GAAP net loss attributable to Vimicro International Corporation in second quarter of 2013 and the year-ago quarter excludes $0.1 and $1.1 million of non-cash, share-based compensation, respectively. GAAP net loss attributable to Vimicro in the second quarter was $5.7 million, or $0.20 per diluted ADS, as compared to a profit from continuing operations of approximately $30,000, or $0.00 per diluted ADS in the year-ago quarter.

Dr. John Deng, Vimicro's Chairman and Chief Executive Officer, commented, "Revenues from sales of PC and notebook multimedia processors decreased sharply year-over year due to the ongoing softness of the global PC market and a decline in orders from a major PC-manufacturer customer. We were pleased to see growth in sales of surveillance products, and we are extremely pleased about the large order we received after the quarter's end. This order will make surveillance our largest business line and complete the transformation of the Company that we started two and a half years ago. We look forward to receiving additional surveillance orders as we grow and expand geographically."

Business Outlook

For the third quarter of 2013, Vimicro expects revenues of $23 to $26 million, with strong growth in the surveillance segment.

BEIJING, July 25, 2013 /PRNewswire-FirstCall/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading image processing IC and surveillance solution provider, today announced that it has commenced the deployment of a technology solution based on SVAC (Surveillance Video and Audio Coding) and that its Zhongtianxin Science and Technology Co., Ltd. ("ZTX") joint venture has received a large order for SVAC-based video surveillance products and solutions, valued at approximately USD $20 million.

ZTX has signed an agreement with the Public Security Bureau of a large Chinese city for the first phase of a major video-surveillance system, to be installed along highways, sidewalks, and at key public facilities. The project will be completed in three stages-analysis and work allocation, project implementation, and system test-which are expected to be completed during the next two months. The city government's plan calls for the implementation of a large-scale SVAC-based surveillance system over the next three years.

The project will feature SVAC technology, which is a core standard for video surveillance in China, co-developed by Vimicro and the Ministry of Public Security, along with contributions from more than 40 scientific research institutes, universities, and security-industry companies. For the past two years, Vimicro has installed many SVAC test sites across China and recently completed a successful field-trial of the SVAC standard.

"We are pleased to have been selected as the primary technology and solution provider for this major video-surveillance system in a large Chinese city. This represents the first major citywide surveillance system employing our national SVAC technology standard," commented Dr. John Deng, Vimicro's Chairman and Chief Executive Officer. "This key project is a major validation of the SVAC standard and also of Vimicro's technology and capabilities and marks the start of a wave of SVAC deployment."

First-Quarter 2013 Financial Results

• Net revenue in the first quarter of 2013 was $7.9 million, as compared to net revenue of $18.8 million in the fourth quarter of 2012 and $11.1 million from continuing operations in the year-ago quarter 
• Gross profit in the first quarter was $1.6 million, as compared with $3.6 million in the year-ago quarter.  The gross margin in the first quarter was 20.1%, as compared with 32.2% in the year-ago quarter and 37.7% in the fourth quarter of 2012. 
• Non-GAAP net loss attributable to Vimicro International Corporation was $2.2 million, or approximately$0.07 per ADS on a diluted basis, as compared to a non-GAAP net loss from continuing operations attributable to Vimicro of $3.1 million, or $0.09 per diluted ADS in the year-ago quarter. Non-GAAP net loss attributable to Vimicro International Corporation in both the first quarter of 2013 and the year-ago quarter excludes $0.2 million of non-cash, share-based compensation. GAAP net loss attributable to Vimicro in the first quarter was $2.4 million, or $0.08 per diluted ADS, as compared to a loss from continuing operations of $3.3 million, or $0.10 per diluted ADS in the year-ago quarter

Dr. John Deng, Vimicro's Chairman and Chief Executive Officer, commented, "The softness in the global PC market was followed by an industry-wide inventory correction, and first-quarter revenues in our image-processing IC business declined at a greater-than-seasonal rate.  We continue to work closely with our image-processing customers, and the business is expected to recover sometime this year. At the same time, we are pleased that our surveillance business delivered solid revenue growth in the first quarter.  Our team is currently pursuing some large contracts and deployments, which we expect to bring in significantly higher revenues in the second half."

Business Outlook

For the second quarter of 2013, Vimicro expects revenues of $12 to $14 million.

Fourth-Quarter 2012 Results

• Net revenues grew 14.0% to $18.8 million from $16.5 million from continuing operations in the year-ago quarter
• Gross profit in the fourth quarter was $7.1 million, as compared with $5.8 million in the year-ago quarter. The gross margin in the fourth quarter was 37.7%, as compared with 34.9% in the year-ago quarter and 38.0% in the third quarter.
• Non-GAAP net income attributable to Vimicro International Corporation was $2.6 million, or approximately $0.08 per ADS on diluted basis, as compared to a non-GAAP net loss from continuing operations attributable to Vimicro of $4.1 million, or $0.12per ADS in the year-ago quarter. Non-GAAP net income attributable to Vimicro International Corporation excludes $0.4 millionof non-cash, share-based compensation.

 Dr. John Deng, Vimicro's Chairman and Chief Executive Officer, commented, "In 2012, we saw the success of strategic decisions we made to refocus Vimicro on our surveillance business and streamline our cost structure. 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%. Vimicro has now established a solid financial foundation, upon which we can continue to invest in the development of SVAC-based products and which we expect to deliver future growth and profitability for our shareholders."

Business Outlook

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.

• Revenues increased 14.9% year over year to $21.7 million
• Surveillance revenues increased 45.4% year over year
• Gross margins increased more than six percentage points year over year to 38.0%
• Operating profit turned positive, at $1.5 million
• GAAP net income attributable to Vimicro turned positive, at $2.9 million, or $0.10 per diluted ADS

Third-Quarter 2012 Results

Net revenue in the third quarter of 2012 was $21.7 million, as compared to net revenue from continuing operations of $19.5 million in the second quarter and $18.9 million from continuing operations in the year-ago quarter. (Results for the third quarter of 2011 and the second and third quarters of 2012 have been adjusted for continuing operations to reflect the divestiture of certain business lines.) Third-quarter revenues were towards the upper end of the guidance range of $20 to $22 million. The 14.9% year-over-year revenue increase was due to higher sales in both product lines, reflecting successful execution of the Company's new focus.

Gross profit in the third quarter was $8.3 million, as compared with $6.0 million in the year-ago quarter.  The gross margin in the third quarter was 38.0%, as compared with 31.8% in the year-ago quarter and 36.5% in the second quarter, owing toa successful new product transition at key customers.

Operating expenses in the third quarter were $6.8 million, as compared to $11.3 million in the year-ago quarter.  Operating expenses decreased year-over-year and sequentially due to the success of the Company's divestiture of non-performing businesses and an increase in focus on its two business lines. The Company turned profitable on an operating basis, reporting operating income of $1.5 million, as compared to a loss of $5.3 million in the year-ago quarter.

Vimicro remained profitable on a non-GAAP basis in the third quarter, and non-GAAP net income from continuing operations attributable to Vimicro International Corporation was $2.9 million, or approximately $0.09 per ADS on diluted basis, as compared to a non-GAAP net loss from continuing operations attributable to Vimicro of $1.7 million, or $0.05 per ADS in the year-ago quarter.  The non-GAAP net income attributable to Vimicro International Corporation excludes $0.4 million of non-cash, share-based compensation.  In the third quarter, Vimicro turned profitable on a GAAP basis, reporting GAAP net income attributable to Vimicro of $2.9 million, or $0.10 per diluted ADS, as compared of a loss of $5.3 million, or $0.14 per diluted ADS year over year.

As of September 30, 2012, the Company had cash and cash equivalents of approximately $33.2 million and restricted cash of $5.2 million, totaling $38.4 million. Total current assets were approximately $91.8 million, and Vimicro had working capital of approximately $64.7 million, and $4.7 million of long-term bank loans on its balance sheet, as of September 30, 2012.

Dr. John Deng, Vimicro's Chairman and Chief Executive Officer, commented, "We are pleased to report such a strong quarter financially and particularly for our surveillance business, after several quarters during which the Company was transitioning to its current focus on image processing and surveillance.  Our reporting positive operating profit, continued non-GAAP profitability, and a return to positive GAAP net income in the third quarter shows that Vimicro's restructuring has been successfully completed. Our strong third-quarter results show the full benefits of the changes we made to increase our focus on our current product line.  Looking ahead, we believe the Company's turnaround will be reflected by the market as we keep delivering value to our shareholders."

Business Outlook

For the fourth quarter of 2012, Vimicro expects revenues of $20 to $23 million.

BEIJING, November 1, 2012 /PRNewswire-FirstCall/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading PC-camera processor and IP-based surveillance solution provider, today announced that its subsidiary Vimicro Electronics Corporation has secured a major government purchase contract (the "Contract") from the Jinzhong City Public Security Bureau of Shanxi province to provide Surveillance Video and Audio Coding (SVAC)-based security surveillance products and services (the "Project").

Vimicro Electronics Corporation, together with local partners, including Jinzhong Broadcast and TV Network Co., Ltd., will develop the Project. Vimicro Electronics Corporation will supply the products and services for the Project, including key video surveillance-related hardware and software. Vimicro Electronics Corporation's portion of the contract value will be US $6.23 million (RMB 39.49 million), out of a total contract value of US $13.1 million (RMB 82.5 million), which will be shared by all partners. Work on the Project is expected to be completed by the end of February 2013.

"We are pleased to receive this significant contract from a local government entity," said David Tang, Chief Financial Officer of Vimicro. "The award of this project shows that Vimicro's surveillance technology is achieving recognition by the market, especially by the important public security sector we are targeting. We look forward to working with our partners to implement a surveillance system centered on our SVAC-based products and services. The success of this implementation should enable Vimicro to secure additional surveillance contracts in the future."

BEIJING, November 1, 2012 /PRNewswire-FirstCall/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading PC-camera processor and IP-based surveillance solution provider, today announced that the Company recently received notification from the Nasdaq Stock Market of having regained compliance with the $1.00 minimum per-share closing bid-price requirement.

"We are pleased to be back in compliance with Nasdaq's requirements. The Company will keep focusing on our business of processors and surveillance solutions," commented David Tang, Chief Financial Officer of Vimicro. "Our team is enhancing the quality of our communication with investors so that they can better understand Vimicro's transition and our new strategic directions. Through these efforts, we hope to create and unlock additional value for our shareholders."

BEIJING, October 16, 2012 /PRNewswire-FirstCall/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading PC-camera processor and IP-based surveillance solution provider, today announced the return of Mr. David Tang as Chief Financial Officer, effective October 20, 2012 to replace Richard Wu, who is leaving the company for personal reasons. Separately, the Company announced the receipt of a notice from the NASDAQ Stock Market regarding compliance with the minimum $1.00 per share requirement for continued listing.

The Company is pleased to announce the return of David Tang to his prior role as Chief Financial Officer of Vimicro. Mr. Tang is an experienced financial professional, with extensive experience as the chief financial officer of Vimicro and other NASDAQ and Hong Kong-listed companies and as a Wall Street securities analyst. Most recently, he was active as an investor and as a managing partner of iFirst Capital LLC, a Shenzhen-based VC/PE firm. Before that, Tang served as Vice President and Chief Financial Officer of Vimicro from July 2008 to November 2010. Prior to that, he served as the Chief Financial Officer of CNinsure Inc. a NASDAQ listed company operating in China, and before that, Tang served as the Chief Financial Officer of IRICO Group and Chinasoft International, both Hong Kong-listed companies. Prior to those positions, he worked as an equity research analyst at Merrill Lynch & Co. in New York. Tang received an MBA degree from the Stern School of Business, New York University.

"I am pleased to welcome David back to Vimicro, and we look forward to benefiting from his experience gained as CFO of Vimicro and other listed companies. We believe that we will benefit from his good relationship with investors and his profound insight to our business development. David was instrumental in developing our strategy to enter the surveillance business and implemented many of the changes that today define our Company's transformation, accelerate the delivery of value to shareholders, and have launched the rapid expansion of our security-surveillance business. I would also like to thank Richard Wu for his service to the Company, and we wish him well in his future endeavors."

Separately, the Company has received a notification from the NASDAQ Stock Market, indicating that the minimum bid price of the Company's ADS has been below $1.00 per ADS for 30 consecutive business days and as a result, the Company is not in compliance with the minimum bid price requirement for continued listing set forth in NASDAQ Listing Rule 5450(a)(1). The NASDAQ notice has no immediate effect on the listing or trading of the Company's ADS. Under NASDAQ Listing Rule 5810(c)(3)(A), the Company has a grace period of 180 calendar days, or until April 8, 2013, within which to regain compliance with the minimum bid price rule. To regain compliance, the closing bid price of the Company's ADS must meet or exceed $1.00 per ADS for a minimum of ten consecutive business days during this 180-day grace period.

BEIJING, September 12, 2012 /PRNewswire-FirstCall/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading PC-camera processor and IP-based surveillance solution provider, today announced that the Company recently entered into a strategic cooperative agreement (the "Agreement") with Shanxi Guoxin Investment (Group) Corporation ("Guoxin Group"), the primary financial holding group of the Shanxi provincial government, to establish a subsidiary to develop, produce and market Surveillance Video and Audio Coding ("SVAC")-based security surveillance products and related video sensing and intelligence applications. This Subsidiary will be located in Taiyuan, the capital city of Shanxi province. The establishment of the new subsidiary, to be named Zhongtianxin Science and Technology Co., Ltd. (the "Subsidiary"), reflects Company's efforts to expand its security and surveillance business by cooperating with a state-owned enterprise in Shanxi Province.

Vimicro Corporation (a wholly-owned subsidiary of Beijing-based Vimicro International Corporation), Guoxin Group, and VMF Consulting Company will each make cash capital contributions of RMB 26 million, RMB 98 million and RMB 4 million, respectively, to the Subsidiary. In addition, Vimicro Corporation will also provide certain intellectual property, appraised at RMB 72 million by an independent third-party valuation firm, as part of its capital contribution to the Subsidiary. VMF Consulting Company is also assisting in the process of establishing the Subsidiary. Vimicro Corporation, Guoxin Group and VMF Consulting Company will each hold 49%, 49% and 2%, respectively, of the equity interests of the Subsidiary.

Both Vimicro and Guoxin Group have agreed to actively assist the Subsidiary in pursuing market opportunities, The Subsidiary will apply for preferential treatment from Shanxi provincial government after the incorporation of the Subsidiary, which should result in the attainment of substantial market share. Additional preferential treatment is expected to be received in terms of taxation, governmental subsidies, industry support and the grant of land-use rights.

Under the Agreement, Guoxin Group has committed to arrange financing of up to RMB 10 billion (US $1.6 billion) to roll out SVAC-based projects in Shanxi province and in other regions in China. As the cooperative partner of Shanxi province, the Subsidiary will have priority to act as the contractor for these projects and also provide SVAC products and services.

Vimicro's Audit Committee and the Board of Directors have reviewed and approved the transaction, including the proposed establishment of the Subsidiary.

"We are very excited about the formation of this strategic new subsidiary in Shanxi province," said Dr. John Deng, Chairman and CEO of Vimicro. "We look forward to working with our partners there to accelerate the roll-out of SVAC-based products and services, which will promote the growth of the high-tech economy in Shanxi province, strengthen our design capability, as well as promote the Company's IC businesses. The new subsidiary will focus on security-surveillance products and services, as well as developing relationships with security-surveillance customers. We believe the establishment of this Subsidiary will strengthen our ability to secure many attractive opportunities in Shanxi province for the benefit of Vimicro and its shareholders."

Second Quarter 2012 Results

• Net revenue in the second quarter of 2012 was $20.1 million, as compared to net revenue of $11.6 million in the first quarter and $14.2 million from continuing operations in the year-ago quarter.
• Vimicro returned to non-GAAP profitability in the second quarter, and non-GAAP net income attributable to Vimicro International Corporation was $729,000, or approximately $0.02 per ADS on diluted basis, as compared to a non-GAAP net loss attributable to Vimicro of $5.6 million, or $0.09 per ADS from continuing operations in the year-ago quarter.

Dr. John Deng, Vimicro's Chairman and Chief Executive Officer, commented, "We are pleased to report significantly improved results for the second quarter, in particular reporting positive cash flow from operations and returning to profitability on a non-GAAP basis. These results demonstrate the success of the decisions we have made to refocus and streamline our company. Revenue growth was solid across both segments, and we are particularly pleased with the 61% year-over-year growth in sales of surveillance solutions. We believe Vimicro has passed the turning point, and we look forward to stronger quarterly results throughout the remainder of the year, in particular for our surveillance business."

Business Outlook

For the third quarter of 2012, Vimicro expects revenues of $20 to $22 million.

First Quarter 2012 Results

• Net revenue in the first quarter of 2012 was $11.6 million, as compared to net revenue from continuing operations of $12.1 million in the first quarter and $16.4 million in the fourth quarter, both of 2011.
• The non-GAAP net loss attributable to Vimicro International Corporation, was $3.5 million, or approximately $0.10 per ADS, as compared to a loss attributable to Vimicro of $2.4 million, or $0.07 per ADS from continuing operations in the year-ago quarter.

Dr. John Deng, Vimicro's Chairman and Chief Executive Officer, commented, "In the first quarter, we began to see the early results of the business adjustments we have made over the past two years and the cost reductions we have put in place. Our PC/camera business has stabilized, and we are encouraged by growth in our surveillance business alongside the China Ministry of Public Security's endorsement of the SVAC standard. We believe China's "Safe City Projects" will adopt the SVAC standard with the Fuzhou Municipal Government being the first one."

Business Outlook

For the second quarter of 2012, Vimicro expects revenues to increase approximately 40% from the first quarter of 2012. As a result of the Company's continued cost reduction efforts, Vimicro expects a non-GAAP net loss attributable to Vimicro Corporation to be around $1.5 million for the second quarter of 2012.

BEIJING, June 7, 2012 /PRNewswire-Asia-FirstCall/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading PC-camera processor and IP-based surveillance solution provider, today announced that, as part of its efforts to develop and ramp-up its surveillance business, the Company recently entered into a strategic cooperative framework agreement (the "Agreement") with the local municipal government to jointly develop, produce, and market Surveillance Video and Audio Coding (SVAC)-based security surveillance products in Fuzhou, the capital city of Fujian province. The new venture will be named Fuzhou Vimicro. Mr. Raymond Zhang, Company's Chief Technology Officer, will be responsible for leading all business and development activities in Fuzhou Vimicro.

Under the terms of the Agreement, the Fuzhou municipal government has committed to provide several forms of support to Fuzhou Vimicro, and the main initiatives include:

• The Fuzhou government will award Vimicro "preferred supplier" status in the procurement of security surveillance-related products;
• All security surveillance projects installed in Fuzhou will be required to comply with the SVAC national standard. The SVAC standard was co-founded by Vimicro and the Ministry of Public Security and is one of the core required industry standards in the Ministry of Public Security's ("MPS") officially released technology requirements for video and audio-security digital-surveillance products;
• The Fuzhou municipal government will provide 3,000 square meters of land (equivalent to approximately 0.7 acres) to Fuzhou Vimicro for its research and manufacturing center, free of charge for the first two years; and
• The Fuzhou municipal government will also provide Fuzhou Vimicro with an interest-free loan of RMB 60 million (approximately $9.5 million) with a five-year term, in addition to a RMB 30 million (approximately $4.8 million) subsidy.

"We are very excited about the formation of this strategic partnership with the Fuzhou municipal government," said Dr. John Deng, Chairman and CEO of Vimicro. "The signing of this strategic cooperative agreement signifies an important step forward for our security surveillance business. We look forward to working closely with the Fuzhou government to effectively roll out our SVAC-based products and services in the region and generate meaningful economic benefits over time. The agreement also comprises just one part of our detailed plan to put capacity in place on a national scale ahead of an expected surge in demand, which will prove exciting for Vimicro and our investors."

BEIJING, May 23, 2012 /PRNewswire-Asia-FirstCall/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading PC-camera processor and IP-based surveillance solution provider, today announced preliminary results for the first quarter ended March 31, 2012 and provided financial guidance for the second quarter ended June 30, 2012.

For the first quarter ended March 31, 2012, Vimicro expects revenues of approximately $11 to $12 million. Due to the Company's restructuring efforts last year, the Company expects non-GAAP operating expenses to decline to approximately $9.32 million from $12.45 million in the year-ago quarter.

"Our first-quarter results reflect the restructuring efforts we completed in the fourth quarter of 2011, and the success of these efforts enables us to increase our focus on the PC-camera processor and IP-based surveillance businesses, as well as further streamline our cost structure going forward", commented Dr. John Deng, Vimicro's Chairman and CEO.

For the second quarter of 2012, Vimicro expects revenues to increase approximately 40% from the first quarter to $15-$17 million. As a result of the Company's continued cost reduction efforts, Vimicro expects a further reduced non-GAAP net loss attributable to Vimicro Corporation of less than $1.5 million.

Separately, the Company announced today it will conduct a conference call at 8:00 a.m. EDT on Wednesday, June 13, 2012 to discuss results for the fourth quarter ended December 31, 2011 and the first quarter ended March 31, 2012.

BEIJING, May 4, 2012 /PRNewswire-Asia-FirstCall/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading multimedia semiconductor and IP-based surveillance solution provider, today announced the completion of a block share-repurchase transaction. In the transaction, the Company repurchased 2.2 million ADSs from a shareholder for a total transaction value of $2.75 million, or $1.25 per ADS.

"We continue to believe that the current market price undervalues our stock and we welcome the opportunity to repurchase our shares in order to benefit the long-term interests of our Company and its shareholders. We will continue to repurchase shares under our $25 million repurchase program as practicable, in consideration of both current market conditions and our cash needs," commented Vimicro's Chairman and CEO, Dr. John Deng.

BEIJING, April 27, 2012 /PRNewswire-Asia-FirstCall/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading multimedia semiconductor and IP-based surveillance solution provider, today announced the signing of a strategic cooperative agreement (the "Agreement") with Tianjin Samsung Techwin Opto-Electronic Co., Ltd. outlining broad-based cooperation in the areas of technology, products, and business development. Tianjin Samsung Techwin Opto-Electronics Co., Ltd. ("Samsung") is a joint venture that was founded by Samsung Techwin Co., Ltd. and Tianjin Zhonghuan Electronic Information Group in 2008.

Through this strategic partnership, Vimicro and Samsung will engage in comprehensive cooperation, collaborating both domestically and internationally on technology, products, and business practices, as well as jointly developing products for the China security surveillance market. For example, the companies will jointly focus on improving sales of Samsung's front-end surveillance equipment and Vimicro's ViSS large-scale video surveillance platform and NVR bulk-storage network video storage and management platform.

According to the Agreement, Samsung and Vimicro will improve the compatibility of their respective existing network-based surveillance products and jointly develop new functions with broader compatibility. In terms of technology and product development, Samsung will primarily focus on front-end surveillance equipment and Vimicro will primarily focus on security surveillance system platform development.

"We are pleased to have established this important strategic partnership with Samsung," said Mr. Jiaowei (Kevin) Jin, Vimicro's President and Chief Operating Officer. "By leveraging Samsung's world-class technology and R&D capabilities along with our domestic leading market position, we look forward to developing even more-advanced security surveillance products and integrated solutions for our industry clients, as well as expanding the Chinese security surveillance market.

BEIJING, April 6, 2012 /PRNewswire-Asia-FirstCall/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading multimedia semiconductor and IP-based surveillance solution provider, today announced that the Company signed an agreement for a $29.5 million (RMB 186 million) asset-backed loan with China Construction Bank ("CCB") on March 28, 2012.

The loan has a 5-year term with an annualized variable interest rate equal to 105% of the benchmark lending rate designated by the People's Bank of China (currently 6.9%). Under the terms of the loan agreement, the proceeds will be used to fund the research and development of SVAC (The Surveillance Video and Audio Coding) project, including the construction and outfitting of an R&D facility. The first disbursement of RMB 30 million has already been transferred to the Company.

"We are pleased to enter this loan agreement with China Construction Bank," stated Mr. Kevin Jin, Vimicro's President and Chief Operating Officer. "The SVAC Project is a key project for Vimicro's future growth and development in the domestic surveillance market. With this timely financial support, we are confident that we can successfully and efficiently complete the project's construction. We will strictly honor our commitments to CCB and look forward to making the SVAC Project a key driver for Vimicro's future growth."

Third Quarter 2011 Results

• Net revenue in the third quarter of 2011 decreased by 4.8% compared with $23.2 million in the third quarter of 2010.
• The non-GAAP net loss attributable to Vimicro International Corporation, excluding $0.6 million in share-based compensation, was $4.7 million, or approximately $0.13 per ADS, compared to a loss of $5.6 million, or $0.15 in the prior quarter.

Dr. John Deng, Vimicro's Chairman and Chief Executive Officer, commented, "We are pleased to see strong sequential revenue growth in the third quarter revenue, exceeding our guidance. The sequential revenue growth in the third quarter was driven by strength in both our surveillance and PC/notebook businesses. At the same time, we held operating expenses nearly flat due to our cost-saving initiatives and controls. In the fourth quarter, we expect stability in our PC/notebook business and higher sales of our surveillance solutions. We are close to announcing a major restructuring that will refine our focus on our core PC/notebook and surveillance businesses with the goal of reaching breakeven in 2012."

We expect that our net working capital requirements will increase as we offer longer payment terms to attract and retain large customers, including customers for our mobile phone multimedia processors and security and surveillance products. We plan to fund the increase in working capital requirements from our operating cash inflow and existing cash reserve.

We will require additional working capital to support our long-term business plan, which includes identifying suitable targets for horizontal or vertical mergers or acquisitions, fulfilling the agreements with general contractors or government agencies to provide the products and services for security and surveillance projects, constructing our office buildings with co-developers, in order to enhance our overall productivity and benefit from economies of scale. Our working capital requirements and the cash flow provided by future operating activities, if any, will vary greatly from quarter to quarter, depending on the volume of business during the period and payment terms with our customers. We may not be able to obtain adequate levels of additional financing, whether through equity financing, debt financing or other sources.

BEIJING, Jan. 1, 2010 /PRNewswire-Asia-FirstCall/ -- Vimicro International Corporation today announced it has entered into definitive business restructuring agreements to divest certain non-core business lines and land use rights as part of its previously announced cost control initiatives. The Company expects this divestiture of loss generating businesses and undeveloped assets to improve its operating performance and financial strength, further enabling Vimicro to focus resources on its new growing surveillance business.