PR Newswire Asia, 7/30/11
Beijing-based fabless semiconductor firm Vimicro (Nasdaq: VIMC) today announced financial results for the first quarter of 2011 ended March 31, 2011.
Net revenue in the first quarter of 2011 was USD 13.0 mln, compared to USD 18.9 mln in the first quarter of 2010 and USD 24.4 mln in the fourth quarter of 2010. (Figures from prior periods have been restated to account for discontinued operations following the divestiture of non-core IC businesses in December 2010.) The 30.9% year-over-year revenue decrease was due to a product transition to a higher-performance, lower-cost chip in Vimicro's PC/notebook business, a decline in mobile multimedia processor demand from specific carriers, and a combination of seasonal factors, including the Chinese New Year holiday, offset by a significant increase in surveillance revenue. In the mobile multimedia processor business, Vimicro experienced a sharp sequential and year-over-year revenue decline, which was mainly due to lower orders received from carrier customers and technology trends favoring the integration of multimedia functions into the baseband processor, rather than using a separate multimedia-processor chip.
Net loss in the first quarter was USD 7.9 mln, as compared to USD 6.4 mln in Q1 2010.
In the second quarter of 2011, revenues are expected to be approximately USD 14 to USD 16 mln. The sequential increase in revenues in the second quarter is expected to be driven by growth in the PC/notebook processor and the surveillance business.
Vimicro also announced that it will release its Q2 2011 financial results on August 8.
To view Vimicro's full earnings report, please click here.