Vimicro (NASDAQ-VIMC) Q4-2012 Update part 2

Thu, 2013-05-09

application/pdf iconvimc-fy2012-results-follow-up-report-2013-05-09.pdf

Title: Vimicro (NASDAQ-VIMC) Revised 2013 forecast; maintain Overweight and revised target price to US$1.85 (31.2% upside)

Synopsis: Following our latest Q4-2012 earnings report, we have now revised our outlook of Vimicro’s growth potential, particularly in the security and surveillance segment. We were slightly aggressive on the short-term growth prospect by underestimating the time between signing of the sales contract and recognition of revenues in addition to typical seasonality. We have thus revised our sales forecast for the security and surveillance segment to US$4.6 million for Q1-2013 (down from US$6.9 million in the original estimate from our Q3-2012 report dated November 8, 2012) and US$32.8 million for FY2013 (up from US$31.1 million in the original estimate). Long-term outlook remains promising despite short-term slowdown in multimedia IC segment. 2013 growth driver will be the security and surveillance segment.

Report length: 6 pages (excluding legal disclaimer)

Miller Chu
Peter Fang, CFA