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SOURCE Vimicro International Corporation
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, or USD 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.".
About Vimicro International Corporation
Vimicro International Corporation (NASDAQ: VIMC) is a leading video surveillance technology and solution provider that designs, develops and markets a full range of video surveillance products and solutions to governments, private enterprises, and consumers in China. Vimicro co-developed SVAC (Surveillance Video and Audio Coding), the national video surveillance technological standard, which demonstrates its unique strengths in proprietary multimedia IC technology, making it a leader in China's fast-growing security and surveillance market. Vimicro is headquartered in Beijing, China and has subsidiaries and offices throughout China and in Silicon Valley. Vimicro's ADSs each represent four ordinary shares and are traded on the NASDAQ Global Market exchange under the ticker symbol "VIMC."
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things, the quotations from management in this announcement, as well as Vimicro's expectations and forecasts, contain forward-looking statements. Vimicro may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on forms 20-F and 6-K, etc., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Vimicro's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company's ability to develop and sell new mobile multimedia products; the expected growth of the mobile multimedia market; the Company's ability to increase sales of notebook camera multimedia processors; the Company's ability to retain existing customers and acquire new customers and respond to competitive market conditions; the Company's ability to respond in a timely manner to the evolving multimedia market and changing consumer preferences and industry standards and to stay abreast of technological changes; the Company's ability to secure sufficient foundry capacity in a timely manner; the company's ability to effectively protect its intellectual property and the risk that it may infringe on the intellectual property of others; and cyclicality of the semiconductor industry. Further information regarding these and other risks is included in Vimicro's annual report on Form 20-F filed with the Securities and Exchange Commission. Vimicro does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release is as of the date hereof, and Vimicro undertakes no duty to update such information, except as required under applicable law.
Mr. John Harmon, CFA, VP of Investor Relations
Phone: +86 (186) 1151 1730 (Beijing)
Ms. Daisy Wang, IR Manager
Phone: +8610-5884-8898 Ext: 3036
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