Vimicro International Corporation announced financial results for the first quarter ended March 31, 2015. Net revenue was $19.2 million, as compared to net revenue of $16.4 million in the year-ago quarter and $32.4 million in Q4 2014.
Article continues below
Surveillance revenues were $16.7 million in the first quarter, representing 86.9% of total net revenues and up 41.3% year over year. Gross profit in the first quarter was $7.7 million, as compared with $5.5 million in the year-ago quarter and $13.6 million in the fourth quarter of 2014.
The gross margin in the first quarter was 40.1%, as compared to 33.7% in the year-ago quarter and 42.0% in the fourth quarter of 2014.
Operating expenses in the first quarter of 2015 were $7.6 million, as compared to $8.6 million in the year-ago quarter and $8.5 million quarter over quarter.
Research and development expenses were $1.9 million for the first quarter net of $3.1 million government grants applied (research and development expenses would have been $5 million without government grants for the quarter), as compared to $3.9 million year over year and $2.2 million quarter over quarter.
Sales and marketing expenses were $2.3 million for the first quarter, as compared to $2.4 million year over year and $3.3 million quarter over quarter. General and administrative expenses were $3.4 million in the first quarter, as compared to $2.4 million year over year and $3 million quarter over quarter.
The increase of general and administrative expenses was mainly due to bad debt expense of $0.4 million approximately recognized during the quarter.
Operating income was $0.2 million in the first quarter of 2015, as compared to the operating loss of $3.1 million in the year-ago quarter and the operating income of $5.1 million quarter over quarter.
The equity in loss of an equity investee was $0.5 million in the first quarter of 2015, as compared to the equity in profit of an equity investee of $0.4 million year over year and $0.9 million quarter over quarter.
Net income attributable to non-controlling interests was $1.5 million in the first quarter of 2015, as compared to $0.1 million year over year and $4.4 million quarter over quarter.
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.
Non-GAAP net loss attributable to Vimicro in the first quarter of 2015 and the year-ago quarter excludes $0.4 million and $0.2 million of non-cash, share-based compensation, respectively. GAAP net loss attributable to Vimicro in the first quarter was $2 million, or $0.07 loss per diluted ADS, as compared to net loss of $3.5 million, or $0.14 loss per diluted ADS, in the year-ago quarter.
As of March 31, 2015, the company had cash and cash equivalents of approximately $58 million. Total current assets were approximately $227.1 million, and Vimicro had working capital of approximately $88.0 million and $23.8 million of long-term bank loans and liabilities on its balance sheet as of March 31, 2015. ■