Vimicro International Corp tumbles on Q1 loss

Shares of Vimicro International Corp. (Nasdaq: VIMC) tumbled 12.14%, or $0.85, to $6.15 in after-hours trading Thursday, after the fabless semiconductor company reported a loss for the first quarter of 2007 after the close.

 For the three months ended March 31, 2007, the Chinese company recorded a Non-GAAP loss of $0.07 per ADS compared with earnings per ADS of $0.12 in the first quarter of 2006. Non-GAAP net income in the first quarter was a loss of $2.5 million compared with net income of $4.5 million in the first quarter of 2006.   

According to Reuters, analysts on average were expecting earnings of $0.01 per ADS for the first quarter.

“There is no doubt that Vimicro has experienced its share of challenges over the past quarter,” said Dr. John Deng, Chairman and CEO of Vimicro. “

The company cited a number of factors that impacted its first quarter results including a longer than expected delay in the release of Microsoft's Vista Operating System, the seasonality resulting from an overall business slowdown associated with the Chinese New Year Holiday as well as pricing pressure within some of its product lines.

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