The growing demand for mobile, multimedia content and communications has led to advances in hardware and software technology enabling sophisticated functions to be incorporated into electronic products, such as PCs, mobile phones, home entertainment systems and other devices. Knowledge at your fingertips has been so attractive to consumers that it has sparked massive demand for multimedia-enabled PCs and mobile phones. Vimicro enables multimedia applications for mobile phones over 2.5G/3G networks and PCs over broadband Internet.
Vimicro’s Board of Directors approved a stock repurchase plan by which Vimicro may repurchase up to $25 million of its American Depository Shares (ADSs). The transactions will be made at prices the Company deems to be attractive and may be made in the open market or in privately negotiated transactions as permitted by and in accordance with the applicable law, including Rule 10b-18 under the U.S. Securities Exchange Act of 1934. The plan does not obligate Vimicro to acquire any particular number of ADSs, may be suspended at any time at Vimicro’s discretion and is subject to a number of factors including market conditions and applicable legal requirements.
Third quarter preliminary results look promising as well. For the three months ended September 30, 2008 the Company expects net revenue to be approximately $ 24.9 million, which is at the high-end of the Company’s previously announced guidance range of $21 million to $25 million. The Company also announced that for the third quarter of 2008 it expects a non-GAAP net income of approximately $0.3 million.
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