The shares of Vimicro International Corporation (ADR) (NASDAQ:VIMC) witnessed steep increase in share prices after the company won a major government contract. Shares of the company rose 8.75% to close at $9.94, although the shares slipped 4 cents in the after-hours trade.
The video surveillance company along with Shanxi Zhongtianxin Science and Technology Co. Ltd. secured contract worth $12.4 million under which they would provide Taiyuan Traffic Police Department with SVAC-compliant cameras for video surveillance along with associated systems. Vimicro International Corporation (ADR) (NASDAQ:VIMC) plans to complete the project earlier next year.
Dr. John Deng, CEO and chairman of Vimicro International Corporation (ADR) (NASDAQ:VIMC), said,
“We are pleased to have won this contract to supply our SVAC-compliant video surveillance products and system to the Traffic Police Detachment of Taiyuan, following our successful implementation of Phase I of Tiawang. This contract win validates further adoption of SVAC national video surveillance standard from public security video surveillance system to local traffic control monitoring in Shanxi Province.”
This is not the only good news for investors as the company is likely to win Phase II Tiawang for Taiyuan City in Shanxi Province. The joint venture of Vimicro and Shanxi Zhongtianxin Science and Technology Co. Ltd. has secured revolving credit line of $65 million from CITIC Bank in Taiyuan. It will allow company to have sufficient funds for its future expansion in Hebei and Shanxi.
In the meanwhile, the shares of Vimicro International Corporation (ADR) (NASDAQ:VIMC) reached as high as $11.66 in its initial trading session yesterday. This has been an extraordinary year for the video surveillance company as its shares have risen nearly 415% year-to-date. The company is likely to follow the growth graph after the announcement for Phas II Tiawang for Taiyuan City.
This article has been written by Prakash Pandey.