NEW YORK (TheStreet) -- Vimicro International (VIMC) was soaring 39.83% to $4.14 at 11:46 a.m. EST on Monday after the Chinese fabless chip company updated its fourth-quarter guidance for the fiscal year 2013 and first-quarter guidance for the fiscal year 2014.
For the fourth quarter, Vimicro now expects total revenues of $21 million to $22 million, an increase from its previous guidance of $13.5 million to $15.5 million. The updated guidance includes a portion of a $20 million backlog. The rest of the backlog will affect the first-quarter and second-quarter figures.
For the first quarter, Vimicro now anticipates revenues of $15 million to $17 million, which would mark an increase from $7.9 million in the first quarter of 2013.
TheStreet Ratings team rates VIMICRO INTL CORP -ADR as a "sell" with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate VIMICRO INTL CORP -ADR (VIMC) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and feeble growth in its earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows: