Why Vimicro International (VIMC) Stock Is Up Today

NEW YORK (TheStreet) -- Vimicro International (VIMC) shares are up 9.4% to $3.39 in trading on Monday following the announcement that the company signed a deal with the Chinese First Research Institute of the Ministry of Public Security.

The agreement regards Surveillance Video and Audio Coding (SVAC) compliant chips. 

"The SVAC surveillance standard represents one of the most important achievements in the field of security and surveillance monitoring and it is the only codec specifically designed for security surveillance needs," the company said. "Vimicro has aggressively entered the surveillance market with system-level solutions and semiconductor products to capitalize on China's domestic demand."

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TheStreet Ratings team rates VIMICRO INTL CORP -ADR as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate VIMICRO INTL CORP -ADR (VIMC) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and feeble growth in the company's earnings per share."

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