NEW YORK (TheStreet) -- Shares of Vimicro International Corp. (VIMC) are up 11.27% to $10.17 after the company announced early Tuesday morning it had secured a $12.4 million contract in the city of Taiyuan in China's Shanxi Province to provide an SVAC-compliant video surveillance system and cameras to the city's traffic and police department.
The company expects to complete the project by early 2015.
In addition, Vimicro announced that its joint venture, Shanxi Zhongtianxin Science and Technology Co., has secured a revolving line of credit of up to approximately $65 million in an agreement on project financing and strategic cooperation with CITIC Bank Taiyuan Branch.
Separately, 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 robust 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 find that the company's return on equity has been disappointing."