| SEGMENT REPORTING |
Based on the criteria established by ASC 280, Segment Reporting, the Company has determined that the business segments that constitute its primary reporting segments are video processor and video surveillance solution by the chief operating decision maker, the Chief Operating Officer, in accordance with the Group's organization and internal financial reporting structure. As no measures of assets by segment are reported and used by the chief operating decision maker, the Group has not made disclosure of total assets by reportable segment.
Summarized information by business segments for the years ended December 31, 2012, 2013 and 2014 is as follows:
|
|
Year Ended December 31, 2012 |
|
|
|
Video
processor
business |
|
|
Video
surveillance
solution
business |
|
|
Intersegment
elimination* |
|
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue |
|
|
53,435 |
|
|
|
17,760 |
|
|
|
(8 |
) |
|
|
71,187 |
|
| Cost of revenue |
|
|
(30,603 |
) |
|
|
(14,551 |
) |
|
|
8 |
|
|
|
(45,146 |
) |
| Gross profit |
|
|
22,832 |
|
|
|
3,209 |
|
|
|
— |
|
|
|
26,041 |
|
| Unallocated operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(31,747 |
) |
| Unallocated non-operating income, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,856 |
|
| Loss before income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,850 |
) |
The revenue of Video processor business and Video surveillance solution business from external customers amounted to $53,435 and $16,896, respectively, for the year ended December 31, 2012.
*
|
The intersegment eliminations represented products sold between Vimicro Tianjin and Vimicro China in the year ended December 31, 2012. Video surveillance solution business segment revenues have been impacted by intersegment transactions that are eliminated in consolidation.
|
|
|
Year Ended December 31, 2013 |
|
|
|
Video
processor
business |
|
|
Video
surveillance
solution
business |
|
|
Intersegment
Elimination** |
|
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue |
|
|
22,078 |
|
|
|
43,791 |
|
|
|
(1,344 |
) |
|
|
64,525 |
|
| Cost of revenue |
|
|
(14,242 |
) |
|
|
(29,243 |
) |
|
|
1,344 |
|
|
|
(42,141 |
) |
| Gross profit |
|
|
7,836 |
|
|
|
14,548 |
|
|
|
— |
|
|
|
22,384 |
|
| Unallocated operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(33,258 |
) |
| Unallocated non-operating income, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,445 |
|
| Loss before income taxes expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(9,429 |
) |
The revenue of Video processor business and Video surveillance solution business from external customers amounted to $20,735 and $21,654, respectively, for the year ended December 31, 2013.
**
|
The intersegment eliminations represented products sold between Vimicro Tianjin and Vimicro China in the year ended December 31, 2013. Video processor business and video surveillance solution business segment revenues have been impacted by intersegment transactions that are eliminated in consolidation.
|
|
|
Year Ended December 31, 2014 |
|
|
|
Video
processor
business |
|
|
Video
surveillance
solution
business |
|
|
Intersegment
Elimination*** |
|
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue |
|
|
16,905 |
|
|
|
85,084 |
|
|
|
(1,546 |
) |
|
|
100,443 |
|
| Cost of revenue |
|
|
(7,966 |
) |
|
|
(54,933 |
) |
|
|
1,546 |
|
|
|
(61,353 |
) |
| Gross profit |
|
|
8,939 |
|
|
|
30,151 |
|
|
|
— |
|
|
|
39,090 |
|
| Unallocated operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(33,862 |
) |
| Unallocated non-operating income, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,894 |
|
| Loss before income taxes expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,122 |
|
The revenue of Video processor business and Video surveillance solution business from external customers amounted to $15,359 and $28,845, respectively, for the year ended December 31, 2014.
***
|
The intersegment eliminations represented products sold between Vimicro Tianjin and Vimicro China in the year ended December 31, 2014. Video processor business and video surveillance solution business segment revenues have been impacted by intersegment transactions that are eliminated in consolidation.
|
The revenue presented below is attributed by country of domicile of the entity that recorded the revenue:
|
|
Years Ended December 31 |
|
|
|
2012 |
|
|
2013 |
|
|
2014 |
|
| Revenue distribution |
|
|
|
|
|
|
|
|
|
|
|
|
| Mainland China |
|
|
18,186 |
|
|
|
44,115 |
|
|
|
84,978 |
|
| Hong Kong |
|
|
53,001 |
|
|
|
20,410 |
|
|
|
15,465 |
|
| |
|
|
71,187 |
|
|
|
64,525 |
|
|
|
100,443 |
|
The following table summarizes information regarding the distribution of long-lived assets by geographic region:
|
|
As of December 31 |
|
|
|
2013 |
|
|
2014 |
|
| Long-lived assets |
|
|
|
|
|
|
|
|
| Mainland China |
|
|
47,300 |
|
|
|
70,350 |
|
| Hong Kong |
|
|
1,058 |
|
|
|
1,864 |
|
| U.S.A. |
|
|
133 |
|
|
|
115 |
|
| |
|
|
48,491 |
|
|
|
72,329 |
|
The following table summarizes the Group's revenues for each product class for the years ended December 31, 2012, 2013 and 2014 respectively:
|
|
Years Ended December 31 |
|
|
|
2012 |
|
|
2013 |
|
|
2014 |
|
| Video processor business segment: |
|
|
|
|
|
|
|
|
|
|
|
|
| PC camera processor |
|
|
53,011 |
|
|
|
20,401 |
|
|
|
14,719 |
|
| Surveillance processor |
|
|
- |
|
|
|
1,670 |
|
|
|
2,186 |
|
| Other products |
|
|
424 |
|
|
|
7 |
|
|
|
- |
|
| Sub-total |
|
|
53,435 |
|
|
|
22,078 |
|
|
|
16,905 |
|
| Video surveillance solutions business segment: |
|
|
17,760 |
|
|
|
43,791 |
|
|
|
85,084 |
|
| Intersegment elimination |
|
|
(8 |
) |
|
|
(1,344 |
) |
|
|
(1,546 |
) |
| Total multimedia business |
|
|
71,187 |
|
|
|
64,525 |
|
|
|
100,443 |
|
|