Vimicro (NASDAQ:VIMC) Revenue Growth Will Be Gradual

The revenue growth of Vimicro International Corp. (NASDAQ:VIMC) should be incremental, even after they were approved as a standard by the SAC, said Auriga.

Auriga said that "this is what VIMC's surveillance business needed and the ramp of associated revenue is likely a gradual process."

They also lowered their EPS estimate on the company for full year 2010 from $0.37 to $0.27, and for full year 2011 from $0.12 to $0.03. Revenue estimates were also lowered for full year 2010 from $104 million to $99 million, and for full year 2011 from $141 million to $123 million.

Auriga maintains their "Buy" rating on Vimicro, which closed Tuesday at $3.17, falling $0.24, or 7.04 percent. They lowered their price target from $6 to $4 a share.

Volume on Tuesday was almost 8 times the daily 3-month average.