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Vtion Wireless Technology AG: Strong Growth in Q1 2010

2010 Q1 Preliminary Results

  • Q1 2010 sales volume of 636,309 units, an increase of 319% over Q1 2009 sales volume
  • Q1 sales revenue of EUR 26.3 million, an increase of 263% over Q1 2009
  • EBIT of EUR 7.65 million, EBIT margin of 29%

 

Frankfurt, 10 May 2010

Vtion Wireless Technology AG, one of the top providers of wireless data solutions for mobile computing in China, announces its preliminary first quarter 2010 financial results. The company's sales volume reached 636,309 units, approx. 319% more than sales volume in Q1 2009. Revenue reached EUR 26.3 million, which is 263% more than the sales revenue of Q1 2009. The company's first quarter EBIT was EUR 7.65 million, a margin of 29%, which is an increase over the company's FY 2009 EBIT margin of 27.8%.

"We are pleased to see our year off to such a strong start," states Vtion CEO Chen Guoping. "In particular, our high revenues show that we have been able to take advantage of constantly growing demand in the Chinese 3G market, through attractive products and effective cooperation with the telecom operators. Our EBIT margin for the quarter is stronger than that of full-year 2009, reflecting our attention to our margins."

Beginning in the second quarter of 2010, Vtion will announce sales volumes and average selling prices on a quarterly basis, in order to maintain transparency while keeping a competitive advantage in its sales and marketing efforts.

 

The Chinese 3G Market

The Chinese wireless network industry is currently going through a process of market development from second generation networks to network standards of the third mobile phone generation - known as 3G standards. China is the only country in the world with three different 3G wireless standards, the CDMA 2000 EVDO Network operated by China Telecom, the WCDMA Network operated by China Unicom and the TD-SCDMA Network operated by China Mobile. Network rollouts for the latter two networks are still in progress; the Vtion Group is expecting the completion of the establishment of 3G mobile networks to lead to a further increase in demand for wireless data cards in China.

 

About Vtion

The Vtion Group is one of the three leading suppliers of wireless data cards and associated services for the mobile use of computers via broadband wireless networks in the People's Republic of China. The Vtion Group concentrates mainly on the development and sale of wireless data cards, including provision of appropriate after-sales services. The Vtion Group also supplies Internet-based data service solutions. The company has about 150 employees. The Vtion Group generated sales of EUR 67.6 million and a net profit of EUR 16.5 million in 2009.

The Vtion Wireless Technology AG shares are being traded in the Prime Standard on the Frankfurt Stock Exchange with the ISIN DE000CHEN993. The company's ticker symbol is V33.

 

For further information, please contact:

Kirchhoff Consult AG
Dr Kay Baden, tel.: +49 40 60 91 86 0, baden@kirchhoff.de
Janina Wismar, tel.: +49 40 60 91 86 50, janina.wismar@kirchhoff.de

 

Disclaimer concerning prognoses

Certain statements in this communication contain formulations or terms referring to the future or future developments, as well as negations of such formulations or terms, or similar terminology. These are described as forward-looking statements. In addition, all information in this communication regarding planned or future results of business segments, financial classification numbers, developments of the financial situation, or other financial or statistical data contains such forward-looking statements. The company cautions prospective investors not to rely on such forward-looking statements as certain prognoses of actual future events and developments. The company is neither responsible nor liable for these forward-looking statements. It is not responsible for updating such information, which only represents the state of affairs on the day of publication.

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