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Vtion Triples Quarter over Quarter Revenue to Begin 2010

2010 Q1 Results

  • Total revenue growth of 263% over Q1 2009 to Euro 26.3 million for Q1 2010
  • EBIT margin of approx. 29%
  • Positive Q1 cash flow of Euro 10.49 million
  • Net cash of Euro 77.2 million, approx. Euro 4.83 per share

 

Frankfurt, Germany. 20 May, 2010

Vtion Wireless Technology AG, one of the top providers of wireless data solutions for mobile computing in China, has made a successful start to the current fiscal year: Sales revenue for first quarter 2010 reached Euro 26.3 million, an increase of 263% from Q1 2009 and 30.2% over Q4 2009. Vtion reports a net profit of Euro 4.53 million, a margin of 17%, which is the result of a foreign exchange loss. The company's Q1 gross margin of 36% and Q1 EBIT margin of 29% represent an increase over FY 2009 margins, which were 33% and 28% respectively.

"A major goal for us early in the year was to again realize positive cash flow after being cash flow negative in 2009, and we achieved that," stated Vtion CEO Chen Guoping. "The increase in both our gross margin and EBIT margin compared to full year 2009, reflect our commitment to maintaining an effective cost base and our focus on high-end product offerings. We have a strong cash position, important going forward as it will allow us to take full advantage of the array of opportunities that will emerge in our market following further 3G growth," he concluded.

 

Optimistic Outlook

The development shown by the telecom operators in the first quarter of 2010 shows that 3G is off to a steady start for the year but is far from tapping its full potential. Vtion's position vis-à-vis the three telecom operators remains intact, and thus the company stands to benefit from continued growth throughout the course of the year. Given that the network and user development processes are still in their very initial stages, demand should remain strongest for Vtion's hardware offerings in the wireless data card space.

 

The Chinese 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.

The interim report about the 1st quarter of 2010 can be downloaded from: http://www.ir-en.vtion.de/publications.html

Vtion will hold its AGM on Tuesday, June 22, in the Commerzbank Auditorium in Frankfurt.

 

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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