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Vtion Wireless Technology AG improves results in Q3 2011

2011 Q3 Results

  • Revenues increased by 23.3% quarter on quarter
  • EBIT grew by 55% quarter on quarter
  • Share buyback in progress
  • Guidance for 2011 again confirmed

 

Frankfurt, 14 November 2011

In the third quarter 2011, Vtion Wireless Technology AG, one of the leading suppliers of wireless data solutions for mobile computing in China, again improved its results. Revenues increased by 23.3% from EUR 19.37 million in Q2 2011 to EUR 23.88 million in Q3 2011. Alone in Q3 2011, the company reached an EBIT of EUR 2.95 million, which represents an increase of 55% compared to Q2 2011. Net cash flow from operations amounted to EUR 6.18 million in Q3 2011, after EUR -0.84 million in the previous quarter.

Revenues were driven primarily by sales in the wireless data terminal business segment. Pricing in this segment remained steady in comparison to the first half of 2011. Vtion also realized its first sales of the V7 VPad tablet PC.

In the first nine months 2011, revenues amounted to EUR 55.87 million. In this period, Vtion maintained a stable gross margin of 18%. EBIT was EUR 5.9 million, which implies an EBIT margin of 12%. These results show that Vtion is well on track to meet its previous stated guidance for the full year 2011.
As of 30 September 2011, the company has a total net cash position of EUR 111.5 million, of which EUR 11.6 million are cash on hand, EUR 1.8 million are kept as deposit on bank's acceptance bill and EUR 110 million are cash in banks. Thereof, EUR 94 million are held in Mainland China and EUR 14 million are held in Germany.

Vtion's newest subsidiary, Vtion Anzhuo, which is an integrator and distributor of mobile applications for the Android platform throughout China, is fully online and currently offers several hundred applications. The subsidiary is building Vtion's foundation in the Android mobile apps space and is expected to realize revenues in the next year.

For the fourth quarter, Vtion expects results to be largely consistent with those in the third quarter. By the end of the year, the company estimates realizing its first sales orders for tablet PC hardware and associated insurance industry apps. The company again restates its previously iterated guidance for the full year 2011, which calls for revenues between EUR 75 million and EUR 100 million, with an EBIT margin between 10% and 12%.

"Operations in the third quarter progressed largely in line with our expectations. I am confident that we are positioning our company in market sectors that will be growth areas in the foreseeable future, and set the company back on the growth curve that was interrupted this year," states CEO Guoping Chen.

 

Share buyback in progress

In April 2011, Vtion annouced a share buy-back program for up to EUR 4 million or approximately 1 million shares. As of November 11, 2011 the company has bought back a total of 660,550 shares. Its strong cash position allows Vtion to return funds to the shareholders via a dividend as well as the share buy-back, invest in new product and application offerings for short-term development, and increase its long-term competitiveness through investment in R&D.

 

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 company also offers e-reader, 3G router and embedded module products through network operator and retail distribution channels, as well as several online services. For 2010, the company reached sales revenues of EUR 102 million. 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

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