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Vtion Wireless Technology AG Achieves 41% Revenue Growth Over Q1 2012

2012 Q1 Results

  • Revenue of Euro 17.85 million is a 41% increase over the same period in 2011;
  • EBIT margin of 11% consistent with 2011 FY margins;
  • Current net cash position of Euro 123 million;
  • Vtion confirms 2012 full year guidance: revenues between Euro 80 million and 100 million and a stable EBIT margin of 10%-12%;


Frankfurt, 14 May 2012

Vtion Wireless Technology AG, one of the leading suppliers of wireless data solutions for mobile computing in China, announces its financial results for Q1 2012 and confirms its guidance for the full year. Vtion reached a revenue figure of Euro 17.85 million for the quarter, an increase of 41% over the same period in 2011. EBIT margin was stable compared to 2011, with a margin for the quarter of 11%. Vtion maintains a strong net cash position of Euro 123 million. The company expects its EBIT margin to remain stable for 2012, while revenue is expected to grow to Euro 80-100 million.


Core Business Remains Stable

Vtion's Q1 2012 results were driven primarily by its performance in the wireless data terminal business segment, which accounted for nearly Euro 14 million of revenue. This is due to stable demand for wireless data cards, underpinned by demand from China Telecom and China Unicom for 3.5G data cards. Wireless routers also performed well for Vtion, due to stronger marketing efforts on the part of both Vtion itself and the telecom operators.

"We are pleased to see momentum in our wireless data terminal business segment this early in the year," states Vtion CEO Chen Guoping. "Though the first quarter is typically weaker given that we lose time due to the Chinese New Year Holiday, we still saw fairly strong demand at stable selling prices from our telecom operator clients. The fact that we were able to show so much improvement over the first quarter in 2011 bodes well for the rest of the year. Our focus now is to maintain performance in the wireless data terminal segment while growing our mobile intelligent terminal and online applications businesses."


New Business Segments Expected to Grow in 2012

Vtion expects revenues and margins in the wireless data terminal business segment to remain steady over the course of 2012. Though selling prices are lower than in the past years, and demand has weakened due to a greater presence in the market of tablet PC's and smartphones, there is still a market for providing wireless data cards and 3G routers for China's many laptop users. Growth, however, should come from the company's other two segments, mobile intelligent terminals and mobile applications.

"For the remainder of the year, we will need to improve our sales in the mobile intelligent terminal business segment," states Vtion CEO Chen Guoping. "We are pleased with the progress we have made in the mobile applications space through Vtion Anzhuo, and expect revenue contributions from this business segment in the second half of the year. However, it is critical that we show strong progress in the mobile intelligent terminal business segment over the middle of the year, both by working with sales and distribution partners to increase sales in the consumer market and by promoting our hardware-software combination packages designed for insurance companies. We have come to agreements with two clients over the course of the first quarter and are working on several others. Our focus for the remainder of the year will be on growing sales with these clients," he concludes.


Dividend and Share Buyback

As of May 4, 2012, Vtion has repurchased a total of 906,859 shares, for an average price of Euro 3.59. The company intends to continue its share buyback program until it has repurchased the total 1.598 million shares originally authorized under its AGM resolution. The company maintains its dividend payout ratio of 15% of net profit, and will pay a dividend of Euro 792,000 (Euro 0.05 per share) the day after the AGM, should the resolution pass.


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 offers tablet PC products and support services through its mobile intelligent terminals business segment, including both to the consumer market and industry-specific clients. Through its wholly-owned subsidiary, Vtion Anzhuo, the company offers online applications for the Android operating system. For 2011, the company reached sales revenues of EUR 77 million with an EBIT margin of 10.3%. 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,

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