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Vtion Wireless Technology: Difficult market environment affects full year results 2012

Preliminary figures 2012

 

Frankfurt, 19 February 2013

Vtion Wireless Technology AG, one of the leading suppliers of wireless data solutions for mobile computing in China, announces its preliminary results for the financial year 2012. Despite a challenging market environment, Vtion achieved revenues of EUR 75.6 million, showing a slight decrease of two per-cent compared to 2011. The company's EBIT margin remained nearly stable at nine per-cent (ten per-cent in 2011).

 

Review of guidance 2012

Based on the preliminary results of 2012, Vtion barely missed the bottom end of its revenue guidance at EUR 80 million and an EBIT margin of ten per-cent. Main reasons are adverse impact of widespread usage of smartphones to access the Internet, fierce competition in the tablet PC market and especially the lower purchases in fourth quarter by telecom operators.

 

Insurance Industry Solutions and applications remain profitable

Vtion's Wireless Data Cards made up 53 per-cent of the revenues in 2012 and therefore accounted for the majority of revenues, while the Wireless Router amounted to 28 per-cent and the Vpad for 18 per-cent. Due to the increasing pricing competition in the consumer tablet PC market, Vtion decided to discontinue its business in that industry. Vtion's decision to exit this business was made for the benefit of the company's overall profitability, though the decision will affect the revenues in 2013. Nevertheless Vtion's other new business models are evolving, achieving positive results. The company's Insurance Industry Solutions serve 12 clients at the moment and is presently Vtion's highest-margin business, though the current turnover is still quite low. Furthermore, Vtion's wholly-owned subsidiary, Vtion Anzhuo, has developed and uploaded nearly 30,000 applications on the Anzhuo Store as of December 31, 2012.

 

Full year guidance for 2013

Due to the continuous difficult market situation in the business of Wireless Data Solutions involving macroeconomic challenges and pricing pressure, Vtion adjusted its guidance for 2013. In the current financial year, the company expects to reach revenues between EUR 60 million and EUR 70 million while the EBIT margin is estimated to amount between eight per-cent and ten per-cent.

 

About Vtion

The Vtion Group is a leading supplier of wireless computing solutions and products for mobile Internet access 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, VtionAnzhuo, 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 per cent. 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

 

Disclaimer concerning prognoses

This communication contains forward-looking statements. Forward-looking statements are statements that are not historical facts instead they reflect Vtion's current views and expectations and the assumptions underlying them about future events. Forward-looking statements are subject to many risks and uncertainties. If any of such risks and uncertainties materialise or if the assumptions underlying any of Vtion's forward-looking statements are proving to be incorrect, Vtion's actual results may be materially different from those expressed or implied by such forward-looking statements. Vtion does not intend or assume any obligation to update these forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made.

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