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Vtion makes further progress in transition of business model over Q1 2013

2013 Q1 Results

  • Revenues of 11.8 million Euro; EBIT margin of 6 per cent;
  • Customer base for E-Agency platform solutions considerably increased;
  • Management confirms full year guidance: revenues between 60-70 million Euro, EBIT margin between 8 and 10 per cent;
  • Company maintains a strong net cash position of Euro 123.3 million, or Euro 8.50 per share
  • Dividend payment of 0.055 Euro per share planned;

 

Frankfurt, 22 May 2013

VtionWireless Technology AG, one of the leading suppliers of wireless data solutions for mobile computing in China, achieved revenues of 11.8 million Euro and an EBIT margin of 6 per cent in the first quarter of 2013. The decrease compared to the previous year was expected and due to the discontinuation of its consumer-oriented tablet PC business and fewer business days in the first quarter due to the Chinese Spring Festival. Similar to the financial year 2012, the company's results for the first quarter of 2013 were primarily driven by the performance in its core business, the wireless data terminal business segment.

Due to a lean cost structure and operational efficiency, Vtion was able to maintain a strong gross profit margin in a difficult operating environment marked by decreasing sales prices in its core business segment in the first quarter. The EBIT margin decreased to 6 per cent. The net cash flow from operations was 5.4 million Euro, and the company maintained a strong net cash position of 123.3 million Euro. This is equivalent to 8.50 Euro per share.

"Despite the decline in our EBIT margin, we are pleased to see a greater operational cash flow in this quarter compared to the same quarter a year ago. Going forward this will allow us to continue to both pay a dividend and selectively engage in share buyback programs," comments Chen Guoping, CEO Vtion Wireless Technology AG.

 

Progress in transition of business model

Though the company's results are still driven by the wireless data terminal business segment, Vtion also made progress in each of its other business segments: In the industry-specific computing solutions business segment, the company is now serving a total of 10 clients with the E-Agency platform solutions. Vtion Anzhuo, the company's mobile applications subsidiary, now offers a total of 33,761 applications through its various sales channels and has worked to increase its presence in the gaming industry. Finally, Project Fujian Connection, done in cooperation with China Unicom, continues to progress on schedule. As of the end of March, Vtion has established a total of 6,831 connections and early sales efforts are already underway.

For the financial year 2013, the company's management continues to expect revenues between 60 and 70 million Euro, with an EBIT margin between 8 and 10per cent. Though the company is making steady progress in its newer business segments, wireless data terminal sales will likely continue to represent the majority of the company's financial results for 2013.

 

Dividend of 0.055 Euro

Vtion will hold its Annual General Meeting on June 27th. The management will recommend to the AGM a dividend payment on the first business day after the 2013 AGM equivalent to 15 per cent of the company's net profit in 2012. This corresponds to a dividend of 0.055 Euro per share and is consistent with the company's past dividend practice.

 

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 industry-specific computing solutions to the insurance industry through its E-Agency platform. Through its wholly owned subsidiary, Vtion Anzhuo, the company offers online applications for the Android operating system. For 2012, the company reached sales revenues of 75.6 million Euro with an EBIT margin of 9 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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