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Vtion Wireless Technology AG confirms outlook despite lower revenues

Preliminary Results 9 months 2014

Frankfurt, November 21, 2014

According to preliminary results Vtion Wireless Technology AG (Vtion), a leading supplier of wireless data solutions for mobile computing in China, achieved revenues of 12.4 million Euros in the third quarter of 2014 and generated revenues of 35.3 million Euros in the first nine months of 2014. The latter corresponds to a decrease of 22 per cent compared to the nine-months-period of 2013. Despite the decrease of revenues the EBIT margin of 7.6 per cent is in line with the same period of last year and the guidance as adjusted in August 2014.

The decrease of revenues during the first nine months 2014 was mainly due to lower sales of wireless data cards using 3G technology, the wireless high definition sharer named "PCtoTV" and the network camera VCAM. Latter has been canceled during the reporting period of 2014. With the persistent pricing pressure and a limited demand for these devices, Vtion seeks to promote more specialized products. Among these are wireless data cards developed specifically for the storage and transfer of tax data. They contributed 21 per cent to the total revenue during the reporting period 2014. The company also plans to launch a wireless data router based on 4G technology by the end of this year.

Furthermore the company made progress in industry-specific computing solutions and broadened the client-base to eleven companies during the reporting period. In the third segment of the mobile application business 'Vmarket' provided by Vtion Anzhuo and partner sales platforms currently offer a total amount of more than 9,800 applications. In order to increase the revenue in this field, Vtion will focus on strengthening its presence as a third party designer and operator of online application stores for other companies, particularly large-screen device manufacturers. Vtion recently signed a cooperation agreement with the international manufacturer of TV devices Sharp to provide an appstore in Southeast of Asia.

By the end of the reporting period as at September 30, 2014, Vtion had a net cash position of 127.7 million Euros and an equity ratio of 95 per cent. These capital resources allow the company to return cash to shareholders while keeping cash on hand for both working capital needs and investment opportunities.

All in all the Management Board is confident to reach revenues of at least 48 million Euros and an EBIT margin of approximately 7 per cent for the full year 2014.

 

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. 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
Andreas Friedemann, phone: +49 40 60 91 86 0, mail: andreas.friedemann@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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