14.11.2013
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DGAP-News: Vtion Wireless Technology AG: Financial results within the Guidance for 2013
DGAP-News: Vtion Wireless Technology AG / Key word(s): Quarter Results
Vtion Wireless Technology AG: Financial results within the Guidance
for 2013
14.11.2013 / 08:49
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Nine-Months-Results 2013
Vtion Wireless Technology AG: Financial results within the Guidance for
2013
- Revenues reached 45.26 million Euros (9M 2012: 58.73 million Euros) in
the first nine months 2013
- EBIT margin decreased by 2 percentage points compared to the period of
previous year, representing 8% in the first nine months 2013
- Current net cash position of 123.61 million Euros or 8.53 Euros per
share
- Full year guidance 2013 confirmed despite challenging market conditions
Frankfurt, 14 November 2013. Vtion Wireless Technology AG, one of the
leading suppliers of wireless data terminals and associated services for
the mobile use of computers via broadband wireless networks in China,
announces its first nine months financial results of 2013, representing
revenues of 45.26 million Euros and an EBIT margin of 8%. Revenues have
decreased by 23% compared to the reporting period 2012, when 58.73 million
Euros had been reached. Vtion's EBIT margin increased, from 9% in the
second quarter to 10% in the third quarter 2013 (Q3 2012: 8%).
Revenues in the first nine months 2013 were mainly influenced by the
discontinuation of Vtion's consumer-oriented tablet PC business as well as
the price pressure in the wireless routers and wireless data cards
segments, which were partly offset by the increasing sales of network
cameras and wireless high definition sharer named 'PCtoTV'.
The decrease of the EBIT margin compared to the same reporting period of
2012 is largely due to an increase in the ratio of selling, general and
administrative expenses to sales. Cost control has been a major point of
emphasis for the company since the management started to see difficulty in
its operating environment.
During the first nine months of 2013, the majority of revenues developed
constantly: The wireless data terminals segment, which consists of wireless
data cards, contributed 53.5% to the total revenues. Wireless router
business accounted for 21.7% and 'PCtoTV' business added 10.6% to the
revenues. In the wireless intelligent segment, the new network camera,
which was launched in December 2012, contributed 10.1% to the revenues.
In the industry-specific computing solutions business segment, the company
is now serving a current base of seven clients. Vtion Anzhuo has continued
to expand its sales offerings, with a total of 22,017 mobile applications
now available through the Vmarket as well as shop-in-shop stores operated
in cooperation with the three major telecom operators. The total number of
applications decreased, as the company seeks to streamline its offerings
and place greater emphasis on its highest-quality and best-selling
applications. Therefore, less popular application offerings have been
reduced to save costs.
The company's equity capital grew slightly compared to the previous
reporting period up to 136.7 million Euros by the end of September 2013
with an equity-ratio of 89%. The net cash generated from operating
activities improved significantly from -1.9 million Euros in the first nine
months of 2012 to 6.8 million Euros in the same period of 2013.
Vtion maintained a strong net cash position of 123.6 million Euros at the
end of September 2013. This amount is equivalent to 8.53 Euros per share.
'While I remain confident that the industry-specific computing solutions
and mobile applications business segments are the future of our company,
they require a lengthy building process', comments Chen Guoping, CEO of
Vtion Wireless Technology. 'At present, our wireless data terminals
business remains a reliable driver of our financial results. I am pleased
that we have remained profitable in this core business segment and we are
confident that we will continue to be so for at minimum this year and next,
giving our team sufficient time to continue building our newer
software-based business segments.'
Guidance for the financial year 2013 confirmed
Despite challenging market conditions the company's management team still
projects the company will reach its guidance of revenues between 60 and 70
million Euros and an EBIT margin between 8 to 10%. The company expects
steady revenues in the fourth quarter, despite the fact that the quarter is
typically weaker than the third, due to reduced procurement on the part of
the telecom operators heading into year-end.
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, VtionAnzhuo, 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%.
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, [email protected]
or visit the company website at: www.vtion.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.
End of Corporate News
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14.11.2013 Dissemination of a Corporate News, transmitted by DGAP - a
company of EQS Group AG.
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Language: English
Company: Vtion Wireless Technology AG
Westhafenplatz 1 (Westfalen Tower)
60327 Frankfurt
Germany
Phone: +49 69 710 456 245
Fax: +49 69 710 456 248
E-mail: [email protected],[email protected]
Internet: www.vtion.de
ISIN: DE000CHEN993
WKN: CHEN99
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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