30.11.2015
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DGAP-News: Vtion Wireless Technology AG reports a further decline of revenues and EBIT
DGAP-News: Vtion Wireless Technology AG / Key word(s): 9-month figures
Vtion Wireless Technology AG reports a further decline of revenues and EBIT
30.11.2015 / 19:10
The issuer is solely responsible for the content of this announcement.
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Results 9 months 2015
Vtion Wireless Technology AG reports a further decline of revenues and EBIT
- Revenues decreased by 48 per cent to EUR 18.6 million year-on-year
- EBIT margin dropped by 7 percentage points to 1 per cent
- Outlook for full financial year 2015 forecasts revenues of around EUR
20 million and an EBIT margin of approximately 1.2 per cent
Frankfurt, November 30, 2015. Vtion Wireless Technology AG (Vtion), a
supplier of wireless data terminals and associated services for mobile
computing via broadband wireless networks in China, generated revenues of
EUR 18.6 million in the first 9 months of 2015. This corresponds to a
decrease of 48 per cent compared to the same period 2014. The weak demand
affected the EBIT margin that dropped from 8 per cent to 1 per cent, while
the gross profit margin remained comparatively stable at 19 per cent (9M
2014: 20 per cent).
The decline of revenues affected all the three segments of Vtion comprising
of "Wireless Data Terminals", "Wireless Intelligent Terminals" and "All
Others". In the third quarter 2015, Vtion generated EUR 2.3 million in
total representing a decline of 81 per cent compared to the previous year's
period (Q3 2014: EUR 12.4 million).
The company's core business "Wireless Data Terminals" comprises of wireless
data cards, routers and high definition sharers which contributed EUR 18.3
million to the total revenues in the first 9 months 2015 (9M 2014: EUR 22.1
million). Vtion's most important products in the core business remained
wireless data routers based on the 4G-techology for the Chinese operators
China Unicom and China Telecom. During the reporting period the company
generated revenues of EUR 10.3 million with wireless routers (9M 2014: EUR
11.0 million). The decrease of total revenues during the reporting period
was mainly due to lower sales of wireless data cards using the
3G-technology as more and more other devices are used to get access to the
mobile internet.
The demand for other products from the remaining segments that among these
are wireless data cards developed specifically for the storage and transfer
of tax data, a health self-checking instrument and a network camera
remained low.
"Due to the margin pressure we face in our core business we currently focus
on specific-use products that generally command higher selling prices such
as the wireless data module to transmit transaction data to tax
authorities. Currently, we are in the exploratory phase, but will likely
introduce new products in 2016 at the earliest", says Vtion's CEO Chen
Guoping.
Although the Management was able to reduce the cost of sales by 47 per cent
to EUR 15.0 million year-on-year, the company's EBIT decreased by 93 per
cent to around EUR 0.2 million due to the lower revenues. Compared with the
same period 2014, EBIT margin decreased by 7 percentage points to 1 per
cent. This resulted from a decrease of the overall gross profit margin and
an increase of ratios of operating expenses to total sales. As of September
30, 2015, Vtion's cash and cash equivalents amounted to EUR 141.9 million.
Vtion expects the operational difficulties to continue in the remaining
year 2015. The secular slowdown in the Chinese economy and headwinds to the
company's core business are likely to continue. Therefore the Management
Board expects the revenues to be somewhere around EUR 20 million with an
EBIT margin of approximately 1.2 per cent for 2015.
About Vtion
The Vtion Group is a supplier of wireless data terminals and associated
services for the mobile use of computers via broadband wireless networks in
the People's Republic of China. Vtion Wireless Technology AG was
established in 2002 and currently has 69 employees. The 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:
[email protected]
or visit the company website: 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.
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30.11.2015 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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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: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich,
Stuttgart
End of News DGAP News Service
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