DGAP-News: Vtion Wireless Technology AG: Net cash position of Euro 125 million
(firmenpresse) - DGAP-News: Vtion Wireless Technology AG / Key word(s): Final Results
Vtion Wireless Technology AG: Net cash position of Euro 125 million
19.04.2012 / 07:15
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- Revenue of Euro 77 million and EBIT margin of 10% meets guidance for
2011;
- Company generated a free cash flow of approx. Euro 16.7 million over
2011;
- Vtion confirms 2012 full year guidance for revenues of between Euro 80
million and Euro 100 million, with EBIT margin stable at 10%-12%;
- Vtion will recommend to again pay a dividend of 15% of net profit, or
Euro 792,000
Frankfurt, 19 April 2012. Vtion Wireless Technology AG, one of the leading
suppliers of wireless data solutions for mobile computing in China,
announces its financial results for FY 2011 and guidance for 2012. The
company achieved revenues of Euro 77 million, in line with its guidance of
Euro 75-100 million, and an EBIT margin of 10.3%, consistent with the
forecasted 10%-12%. Vtion generated a free cash flow of approx. Euro 16.7
million over the course of the year, bringing the company's total net cash
position to Euro 124.5 million. The company expects its EBIT margin to
remain stable for 2012, while revenue is expected to grow to Euro 80-100
million.
Greater Diversification as Year Progressed
Vtion's results for 2011 were driven nearly exclusively by its wireless
data terminal segment for the first half of the year, while it saw growing
revenues from the mobile intelligent terminal (tablet PC) segment during
the second half of the year. The company's third business segment, mobile
applications, is run through the company's wholly owned subsidiary, Vtion
Anzhuo. Though Vtion Anzhuo did not record significant revenues during
2011, the company made important progress in establishing its own online
store as well as shop-in-shop cooperation agreements with all three of
China's major telecom operators, China Telecom, China Unicom and China
Mobile.
'As the year progressed, we began to see our newer business segments take
hold, particularly in the mobile intelligent terminal business segment,
where we saw strong sales of our tablet PC's targeted at consumers,
particularly young, fashion-conscious female consumers,' states Vtion CEO
Chen Guoping. 'Our business selling tablet PC's and customized applications
to insurance companies progressed more slowly than originally expected.
Though we expect to gain ground in this segment over the course of 2012.
Due to the nature of the B2B sales model, sales will not move as quickly in
this segment as in the consumer space. We believe we are well-positioned to
begin to build more sales in this area.'
Profitability Maintained in Difficult Environment
For Vtion, 2011 was a year of transition, and the company faced difficult
circumstances throughout the year, brought about by a change in procurement
policy on the part of its three main clients, China Telecom, China Unicom
and China Mobile. Despite falling sales prices in Vtion's core segment
wireless data terminal business, the company remained profitable throughout
the year, while simultaneously building up new business segment to be
better positioned in China's changing telecom market. Vtion's EBIT margin
of 10% and net profit margin of 7% are a testament to the company's lean
cost structure and ability to stay profitable even in difficult times.
'I am proud that we stayedprofitable and cash flow-positive over the
course of 2011,' states Chen Guoping. 'From a market environment
standpoint, this was the most difficult year we have faced in company
history, yet we were still able to achieve strong results. More
importantly, we have built a foundation in two new business segments,
mobile intelligent terminals and mobile applications, which will allow us
to resume growth in 2012 and beyond.'
New Business Segments Expected to Grow in 2012
Vtion expects revenues and margins in the wireless data terminal business
segment to remain steady over the course of 2012. Though selling prices are
lower than years past, and demand has weekend due to a greater presence in
the market of tablet PC's and smartphones, there is still a market for
providing wireless data cards and 3G routers for China's many laptop users.
Stronger growth, however, should come from the company's other two
segments, mobile intelligent terminals and mobile applications.
'Wireless data terminals will remain a reliable and profitable business for
us,' states Vtion CEO Chen Guoping. 'Though margins are lower than they
have been in the past, we are able to draw on our strong customer and
supplier relationships to continue making money in this segment. We see our
next growth phase as being based on our mobile intelligent terminal and
mobile application business segments. Though competition is increasing in
the consumer tablet PC market, we are confident in building sales gradually
over the course of 2012 in our insurance industry-specific business, thus
avoiding the competition of the consume space. In the applications segment,
though most of our applications are still free downloads, we have built up
strong sales channels and supplier relations, and will see our first
significant revenues through our subsidiary Vtion Anzhuo, by the end of
2012,' he concludes. Vtion Anzhuo currently offers 10,000 mobile
applications.
Dividend and Share Buyback
As of April 13, 2012, Vtion has repurchased a total of 879,259 shares, for
an average price of Euro 3.5810. The company intends to continue its share
buyback program until it has repurchased the total 1.598 million shares
originally authorized under its AGM resolution. The company has maintained
its dividend payout ratio of 15% of net profit, and will pay a dividend of
Euro 792,000 the day after the AGM, should the resolution pass.
About Vtion
The Vtion Group is one of the three leading suppliers of wireless data
cards and associated services for the mobile use of computers 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, Vtion
Anzhuo, 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%. 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(at)kirchhoff.de
or visit the company website at: www.vtion.de
End of Corporate News
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Language: English
Company: Vtion Wireless Technology AG
Westhafen Plaza 1
60327 Frankfurt
Germany
Phone: +49 69 710 456 245
Fax: +49 69 710 456 248
E-mail: ir(at)vtion.de;verena.rauch(at)kirchhoff.de
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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165559 19.04.2012
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