DGAP-News: Vtion Wireless Technology AG Achieves 41% Revenue Growth Over Q1 2012
(firmenpresse) - DGAP-News: Vtion Wireless Technology AG / Key word(s): Quarter Results
Vtion Wireless Technology AG Achieves 41% Revenue Growth Over Q1 2012
14.05.2012 / 07:16
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- Revenue of Euro 17.85 million is a 41% increase over the same period in
2011;
- EBIT margin of 11% consistent with 2011 FY margins;
- Current net cash position of Euro 123 million;
- Vtion confirms 2012 full year guidance: revenues between Euro 80 million
and 100 million and a stable EBIT margin of 10%-12%;
Frankfurt, 14 May 2012. Vtion Wireless Technology AG, one of the leading
suppliers of wireless data solutions for mobile computing in China,
announces its financial results for Q1 2012 and confirms its guidance for
the full year. Vtion reached a revenue figure of Euro 17.85 million for the
quarter, an increase of 41% over the same period in 2011. EBIT margin was
stable compared to 2011, with a margin for the quarter of 11%. Vtion
maintains a strong net cash position of Euro 123 million. The company
expects its EBIT margin to remain stable for 2012, while revenue is expected
to grow to Euro 80-100 million.
Core Business Remains Stable
Vtion's Q1 2012 results were driven primarily by its performance in the
wireless data terminal business segment, which accounted for nearly Euro 14
million of revenue. This is due to stable demand for wireless data cards,
underpinned by demand from China Telecom and China Unicom for 3.5G data
cards. Wireless routers also performed well for Vtion, due to stronger
marketing efforts on the part of both Vtion itself and the telecom
operators.
'We are pleased to see momentum in our wireless data terminal business
segment this early in the year,' states Vtion CEO Chen Guoping. 'Though the
first quarter is typically weaker given that we lose time due to the Chinese
New Year Holiday, we still saw fairly strong demand at stable selling prices
from our telecom operator clients. The fact that we were able to show so
much improvement over the first quarter in 2011 bodes well for the rest of
the year. Our focus now is to maintain performance in the wireless data
terminal segment while growing our mobile intelligent terminal and online
applications businesses.'
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 in the past years, and demand has weakened 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. Growth, however, should come from the company's other two
segments, mobile intelligent terminals and mobile applications.
'For the remainder of the year, we will need to improve our sales in the
mobile intelligent terminal business segment,' states Vtion CEO Chen
Guoping. 'We are pleased with the progress we have made in the mobile
applications space through Vtion Anzhuo, and expect revenue contributions
from this business segment in the second half of the year. However, it is
critical that we show strong progress in the mobile intelligent terminal
business segment over the middle of the year, both by working with sales and
distribution partners to increase sales in the consumer market and by
promoting our hardware-software combination packages designed for insurance
companies. We have come to agreements with two clients over the course of
the first quarter and are working on several others. Our focus for the
remainder of the year will be on growing sales with these clients,' he
concludes.
Dividend and Share Buyback
As of May 4, 2012, Vtion has repurchased a total of 906,859 shares, for an
average price of Euro 3.59. 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 maintains its
dividend payout ratio of 15% of net profit, and will pay a dividend of Euro
792,000 (Euro 0.05 per share) 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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169590 14.05.2012
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