DGAP-News: Vtion Wireless Technology AG: Profitability Maintained in 2012
(firmenpresse) - DGAP-News: Vtion Wireless Technology AG / Key word(s): Final
Results/Dividend
Vtion Wireless Technology AG: Profitability Maintained in 2012
25.04.2013 / 07:30
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2012 Full Year Results
- Revenues of 75.6 million Euros;
- EBIT margin of 9 per cent;
- Core business of wireless data terminals remained strong, accounting for
approximately 85 per cent of revenues;
- Current net cash position of 113.5 million Euros;
- Vtion confirms 2013 full year guidance of revenues of between 60 million
and 70 million Euros, with the EBIT margin between 8 and 10 per cent;
- Net Profit of 5.35 million Euros, EPS 0.37 Euro;
- Vtion will recommend to again pay a dividend of 15 per cent of net
profit, to be paid the day after the company's AGM;
Frankfurt, 25 April 2013. Vtion Wireless Technology AG, one of the leading
suppliers of wireless data solutions for mobile computing in China,
announces its financial results for FY 2012. The company achieved revenues
of 75.6 million Euros and an EBIT margin of 9 per cent. Vtion generated the
majority of its 2012 results through its core wireless data terminal
business, which accounted for approximately 85 per cent of total revenues.
The company finished the year with a strong cash position of 113.5 million
Euros, this corresponds to 7.83 Euros per share. The company will continue
its pre-established dividend policy of issuing a dividend in the amount of
15 per cent of the previous year's net profit.
Demand and Profitability Stable in Core Business Area
Vtion's revenues for 2012 were driven primarily by results in the company's
traditional core business, wireless data terminals, which is comprised of
hardware devices such as wireless data cards, embedded modules and wireless
routers. The wireless data terminal business segment accounted for 85 per
cent of the company's revenue for the year, a proportion similar to that in
2011. Though there was a significant drop-off in both revenues and margins
in the company's wireless data terminal business in 2011, Vtion has seen
demand and margins in that segment stabilize thereafter. Due to the
company's strong supplier and customer relations along with a lean cost
structure, Vtion has been able to continue to be profitable in this segment
despite the decline in the overall market.
'We are pleased to see that the traditional core of our business remains
profitable,' states Vtion CEO Chen Guoping. 'Though there was
cannibalization of the wireless data card market with the introduction of
the smartphone and tablet PC, we have seen that a baseline market demand
for wireless data cards remains as many business users still prefer to
connect via laptop computers. Further our stronger than expected wireless
router sales have also helped to compensate for the decline in wireless
data card sales. Going forward we expect to remain profitable in this
business segment, though growth will have to be driven by our newer
business segments.'
Difficult Market Environment Remains
Vtion experienced sea change in its core market early in 2011 and has been
in the process of adapting its business model to meet these new challenges.
Further, macroeconomic factors such as the overall slowing of the Chinese
economy as policy makers try to engineer a 'soft landing' has proved to be
a headwind for the majority of companies active in the Chinese market.
Vtion has been putting increased emphasis on software and hardware/software
combination solutions, though monetizing these businesses has proved slower
than originally expected.
'Fortunately we still see steady profitability in our wireless data
terminals business segment,' states Vtion CEO Chen Guoping. 'This gives us
a cushion of dependable financial results and profitability as we continue
to adapt our business model to a changing market environment. Though
progress in this transition has been slower than expected, we are strongly
advancing and will remain supported by steady results in our core
business.'
Outlook for 2013
Vtion expects revenues and margins in the wireless data terminal business
segment to experience a slight decrease in 2013 compared to 2012, primarily
due to continued erosion in the wireless data card market that slightly
exceeds the gains made in wireless router sales. Though the company is
making steady progress in its newer business segments, wireless data
terminal sales will likely continue to account for approximately 80 per
cent of the company's financial results for 2013. For the year, the company
expects revenues between 60 and 70 million Euros, with an EBIT margin
between 8 and 10 per cent.
Dividend
Vtion will recommend to the AGM that the company pay a dividend on the
first business day after the 2013 AGM equivalent to 15 per cent of the
company's net profit in 2012. This corresponds to a dividend of 0.055 Euros
per share and is consistent with the company's past dividend practice.
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 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 2012, the company
reached sales revenues of 75.6 million Euros with an EBIT margin of 9 per
cent. 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
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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Language: English
Company: Vtion Wireless Technology AG
Westhafenplatz 1 (Westfalen Tower)
60327 Frankfurt
GermanyPhone: +49 69 710 456 245
Fax: +49 69 710 456 248
E-mail: ir(at)vtion.de;yasmin.yaqub(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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208386 25.04.2013
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Datum: 25.04.2013 - 07:30 Uhr
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