DGAP-News: Vtion Wireless Technology AG: Operating margin increases while strong growth continues
(firmenpresse) - Vtion Wireless Technology AG / Half Year Results
12.08.2010 08:30
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- Revenue of Euro 55.8 million for H1 2010, increase of 164% over H1 2009
- EBIT margin of 30% for H1 2010
- Net profit of Euro 9.2 million for H1 2010
- Net cash position of approximately Euro 92 million, or Euro 5.75 per
share
Frankfurt, Germany, 12 August 2010 - Vtion Wireless Technology AG, one of
the top providers of wireless data solutions for mobile computing in China,
announces its half year 2010 financial results: Revenue for the half year
reached Euro 55.79 million, an increase of 164% over the same period in
2009. Sales revenue for the quarter reached Euro 29.48 million, an increase
of 12% from Q1 2010.
Profit from operations (EBIT) increased by 177% to Euro 16.54 in H1 2010.
This increase was largely brought by the strong increase of sales revenue
and gross profit in the first six months of 2010, which was the result of
increased 3G wireless data card sales. The Vtion Group's EBIT margin
increased from 28% in H1 2009 to 30% for both Q2 and H1 2010. The overall
gross profit margin increased from 34% in H1 2009 to 37% in H1 2010. The
gross margin level in the first six months of 2010 remained quite stable
and increased slightly from 36% in Q1 2010 to 39% in Q2 2010.
Net profit in the first six months of 2010 amounted to EUR 9.2 million, an
increase of 72% year-on-year. The EPS in H1 2010 reached EUR 0.58, an
increase of 24% year-on-year. The net profit margin decreased from 25% in
H1 2009 to 16% in H1 2010. This decrease mainly resulted from a non-cash
foreign exchange loss.
'Despite the slowdown in the overall growth of the Chinese economy, our
sector continued to show strong growth as the operators continued to
acquire more 3G users,' states Vtion CEO Chen Guoping. 'Our operating
margins for the quarter and half year reflect our emphasis in that area.
Though we did not have a lot of news over the course of the quarter, we are
pleased with the growth and results that we achieved. There remains much
demand for our hardware as the operators continue to expand the reach of
their networks to more people, and we will also look to expand our service
and applications offerings upon our foundation as a high quality hardware
provider,' he concludes.
Vtion maintains a very strong balance sheet, a pre-requisite for close
cooperation with China's telecom operators; Vtion's equity is at 82% of
total assets. The company finished the quarter with a net cash position of
approximately Euro 92 million, or Euro 5.75 per share, leaving it
well-positioned for future growth.
The Chinese Market
The Chinese wireless network industry is currently going through a process
of market development from second generation networks to network standards
of the third mobile phone generation - known as 3G standards. China is the
only country in the world with three different 3G wireless standards, the
CDMA 2000 EVDO Network operated by China Telecom, the WCDMA Network
operated by China Unicom and the TD-SCDMA Network operated by China Mobile.
Network rollouts for the latter two networks are still in progress; the
Vtion Group is expecting the completion of the establishment of 3G mobile
networks to lead to greater demand for wireless data cards in China.
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 Vtion Group
concentrates mainly on the development and sale of wireless data cards,
including provision of appropriate after-sales services. The Vtion Group
also supplies Internet-based data service solutions. The company has about
184 employees. The Vtion Group generated sales of EUR 67.6 million and a
net profit of EUR 16.6 million in 2009.
The 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
Janina Wismar, tel.: +49 40 60 91 86 50, janina.wismar(at)kirchhoff.de
or visit the company website at: www.vtion.de
12.08.2010 08:30 Ad hoc announcement, Financial News and Press Release distributed by DGAP. Medienarchiv atwww.dgap-medientreff.deandwww.dgap.de---------------------------------------------------------------------------
Language: English
Company: Vtion Wireless Technology AG
Westhafen Plaza 1
60327 Frankfurt
Deutschland
Phone: +49 69 710 456 245
Fax: +49 69 710 456 248
E-mail: ir(at)vtion.de;janina.wismar(at)kirchhoff.de
Internet: www.vtion.de
ISIN: DE000CHEN993
WKN: CHEN99
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Hamburg, München, Düsseldorf, Berlin, Stuttgart
End of News DGAP News-Service
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Datum: 12.08.2010 - 08:30 Uhr
Sprache: Deutsch
News-ID 31981
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