DGAP-News: Vtion Wireless Technology AG: Steady growth continues in Q3, operating margins remain strong
(firmenpresse) - Vtion Wireless Technology AG / Key word(s): Preliminary Results/Quarter Results
15.11.2010 09:12
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- Revenue for the nine month period of Euro 85.64 million, growth of 79.5%
over the same period in 2009;
- Gross margin of 38% for the nine month period in 2010, up from 34% in
2009;
- EBIT of Euro 26.56 million for the nine month period, a margin of 31%;
- Nine month period net profit of Euro 20.78 million, growth of nearly 50%
year-on-year;
Frankfurt, Germany, 15 November 2010 - Vtion Wireless Technology AG, one of
the top providers of wireless data solutions for mobile computing in China,
announces its preliminary Q3 2010 unaudited financial results: Revenue
reached Euro 29.85 million for the quarter and Euro 85.64 for the nine
month period, an increase of 79.5% over the nine month period in 2009. The
company continues to show strong operating margins, with a gross margin of
38% and an EBIT margin of 31% for the nine month period.
Strong Profitability Continues
Profit from operations (EBIT) increased by 87.2% to Euro 26.56 million for
the first nine months of 2010. This growth is driven largely by continued
growth in the Chinese 3G market, with more users switching to the newer
networks, which drives demand for Vtion's 3G products. Vtion maintained a
strong gross margin of 40% for the quarter and 38% for the nine month
period. This is due to the company experiencing economies of scale as its
sales volume increases and its constant emphasis on maintaining a lean cost
base.
Net Margin improves in Third Quarter
Vtion achieved a net profit of Euro 11.57 million for the quarter, bringing
net profit for the first nine months of the year to Euro 20.78 million, an
increase of nearly 50% year-on-year. Due to favourable developments in the
Euro/RMB exchange rate, Vtion's net profit margin for the quarter is 39%,
bringing the net profit margin for the nine month period to 24%.
Outlook
'We are proud to announce another strong quarter, in which we saw not only
continued growth in our business and in the 3G market, but also the
continuation of our strong margins,' states Vtion CEO Chen Guoping. 'We
expect to see a slowdown in our sector as the year draws to a close, a
phenomenon similar to what we saw as 2009 came to a close. However
long-term growth prospects for China's 3G market remain strong. We have
already added several new products to our portfolio to end the year, and
will look to evolve our strategy more ambitiously beginning next year to
more fully benefit from the full range of opportunities in the Chinese 3G
space and continue to create greater shareholder value,' he concludes.
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 currently
has about 180 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.
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
15.11.2010 Dissemination of a Corporate News, transmitted by DGAP -
a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
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Media archive at www.dgap-medientreff.de and www.dgap.de
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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 Announcement DGAP News-Service
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Datum: 15.11.2010 - 09:12 Uhr
Sprache: Deutsch
News-ID 32609
Anzahl Zeichen: 0
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Kategorie:
Business News
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