DGAP-News: Vtion Wireless Technology AG: Company Shows Strong Financial Profile
(firmenpresse) - Vtion Wireless Technology AG / Key word(s): Quarter Results
25.11.2010 07:30
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- Strong operational results with earnings per share of Euro 0.72 for Q3,
Euro 1.30 for the nine month period
- Net cash flow from operations of Euro 1.26 million in Q3, Euro 19.47
million in the nine month period
- Net cash position of Euro 83.6 million, or Euro 5.23 per share
- Strong balance sheet with an equity ratio of 85%
Frankfurt, Germany, 25 November 2010 - Vtion Wireless Technology AG, one of
the main providers of wireless data solutions for mobile computing in
China, announces its full Q3 2010 financial results: Earnings per share
reached Euro 0.72 for the quarter and Euro 1.30 for the nine month period.
Net cash flow from operations reached Euro 1.26 million for the quarter.
Vtion currently has a net cash position of Euro 83.6 million, or Euro 5.23
per share, and a strong equity ratio of 85%.
Cash Flow Positive; Strong Cash Position
Vtion generated a net cash flow of Euro 1.26 million from operations in the
third quarter, bringing the company's net cash flow from operations for the
nine month period to Euro 19.47 million. Company CEO Chen Guoping states,
'During this time last year, we were cash flow negative in our operations,
due to a large ramp-up in our working capital requirements due to the
introduction of 3G technology in China. We are pleased to see that we have
been cash-flow positive throughout the year, as we have continued to
experience rapid development. With nearly Euro 84 million of net cash, we
are well-positioned to invest in our future growth, particularly as the
company begins a transition next year into a more diversified business
model to more fully take advantage of the growth opportunities offered by
3G in China.'
Strong Balance Sheet
Vtion has maintained a strong balance sheet throughout its history,
something that Vtion believes is a prerequisite to having a strategic
relationship with China's telecom operators. Vtion's equity ratio decreased
slightly, from 87% at the end of 2009 to 85% as of September 30, 2010, but
remains very strong. Vtion CFO Henry Chen states, 'Despite our rapid
growth we have managed to maintain a strong balance sheet and equity ratio.
We are currently holding a significant cash position of Euro 83.6 million.
We will look to use cash in China to develop our business, while also
returning some cash to shareholders in the form of a dividend.'
Outlook
As previously communicated, Vtion expects a slowdown in its sector during
the fourth quarter, given that it is typical for China's telecom operators
to scale back their sales and marketing efforts as the year draws to a
close, something Vtion also witnessed at the end of 2009. This is in line
with the company's expectations and something for which the company is
prepared. Vtion's Supervisory Board will take a resolution on the company's
dividend policy in its next meeting; in Vtion's prospectus the company
stated that it intends to issue a dividend for 10-30% of 2010 net profit
beginning in 2011. Vtion CEO Chen Guoping concludes, 'Though we expect the
year to end somewhat slowly compared to the first nine months, it is still
an exciting time at Vtion. We are formulating our strategy for the coming
year, a time that will see change in the company as we look to evolve
alongside changing market conditions and position the company on a path for
sustainable long-term 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; Vtion
Group is expecting the completion of the establishment of 3G mobile
networks to lead to greater demand for wireless data cards in China, along
with new opportunities for applications and value-added services in the 3G
space.
About Vtion
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. Vtion Group
concentrates mainly on the development and sale of wireless data cards,
including provision of appropriate after-sales services. Vtion Group also
supplies Internet-based data service solutions. The company currently has
about 180 employees. Vtion Group generated sales of EUR 67.6 million and a
net profit of EUR 16.6 million in 2009. Vtion Wireless Technology AG's
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
25.11.2010 Dissemination of a Corporate News, transmitted by DGAP -
a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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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: 25.11.2010 - 07:30 Uhr
Sprache: Deutsch
News-ID 32718
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