DGAP-News: Vtion Wireless Technology AG is adapting to market change
(firmenpresse) - DGAP-News: Vtion Wireless Technology AG / Key word(s): Miscellaneous
Vtion Wireless Technology AG is adapting to market change
23.02.2011 / 08:33
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Frankfurt, 23. February 2011. Vtion Wireless Technology AG, one of the
leading suppliers of wireless data solutions for mobile computer use in
China, is currently in the process of adapting its strategy to changes in
the Chinese mobile market and developing new products and services that
will be introduced in the second half of 2011. The company's strong cash
position allows Vtion to invest in these developments as well as pay a
dividend. Management intends to suggest paying a dividend in 2011
consistent with previous statements in the amount of 10%-30% of 2010 net
profit. Though 2011 will be a year of transition for Vtion, the management
is confident not only in reaching the guidance it has set out for 2011, but
also that the company will be able to emerge from the process more
competitive for the long term.
'We have had a difficult start to 2011 with our business and on the capital
markets,' says Guoping Chen, CEO of Vtion Wireless Technology. 'Therefore,
we believe it is important to provide clarity on our dividend policy and
demonstrate to investors we are confident in our future,' he continued.
'Our guidance for 2011 reflects adverse changes that have occurred in our
target market, particularly with regard to the telecom operators' market
development strategy. However, we remain very well capitalized, finishing
the first nine months of 2010 with net cash of just under Euro 86 million,
allowing us to both pay a dividend and invest in our development, and an
equity ratio of 85%.'
Introduction of new products and associated services in 2011
The network operators' market development strategy mainly features greater
product diversity. This means that particularly the market for smartphones
and tablet PCs will be developed - at the expense of wireless data cards.
Therefore Vtion is experiencing strong pricing pressure from the wireless
operators in the wireless data card business segment following the latest
round of negotiations. The company has therefore adapted to these changes
and is currently developing solutions for the tablet PC and mobile apps
spaces. Vtion will continue to sell its current product offerings,
including wireless data cards, wireless modules, 3G routers and e-readers,
through both operator and retail sales channels, while looking to roll out
new products in the second half of the year. Vtion will feature tablet PC
devices targeted at business and corporate clients, and develop application
integration capabilities for the Android platform in order to provide
comprehensive solutions tailored to the needs of particular clients in
certain industries. States CEO Guoping Chen, 'Instead of producing a
one-size-fits-all product for the general populace, as a smaller company,
we are agile enough to develop solutions that are tailored to the
sector-specific needs of professionals or companies. We will continue to
use the ties we have to China's telecom operators to sell these solutions,
and offer a competitive combination of both hardware and integrated
applications.'
Since its IPO Vtion has focused its R&D activities on the development of
new hardware and application solutions for China's sizeable 3G market. The
first new products were introduced in Q4 2010, which included two 3G
routers and an e-reader. Consistent with Vtion's value-chain strategy the
production of these new products is outsourced.
Further details on these new products and associated services will be
announced as the company begins to sell and market them.
Relationship with China's mobile network operators maintained
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. The network operators bring users onto these networks through
laptops, which use wireless data cards, as well as smartphones, e-readers
and tablet PCs, all of which feature embedded connectivity. Recently the
operators have begun emphasizing the latter three devices, bringing the
Chinese market into the early stages of the mobile internet era. As a
company still designated a 'top-tier qualified supplier' by both China
Unicom and China Telecom, Vtion will remain a key supplier of wireless data
cards while also having opportunities as a supplier of newer products.
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 also
offers e-reader, 3G router and embedded module products through network
operator and retail distribution channels, as well as several online
services. For 2010, the company reached sales revenues of Euro 101 million.
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
End of Corporate News
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23.02.2011 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 Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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113110 23.02.2011
Datum: 23.02.2011 - 08:33 Uhr
Sprache: Deutsch
News-ID 33277
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Kategorie:
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