DGAP-News: Vtion Wireless Technology AG: Revenues of EUR 12.6 m, cash position further improved
(firmenpresse) - DGAP-News: Vtion Wireless Technology AG / Key word(s): Quarter Results
Vtion Wireless Technology AG: Revenues of EUR 12.6 m, cash position
further improved
12.05.2011 / 07:45
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- Foreign exchange gains lead to net profit margin of 18%
- Share buyback in progress
- New products to be introduced throughout the second half of 2011
- Guidance for 2011 confirmed
Frankfurt, 12. May 2011. Vtion Wireless Technology AG, one of the leading
suppliers of wireless data solutions for mobile computer use in China, has
shown a slow start to the year, reaching revenues of EUR 12.6 million and
net profit of EUR 2.3 million, a decrease of about 50% compared to Q1 2010.
This is due to pricing pressure in the wireless data terminal business
segment, and the fact that China's operators have started to favour a more
diversified approach to their procurement as opposed to the previous data
card-centric model. However, the net profit margin remained at a high level
of 18% due to foreign exchange gains. The results are in line with the
management's expectations for the full year, as the second half of the year
is expected to be stronger than the first. The company's management remains
confident in reaching its previously-stated guidance of revenue between EUR
75 - 100 million and an EBIT margin of 10% - 12%.The company is currently
in the process of expanding its product and application offerings.
'After the steps we are taking now, we envision Vtion emerging in 2012 as a
stronger company better positioned to be competitive in the long-term.
While maintaining our strong presence in the wireless data terminal space,
we are in the process of diversifying our business model into the wireless
intelligent terminal and mobile application markets. Wireless data
terminals, particularly wireless dongles, have traditionally been the core
of Vtion's business. Wireless data terminal products will remain the
foundation of our business in the near future, and we maintain strong ties
to each of China's telecom operators,' comments Guoping Chen, CEO of Vtion
Wireless Technology.
Cash position further strengthened
In the first three months of 2011, revenues amounted to EUR 12.6 million, a
decrease by 52% compared to EUR 26.3 million in Q1 2010. This was primarily
due to the decrease in the sales of wireless data cards from EUR 25.7
million in Q1 2010 by 67% to EUR 8.6 million in Q1 2011 - a result of the
strong ASP decline for 3G wireless data cards brought about by the price
competition and increasing usage of other means of connection to access the
mobile internet. Correspondingly, profit from operations (EBIT) decreased
from EUR 7.6 million in Q1 2010 by 86% to EUR 1.0 million in Q1 2011.Vtion
Group's EBIT margin amounted to8% in Q1 2011, after 29% in Q1 2010.The
decrease resulted from the lower gross profit margin of 3G wireless data
cards.
Net profit in the first three months of 2011 amounted to EUR 2.3 million, a
decrease of 49% year-on-year. Earnings per share reached EUR 0.14 in Q1
2011, after EUR 0.28 in Q1 2010. The net profit margin slightly increased
from 17% to 18%. This increase was mainly due to foreign exchange gain.
Vtion's cash position remains very strong: Cash and cash equivalents
amounted to EUR 104 million as of 31 March 2011, after EUR 99 million as of
31 December 2010.The company generated a positive net cash flow amounting
to EUR10.2 million from operations as of 31 March 2011, representing a
decrease by EUR 1.3 million compared with the net cash of EUR 11.5 million
generated in operating activities in Q1 2010.
Share buyback in progress
Vtion intends to pay a dividend in 2011 for 15% of 2010 net profit, EUR
0.21 per share. In April, the company commenced a share buy-back program
for up to EUR 4 million or approximately 1 million shares. On May 6, 2011
the company bought back the first 10,000 shares. As of May 11, 2011 the
company has purchased a total of 19,225 shares, at an average price of EUR
4.08. Its strong cash position allows Vtion to return funds to the
shareholders via a dividend as well as the share buy-back, invest in new
product and application offerings for short-term development, and increase
its long-term competitiveness through investment in R&D.
New products to be introduced throughout 2011
Vtion intends to release its first products in the wireless intelligent
terminal space in the second half of 2011, when it will introduce both a
7-inch and 10-inch tablet PC. Given that the consumer market for such
products is highly competitive and dominated by companies much larger than
Vtion, the company has developed a sales strategy that emphasizes operator
channels and enterprise clients, particularly in the insurance industry.
Through its sales in tablet PC's, Vtion will be able to take advantage of
the capacity it is building up in the mobile application sector, through
our newest subsidiary, Vtion Anzhuo. Vtion Anzhuo will come fully online in
the second half of the year, and serve as an integrator and distributor of
mobile applications for the Android platform from both inside and outside
China. 'By continuing our strong presence in the wireless data terminal
sector, combined with building up presence China's wireless intelligent
terminal and mobile application markets, we will position Vtion's business
model as one set up to compete in China's telecom and mobile internet
market over the long term,' states Guoping Chen.
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 102 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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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: DE000CHEN993WKN: 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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124205 12.05.2011
Datum: 12.05.2011 - 07:45 Uhr
Sprache: Deutsch
News-ID 34053
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Kategorie:
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