News Column

DGAP-News: Vtion Wireless Technology maintains profitable despite of lower revenues

May 27, 2014

DGAP-News: Vtion Wireless Technology AG / Key word(s): Quarter Results Vtion Wireless Technology maintains profitable despite of lower revenues 28.05.2014 / 08:26 --------------------------------------------------------------------- Results Q1 2014 Vtion Wireless Technology maintains profitable despite of lower revenues - Revenues of 10.95 million Euros decreased by 8% compared to Q1 2013 - EBIT margin remains at 6% - Guidance for 2014 confirmed with revenues of at least 60 million Euros and an EBIT margin of approximately 8% - Dividend policy will be continued Frankfurt, May 28, 2014. Vtion Wireless Technology AG (Vtion), one of the leading suppliers of wireless data solutions for mobile computing in China, generated revenues of 10.95 million Euros in the first quarter 2014. That corresponds to a decrease of 8% compared to the reporting period in the previous year. While the EBIT margin of 6% stayed consistent, the gross profit margin increased by 2 percentage points within a year up to 20%. Due to a lean cost structure and operational efficiency, Vtion was able to maintain a strong gross profit margin in the first three months 2014 despite a difficult operating environment marked by decreasing sales prices in its core business segment. The sales of wireless data terminals contributed 9.14 million Euros to the total revenues in Q1 2014. The more customized wireless data cards designed for local tax bureaus accounted for 19% of the total revenues. The company plans to develop and promote this product around different Chinese provinces in the remainder of 2014. In the industry-specific computing solutions segment, the company has now reached a total number of nine clients. The revenues from this business area slightly increased in the first quarter 2014 but achieved only a small part of the total revenues. Vtion merged the industry-specific computing solutions business into the wholly owned subsidiary Vtion Anzhuo in order to optimize the resources allocation and create more value in future. Vtion Anzhuo currently offers a total amount of 9,847 applications via 'Vmarket' and partner sales platforms. This decline of number of applications was primarily because the company is seeking to reduce its application offerings to focus on the high-quality applications that generate revenue, and has therefore jettisoned a number of free downloads that were previously offered on the applications store. Vtion expects results to improve over the course of the remainder of the year, given that the company's results are typically weaker in the first quarter of the year compared to later quarters. For 2014 Vtion confirms the results slightly above the level of the previous year with revenues of at least 60 million Euros and a consistent EBIT. Dividend payment of 0.054 Euros per share suggested to AGM Vtion will hold its Annual General Meeting (AGM) on June 25, 2014. The management will recommend the AGM a dividend payment on the first business day after the AGM equivalent to 15 per cent of the company's net profit in 2013. This corresponds to a dividend of 0.054 Euro per share and is consistent with the company's past dividend practice. About Vtion The Vtion Group is a leading supplier of wireless computing solutions and products for mobile Internet access via broadband wireless networks in the People's Republic of China. The company offers industry-specific computing solutions to the insurance industry through its E-Agency platform. Through its wholly owned subsidiary, Vtion Anzhuo, the company offers online applications for the Android operating system. For 2013, the company generated sales revenues of nearly 60 million Euros with an EBIT margin of 8 per cent. 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 Andreas Friedemann, phone: +49 40 60 91 86 0, mail: andreas.friedemann@kirchhoff.de or visit the company website: www.vtion.de Disclaimer concerning prognoses This communication contains forward-looking statements. Forward-looking statements are statements that are not historical facts instead they reflect Vtion's current views and expectations and the assumptions underlying them about future events. Forward-looking statements are subject to many risks and uncertainties. If any of such risks and uncertainties materialise or if the assumptions underlying any of Vtion's forward-looking statements are proving to be incorrect, Vtion's actual results may be materially different from those expressed or implied by such forward-looking statements. Vtion does not intend or assume any obligation to update these forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. End of Corporate News --------------------------------------------------------------------- 28.05.2014 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: Vtion Wireless Technology AG Westhafenplatz 1 (Westfalen Tower) 60327 Frankfurt Germany Phone: +49 69 710 456 245 Fax: +49 69 710 456 248 E-mail: ir@vtion.de,Janina.schumann@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 --------------------------------------------------------------------- 270885 28.05.2014


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Source: DGAP Corporate News