Vtion Wireless Technology AG
Vtion Wireless Technology AG mastered a challenging year with headwinds in the core market
Vtion Wireless Technology AG / Key word(s): Final Results Results 2014 Vtion Wireless Technology AG mastered a challenging year with headwinds in the core market – Revenues decreased by 23 per cent to EUR 46.3 million (2013: EUR 60.0 million) – EBIT margin of 7 per cent is in line with the prior guidance – Dividend policy is on trial Frankfurt, April 28, 2015. Vtion Wireless Technology AG (Vtion), a supplier of wireless data solutions for mobile computing in China, generated revenues of EUR 46.3 million over the course of 2014, corresponding to a decrease of 23 per cent compared to 2013. Due to the lean cost structure the group ensured its profitability. Year-on-year the EBIT margin dropped by 1 percentage point to 7 per cent whereas the gross profit margin increased to 20 per cent (FY 2013: 19 per cent). The majority of the total revenue was generated in the company’s core business with wireless data terminals. This segment comprises of wireless data cards, wireless routers, and wireless high definition sharers. Year-on-year the revenues in this segment dropped by 17 per cent to EUR 42.8 million (2013: EUR 51.7 million) but still contributed 92 per cent to Vtion’s total sales. The decrease of revenues during the reporting period was mainly due to lower sales of wireless data cards using 3G technology, the wireless high definition sharer named “PCtoTV” and the network camera VCAM. Latter has been canceled during the reporting period 2014. With the persistent pricing pressure and a limited demand for these devices, Vtion seeks to promote more specialized products. Among these are wireless data cards developed specifically for the storage and transfer of tax data. They contributed 23 per cent to the total revenue during the reporting period 2014. In November 2014, Vtion launched new wireless data routers based on the 4G-techology for the Chinese operators China Unicom and China Telecom. The wireless router business showed positive developments over the course 2014 and contributed 32 per cent to the total sales of the group. In contrast the revenues in the software-focused business segment, particularly with mobile applications, offered by Vtion Anzhou’s VMarket and partner sales platforms, remained low. Therefore the Management Board decided to sell the 100 per cent of equity stake of its subsidiary Vtion Anzhou to the Vtion Anzhuo management team via a Management Buyout (MBO) in March 2015. “We monitor our markets constantly and survey potential amendments of Vtion’s strategic focus. Given that our newest business segments are progressing slower than originally planned, we will rely on continuing hardware sales to sustain the company during this transition”, says Vtion’s CEO Chen Guping. Year-on-year the company’s EBIT decreased by 36 per cent to EUR 3.2 million representing an EBIT margin of 7 per cent. Although the group was able to maintain its profitability as well as a solid cash position due to a lean cost structure: By the end of the reporting period as of December 31, 2014, Vtion’s cash and cash equivalents amounted to EUR 140.7 million, which implies a net cash per share of EUR 10.6. In the light of the company’s other financial result and business development in 2014, the Management Board and the Supervisory Board of Vtion, jointly decided that they will not propose a dividend payment for the year 2014 to the Annual General Meeting. In the last three years Vtion had issued 15 per cent of the previous year’s group net profit as a dividend payment to the shareholders. Outlook 2015 The Management Board expects 2015 to be a year of further transition and therefore challenging for the company. Vtion predicts total revenues of around EUR 37 million with an EBIT margin of approximately 6 per cent. 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. 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: Disclaimer concerning prognoses 2015-04-28 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP 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: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart | |
End of News | DGAP News-Service |
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