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Vtion Wireless Technology AG: Difficult market environment affects full year results 2012

DGAP-News: Vtion Wireless Technology AG / Key word(s): Preliminary
Results
Vtion Wireless Technology AG: Difficult market environment affects
full year results 2012

19.02.2013 / 07:20

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Preliminary figures 2012:

Vtion Wireless Technology: Difficult market environment affects full year
results 2012

Frankfurt, 19 February 2013. Vtion Wireless Technology AG, one of the
leading suppliers of wireless data solutions for mobile computing in China,
announces its preliminary results for the financial year 2012. Despite a
challenging market environment, Vtion achieved revenues of EUR 75.6
million, showing a slight decrease of two per-cent compared to 2011. The
company´s EBIT margin remained nearly stable at nine per-cent (ten per-cent
in 2011).

Review of guidance 2012
Based on the preliminary results of 2012, Vtion barely missed the bottom
end of its revenue guidance at EUR 80 million and an EBIT margin of ten
per-cent. Main reasons are adverse impact of widespread usage of
smartphones to access the Internet, fierce competition in the tablet PC
market and especially the lower purchases in fourth quarter by telecom
operators.

Insurance Industry Solutions and applications remain profitable
Vtion´s Wireless Data Cards made up 53 per-cent of the revenues in 2012 and
therefore accounted for the majority of revenues, while the Wireless Router
amounted to 28 per-cent and the Vpad for 18 per-cent. Due to the increasing
pricing competition in the consumer tablet PC market, Vtion decided to
discontinue its business in that industry. Vtion´s decision to exit this
business was made for the benefit of the company´s overall profitability,
though the decision will affect the revenues in 2013. Nevertheless Vtion´s
other new business models are evolving, achieving positive results. The
company´s Insurance Industry Solutions serve 12 clients at the moment and
is presently Vtion´s highest-margin business, though the current turnover
is still quite low. Furthermore, Vtion´s wholly-owned subsidiary, Vtion
Anzhuo, has developed and uploaded nearly 30,000 applications on the Anzhuo
Store as of December 31, 2012.

Full year guidance for 2013
Due to the continuous difficult market situation in the business of
Wireless Data Solutions involving macroeconomic challenges and pricing
pressure, Vtion adjusted its guidance for 2013. In the current financial
year, the company expects to reach revenues between EUR 60 million and EUR
70 million while the EBIT margin is estimated to amount between eight
per-cent and ten 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