DGAP-News

Vtion makes further progress in transition of business model over Q1 2013

DGAP-News: Vtion Wireless Technology AG / Key word(s): Quarter Results
Vtion makes further progress in transition of business model over Q1
2013

22.05.2013 / 07:30

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2013 Q1 Results

- Revenues of 11.8 million Euro; EBIT margin of 6 per cent;
- Customer base for E-Agency platform solutions considerably increased;
- Management confirms full year guidance: revenues between 60-70 million
Euro, EBIT margin between 8 and 10 per cent;
- Company maintains a strong net cash position of Euro 123.3 million, or
Euro 8.50 per share
- Dividend payment of 0.055 Euro per share planned;

Frankfurt, 22 May 2013. Vtion Wireless Technology AG, one of the leading
suppliers of wireless data solutions for mobile computing in China,
achieved revenues of 11.8 million Euro and an EBIT margin of 6 per cent in
the first quarter of 2013. The decrease compared to the previous year was
expected and due to the discontinuation of its consumer-oriented tablet PC
business and fewer business days in the first quarter due to the Chinese
Spring Festival. Similar to the financial year 2012, the company's results
for the first quarter of 2013 were primarily driven by the performance in
its core business, the wireless data terminal business segment.

Due to a lean cost structure and operational efficiency, Vtion was able to
maintain a strong gross profit margin in a difficult operating environment
marked by decreasing sales prices in its core business segment in the first
quarter. The EBIT margin decreased to 6 per cent. The net cash flow from
operations was 5.4 million Euro, and the company maintained a strong net
cash position of 123.3 million Euro. This is equivalent to 8.50 Euro per
share.

'Despite the decline in our EBIT margin, we are pleased to see a greater
operational cash flow in this quarter compared to the same quarter a year
ago. Going forward this will allow us to continue to both pay a dividend
and selectively engage in share buyback programs,' comments Chen Guoping,
CEO Vtion Wireless Technology AG.

Progress in transition of business model

Though the company's results are still driven by the wireless data terminal
business segment, Vtion also made progress in each of its other business
segments: In the industry-specific computing solutions business segment,
the company is now serving a total of 10 clients with the E-Agency platform
solutions. Vtion Anzhuo, the company's mobile applications subsidiary, now
offers a total of 33,761 applications through its various sales channels
and has worked to increase its presence in the gaming industry. Finally,
Project Fujian Connection, done in cooperation with China Unicom, continues