DGAP-News

Vtion Wireless Technology AG ensures its profitability despite lower revenues

DGAP-News: Vtion Wireless Technology AG / Key word(s): Half Year
Results
Vtion Wireless Technology AG ensures its profitability despite lower
revenues

21.08.2014 / 08:17

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Results H1 2014

Vtion Wireless Technology AG ensures its profitability despite lower
revenues

- Revenues of 22.9 million Euros decreased by 18 per cent compared to H1
2013 (Euro 27.8 million Euros) with EBIT margin remained at 8 per cent

- Adjusted guidance for 2014 predicts revenues of at least 48 million
Euros and an EBIT margin of approximately 7 per cent

Frankfurt, August 21, 2014. Vtion Wireless Technology AG (Vtion), one of
the leading suppliers of wireless data solutions for mobile computing in
China, generated revenues of 22.9 million Euros in the first 6 months of
2014, corresponding to a decrease of 18 per cent compared to the same
period of 2013. Due to the lean cost structure of the group, the EBIT
margin stayed at 8 per cent (H1 2013: 7 per cent). Year-on-year the gross
profit margin increased by 2 percentage points up to 21 per cent.

During the reporting period, Vtion realized revenues of 11.96 million Euros
in Q2 2014, an improvement of 9.2 per cent compared to Q1 2014 while the
EBIT margin increased by 4 percentage points to 10 per cent.

The decrease of revenues in H1 2014 was mainly caused by lower sales of
wireless data cards and network cameras, while there were positive
developments in the wireless router business segment as well as the
industry-specific computing solutions area.

The majority of sales (20.3 million Euros) were still coming from wireless
data terminal business, contributing 88.7 per cent to Vtion's total
revenues over the course of H1 2014. With the secular pricing pressure and
limited core demand in this segment, the group seeks to promote more
specialized products. Among these are wireless data cards developed
specifically for the storage and transfer of tax data, which partly offset
the decrease of traditional sale in this segment over the first half of the
year.

In H1 2014, Vtion generated 6.4 million Euros from its wireless router
business, an increase of 7 per cent compared with the same period in 2013,
because of higher sales of upgraded wireless routers with High-Fidelity.
Currently, the company offers 3G mobile routers for the Chinese operators
China Unicom and China Telecom. Given that the growth of demand for mobile
routers, Vtion plans to work on a router for China Mobile's fourth
generation TD-LTE technology standard. Further products for two other
operators will remain centered on the 3.5G technologies primarily because