DGAP-News

Vtion Wireless Technology AG confirms outlook despite lower revenues

DGAP-News: Vtion Wireless Technology AG / Key word(s): Preliminary
Results/9-month figures
Vtion Wireless Technology AG confirms outlook despite lower revenues

21.11.2014 / 08:27

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Preliminary Results 9 months 2014

Vtion Wireless Technology AG confirms outlook despite lower revenues

Frankfurt, November 21, 2014. According to preliminary results Vtion
Wireless Technology AG (Vtion), a leading supplier of wireless data
solutions for mobile computing in China, achieved revenues of 12.4 million
Euros in the third quarter of 2014 and generated revenues of 35.3 million
Euros in the first nine months of 2014. The latter corresponds to a
decrease of 22 per cent compared to the nine-months-period of 2013. Despite
the decrease of revenues the EBIT margin of 7.6 per cent is in line with
the same period of last year and the guidance as adjusted in August 2014.

The decrease of revenues during the first nine months 2014 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 of 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 21 per cent to the total revenue during the reporting period
2014. The company also plans to launch a wireless data router based on 4G
technology by the end of this year.

Furthermore the company made progress in industry-specific computing
solutions and broadened the client-base to eleven companies during the
reporting period. In the third segment of the mobile application business
'Vmarket' provided by Vtion Anzhuo and partner sales platforms currently
offer a total amount of more than 9,800 applications. In order to increase
the revenue in this field, Vtion will focus on strengthening its presence
as a third party designer and operator of online application stores for
other companies, particularly large-screen device manufacturers. Vtion
recently signed a cooperation agreement with the international manufacturer
of TV devices Sharp to provide an appstore in Southeast of Asia.

By the end of the reporting period as at September 30, 2014, Vtion had a
net cash position of 127.7 million Euros and an equity ratio of 95 per
cent. These capital resources allow the company to return cash to
shareholders while keeping cash on hand for both working capital needs and
investment opportunities.

All in all the Management Board is confident to reach revenues of at least