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Vtion Wireless Technology AG mastered a challenging year with headwinds in the core market

DGAP-News: Vtion Wireless Technology AG / Key word(s): Final Results
Vtion Wireless Technology AG mastered a challenging year with
headwinds in the core market

28.04.2015 / 08:50

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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,