DGAP-News

Vtion Wireless Technology AG reports a further decline of revenues and EBIT

DGAP-News: Vtion Wireless Technology AG / Key word(s): 9-month figures
Vtion Wireless Technology AG reports a further decline of revenues and EBIT

30.11.2015 / 19:10
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Results 9 months 2015

Vtion Wireless Technology AG reports a further decline of revenues and EBIT
- Revenues decreased by 48 per cent to EUR 18.6 million year-on-year

- EBIT margin dropped by 7 percentage points to 1 per cent

- Outlook for full financial year 2015 forecasts revenues of around EUR
20 million and an EBIT margin of approximately 1.2 per cent

Frankfurt, November 30, 2015. Vtion Wireless Technology AG (Vtion), a
supplier of wireless data terminals and associated services for mobile
computing via broadband wireless networks in China, generated revenues of
EUR 18.6 million in the first 9 months of 2015. This corresponds to a
decrease of 48 per cent compared to the same period 2014. The weak demand
affected the EBIT margin that dropped from 8 per cent to 1 per cent, while
the gross profit margin remained comparatively stable at 19 per cent (9M
2014: 20 per cent).

The decline of revenues affected all the three segments of Vtion comprising
of "Wireless Data Terminals", "Wireless Intelligent Terminals" and "All
Others". In the third quarter 2015, Vtion generated EUR 2.3 million in
total representing a decline of 81 per cent compared to the previous year's
period (Q3 2014: EUR 12.4 million).

The company's core business "Wireless Data Terminals" comprises of wireless
data cards, routers and high definition sharers which contributed EUR 18.3
million to the total revenues in the first 9 months 2015 (9M 2014: EUR 22.1
million). Vtion's most important products in the core business remained
wireless data routers based on the 4G-techology for the Chinese operators
China Unicom and China Telecom. During the reporting period the company
generated revenues of EUR 10.3 million with wireless routers (9M 2014: EUR
11.0 million). The decrease of total revenues during the reporting period
was mainly due to lower sales of wireless data cards using the
3G-technology as more and more other devices are used to get access to the
mobile internet.

The demand for other products from the remaining segments that among these
are wireless data cards developed specifically for the storage and transfer
of tax data, a health self-checking instrument and a network camera
remained low.

"Due to the margin pressure we face in our core business we currently focus