Vtion Wireless Technology: EPS of Euro 0.30 for First Nine Months 2012
Quarter on quarter sales growth
Through the first nine months of the year, Vtion achieved a total sales revenue of Euro 58.73 million, Euro 21.54 million of which came in the third quarter. This represents a sales increase of 11.3% compared to the second quarter of this year. Vtion's wireless data terminal business segment continued to be the main revenue driver, accounting for over 80% of total revenue for the first nine months of the year. Vtion's mobile intelligent terminal segment (tablet PC products) accounted for the majority of the remaining revenue, with small contributions coming in both the industry-specific computing and online mobile apps segments. The company's gross profit margin was 17% for the quarter and 18% for the first nine months, compared to 18% and 19% for Q3 and nine months in 2011. The slight decrease is primarily due to pricing pressure in the tablet PC business segment. Vtion achieved an EBIT of Euro 5.74 million for the first nine months, which represents a margin of 10%.
Though Vtion's cash flow from operations was Euro -1.91 million for the first nine months of the year, Vtion's operating cash flow in Q3 improved to Euro 1.82 million. The company finished the first nine months of the year with a net cash position of Euro 114.4 million (Euro 7.89 per share), which is essentially unchanged from the net cash position at the end of H1 2012.
"Overall I am pleased with our results in the first three quarters of this year", states Vtion CEO Chen Guoping. "We are facing a difficult macroeconomic environment, which has slowed consumption among telecom customers and thus affected telecom operator procurement. However, I am pleased that we have still been able to grow our sales quarter over quarter. I am glad to see that we now have a better handle on inventories as we were cash flow positive for Q3", he concluded.
Full year outlook
Vtion's full year 2012 guidance calls for revenues between Euro 80 million and Euro 100 million, with an EBIT margin of 10%. On the basis of the results of the first nine months of 2012, Vtion expects its full year results to be around the bottom end of the guidance, due to aforementioned macroeconomic headwinds and pricing pressure in the tablet PC business segment.
The full 9M 2012 Report of Vtion is available on the website at www.vtion.de.
Disclaimer concerning prognoses
This communication contains forward-looking statements. Forward-looking statements are statements that are not historical facts instead they reflect Vtion's current views and expectations and the assumptions underlying them about future events. Forward-looking statements are subject to many risks and uncertainties. If any of such risks and uncertainties materialise or if the assumptions underlying any of Vtion's forward-looking statements are proving to be incorrect, Vtion's actual results may be materially different from those expressed or implied by such forward-looking statements. Vtion does not intend or assume any obligation to update these forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made.
Vtion Wireless Technology AG
The Vtion Group is a leading supplier of wireless computing solutions and products for mobile Internet access via broadband wireless networks in the People's Republic of China. The company offers tablet PC products and support services through its mobile intelligent terminals business segment, including both to the consumer market and industry-specific clients. Through its wholly owned subsidiary, Vtion Anzhuo, the company offers online applications for the Android operating system. For 2011, the company reached sales revenues of Euro 77 million with an EBIT margin of 10.3%. Vtion Wireless Technology AG shares are being traded in the Prime Standard on the Frankfurt Stock Exchange with the ISIN DE000CHEN993. The company's ticker symbol is V33.