Anoto Group AB: January - March 2008 Interim Report
• First quarter sales were SEK 34 million (56). Sales in the first quarter of
2007 included non-recurring revenue of SEK 37 million in connection with the
settlement when divesting our U.S. subsidiary, as well as revenue from DNP in
Japan.
• The group's first quarter gross margin was 69% (78) and its gross profit was
SEK 24 million (44). Adjusted for the non-recurring revenue in connection with
the U.S. business and the revenue from DNP, the gross profit increased by SEK 10
million.
• Excluding depreciation and amortization, the loss for the first quarter was
SEK -10 million (15).
• The first quarter loss after tax was SEK -13 million (9).
• Earnings per share for the first quarter were SEK -0.10 (0.07).
• First quarter cash flow was SEK -22 million (-10).
Operations
• First quarter sales were in line with the company's plans for 2008. However a
change in the product mix led to a weaker margin.
• Anoto entered in April into an agreement with a world-leading global
manufacturer of visual communication products in such areas as whiteboards and
flipcharts. As a result of the contract, Anoto will deliver technology and
digital pens for use in future products. The initial value of the order
corresponds to revenue of approximately EUR 800,000.
• In spite of the slower growth of the mobile phone market we expect that the
Imaging Technology area will have a strong growth during 2008.
• Early April, Anoto and OKI previewed Anoto PenPresenter, a new product
scheduled for September launch.
• In cooperation with Vision Objects, the company launched the second version of
its proprietary Forms Solution 1.1 (AFS 1.1) platform, which offers expanded
functionality when it comes to character recognition and other uses.
• The Anoto Partner Leapfrog launched its next-generation reading system, Tag
Reading System, expected to be available in stores this summer.
• The American Partner Livescribe presented its new consumer pen, Pulse, based
on Anoto technology and with a built-in microphone and speaker.
A word from CEO Anders Norling
Sales and earnings continue to improve
Operations performed in line with our plans during the first quarter. Excluding
non-recurring revenue of SEK 37 million in the first quarter of 2007 in
connection with the divestment of our U.S. subsidiary (now Livescribe) and major
revenue from our Japanese partner DNP, sales rose by 84% and the gross profit
improved substantially.
We changed the names of Anoto's application areas to more clearly describe their
current and future activities. Anoto Products (formerly Forms Solutions and C
Tech) and Imaging Technology (formerly Anoto Technology), our two biggest
application areas, performed according to plan, i.e., approximately 25% higher
volumes for Anoto Products and three times the previous volumes for Imaging
Technology. The latter increase was due to greater use of our video technology
in mobile phones and other products.
We accelerated development of next-generation digital pens during the first
quarter. We will pursue the effort throughout 2008 and we have scheduled the
launch for mid-2009. SEK 8 million of the SEK 30 million total estimated costs
has been invested so far.
Our focus on the packaging of products and offerings is proceeding as planned,
our goal being to sell licenses and digital pens as an integrated product. In
the future, Anoto will obtain its product revenue at the time of sale.
The development of proprietary and partner-based products has led to Anoto
PenPresenter, a new product that uses Anoto technology as an interactive meeting
room tool and to make PowerPoint presentations more effective.
Anoto entered into a first quarter agreement with a global company for
development of visual communication. One sphere of application may be the
digitalisation of what is written on whiteboards, flipcharts, etc. in conference
rooms. In the future, we will deliver patterns and digital pens in addition to
technology. Anoto technology has been evaluated over the course of a year. Both
Anoto and our partner believe that the technology has major potential in the
area of visual communication.
For complete report, see attached file.
For more information
You are welcome to participate in Anoto's teleconference for financial analysts
and the media at 10.00 CET on 7 May 2008.
Date:
Wednesday, 7 May 2008
Time:
10.00 CET
Phone:
+44 (0) 20 7162 0025
Specify:
Anoto
Or call:
Anders Widesjö, CFO
+46 46 540 12 34
Anoto Group AB's 2007 annual report is available at www.anoto.com. A printout of
the digital version may be ordered from the company.
Anoto Group AB may be required to disclose the information provided herein
pursuant to the Securities Markets Act. The information was submitted for
publication at 08.30 am on May 7th, 2008.
Anoto Group AB
Anoto Group is the company behind and world leading in the unique technology for
digital pen and paper, which
enables fast and reliable transmission of handwritten text into a digital
format. Anoto operates through a global partner
network that focuses on user-friendly forms solutions for efficient capture,
transmission and storage of data within
different business segments, e.g. healthcare, bank and finance, transport and
logistics and education. The Anoto
Group has around 110 employees, offices in Lund (head office), Boston and Tokyo.
.Among the major shareholders
are Norden Technology A/S, Robur and SEB. The Anoto share is traded on the Small
Cap list of the OMX Nordic
Exchange in Stockholm under the ticker ANOT. For more information: www.anoto.com
