January - September 2008 Interim Report
• In the first nine months of 2008 net sales amounted to MSEK 126 (124). The
same period in 2007 included non-recurring revenues of MSEK 37 connected to the
settlement when divesting our U.S. subsidiary, as well as revenue from DNP in
Japan. Third quarter net sales were MSEK 50 (38).
• The gross margin for January - September was 71% (76) and the gross profit
was MSEK 89 (94). Adjusted for the non-recurring revenues, the gross profit
increased by MSEK 25. Third quarter gross margin was 68% (83) and the gross
profit was MSEK 34 (31).
• Excluding depreciation, write-downs and amortization, the result of the first
nine months in 2008 was MSEK -14 (6). For the third quarter it was MSEK 1 (1).
• The loss after tax for the first nine months was MSEK -28 (-5). The third
quarter result was MSEK 0 (-1).
• Earnings per share for the first nine months of 2008 were SEK -0.22 (-0.04).
The third quarter earnings were SEK 0.00 (-0.01).
• The cash flow during the period January-September amounted to MSEK -94 (-20).
The third quarter cash flow amounted to MSEK -37 (-8).
Summary of the activities during the third quarter
• Sales improved by 34% compared to the same period last year.
• The cash position went down due to increase in inventory, accounts
receivables and capital expenditures. These increases are mainly due to the
acquisition of the Hitachi Maxell digital pen division and the improved sales
volume in third quarter.
• Going forward the cash position will improve in conjunction with stronger
sales and we see no need for a capital injection.
• The third quarter of 2008 is the first quarter ever that Anoto delivered a
break-even result after tax, based on ordinary core-business.
• With effect from the third quarter, Anoto entered into a joint venture
agreement with Hitachi Maxell concerning the Japanese and Asian markets and
acquired the Hitachi Maxell digital pen division. This will give Anoto increased
sales and profits since Anoto now controls the major part of the value chain
(pen, license and pattern).
• In accordance with the agreement signed with Group Hamelin, we have commenced
our deliveries of pens in September 2008.
• The Anoto Functionality Conference was held at the Hilton Hotel Malmö, on
8-10 September. The participants were Anoto partners, end customers and other
key people within the industry. This year's conference attracted close to 200
participants from 29 countries around the world.
• Imaging Technology continues to show strong growth during 2008.
Comments from CEO Anders Norling
Break-even result in Q3 and the turn-around is ongoing
The turn-around of Anoto, from a technically oriented organisation to an
organisation with customer needs in focus is in line with my plans and has been
successful. Since the acquisition of the Hitachi Maxell digital pen division
last summer, we can now offer our customers and partners complete solutions
within our core businesses, Anoto Products and Technology & Licensing.
Our activities during the first nine months of 2008, such as the development of
the next generation digital pen, the acquisition of Covelus router technology,
acquisition of Hitachi Maxell Digital Pen Division and a substantial increase in
working capital have reduced our cash by MSEK 79.
The acquisition of the Hitachi Maxell Digital Pen Division included all their
related intellectual property rights, tools and inventory as well as commercial
contracts. This has reduced our cash by MSEK 28. A major part of that amount is
finished goods in inventory, ready to be delivered.
As I foresee increased sales of pens resulting in a reduction of the inventory
and limited capital expenditures, I expect that our cash flow will improve.
During the third quarter great efforts were made transferring know-how and
production of the digital pen from Hitachi Maxell to ourselves. The transfer is
going according to plan and we expect reduced production costs of goods as well
as reduced operational costs. I expect that the OPEX level from next year will
be in line with the level we had in 2007.
Excluding the non-recurring revenue of MSEK 37 in the first nine months of 2007,
sales rose by 45%. However, operations did not meet our plans during the first
two quarters, primarily due to delayed activities in the Japanese market. Sales
in the third quarter were in line with our expectations even though the sales in
the Japanese market are still a disappointment.
The third quarter of 2008 is the first quarter ever that Anoto delivered a
break-even result after tax, based on ordinary core-business. I expect that all
the efforts we have put into the turn-around will result in a more steady and
profitable phase going forward.
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 November 2008.
Date: Friday, 7 November 2008
Time: 10.00 CET
Phone: +44 (0) 20 7162 0025
Specify: Anoto
Or phone:
Anders Widesjö
CFO
+46 46 540 12 34
Anoto Group AB (publ), Corporate identification no. 556532-3929
Emdalavägen 18
SE-223 69 Lund
Phone: +46 46 540 12 00
www.anoto.com
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 November 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
