- Net sales in the period amounted to MSEK 192 (208) and net sales in the fourth quarter amounted to MSEK 57 (57).
- The gross margin for the period was 71% (67) and gross margin for the fourth quarter was 72% (72). The gross profit for the period was MSEK 137 (140) and gross profit in the fourth quarter was MSEK 41 (41).
- Earnings before depreciations and amortizations (EBITDA) in the period was MSEK 4(-28) and EBITDA for the fourth quarter was MSEK 5 (-4).
- The result after tax for the period was MSEK -244 (-77) including a goodwill write- down of MSEK 230 and the result after tax for the fourth quarter was MSEK 0 (-14).
- Earnings per share before and after dilution for the period 2011 was SEK -1,89 (-0.60) and earnings per share for the fourth quarter was SEK 0,00 (-0,11).
- The cash flow during 2011 was MSEK -57 (0) and cash flow for the fourth quarter was MSEK -7 (17)
Comments from the CEO
Easy to use
The reorganization of the business that was initiated in 2010 and the following reduction in operating costs led to improved profitability in the fourth quarter. Revenues within Business Solutions were in line with our expectations, Technology & Licensing improved from the third quarter, whilst C Technologies was still below our expectations from the beginning of the year.
Despite a turn-around to positive EBITDA the company had a negative cash flow in 2011 of MSEK 57. A significant part of this, MSEK 15, is an effect from the restructuring program in 2010 that has reduced our OPEX but has a cash flow effect mainly in 2011. In the fourth quarter our cash position was reduced from MSEK 31 to MSEK 24 at year end primarily due to increased working capital (receivables). Gross margin was satisfactory at 72% resulting from a favorable mix of product and licensing revenues.
In the fourth quarter we agreed to acquire Xpaper technology from US based Talario. Talario’s Xpaper software makes it easy to use Anoto’s digital pen and paper technology with any software application or paper document. The objective is to incorporate Talario’s document printing and document capture components along with supporting web services in our core offering and make it easy to print any document and capture the written or signed document in PDF format.
During 2011 more than 40,000 new business users started to use mobile data capture solutions based upon Anoto digital pen and paper technology sold through our network of partners and system integrators world-wide. The need for businesses to reduce their spending on document paper flow is larger than ever and more and more companies realize that digital pen and paper technology is an efficient and cost effective way to capture data. In fourth quarter we received the single largest end user order within business solutions ever of 14 MSEK for delivery to a Japanese insurance company in the first quarter 2012.
Our subsidiary Destiny Wireless won a new contract with British Airways plc for 550 users within their aircraft turnaround teams, known as “Red Caps”. The use of digital pens saves time and effort which in turn increases the number of aircraft that can depart daily. Within work-based learning and funded by the Skills Fund Agency, a UK Government agency, fourteen colleges are embarking on pilots to reduce administration time, improve data quality and speed up the processing of learner information. To date Destiny has successfully implemented the solution with 24 customers in this sector.
Within product development we finalized the development of the new product ADP 601 in co-operation with our joint venture Pen Generations in Korea. ADP 601 is meant for class room education where every student has their own pen simultaneously streaming wireless data to the teacher’s computer or interactive white board. The product will initially be sold through our partner TStudy.
Outlook
We expect improved cash flow as a consequence of previous cost reductions and improved sales. We have received orders for delivery in the first half of 2012 and combined with new products within Education as well as higher activity within Business Solutions we expect sales to increase in 2012. Anoto’s cash position will be sufficient to support our business in the coming twelve months.
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 on
February 3, 2012.
For full report, please see attached document.
CEO Stein Revelsby will present the results via webcast at 10.00 a.m. CET at www.anoto.com/investors.
For more information please contact:
Stein Revelsby, CEO
Anoto Group AB
Tel: +46 (0)733 45 12 05
Dan Wahrenberg, CFO
Anoto Group AB
Tel: +46 (0)733 45 10 19
About Anoto Group
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 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 80 employees, offices in Lund (head office), Boston and Tokyo. The Anoto share is traded on the Small Cap list of OMX Nordic Exchange in Stockholm under the ticker ANOT. For more information: www.anoto.com.
