- Net sales in the period amounted to MSEK 158 (135) and net sales in the third quarter amounted to MSEK 47 (36).
- The gross margin for the period was 73% (71) and gross margin for the third quarter was 76% (77). The gross profit for the period was MSEK 115 (95) and gross profit in the third quarter was MSEK 36 (28).
- Earnings before depreciations and amortizations (EBITDA) in the first nine months was MSEK -7 (-1) and EBITDA for the third quarter was MSEK -6 (-1).
- The result after tax for the period was MSEK -21 (-243) and the result after tax for the third quarter was MSEK -11 (-234).
- Earnings per share before and after dilution for the first nine months was SEK -0,16 (-1,89) and for the third quarter SEK -0,08 (-1,79).
- The cash flow during the first nine months was MSEK -13 (-50) and the cash flow for the third quarter was MSEK -3 (-21).
Comments from the CEO
FROM HARDWARE TO SOLUTIONS
The weak sales within business areas Business Solutions and Education continued from Q2 into Q3. Total revenues for the group were MSEK 47 compared to MSEK 54 in Q2. The sales include MSEK 12,7 (MEUR 1,5) in revenue recognition from the signing of an exclusive agreement with a worldwide partner within a new business area for government applications. The agreement had a positive impact on gross margin at 76% compared with 69% in the second quarter. The net loss was MSEK 11 and the cash flow was MSEK -3.
We continue discussions with our partners to remove friction in the value chain and to improve the packaging of data capture solutions by combining our partners´ software with Anoto’s hardware and core technology. LIVE PDF is the first step to improve delivery including basic functionality. The next step is to integrate with our leading partners software platforms.
In some cases we think this is better achieved through acquisitions (like we have done with Ubisys and Destiny Wireless in the UK). We are therefore actively pursuing merger discussions with several other partners. We have gradually reduced the price of hardware to meet expectations from our partners whilst working to integrate software and comply with the most common interfaces within the different business verticals. This is hurting revenues in the short term until we can compensate with more software and service revenues.
Within business area Education we had a disappointing quarter due to very little business from our OEM partners within interactive whiteboards. TStudy continues to expand its interactive classroom business into public schools in Korea and in order to expand its business into China TStudy has now opened up two offices in the country.
A very exciting partnership was entered into in Q3 with a global company for government applications. Due to product planning and confidentiality we are not yet in a position to disclose any information until next year. The agreement includes a 3 MEUR (MSEK 25,5) payment this year of which MEUR 1.5 (MSEK 12,7) is recognized as revenue in Q3 and MEUR 1,5 (MSEK 12,7) will be recognized as revenue for engineering services and products most likely during 2013.
After the close of Q3 we delivered the earlier communicated order of 3.200 pens to a global insurance company. This is the second large order within insurance this year. Further within insurance, one of the world’s leading service providers Mphasis, an HP company, announced to integrate Anoto digital pen technology. They use Anoto digital pen technology to enable insurance agents to capture front-end data such as new applications electronically.
Outlook
In the UK Prime Minister and Health Secretary announced plans to invest £140 million into the NHS, so that nurses and midwives can spend more time with patients. In the proposal, it was announced that £100 million will be offered to spend on new technology. “Digital pens” was explicitly mentioned as an example of the new technology in question. So despite a weak quarter we continue to be optimistic for the future and expect higher growth in the coming quarters both in respect of new customers and as a consequence of higher revenues per customer coming from a consolidation and solutions offering.
Stein Revelsby, CEO Anoto Group
To read the entire report, please see attached PDF.
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 November 2, 2012.
A webcast of the Q3 report will be available from 09.00 on November 2 and a Q&A session via audiocast will be held at 11.00. For more information, see www.anoto.com/investors.
For more information, please contact:
Stein Revelsby, CEO
Phone: +46 (0)733 45 12 05
Or
Dan Wahrenberg, CFO
Phone: +46 (0)733 45 10 19
Anoto Group AB (publ.), Corp. Id. No. 556532-3929
Box 4106,
SE-227 22 Lund, Sweden
Phone: +46 46 540 12 00
