Comments from the CEO
Although the fourth quarter was not satisfactory financially it marked a new milestone for Anoto. The development of the world’s first tablet computer with embedded Anoto technology was initiated and the product was launched by Panasonic at the Consumer Electronics Show in Las Vegas on January 8, 2013. This was an important proof of concept for Anoto and the evidence that we can now Write Live on analogue (paper, plastic, ceramic steel) as well as digital surfaces (screens).
Revenues in 2012 were 199 MSEK (192 MSEK). Revenues in Q4 were 41 MSEK (57 MSEK). Cash flow in 2012 was - 18 MSEK (- 57 MSEK). Cash flow in Q4 was -5 MSEK (-7 MSEK).
In Q4 we shipped 3,250 pens to one of the world’s largest insurance companies, to be used by insurance sales agents to capture front-end data electronically. In Sweden we expanded an already large installed base of more than 15,000 home healthcare workers with another 1,000 pens in Q4 via our partner Phoniro. In Germany we received the first contract for a potentially large rollout to a major banking organization. In the fourth quarter we established a sales office in Amsterdam and recruited 3 senior sales people, including SVP Global Sales. The team has many years of experience within enterprise software and solutions and will focus primarily on the Benelux area and Germany as well as co-ordinate our global activities.
During 2012 more than 50,000 new business users started to use mobile data capture solutions based upon Anoto digital writing technology sold through our network of partners and system integrators worldwide. This is more than 25% growth over 2011. At the same time we reduced the average selling price of the pen by 20%. The end user price of a data capture solution in the market did not change considerably. Our strategy is to climb the value chain and consolidate with some of our leading software platform partners through closer co-operation and acquisitions. The net effect will be higher revenues per new customer and stable high gross margins.
Sales within education and interactive white boards were significantly lower than expected also in Q4. We continue to believe this is a future growth area with a large potential. Now, with a proven solution for screens and tablets we also see a potential opportunity to combine Anoto technology with larger LCD screens.
In Q4 we received a 2 MEURO payment from a large global partner with whom we are currently developing applications for government, primarily voting.
As stated in the Company’s interim report for the third quarter 2012, the Company’s total amount of cash has decreased during 2012. Recent developments in our business, large global brands adopting our technology within business solutions, partners’ expanding within education in Korea and China, a large global partner developing solutions for voting and emerging opportunities to become a real alternative for screen and tablet computer manufacturers for digital writing, has confirmed our belief in several large growth opportunities.
Board and management is of the opinion that the Company will benefit from raising new capital to strengthen the Company’s presence in its market segments. The rights issue as communicated to the market on Monday February 4 will provide necessary additional short term liquidity and strengthen the Company’s balance sheet, as well as support product development, sales and marketing activities and potential acquisitions.
Stein Revelsby, CEO
Anoto Group AB
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 February 8, 2013.
A webcast of the Q4 report will be available from 09.00 on February 8 and a Q&A session via audiocast will be held at 11.00 the same day. For more information, see www2.anoto.com/investors.
For more information, please contact:
Stein Revelsby, CEO
Phone: +46 (0)733 45 12 05
Dan Wahrenberg, CFO
Phone: +46 (0)733 45 10 19
Anoto Group AB (publ.), Corp. Id. No. 556532-3929
SE-227 22 Lund, Sweden
Phone: +46 46 540 12 00