-
Net sales in the period amounted to MSEK 95 (111) and Net sales for the quarter amounted to MSEK 27 (33).
-
The Gross margin for the period was 67% (70) and Gross margin for the quarter was 65% (73). Gross profit for the period was MSEK 64 (77) and Gross profit for the quarter amounted to MSEK 18 (24).
-
Earnings before depreciations and amortizations (EBITDA) for the period was MSEK -45 (-63) and EBITDA for the quarter was MSEK -20 (-20).
-
The Result after tax for the period was MSEK -56 (-75) and Result after tax for the quarter was MSEK -26 (-24).
-
Earnings per share before and after dilution for the period was SEK -0.12 (-0.44) and for the quarter SEK -0.06 (-0.14).
Cash flow during the period was MSEK -5 (-2) and Cash flow for the quarter was MSEK -11 (1). Cash flow from operating activities before changes in working capital in the period was MSEK -50 (-64) and for the quarter MSEK -23 (-19). Cash flow from financing activities during the period was MSEK 46 (56) and for the quarter MSEK 7 (13).
Comments from the CEO
CROSSING THE CHASM
Revenues in the third quarter was MSEK 27.1 compared to MSEK 31.3 for the second quarter. Gross margin was 65% compared to 63% in the second quarter. Operating expenses were MSEK 34.7 in the third quarter compared to MSEK 36.8 in the second quarter. EBITDA was MSEK –20.7 compared to MSEK -17.3 in the second quarter. Cash flow for the quarter was MSEK -11.4, including MSEK 3.7 of net payment from the private placement in June/July and MSEK 2.8 from a short term loan in September.
The 3rd quarter was another weak quarter with respect to sales for Anoto and we had to ask our shareholders for funding once again. The rights issue is guaranteed to 90% by a consortium of Swedish investors and will provide 68 MSEK in cash before transaction costs and fees to underwriters if fully subscribed.
Despite a weak quarter we took another major step towards growth and profitability by developing a successful prototype for one of the world’s largest IT companies. The project is progressing well with the objective to launch a high end digital writing solution for displays in the second half of 2015. This follows a successful product launch with Panasonic which has opened up for new opportunities to become a digital writing platform for display manufacturers who are looking for high precision, easier integration with touch technologies, larger displays and the possibilities to use more than one pen per screen.
The negotiations announced on June 19th about divesting our Business Solutions business was terminated in August. The purpose of the proposed transaction was to realize the full potential of the business solutions segment with a strategic partner to enable a stronger marketing and sales presence. However we did not come to agreement on price and decided instead to consolidate all our wholly owned digital paper based business solutions business into a separate business unit, Anoto Enterprise Solutions in the UK. Anoto Enterprise Solutions will continue to support customers in the UK and also Business Solutions partners world-wide. During the 3rd quarter several larger opportunities has evolved within healthcare, banking, insurance and field service in Germany, UK, Turkey and Japan.
We continue to focus on costs and we did further adjustments to reduce OPEX in Q3 by deciding to close our office in Holland and move all Business Solutions related activities to the UK. We see further potential to reduce costs in 2015 but we are cautiously aware that we do not want to reduce the upside revenue potential of our business. Once the lease expires we will move the Swedish organization to a new office in Lund from September next year which will reduce the operating expenses.
OUTLOOK
Following Panasonic product launch and now significant interest from some of the world’s largest IT companies Anoto’s strategic direction will shift to capitalize on its unique position as the leading provider of high precision digital writing solutions for small as well as ultra-large screens and the rapidly increasing demand for collaboration solutions. Initial market focus will be on high end market segments where users demand high accuracy, fast and reliable interaction and multiple users per screen. Touch Display Research estimates that active digital pen shipments will surpass 90 million units this year and increase to more than 500 million pens in 2020. By working with some of the world’s leading brands we see a large opportunity to participate in this market. In the short term we expect a significant improvement in revenues in the coming two quarters both within Business Solutions from ongoing projects as well as within our OEM business with customers Livescribe, Smartmatic, Tstudy, Steelcase and others.
For complete report, please see attached document.
A webcast of the Q3 report will be available from 09.00 on October 21 and a Q&A session via audiocast will be held at 11.00 the same day. For more information, see http://www.anoto.com/investors/.
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 October 20, 2014
For more information, please contact:
Stein Revelsby
CEO
+46 733 45 12 05
Anoto Group (publ.) org. nr. 556532-3929
Box 4106
SE-227 22 Lund
About Anoto Group
Anoto Group AB is a global leader in digital writing solutions, which enables fast and reliable transmission of handwriting into a digital format. Anoto operates worldwide through a global partner network that delivers user-friendly digital writing solutions for efficient capture, transmission, distribution and storage of data. Anoto is currently in use across multiple business segments, e.g. healthcare, pharmaceutical, bank and financial services, transportation and logistics, government and education. The Anoto Group has over 100 employees and is headquartered in Lund (Sweden), with offices in Basingstoke, Guildford and Wetherby (UK), Boston and Los Angeles (US) and Tokyo (Japan). The Anoto share is traded on the Small Cap list of NASDAQ OMX Stockholm under the ticker ANOT.
For more information, please visit: www.anoto.com.
Follow Anoto on Twitter at: @Anoto
