- Net sales in the period amounted to MSEK 43 (37).
- The Gross margin for the period was 59% (73). Gross profit for the period was MSEK 25 (27).
- Earnings before depreciations and amortizations (EBITDA) for the period was MSEK -12 (-8).
- The Result after tax for the period was MSEK -6 (-13).
- Earnings per share before and after dilution for the period was SEK -0.01 (-0.03).
- Cash flow during the period was MSEK 29 (0). Cash flow from operating activities before changes in working capital in the period was MSEK -4 (-10). Cash flow from financing activities during the period was MSEK 33 (14).
Comments from the CEO
STAY TUNED
Revenues in the first quarter was MSEK 43 compared to MSEK 46 for the fourth quarter 2014. Gross margin was 59% compared to 66% in the fourth quarter. Operating expenses were MSEK 37 in the first quarter compared to MSEK 34 in the fourth quarter 2014. EBITDA was MSEK -12 compared to MSEK -8 in the fourth quarter 2014. Cash flow for the quarter was MSEK 29, including net proceeds of MSEK 33 from the private placement in March.
Operating expenses were higher in Q1 compared to the previous quarter due to the extra resources, consultants, materials and testing related to the large OEM project that has been needed to meet tight deadlines and the increasing scope of the project. Gross margin was lower due to the decision to offset 100% of the NRE revenue with the associated development costs.
70% of revenues in the quarter came from Anoto Enterprise Solutions, including the largest digital pen contract in the UK within healthcare to date. The deal that was led by Vodafone UK is for 1700 pens and software to ambulance crews across Wales.
We-Inspire Inc. sold its first 5 systems in the US and strengthened its sales resources by the signing of two new resellers and the hiring of a sales manager at the LA office. In Europe we are also implementing a reseller program for We-Inspire, GmbH.
Sales to customers within Technology Licensing were lower than expected when a delivery to TStudy slipped into Q2.
Anoto introduced its first large format interactive display prototype, a 65” UHD 4K display with touch and precision pen input at the ISE tradeshow in February. We are now working with partners to do a commercial launch of a similar product at InfoComm Expo in June. We expect the market for large displays to grow fast when businesses are starting to convert from projectors to interactive displays in meeting rooms and board rooms.
OUTLOOK
Anoto Enterprise Solutions had a good start to the year and the Welsh Ambulance contract generated significant press coverage and new leads in the UK for similar solutions. There are in total 13 ambulance trusts in the UK so this market vertical alone represents a large opportunity. In the UK we also hired a new sales manager starting May 4th. In addition we announced a large contract in India. As previously mentioned in the Q4 2014 report there is a large opportunity in Japan. Overall, the growth prospect for 2015 within Enterprise Solutions looks very promising.
Contract negotiations with the large OEM customer is going in parallel with product development and we expect to make an announcement later in Q2.
Panasonic sales has so far been a disappointment but we expect sales to pick up with the release of the upgraded versions Toughpad 4K Standard at a 50% price reduction and the more powerful Toughpad 4K Performance.
Within education the order back log from China and Korea has strengthened significantly over the last few months and we expect larger volumes in the coming quarters.
Stein Revelsby
CEO, Anoto Group
The information in this press release is published pursuant to the Swedish Financial Instruments Trading Act. The information was submitted for publication on 8th May, 2015.
A webcast of the Q1 report will be available from 09.00 on May 8, and a Q&A session via audio cast will be held at 11.00 the same day.
For more information, see www.anoto.com/investors.
Calendar 2015
AGM 21st of May
Q2 report 14th of August
Q3 report 6th of November
Q4 report February 2016
For further information, please contact:
Stein Revelsby, CEO
Tel. +46 (0)733 45 12 05
Anoto Group AB (publ.)
Traktorvägen 11
SE-226 60 Lund
Tel.: +46 46 540 12 00
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. consumer, healthcare, banking and finance, transportation and logistics and education. The Anoto Group has over 100 employees and is headquartered in Lund
(Sweden).The company also has offices in Basingstoke and Wetherby (UK), Los Angeles and Boston (US) and Tokyo (Japan). The Anoto share is traded on the Small Cap list of Nasdaq Stockholm under the ticker ANOT.
For more information, please visit: www.anoto.com.
Follow Anoto on Twitter at: @Anoto
