- Net sales for 2010 amounted to MSEK 212 (206). Fourth quarter net sales were MSEK 59 (64).
- The gross margin for 2010 was 68% (69) and the gross profit was MSEK 144 (142). The fourth quarter gross margin was 73% (70) and the gross profit was MSEK 43 (45).
- Earnings before depreciations and amortizations (EBITDA) in 2010 wereMSEK -28 (-6). In the fourth quarter it was MSEK -4 (7).
- The result after tax for 2010 was MSEK -77 (-21) and for the fourth quarter MSEK -14 (2).
- Earnings per share for 2010 were SEK -0.60 (-0.18). Fourth quarter earnings per share amounted to SEK -0.11 (0.02).
- The cash flow during 2010 was MSEK 0 (-18). Fourth quarter cash flow was MSEK 17 (-14).
Fourth Quarter Summary 2010
- Positive cash flow at MSEK 17
- Net sales amounted to MSEK 59
- Announced restructuring executed at a total cost of MSEK 9
Comments by Torgny Hellström, CEO
Stable sales and positive cash flow during Q4
The previously announced restructuring of Anoto was executed during Q4. The result of the restructuring was a reduction of our annual cost base by around MSEK 40 to a level of MSEK 125. During 2010 a total of MSEK 21 were spent on the restructuring, of which MSEK 12 were reported in the second quarter (i.a. change of CEO). Costs related to the restructuring decided in October amounted to MSEK 9 and are included in the Q4 result. No further restructuring costs are expected. However, disbursements related to the restructuring will have a negative impact by MSEK 14 on the cash flow during 2011.
Net sales amounted to MSEK 212, the largest ever in Anoto history, and the EBITDA excluding restructuring cost was MSEK -7. The fourth quarter corresponding result was positive, MSEK 5.
The Group Net result amounts to MSEK -77 and includes besides the restructuring costs of MSEK 21 also write-downs of capitalized development cost of MSEK 29. Net result excluding one-time items consequently amounts to MSEK -27, and considering the cost reduction of MSEK 40 as a result from the restructuring I see good possibilities for a positive net result in 2011.
The development of our cash has been very satisfactory, with a positive cash flow in the fourth quarter of MSEK 17, mainly as a result of reduced working capital. Cash and liquid assets are at the end of 2010 at the same level as at the beginning of the year, MSEK 81.
In the light of last year’s restructuring, I am pleased with Anoto’s performance. However, I am not satisfied with the result and will not be so until Anoto shows sustainable growth and profit. Growth and profit will be our main priority during 2011. Thus we are driving a process of change to which all employees are dedicated.
Sales are stable with an underlying business without any significant one-time revenues.
Technology & Licensing has developed very well, especially within education and interactive whiteboards. Furthermore, we notice a substantial increase in royalty revenues from partners having developed products based on Anoto technology.
C Technologies had a weak start in 2010 due to lack of components in the world market. These problems are now behind us, and C Technologies reports increased sales in 2010 and positive growth.
Anoto Products is still suffering from the down-turn in the economy, but business is picking up. The healthcare sector and field services are two examples of areas where Anoto and its partners experience a positive development.
The freezing of the development of AFS and concentration of R&D resources to Lund has resulted in a more effective organization working closer to our partners.
Outlook
Through our recently executed restructuring program we are determined to make Anoto profitable and to have a positive cash flow from 2011.
Calendar 2011
Annual Report 2010 April 2011
Annual General Meeting May 12, 2011
This report has not been reviewed by the company auditors.
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 4, 2011.
For more information
Dan Wahrenberg, CFO
Phone: +46 46 540 10 19
Anoto Group AB (publ.), Corp. Id. No. 556532-3929
Box 4106, SE-227 22 Lund, Sweden
Phone: +46 46 540 12 00
About Anoto
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 forms 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 the OMX Nordic Exchange in Stockholm under the ticker ANOT. www.anoto.com
