- Net sales in the period amounted to MSEK 111 (158) and Net sales for the third quarter were MSEK 33 (47).
- The Gross margin for the period was 70% (73) and Gross margin for the third quarter was 73% (76). Gross profit for the period was MSEK 77 (115) and Gross profit for the third quarter was MSEK 24 (36).
- Earnings before depreciations and amortizations (EBITDA) for the period was MSEK -63 (-7) and EBITDA for the third quarter was MSEK -20 (-6).
- The Result after tax for the period was MSEK -75 (-21) and Result after tax for the third quarter was MSEK -24 (-11).
- Earnings per share before and after dilution for the period was SEK -0,44 (-0,16) and for the third quarter SEK -0,14 (-0,08).
- Cash flow during the period was MSEK -2 (-13) and Cash flow for the third quarter was MSEK 1 (-3). Cash flow from operating activities before changes in working capital in the period was MSEK -52 (-12) and Cash from operating activities before changes in working capital for the third quarter was MSEK -11 (-2).
Comments from the CEO
CONNECTING THE DOTS
In Q3 we finalized the development of the Touchpen for Panasonic’s Toughpad 4K 20” tablet computer. This product is the first tablet with embedded Anoto technology for digital writing. The high performance and accuracy is a proof of what Anoto can offer to partners for freehand sketching, handwriting on screens similar to writing on paper. Panasonic exhibited the product at the large trade shows IFA in Berlin and CEATEC in Japan in September, and since then there has been extensive coverage and good reviews.
Revenues in Q3 were MSEK 33 compared to MSEK 35 in Q2. Gross margin was 73% compared to 70% in Q2. Operating costs were MSEK 47 in Q3 compared to MSEK 56 in Q2. We completed the re-organization in Sweden with the reduction of 35 positions, including a reduction of 6 positions in the subsidiary C-Technologies. The OPEX savings will be approximately MSEK 35 p.a. with full effect from January 1st. Because of slow sales in Q2 and Q3 we secured a bridge loan of MSEK 13 for the financing of working capital and pen inventory.
TStudy signed a large contract with China Publishing Group for 100,000 pens over a 3 year period and entered into a two year exclusive distribution agreement with Anoto subject to performance.
We signed a large contract for Anoto Live Forms with a leading provider of home care services in the UK. The first order is for 500 users with the potential for expansion in the coming 12 months.
In the US we signed a contract with a major airline for use of a digital pen solution at their pilots and flights attendants training center. Inflight trainers are required by the US Federal Aviation Administration to document the performance of tasks by the staff members and certify that they are in compliance to assure their continued employment.
Our strategy going forward for Business Solutions is to focus on healthcare in the UK where we already have a strong presence and the business momentum is increasing with the availability of funds from the NHS to finance investments in technology. In other developed markets we focus on segments where digital writing technology has a clear advantage due to mandatory requirements, for example physical documents signatures in banking. The third target area is emerging markets like Turkey, Africa and India where digital writing technology offers ease of use in environments with less developed infrastructure. We will continue to work closer with selected partners in each of these markets to align interests and co-ordinate activities in marketing, sales and support.
OUTLOOK
After close of the third quarter we have secured an arrangement with an underwriting consortium for a share rights issue of 65 MSEK. The funds will be used for repayment of short term liabilities as well as to secure financial stability going forward. OPEX will be reduced gradually during Q4. Our main focus is to optimize resource allocation, realize synergies between operating units and bring the company to profitability. Based upon our unique ability to provide natural digital writing input and interactivity on analog as well as digital surfaces, we see a large potential to expand business with existing partners as well as the ability to attract new partners.
Stein Revelsby
CEO
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 5, 2013.
A webcast of the Q3 report will be available from 09.00 on November 5 and a Q&A session via audiocast will be held at 11.00 the same day. For more information, see www.anoto.com/investors.
For complete report, please see attached document.
Calendar 2013/2014
EGM 15 Nov, 2013
Q4 report 6 Feb, 2014
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
www.anoto.com
