- Net sales in the period amounted to MSEK 37 (43).
- The Gross margin for the period was 73% (66). Gross profit for the period was MSEK 27 (28).
- Earnings before depreciations and amortizations (EBITDA) for the period was MSEK -8 (-17).
- The Result after tax for the period was MSEK -13 (-21).
- Earnings per share before and after dilution for the period was SEK -0.03 (-0.15).
- Cash flow during the period was MSEK 0 (8). Cash flow from operating activities before changes in working capital in the period was MSEK -9 (-17). Cash flow from financing activities during the period was MSEK 14 (31).
Comments from the CEO
INCREASING MOMENTUM IN HEALTHCARE
Revenues in Q1 were MSEK 37.0 compared to MSEK 33.3 in Q4. Gross margin was 72.7% compared to 61.0% in Q4. Operating expenses were on target MSEK 34.6 in Q1 compared to MSEK 36.3 in Q4. EBITDA was MSEK -7.7 compared to MSEK -16.0 in Q4. Cash flow for the quarter was MSEK 0.4, including MSEK 15 of net proceeds from the private placement in March. Included in working capital at the end of the quarter was a large inventory of 23,200 DP 201 digital pens for Business solutions.
60% of total revenues and 76% of Business solutions revenues in Q1 came from the UK of which a vast majority was business in healthcare. Thirty percent of the MGBP 100 Nursing Technology Fund was released for the successful first round of applications. NHS Trusts were granted funds to deploy technologies including digital writing and other options to improve efficiency of their nursing staff. The remaining seventy percent of the Nursing Technology Fund is expected to be released towards the end of the year with a potential positive impact on our business in Q4 this year. There is also an increasing business momentum within healthcare outside the UK. Our partner Phoniro has developed its Health Diary solution around Anoto’s digital writing technology. Phoniro Health Diary is being used by hospitals in Sweden to monitor patients with terminal illnesses such as cancer, chronic obstructive pulmonary disease and severe heart conditions. Patients report their state on a daily basis, without the need for a physician or nurse present, making it possible to take care of the patients in their own homes.
Business solutions revenues outside healthcare were disappointing in Q1 although several projects are ongoing, especially within banking in Germany and Turkey as well as within field service (oil & gas) in the US.
Our OEM business within education, consumer, voting and screens has taken longer to establish and did not materialize in higher sales in Q1. We strongly believe though that Anoto has a large future opportunity in these business areas. Digital writing is one of four major human nature interface technologies in a rapidly expanding world of ubiquitous computing, in addition to voice, touch and gesture. The pen is and has always been a preferred communication tool because of its accuracy, backed by rich libraries of symbols, letters and languages embedded in human cultures. For a digital pen to be as useful as a pencil or ballpoint pen, it needs to be as precise as those traditional tools and possess the same touch and feel in addition to offering connectivity.
OUTLOOK
Total revenues per quarter need to increase approximately 30% compared to revenues in Q1 for Anoto to break-even at the current OPEX level. In the UK we are working to optimize resources between Anoto and 51% owned subsidiary Destiny Wireless and to further capitalize on the success within healthcare. Outside the UK we need to strengthen our presence, marketing and sales as well as establish new partnerships.
We expect more business from OEM partners. Livescribe is positioning their Livescribe 3 to be used with iPhones and iPads and is now selling online and in Apple stores world-wide. TStudy has developed revolutionary interactive learning applications and is now selling in China. Panasonic has started selling 4K Toughpad with Touchpen to professional users within automotive, healthcare, design and construction.
The development of applications for voting has taken longer than expected but is now progressing well. We are constantly focusing on improving cash flow and manage working capital, optimize resources and further reduce costs. We see a potential in aligning interests and realizing synergies with partners Livescribe in the US and Pen Generations in Korea.
For complete report, please see attached document.
A webcast of the Q4 report will be available from 09.00 on May 9 and a Q&A session via audiocast will be held at 11.00 the same day.
For more information, see 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 May 9, 2014.
For more information, please contact:
Stein Revelsby, VD
Tel. +46 (0)733 45 12 05
eller
Dan Wahrenberg, CFO
Tel. +46 (0)733 45 10 19
Anoto Group AB (publ.) org. nr. 556532-3929
Box 4106
SE-227 22 Lund
Tel.: +46 46 540 12 00
http://www.anoto.com
