- Net sales in the period amounted to MSEK 111 (99) and net sales in the second quarter amounted to MSEK 54 (40).
- The gross margin for the period was 71% (68) and gross margin for the second quarter was 69% (73). The gross profit for the period was MSEK 79 (68) and gross profit in the second quarter was MSEK 37 (29).
- Earnings before depreciations and amortizations (EBITDA) in the first six months was MSEK -1 (-2) and EBITDA for the second quarter was MSEK -3 (-7).
- The result after tax for the period was MSEK -11 (-10) and the result after tax for the second quarter was MSEK -8 (-11).
- Earnings per share before and after dilution for the first six months was SEK -0,08 (-0,08) and earnings per share for the second quarter was SEK -0,06 (-0,08).
- The cash flow during the first six months was MSEK -11 (-30) and the cash flow for the second quarter was MSEK -9 (-16).
Comments from the CEO
LAUNCHING LIVE PDF™
Revenues in the second quarter were lower than expected both within Business Solutions and Technology Licensing, despite optimistic forecasts by our partners during the first quarter. Total revenues were MSEK 54 compared with MSEK 57 in the first quarter. Gross margin in the second quarter was 69% compared with 71% in the first quarter. The net loss was MSEK 7.7 and the cash flow was a disappointing minus MSEK 9.4. C Technologies met expectations and delivered long awaited larger volumes primarily to its OEM customer within e-banking, Crealogix AG.
Since the acquisition of the Xpaper technology from Talario in January 2012 we have been working to incorporate Talario’s document printing and document capture components in addition to supporting web services. The product, named LIVE PDF™, is now ready for launch and will be shipped with all pens for business solutions from the end of the third quarter. Live PDF™ enables people to gather information on paper, easily digitize it, share that information instantly, update information live, and automatically distribute it to individuals and databases. LIVE PDF™ is the first in a series of LIVE products from Anoto.
We continue discussions with our partners within Business Solutions to align resources and interests. The objective is to leverage their expertise, customer references and presence within different market segments and to build relationships with more independent software vendors, value added resellers and system integrators. This is starting to happen especially within healthcare, field service and insurance, where larger companies want to embed digital pen data capture solutions with their enterprise systems.
The healthcare sector in the UK is currently our strongest market. However in the second quarter we also saw a broadening of our business to other segments and regions like South Africa and South America. A major automotive company in Korea has run pilots and is set to launch a digital pen and paper solution for quality inspections in manufacturing plants. The first two installations are scheduled to start in October with further installations at four additional manufacturing plants to start by the end of this year.
Business area Technology Licensing was behind expectations also in the second quarter. However, we are pleased to see that our joint venture partner TStudy, is starting to roll out interactive classroom solutions. So far their Symphony application has, in addition to installations in private schools, also been adopted by 30 public schools in Korea, expected to surpass 100 installations of Symphony in public schools by the end of this year. In China, TStudy has set up permanent product showrooms in Shanghai and is planning to open a showroom in Beijing by the end of August. Our partner Dai Nippon Printing is actively marketing interactive classroom solutions with broad media coverage in Japan.
Our UK subsidiary Destiny Wireless Ltd launched INKWORKS™ in the second quarter, a new and innovative cloud based digital data capture system. This new system provides a fully scalable single platform incorporating digital pen functionality that for the first time will allow users to design and publish their own digital forms. INKWORKS™ also provides clients with the ability to directly manage users, groups, workflows and centrally manage mobile handset configurations.
Operating expenses were MSEK 2 above target in the second quarter, partly due to extra costs related to the development of new pens together with moving supply chain management to Hong Kong. The purpose of moving the supply chain management is to get a closer relationship to our component suppliers and manufacturing partners. This is one of several ongoing activities to improve the operational control.
Outlook
Based upon current activity and ongoing projects we expect a gradual business improvement in the second half of the year. We also expect our cash flow and balance sheet to improve gradually. Anoto´s cash position is expected to be sufficient to support our business throughout the rest of the year.
To read the entire report, please see attached document.
A webcast of the Q2 report will be available from 09.00 on August 3. A Q&A session via audiocast will be held at 11.00 the same day. For more information go to 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 August 3, 2012.
For more information, please contact:
Stein Revelsby, CEO
Phone: +46 (0)733 45 12 05
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
