Bli medlem
Bli medlem

Du är här

2016-02-10

ANOTO GROUP AB: REPORT JANUARY – DECEMBER 2015

Anoto Group AB
Interim report

REPORT JANUARY ? DECEMBER 2015

-- Net sales in the period was MSEK 193 (141) and Net sales for the quarter
were MSEK 55 (46).
-- The Gross margin for the period was 44% (67%) and Gross margin for the
quarter was 40% (66%) mainly due to larger sales of hardware to our
partners in Korea within education. Gross profit for the period was MSEK 85
(94) and Gross profit for the quarter was MSEK 22 (30).
-- Earnings before depreciation and amortization (EBITDA) for the period was
MSEK -99 (-67) and EBITDA for the quarter was MSEK -39 (-9).
-- The Result after tax for the period was MSEK -109 (-63) and the Result
after tax for the quarter was MSEK -40 (-6).
-- Earnings per share before and after dilution for the period was SEK -0.13
(-0.13) and for the quarter SEK -0.04 (-0.01).
-- Cash flow during the period was MSEK 8 (-3) and Cash flow for the quarter
was MSEK 5 (2). Cash flow from operating activities before changes in
working capital for the period was MSEK -100 (-56) and for the quarter MSEK
-47 (-6). Cash flow from financing activities during the period was MSEK
289 (114) and for the quarter MSEK 192 (55).

Comments from the CEO

ONE PEN ACROSS ANY SURFACE ? 5 BUSINESS AREAS

Revenues in the fourth quarter were 55 MSEK compared to 46 MSEK in Q4 2014.
Gross margin was 40% compared to 66% in Q4 2014. Revenues were higher than the
expected forecast of 46 MSEK we announced on December 30th due to higher
Livescribe sales, included with effect from December 1st, and end of quarter
deliveries to partners in Korea. The lower gross margin was due to the product
mix in the quarter with larger deliveries to partners within education.
Operating expenses, excluding amortization, depreciation, and foreign exchange
gains(losses), in the quarter were 61 MSEK compared to 39 MSEK in Q4 2014 and
49 MSEK in Q3 2015. As previously announced the higher operating expenses in
2015 were related to product development with HP, research and testing of new
micro dot thin film solutions for large displays, increased travel costs and
components related to large display activities and the development of Anoto
Live(TM) Services. The combined result of these efforts is a broader product
portfolio that we are preparing for launch in the coming quarters and a
back-end infrastructure for the support of partners and resellers. On top of
this Livescribe operating expenses were included for December as well as
transaction costs related to the financing and acquisition of Livescribe. Legal
fees were also higher in Q4 in particular related to the patent infringement
suits Anoto has filed and is planning to file against NeoLAB Corporation and
its partners.

The 37 MSEK delivery to a large Japanese Financial Services Company was planned
for Q4 of 2015 but due to delays in components delivery and testing the
manufacturing schedule was changed till after Chinese New Year. Expected
delivery start is now 3rd week of February.

The Technology Licensing Agreement with HP was signed on November 5th. We are
very excited and fully committed to this partnership and believe HP is the
ideal partner to help realize our vision about a universal digital writing
platform that embraces user cases across all industries. Anoto cannot comment
on specific product plans and time schedule for product releases other than to
confirm that work progresses as planned and we expect our business relationship
with HP to generate significant revenues in the coming years.

We completed the financing and acquisition of Livescribe on December 1. The
acquisition was another step in consolidating the Anoto ecosystem and to
realize synergies in hardware and software development, supply chain and
operations, as well as to give Anoto access to additional market channels for
online sales and retail distribution.

After careful consideration of what we consider is a significant growth
opportunity we have decided to change strategy and step up our efforts within
Large Format Displays and to launch a series of Anoto branded products. The
first product Anoto Live? 55" UHD 4K Collaboration Display combines the best of
projected capacitive touch with high-precision digital pen input to create the
ultimate interactive collaboration experience. The product will be launched at
ISE 2016 on February 9th and expected commercial availability is mid-April.
Based upon preliminary discussions with potential partners we also see a large
opportunity for OEM business within this area.

OUTLOOK

A New Way To Manage And Track Our Business

As Anoto enters 2016 with a significant increase in scale and scope of
business, the Company will undergo a structural reorganization in how it
manages and tracks its business. Having completed the acquisitions of XMS
Penvision and Livescribe as well as the upcoming completion of the announced
acquisitions of Destiny Wireless, We-Inspire and Pen Generations, the Company
is now poised to move forward in 2016 with direct control over an unprecedented
degree of the Anoto value chain and ecosystem. This will allow Anoto to deliver
products and offerings, directly and through partnerships, across 5 key
business areas in which the Company?s technology delivers significant value to
end-customers while also providing considerable advantage over competing
offerings.

These 5 business areas, discussed in detail below, are:

-- Collaboration Solutions
-- Personal Productivity Products
-- Documents & Data Capture
-- Creativity Solutions
-- Learning Solutions

1. Collaboration Solutions

Anoto?s Collaboration Solutions (CS) business area is comprised of a
combination of Anoto hardware and software products, including Large Format
Displays and Interactive Walls, as well as a complement of collaboration
software uniquely designed to emphasize the value of combined precision pen
input and multi-touch across the range of these large surface products. While
the Interactive Wall products have been part of the We-Inspire product catalog,
the Large Format Displays are completely new and uniquely utilize Anoto dot
pattern film on Ultra High Definition (UHD) 4K displays to provide a
state-of-the-art solution for business collaboration applications requiring
high-precision pen and multi-touch input capabilities. These products will be
brought to market beginning in Q2 of 2016, and positioned as a new family of
large-surface interactive solutions for the Business Collaboration market.

The Collaboration Solutions market is very broad in scope and is typically
described by analysts and participating businesses as being comprised of
multiple categories of hardware and software. Still in its early stages, the
CS market has been identified as ?high-growth? with CAGR over the next few
years estimated to exceed 35%. The diversity of hardware and software
technologies comprising the CS market has resulted in a relatively high degree
of market fragmentation with no individual players owning the significant
share.

The largest segment of the CS market is Unified Communications and
Collaborations (UC&C) systems and solutions, which includes a number of larger
players, including Cisco, Microsoft and Polycom. The core use case supported
by these vendors is Telepresence, including web conferencing, video and
real-time chat. UC&C also includes an adjacent segment for A/V equipment,
which is comprised of the component pieces of a UC&C system ? displays,
projectors, screens, etc. Another sizable segment related to CS is
Collaboration content storage and sharing, which includes vendors such as
Dropbox, Box and SharePoint. This group of products and services helps manage
the huge volume of content that gets created prior to, during and after meeting
collaborations.

Anoto?s CS solutions will be both complementary to and synergistic with these
adjacent UC&C and collaboration content products. This will accommodate a
complementary go-to-market approach that will allow Anoto to partner with and
?draft on? some of the large players in this market space.

Anoto is targeting a new and unique position in the Business Collaboration
Solutions market that entails providing a range of hardware and software
products designed to increase both personal productivity and team productivity
by extending pen-based writing and drawing experiences from paper across
digital devices including tablets, displays and large interactive walls. The
Anoto family of interactive surfaces will include Large Format Displays (up to
85?) and large-scale interactive wall-and-projector systems (up to 24 feet) as
well as interactive whiteboards (tracked and discussed separately in the
Learning Solutions business area). Although there are respectable competitors
in each of these individual segments, Anoto is uniquely positioned to establish
a prominent position in the large-surface interactive collaboration category.

At its core, multi-surface interactive collaboration entails a shared
experience of digital writing and drawing on paper, tablets, laptops,
computers, large displays, interactive whiteboards and interactive walls and
then sharing that content with other collaborators ? either co-located or
remote ? across and among ALL of these interactive surfaces.

This is a big market play, but one in which Anoto is extremely well positioned
in terms of technology, market timing, strategy and with an entirely unique and
defensible position. Anoto technology offers significant performance
advantages over conventional interactive white boards and multi-touch-only
displays that provide only primitive digital writing via finger or stylus input
mechanisms. Even more advanced technologies that allow for more precise
digital pen inputs have considerable performance shortfalls in terms of
performance and accuracy, especially as the display and surface size increases.
The competing approaches are simply not capable of providing the level of
high-precision pen input control necessary for serious business collaboration
on a large surface. This is particularly true for various Creative
collaborative interactions, but also for a broad range of Design and
Engineering collaborations where precision input is an absolute ?must have?.

Another strategic differentiator for Anoto in this market is its ability to
bring these interactive surfaces to market at a lower cost than many of the
competitive products. This is due to the fact that the film that carries the
Anoto pattern that is required to produce such large interactive surfaces can
be produced at a much lower cost than the interactive technology employed by
most other competitive products. Importantly, the cost-performance advantage
grows as the size and scale of the device or surface increases.

The set of multi-surface interactive collaboration products is just the first
half of the story, though. The other half of the story is an entirely new and
complementary software platform that provides even more customer value and
competitive differentiation. Anoto has built a new Live Services? platform
designed to host new Anoto collaboration apps as well as a new tool framework
for use by the ISV community to pen-enable their apps for use on any and all of
Anoto?s large surfaces.

Many popular ISV applications were not designed to work at this large scale,
and many were not designed to work with a digital pen. By pen-enabling their
apps, ISVs will be able to both integrate with a new set of large format
collaboration experiences and tap into a new growth segment within which they
can sell their apps. The Live Services platform and collaboration apps
strategy is designed to both establish a new stream of recurring software
revenues and build a new ecosystem of ISV partners, which will in turn further
stimulate demand for Anoto products and further bolster Anoto?s defensible
position in the Collaboration Solutions market.

Anoto will bri...

Författare SSE

Tala om vad ni tycker

Tala om vad ni tycker

Ni är just nu inne på en betaversion av nya aktiespararna. Lämna gärna feedback på vad ni tycker i formuläret nedan.