Anoto Group, January – June 2007 Interim Report

• Second quarter sales rose by 107% to SEK 30 million (15).

• The group's gross margin for the second quarter was 65% (79), while the gross profit was up by 70% to SEK 20 million (11). The gross margin for January-June was 73% (79), while the gross profit was SEK 63 million (43).

• Earnings before depreciation and amortisation for the second quarter were SEK –10 million (-36) and SEK 5 million (–47) for January-June.

• Earnings after taxes were SEK –13 million (–46) for the second quarter and SEK –4 million (–60) for January-June.

• Earnings per share totalled SEK –0.10 (–0.36) for the second quarter and SEK –0.03 (–0.47) for January-June.

• Cash flow amounted to SEK –2 million (–30) for the second quarter and SEK –12 million (35) for January-June.


Operations

• Active forms users totalled approximately 66,000, up 10% from the previous quarter and 78% from a year ago.

• Anoto's annual partner conference in Malmö attracted some 150 visitors from 28 countries.

• Anoto began selling digital pens under its own logo. The proprietary Anoto digital pen, manufactured by Maxell, will be sold to partners only. The objective is to offer more complete products in order to shorten time to market.

• Livescribe, an Anoto partner in the United States, presented its new platform at the D5 conference in San Diego.

A word from CEO Anders Norling


Sales and earnings improve

After a strong first quarter we continued to see a strong increase, with sales up by an impressive 107% and gross profit up 70%, versus the second quarter of 2006. The fact that our cash position was essentially unchanged from previous quarters also indicates that we are well on our way to greater financial stability.

Given a January-June profit of approximately SEK 5 million, before depreciation and amortisation, we are confidently looking toward the second half of the year.

Rapid growth for Forms Solutions

The number of new Forms Solutions users rose by 6,000, or 10%, in the second quarter. Almost all of the growth was from Europe and the United States. There are several pilot installations in Asia that are expected to contribute to the growth for the second half of 2007.

We are proceeding with the effort to package our solutions. The second quarter saw the launch of the proprietary Anoto digital pen, manufactured by Maxell. The pen is available both as part of Anoto's packaged solutions and as a separate product for Forms Solutions customers. The AFS 1.0, our initial packaged solution, launched during the first quarter, was well received by the market and has enjoyed solid initial sales.

As usual, Anoto's annual partner conference in June attracted a great deal of attention. Some 150 participants from 76 companies in 28 countries attended. A majority of the speakers represented the healthcare industry. Among the news was that Novartis Pharma Italy had received Novartis's global IT prize for its essay (pharmaceutical sample product) management solution, based on Anoto technology. Eight hundred pharmaceutical consultants throughout Italy now have a pen.

The previously announced reorganisation toward a greater focus on Forms Solutions, as well as as the recruitment of new sales and marketing personnel in both US and Europe, is basically complete. As a result, we are fully equipped to concentrate on top-priority Forms Solutions segments this autumn.


For more information


You are welcome to take part in Anoto’s upcoming teleconference for media and financial analysts at 10.00 CET on Tuesday, 7 August.


Date: Tuesday, 7 August 2007
Time: 10.00 CET
Phone: +44 (0) 207 162 0125
Specify: Anoto


Or phone:
Mats Blom
CFO
+46 46 540 12 48