Interim Report January - June 2010

•Net sales in the first six months amounted to MSEK 95 (107). Second quarter
net sales were MSEK 48 (44). 

•The gross margin for January-June was 68 % (72) and the gross profit was MSEK
64 (77). Second quarter gross margin was 61% (78) and the gross profit was MSEK
29 (35). 

•Earnings before depreciations and amortizations (EBITDA) in the first six
months 2010 were MSEK -27 (3). In the second quarter it was MSEK -27 (-2). 

•The result after tax for the six months period was MSEK -35 (-4) and for the
second quarter MSEK -28 (-6). 

•Earnings per share for the first six months 2010 were SEK -0.27 (-0.03).
Second quarter earnings per share amounted to SEK -0.22 (-0.04). 

•The cash flow during the six months period was MSEK -2 (10). Second quarter
cash flow was MSEK -7 (-14). 


Second Quarter Summary 2010

•Net sales increased by 7 % during the second quarter up to MSEK 48.
•Restructuring cost amounted to MSEK 12 in the second quarter.
•During the period Anoto has delivered almost 30,000 digital pens
•Close to the report period the Anoto Board and CEO Anders Norling agreed that
Anders Norling would leave his position as CEO and Torgny Hellström was
appointed acting CEO. 


Comments from the CEO

Increased sales but deteriorated result due to restructuring

As new CEO, I am working with the Board to re-evaluate the strategic
priorities, assets and resources to support long term growth. 

Sales to our partners (customers) have not developed to expectation due to long
decision making processes for end customers within Anoto Products. Compared to
the same period last year sales are somewhat lower, partly due to delays in
delivery within C Technologies, but also because we have not had any single
large order as we had in 2009. I am optimistic about the future though, since
signals from our partners indicate growth. 

Partner recruitment and other activities within Anoto Products are carrying on
well. The new AFS 2.0 platform launched in the last quarter has been  favorably
received  in the market, but has not yet generated any large sales volumes. 

Technology & Licensing continue to develop very satisfactorily and within this
area sales increased by 80 % up to MSEK 18. Deliveries of digital pens are
increasing and so are royalty revenues from new customers successfully selling
their products based on our technology. 

Net sales for the second quarter were MSEK 48 (44) and the result was MSEK -28
(-6).During the second quarter a restructuring has been done, resulting in some
employees leaving the company. The result is i.al due to restructuring costs of
MSEK 12 including change of CEO. 

C Technologies' product deliveries have been delayed due to lack of components
in the international market and sales are therefore slower than expected. The
order situation looks good, however, and we expect to recover the delays during
the fall. 

Sales of components, ASICs, reached MSEK 4, which is somewhat higher than last
year. Orders for these products vary a lot over time and the development is
declining. 

The gross margin dropped to 61 % (78), partly due to the fact that hardware is
an increasing part of sales, but also due to depreciation of surplus of certain
components in stock. However, I anticipate the gross margin to be increasing
for the rest of the year. 

Our cash decreased by MSEK 7 during the second quarter and was MSEK 79 at the
end of the period. The selling of a larger part of Imaging Technology by the
end of 2008 has been finally settled during the period. The cash flow of the
operating activities was negative by MSEK -5. 


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, 2010. 


For more information please contact:

Anders Widesjö		
CFO			
+46 46 540 12 34		
			
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