Anoto tanks after Q2 report

Anoto Group’s (STO: ANOT) second quarter did not go well. Net sales of 40 million Swedish kronor were down 20% compared to 2010 level and even more compared to 59 million in Q1. Second quarter EBITDA was 7 million on the minus side. Anoto says that since Q2 was worse than expected, the company is not likely to have a positive cash flow during the ongoing quarter either. The share was down 16,41% today.

On Monday Anoto reported a majority stake purchase in Destiny Wireless Ltd. Anoto says it is the first step in consolidating with some of the company’s software platform partners to gain synergies and economies of scale. Anoto has also announced the establishment of a joint venture for product and business development with TStudy (JV of TStone Corp and Amicus Wireless Technology) in Korea. Full interim report is available here.

Anoto to purchase majority stake in Destiny Wireless

Anoto Group (STO: ANOT) said it has today agreed to buy 51% of the shares in UK based Destiny Wireless Ltd. Destiny Wireless has 28 employees and annual sales of 5 million £. Destiny Wireless develops and sells B2B mobile data capture solutions such as digital pen data, photographic images and GPS co-ordinates based on Anoto's digital pen technology. Anoto has also acquired an option to purchase the remaining 49% of shares by 2014.

Anoto’s strategy is to secure efficient value chain for mobile data capture in a number of sectors. Competition is emerging and users can choose from a wider range of products thus requiring muscle to keep in the cutting-edge. Destiny will continue as a separate unit and its accounts will be consolidated into Anoto’s accounts. Anoto was down 2.4% for the day as one slightly larger owner sold on the news.