-- Net sales in the period amounted to MSEK 43 (37).
-- The Gross margin for the period was 59% (73). Gross profit for the period
was MSEK 25 (27).
-- Earnings before depreciations and amortizations (EBITDA) for the period was
MSEK -12 (-8).
-- The Result after tax for the period was MSEK -6 (-13).
-- Earnings per share before and after dilution for the period was SEK -0.01
(-0.03).
-- Cash flow during the period was MSEK 29 (0). Cash flow from operating
activities before changes in working capital in the period was MSEK -4
(-10). Cash flow from financing activities during the period was MSEK 33
(14).


Comments from the CEO

STAY TUNED

Revenues in the first quarter was MSEK 43 compared to MSEK 46 for the fourth
quarter 2014. Gross margin was 59% compared to 66% in the fourth quarter.
Operating expenses were MSEK 37 in the first quarter compared to MSEK 34 in the
fourth quarter 2014. EBITDA was MSEK -12 compared to MSEK -8 in the fourth
quarter 2014. Cash flow for the quarter was MSEK 29, including net proceeds of
MSEK 33 from the private placement in March.

Operating expenses were higher in Q1 compared to the previous quarter due to
the extra resources, consultants, materials and testing related to the large
OEM project that has been needed to meet tight deadlines and the increasing
scope of the project. Gross margin was lower due to the decision to offset 100%
of the NRE revenue with the associated development costs.

70% of revenues in the quarter came from Anoto Enterprise Solutions, including
the largest digital pen contract in the UK within healthcare to date. The deal
that was led by Vodafone UK is for 1700 pens and software to ambulance crews
across Wales.

We-Inspire Inc. sold its first 5 systems in the US and strengthened its sales
resources by the signing of two new resellers and the hiring of a sales manager
at the LA office. In Europe we are also implementing a reseller program for
We-Inspire, GmbH.

Sales to customers within Technology Licensing were lower than expected when a
delivery to TStudy slipped into Q2.

Anoto introduced its first large format interactive display prototype, a 65”
UHD 4K display with touch and precision pen input at the ISE tradeshow in
February. We are now working with partners to do a commercial launch of a
similar product at InfoComm Expo in June. We expect the market for large
displays to grow fast when businesses are starting to convert from projectors
to interactive displays in meeting rooms and board rooms.

OUTLOOK

Anoto Enterprise Solutions had a good start to the year and the Welsh Ambulance
contract generated significant press coverage and new leads in the UK for
similar solutions. There are in total 13 ambulance trusts in the UK so this
market vertical alone represents a large opportunity. In the UK we also hired a
new sales manager starting May 4th. In addition we announced a large contract
in India. As previously mentioned in the Q4 2014 report there is a large
opportunity in Japan. Overall, the growth prospect for 2015 within Enterprise
Solutions looks very promising.

Contract negotiations with the large OEM customer is going in parallel with
product development and we expect to make an announcement later in Q2.

Panasonic sales has so far been a disappointment but we expect sales to pick up
with the release of the upgraded versions Toughpad 4K Standard at a 50% price
reduction and the more powerful Toughpad 4K Performance.

Within education the order back log from China and Korea has strengthened
significantly over the last few months and we expect larger volumes in the
coming quarters.

Stein Revelsby
CEO, Anoto Group


The information in this press release is published pursuant to the Swedish
Financial Instruments Trading Act. The information was submitted for
publication on 8th May, 2015.

A webcast of the Q1 report will be available from 09.00 on May 8, and a Q&A
session via audio cast will be held at 11.00 the same day.

For more information, see www.anoto.com/investors.


Calendar 2015


AGM 21st of May

Q2 report 14th of August

Q3 report 6th of November

Q4 report February 2016


For further information, please contact:

Stein Revelsby, CEO
Tel. +46 (0)733 45 12 05

Anoto Group AB (publ.)
Traktorvägen 11
SE-226 60 Lund
Tel.: +46 46 540 12 00

About Anoto Group:
Anoto Group AB is a global leader in digital writing solutions, which enables
fast and reliable transmission of handwriting into a digital format. Anoto
operates worldwide through a global partner network that delivers user-friendly
digital writing solutions for efficient capture, transmission, distribution and
storage of data. Anoto is currently in use across multiple business segments,
e.g. consumer, healthcare, banking and finance, transportation and logistics
and education. The Anoto Group has over 100 employees and is headquartered in
Lund
(Sweden).The company also has offices in Basingstoke and Wetherby (UK), Los
Angeles and Boston (US) and Tokyo (Japan). The Anoto share is traded on the
Small Cap list of Nasdaq Stockholm under the ticker ANOT.

For more information, please visit: www.anoto.com.

Follow Anoto on Twitter at: @Anoto

Anoto Quarterly Report EN Q1_15_Final.pdf