Nano Dimension Ltd., a leading additive electronics
provider (Nasdaq, TASE: NNDM), today announced financial
results for the third quarter ended September 30, 2019.
Nano Dimension reported revenues of $2,243,000
for the third quarter of 2019, compared to $1,161,000 in the second
quarter of 2019, and $1,672,000 in the third quarter of 2018. The
company improved its gross margin (excluding amortization of
intangibles) to 45% in the third quarter of 2019, in comparison
with gross margin of 28% in the second quarter of 2019.
Nano Dimension ended the quarter with $5,466,000
in cash, while total operating loss (not including finance expense)
for the third quarter was $3,273,000.
“We are proud with Nano Dimension’s record
quarterly revenues of $2.2 million in the third quarter of 2019,”
said Amit Dror, Chief Executive Officer of Nano Dimension. “Since
the launch of the DragonFly LDM Lights-Out Digital Manufacturing
System, we are witnessing a trend of acceleration in sales that
proves that our rapid response and strategy have put us back on
track of growth.”
“In addition, we witnessed improvement in other
financial aspects, including increased consumables sales by 111%,
compared to the previous quarter. We see this trend as a positive
validation to our recurring-revenue business model which is based
on our proprietary ink products. As we conclude this great quarter,
we continue our efforts to execute our strategy for supporting our
sales growth,” concluded Mr. Dror.
Conference call to be held today at 9:00 a.m. EDT.
Third Quarter 2019 Financial Results
● |
Total revenues for the third quarter of 2019 were $2,243,000,
compared to $1,161,000 in the second quarter of 2019, and
$1,672,000 in the third quarter of 2018. The increase compared to
both the second quarter of 2019 and the third quarter of 2019 was
attributed to higher commercial sales of the DragonFly Additive
Manufacturing system. |
|
|
● |
Gross margin for the third
quarter of 2019 was 45% (excluding cost of goods from amortization
of intangibles). This represent a material improvement from the 28%
gross margin of the previous quarter. This change is a result of
the introduction of the LDM system, which allowed an increase in
the sale price of the DragonFly system. In addition, in the third
quarter of 2019, our revenues from consumables have increased. Our
ink products have high gross margins, of more than 70%, and with
that they contributed to the overall increase in gross margin. |
|
|
● |
Research and development (R&D) expenses for the third quarter
of 2019 were $2,083,000, compared to $2,322,000 in the second
quarter of 2019, and $2,129,000 in the third quarter of 2018. The
decrease compared to the second quarter of 2019 was mainly
attributed to a decrease in payroll and related expenses. The
decrease compared to the third quarter of 2018 was mainly
attributed to a decrease in payroll and related expenses and
materials expenses. |
|
|
● |
Sales and marketing expenses for the third quarter of 2019 were
$1,217,000, compared to $1,507,000 in the second quarter of 2019,
and $1,167,000 in the third quarter of 2018. The decrease compared
to the second quarter of 2019 was mainly attributed to a decrease
in payroll and related expenses. The increase compared to the third
quarter of 2018 was mainly attributed to an increase in rent and
travel expenses. |
|
|
● |
General and administrative (G&A) expenses for the third quarter
of 2019 were $799,000, compared to $1,023,000 in the second quarter
of 2019, and $685,000 in the third quarter of 2018. The decrease
compared to the second quarter of 2019 was mainly attributed to a
decrease in professional services expenses. The increase compared
to the third quarter of 2018 was mainly attributed to an increase
in professional services expenses. |
|
|
● |
Finance expenses, net, for the third quarter of 2019 were
$1,035,000, compared to finance income, net, of $3,537,000 in the
second quarter of 2019, and finance expense, net, of $34,000 in the
third quarter of 2018. The decrease compared to the second quarter
of 2019 is mainly as a result of a decrease in expenses due to
changes in the fair value of convertible notes and warrants. The
increase in finance expense compared to the third quarter of 2018
was a result of issuance expenses that were recognized as finance
expenses, as well as expenses due to changes in the fair value of
convertible notes and warrants. |
|
|
● |
Net loss for the third quarter of 2019 was $4,308,000, or
$0.02 per share, compared to $1,188,000, or $0.01 per share,
in the second quarter of 2019, and $3,628,000, or $0.04 per share,
in the third quarter of 2018. The increase compared to both the
second quarter of 2019 and the third quarter of 2018 was mainly
attributed to finance expense of approximately $1,094,000 in the
third quarter of 2019, as a result of issuance expenses and
evaluation and changes in the fair value of convertible notes and
warrants. |
Nine Months Ended September 30, 2019 Financial
Results
● |
Total revenues for the nine months ended September 30, 2019 were
$5,093,000, compared to $3,395,000 in the nine months ended
September 30, 2018. The increase was attributed to commercial sales
of the DragonFly Additive Manufacturing system. |
|
|
● |
R&D expenses for the nine months ended September 30, 2019 were
$6,557,000, compared to $6,671,000 in the nine months ended
September 30, 2018. The decrease resulted primarily from a decrease
in materials and rent expenses. |
|
|
● |
Sales and marketing expenses for the nine months ended September
30, 2019 were $4,088,000, compared to $3,040,000 in the nine months
ended September 30, 2018. The increase was mainly attributed to an
increase in payroll and related expenses, marketing and advertising
expenses and travel expenses. |
|
|
● |
G&A expenses for the nine months ended September 30, 2019 were
$2,389,000, compared to $2,249,000 in the nine months ended
September 30, 2018. The increase was mainly attributed to an
increase in professional services expenses. |
|
|
● |
Finance income, net, for the nine months ended September 30, 2019
was $4,731,000, compared to finance expenses, net, of $161,000 in
the nine months ended September 30, 2018. The finance income in the
nine months ended September 30, 2019 was mainly as a result of
evaluation and changes in the fair value of convertible notes and
warrants. |
|
|
● |
Net loss for the nine months ended September 30, 2019 was
$6,972,000, or $0.04 per share, compared to $11,521,000, or
$0.13 per share, in the nine months ended September 30, 2018. |
Balance Sheet Highlights
● |
Cash and cash equivalents totaled $5,466,000 as of September 30,
2019, compared to $3,753,000 on December 31, 2018. The increase
compared to December 31, 2018, mainly reflects proceeds received
from the sale of American Depositary Shares representing the
Company’s ordinary shares in the first quarter of 2019, and from
issuance of notes in the third quarter of 2019, less cash used in
operations during the nine months ended September 30, 2019. |
|
|
● |
Shareholders’ equity totaled $10,922,000 as of September 30, 2019,
compared to $15,572,000 as of December 31, 2018. |
Conference call information
The Company will host a conference call to
discuss these financial results today, November 13, 2019,
at 9:00 a.m. EST (4:00 p.m. IST). Investors interested in
participating are invited to register for the conference call here:
http://dpregister.com/10136192. Dial-in numbers, including a local
Israeli number and instructions, will be provided upon
registration. U.S. Dial-in Number: 1-844-695-5517, International
Dial-in Number: 1-412-902-6751, Israel Toll Free Dial-in Number:
1-80-9212373. Please request the “Nano Dimension NNDM call” when
prompted by the conference call operator. The conference call will
also be webcast live from the Investor Relations section of Nano
Dimension’s website at
http://investors.nano-di.com/events-and-presentations.For those
unable to participate in the conference call, there will be a
replay available from a link on Nano Dimension’s website at
http://investors.nano-di.com/events-and-presentations.
About Nano Dimension
Nano Dimension (Nasdaq, TASE:
NNDM) is a leading electronics provider that is
disrupting, reshaping, and defining the future of how cognitive
connected products are made. With its unique 3D printing
technologies, Nano Dimension is targeting the growing demand for
electronic devices that require increasingly sophisticated
features. Demand for circuitry, including PCBs - which are the
heart of every electronic device - covers a diverse range of
industries, including consumer electronics, medical devices,
defense, aerospace, automotive, IoT and telecom. These sectors can
all benefit greatly from Nano Dimension's products and services for
rapid prototyping and short-run manufacturing. For more
information, please visit www.nano-di.com.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the “safe harbor” provisions of
the Private Securities Litigation Reform Act of 1995 and other
Federal securities laws. Words such as “expects,” “anticipates,”
“intends,” “plans,” “believes,” “seeks,” “estimates” and similar
expressions or variations of such words are intended to identify
forward-looking statements. Because such statements deal with
future events and are based on Nano Dimension’s current
expectations, they are subject to various risks and uncertainties,
and actual results, performance or achievements of Nano Dimension
could differ materially from those described in or implied by the
statements in this press release. For example, Nano Dimension is
using forward-looking statements when it discusses the potential of
its products, a trend of acceleration in sales, validation to its
recurring-revenue business model, and continuing efforts to execute
its strategy for supporting sales growth. The forward-looking
statements contained or implied in this press release are subject
to other risks and uncertainties, including those discussed under
the heading “Risk Factors” in Nano Dimension’s Annual Report on
Form 20-F filed with the Securities and Exchange Commission (“SEC”)
on March 14, 2019, and in any subsequent filings with the SEC. The
following factors, among others, could cause actual results to
differ materially from those described in the forward-looking
statements: Nano Dimension’s ability to increase sales and revenue,
its burn rate, and its ability to continue as a going concern.
Based on the projected cash flows and our cash balances as of
September 30, 2019, Nano Dimension’s management is of the opinion
that without further fund raising it will not have enough resources
to enable it to continue advancing its activities for a period of
at least 12 months. As a result, there is substantial doubt about
Nano Dimension’s ability to continue as a going concern. Except as
otherwise required by law, Nano Dimension undertakes no obligation
to publicly release any revisions to these forward-looking
statements to reflect events or circumstances after the date hereof
or to reflect the occurrence of unanticipated events. References
and links to websites have been provided as a convenience, and the
information contained on such websites is not incorporated by
reference into this press release. Nano Dimension is not
responsible for the contents of third party websites.
NANO DIMENSION INVESTOR RELATIONS CONTACTYael
Sandler, CFO | ir@nano-di.com
NANO DIMENSION PR CONTACT Galit
Beck, Public Relations Manager | 972-542539495 |
galit@nano-di.com
Consolidated Statements of Financial Position as
at
|
|
September 30, |
|
|
December 31, |
|
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
(In thousands of
USD) |
|
(Unaudited) |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
7,529 |
|
|
|
5,466 |
|
|
|
3,753 |
|
Restricted deposits |
|
|
51 |
|
|
|
31 |
|
|
|
21 |
|
Trade receivables |
|
|
1,129 |
|
|
|
2,348 |
|
|
|
1,313 |
|
Other receivables |
|
|
643 |
|
|
|
458 |
|
|
|
570 |
|
Inventory |
|
|
2,644 |
|
|
|
3,620 |
|
|
|
3,116 |
|
Total current
assets |
|
|
11,996 |
|
|
|
11,923 |
|
|
|
8,773 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restricted deposits |
|
|
359 |
|
|
|
359 |
|
|
|
347 |
|
Property plant and equipment, net |
|
|
5,194 |
|
|
|
4,979 |
|
|
|
5,200 |
|
Right of use asset |
|
|
- |
|
|
|
4,054 |
|
|
|
- |
|
Intangible assets |
|
|
6,176 |
|
|
|
5,404 |
|
|
|
5,983 |
|
Total non-current
assets |
|
|
11,729 |
|
|
|
14,796 |
|
|
|
11,530 |
|
Total
assets |
|
|
23,725 |
|
|
|
26,719 |
|
|
|
20,303 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Trade payables |
|
|
1,020 |
|
|
|
487 |
|
|
|
1,414 |
|
Other payables |
|
|
2,082 |
|
|
|
3,448 |
|
|
|
2,178 |
|
Total current
liabilities |
|
|
3,102 |
|
|
|
3,935 |
|
|
|
3,592 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liability in respect of government grants |
|
|
852 |
|
|
|
811 |
|
|
|
895 |
|
Lease liability |
|
|
- |
|
|
|
3,476 |
|
|
|
- |
|
Liability in respect of convertible notes and warrants |
|
|
- |
|
|
|
7,575 |
|
|
|
- |
|
Other long-term liabilities |
|
|
258 |
|
|
|
- |
|
|
|
244 |
|
Total non-current
liabilities |
|
|
1,110 |
|
|
|
11,862 |
|
|
|
1,139 |
|
Total
liabilities |
|
|
4,212 |
|
|
|
15,797 |
|
|
|
4,731 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
Share capital |
|
|
3,291 |
|
|
|
5,559 |
|
|
|
3,291 |
|
Share premium and capital reserves |
|
|
63,943 |
(*) |
|
|
64,023 |
|
|
|
63,969 |
|
Treasury shares |
|
|
(1,509) |
|
|
|
(1,509 |
) |
|
|
(1,509 |
) |
Presentation currency translation reserve |
|
|
1,431 |
|
|
|
1,431 |
|
|
|
1,431 |
|
Accumulated loss |
|
|
(47,643 |
) |
|
|
(58,582 |
) |
|
|
(51,610 |
) |
Total
equity |
|
|
19,513 |
|
|
|
10,922 |
|
|
|
15,572 |
|
Total liabilities and
equity |
|
|
23,725 |
|
|
|
26,719 |
|
|
|
20,303 |
|
(*) |
Reclassified. During 2018 the Company changed the equity
presentation in the Consolidated Statements of Financial Position.
In order to simplify presentation, warrants, capital reserves for
share based payments and from transactions with controlling
shareholders, were consolidated into the share premium section.
This classification did not have any effect on the total
equity. |
Consolidated Statements of Profit or Loss and
Other Comprehensive Income(In thousands of USD, except per share
amounts)
|
For the Nine-Month Period Ended September 30, |
|
For the Three-Month Period Ended September 30, |
|
|
For the Year ended December 31, |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
3,395 |
|
|
5,093 |
|
|
|
1,672 |
|
|
|
|
2,243 |
|
|
|
|
5,100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues |
2,216 |
|
|
3,183 |
|
|
|
1,092 |
|
|
|
|
1,224 |
|
|
|
|
3,594 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues -
amortization of intangible |
579 |
|
|
579 |
|
|
|
193 |
|
|
|
|
193 |
|
|
|
|
772 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cost of revenues |
2,795 |
|
|
3,762 |
|
|
|
1,285 |
|
|
|
|
1,417 |
|
|
|
|
4,366 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
600 |
|
|
1,331 |
|
|
|
387 |
|
|
|
|
826 |
|
|
|
|
734 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
expenses, net |
6,671 |
|
|
6,557 |
|
|
|
2,129 |
|
|
|
|
2,083 |
|
|
|
|
8,623 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses |
3,040 |
|
|
4,088 |
|
|
|
1,167 |
|
|
|
|
1,217 |
|
|
|
|
4,259 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative
expenses |
2,249 |
|
|
2,389 |
|
|
|
685 |
|
|
|
|
799 |
|
|
|
|
3,002 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
(11,360 |
) |
|
(11,703 |
) |
|
|
(3,594 |
) |
|
|
|
(3,273 |
) |
|
|
|
(15,150 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance income |
46 |
|
|
6,923 |
|
|
|
31 |
|
|
|
|
100 |
|
|
|
|
54 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance expense |
207 |
|
|
2,192 |
|
|
|
65 |
|
|
|
|
1,135 |
(*) |
|
|
|
392 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive loss |
(11,521 |
) |
|
(6,972 |
) |
|
|
(3,628 |
) |
|
|
|
(4,308 |
) |
|
|
|
(15,488 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic loss per share |
(0.13 |
) |
|
(0.04 |
) |
|
|
(0.04 |
) |
|
|
|
(0.02 |
) |
|
|
|
(0.17 |
) |
Basic loss per American
Depositary Shares (after the change in the ADS ratio) |
(6.40 |
) |
|
(2.08 |
) |
|
|
(1.90 |
) |
|
|
|
(1.21 |
) |
|
|
|
(8.40 |
) |
(*) |
The Finance expenses are mainly attributed to the offerings we made
during the nine month period ended September 30, 2019, resulting in
issuance expenses of approximately $469,000 that were recognized as
finance expenses, and expenses due to changes in the fair value of
convertible notes and warrants of approximately $495,000. |
Consolidated Statements of Changes in
Equity (Unaudited)(In thousands of USD)
|
|
Share capital |
|
|
Share premium |
|
|
Treasury shares |
|
|
|
|
Presentation currency translation reserve |
|
|
|
|
Accumulated loss |
|
|
Total equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the nine months
ended September 30, 2019: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of
January 1, 2019 |
|
3,291 |
|
|
63,969 |
|
|
|
(1,509 |
) |
|
|
|
|
1,431 |
|
|
|
|
(51,610 |
) |
|
|
15,572 |
|
|
Issuance of ordinary shares,
net |
|
2,216 |
|
|
(632 |
) |
|
|
-- |
|
|
|
|
|
-- |
|
|
|
|
-- |
|
|
|
1,584 |
|
|
Exercise of rights to
purchase |
|
52 |
|
|
311 |
|
|
|
-- |
|
|
|
|
|
-- |
|
|
|
|
-- |
|
|
|
363 |
|
|
Share-based payments |
|
-- |
|
|
375 |
|
|
|
-- |
|
|
|
|
|
-- |
|
|
|
|
-- |
|
|
|
375 |
|
|
Net loss |
|
-- |
|
|
-- |
|
|
|
-- |
|
|
|
|
|
-- |
|
|
|
|
(6,972 |
) |
|
|
(6,972 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of
September 30, 2019 |
|
5,559 |
|
|
64,023 |
|
|
|
(1,509 |
) |
|
|
|
|
1,431 |
|
|
|
|
(58,582 |
) |
|
|
10,922 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended September 30, 2019: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of July 1, 2019 |
|
|
5,559 |
|
|
|
63,850 |
|
|
|
|
(1,509 |
) |
|
|
|
|
|
1,431 |
|
|
|
|
|
(54,274 |
) |
|
|
|
15,057 |
|
|
Share-based payments |
|
|
-- |
|
|
|
173 |
|
|
|
|
-- |
|
|
|
|
|
|
-- |
|
|
|
|
|
-- |
|
|
|
|
173 |
|
|
Net loss |
|
|
-- |
|
|
|
-- |
|
|
|
|
-- |
|
|
|
|
|
|
-- |
|
|
|
|
|
(4,308 |
) |
|
|
|
(4,308 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of
September 30, 2019 |
|
|
5,559 |
|
|
|
64,023 |
|
|
|
|
(1,509 |
) |
|
|
|
|
|
1,431 |
|
|
|
|
|
(58,582 |
) |
|
|
|
10,922 |
|
|
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