Nano Dimension Reports 2019 Fourth Quarter and Full Year 2019 Financial Results, Showing 39% Revenue Growth in 2019
March 10 2020 - 6:30AM
Nano Dimension Ltd.
(Nasdaq, TASE: NNDM),
a leading Additively Manufactured Electronics (AME)
provider, today announced financial results for the
fourth quarter and full year 2019.
Nano Dimension reported revenues of $1,977,000
for the fourth quarter of 2019, and $7,070,000 for the full year
2019. The company ended the fourth quarter of 2019 with $3,894,000
in cash, while total loss for the fourth quarter was
$1,381,000.
“Amit Dror, our co-Founder and previous Chief
Executive Officer, led Nano Dimension to a 39% revenue increase in
2019, year-over-year. It is important to note that this was
achieved predominantly through sales of the previous generation
DragonFly Pro systems. Our current Dragonfly LDM, the first 24/7
AME machine, was only released in the third quarter of 2019,” said
Yoav Stern, Nano Dimension’s incoming President and Chief Executive
Officer. “In addition, customers of the previous ‘Pro’ have chosen
to upgrade to our current ‘LDM’, and many more are in the process
of doing so. The company views this as an important vote of
confidence in Nano Dimension’s AME machines for fabrication of Hi
Performance Electronic Devices.”
Corporate Updates
- In order to support growth and improve customer support, Nano
Dimension is changing its present Go-To-Market methodology by
moving from sales through resellers to direct sales or sales
through agents and representatives. The company will also directly
provide its customers with application support and training, as
well as maintenance and printing support activities. Some of the
company’s current resellers are going to be company’s partners in
leads’ generation as electronic-industry-agents and
representatives.
- As part of the efforts above, most of the Company’s 2019 sales
and marketing personnel in the United States were furloughed, and
most advertising and marketing expenses initiated in 2019 were
stopped, in a process of redirecting the Go-To-Market approach.
- The company is in the process of concentrating efforts mainly
on the U.S. market, followed by the European and Asia Pacific
markets.
- In early February 2020, Nano Dimension raised $3.9 million in
equity, and used the opportunity to convert 86% (the rest are in
process) of its outstanding convertible debt into equity,
simplifying the company’s capital structure.
- Nano Dimension established its headquarters in South Florida,
where the company will launch NaNoS
(“Nano-Services”). By using the company’s Dragonfly LDM machines,
this new Service Bureau will offer customers proof of concept and
prototyping services for their advanced PCB and Hi-PED
(High Performance
Electronic Device) designs. Nano
Dimension is in a process of recruiting U.S. management, sales and
customer care personnel that will support and expand the company’s
activities.
- The first quarter of 2020 will be affected by the repercussions
of the COVID-19 coronavirus, mostly due to a machines’ sale
transactions with Chinese customers, which are not expected to
occur this quarter. The company does not foresee its supply chain
to be negatively affected by these unfortunate events.
Fourth Quarter
2019 Financial Results
● |
Total revenues for the fourth quarter of 2019 were $1,977,000,
compared to $1,705,000 in the fourth quarter of 2018, and
$2,243,000 in the third quarter of 2019. The changes are attributed
to commercial sales of the DragonFly additive manufacturing
system. |
|
|
● |
Research and development (R&D) expenses for the fourth quarter
of 2019 were $1,525,000, compared to $2,021,000 in the fourth
quarter of 2018, and $2,083,000 in the third quarter of 2019. The
decrease compared to the fourth quarter of 2018 resulted primarily
from an expense recognized in the fourth quarter of 2018 for
disposal of research and development equipment that was not in use.
The decrease compared to the third quarter of 2019 was mainly
attributed to a decrease in payroll and related expenses. The
R&D expenses for the fourth quarter of 2019 are presented net
of government grants in the amount of $24,000. |
|
|
● |
Sales and marketing expenses for the fourth quarter of 2019 were
$1,381,000, compared to $1,220,000 in the fourth quarter of 2018,
and $1,217,000 in the third quarter of 2019. The increase compared
to both the fourth quarter of 2018 and the third quarter of 2019
was mainly attributed to an increase in payroll and related
expenses and sales commissions. |
|
|
● |
General and administrative (G&A) expenses for the fourth
quarter of 2019 were $881,000, compared to $685,000 in the fourth
quarter of 2018, and $799,000 in the third quarter of 2019. The
increase compared to both the fourth quarter of 2018 and the third
quarter of 2019 is mainly attributed to an increase in professional
services expenses. |
|
|
● |
Finance income, net, for the fourth quarter of 2019 was $1,751,000,
compared to finance expense, net, of $175,000 in the fourth quarter
of 2018, and finance expense, net, of $1,035,000 in the third
quarter of 2019. The increase in finance income is mainly as a
result of finance income of $1,886,000 that was recognized in the
fourth quarter of 2019 due to changes in the fair value of
convertible notes and warrants. |
|
|
● |
Net loss for the fourth quarter of 2019 was $1,381,000, or
$0.01 per share, compared to $3,967,000, or $0.04 per share,
in the fourth quarter of 2018 and $4,308,000, or $0.02 per share,
in the third quarter of 2019. |
Full Year 2019
Financial Results
● |
Total revenues for the full year 2019 were $7,070,000, compared to
$5,100,000 in 2018. The increase is due to additional sales of
products during 2019. |
|
|
● |
R&D expenses for 2019 were
$8,082,000, compared to $8,623,000 in 2018. The decrease resulted
primarily from an expense recognized in 2018 for disposal of
research and development equipment that was not in use. The R&D
expenses for the year are presented net of government grants in the
amount of $49,000. |
|
|
● |
Sales and marketing expenses for
2019 were $5,469,000, compared to $4,259,000 in 2018. The increase
resulted primarily from an increase in payroll and related
expenses, as well as marketing, commissions and advertising
expenses. During 2019, the company decided to invest resources in
sales and marketing activities, and accordingly increased the
number of sales and marketing personnel, and invested more in
marketing and advertising, and paid more sales
commissions. |
|
|
● |
G&A expenses for 2019 were
$3,270,000, compared to $3,002,000 in 2018. The increase resulted
primarily from an increase in professional services
expenses. |
|
|
● |
Finance income, net for 2019 was
$6,482,000, compared to finance expense, net of $338,000 in 2018.
The increase in income is primarily due to revaluation of financial
liabilities and lease liabilities, fundraising expenses, and
revaluation of liability in respect of government
grants. |
|
|
● |
Net loss for the full year 2019
was $8,353,000, or $0.05 per share, compared to $15,488,000,
or $0.17 per share, in 2018. |
Balance Sheet Highlights
● |
Cash totaled $3,894,000 as of December 31, 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
year ended December 31, 2019. In February 2020, Nano Dimension
announced the closing of a public offering of American Depositary
Shares, with total gross proceeds of $3.9 million. |
|
|
● |
Shareholders’ equity totaled $11,602,000 as of December 31, 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, March 10, 2020, at 9:00
a.m. EDT (3:00 p.m. IST). Investors interested in
participating are invited to register for the conference call here:
http://dpregister.com/10139954. 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. 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 Ltd.
Nano Dimension (Nasdaq, TASE: NNDM) is a
provider of intelligent machines for the fabrication of
Additively Manufactured Electronics (AME). High fidelity active
electronic and electromechanical subassemblies are integral
enablers of autonomous intelligent drones, cars,
satellites, smartphones, and in vivo medical devices. They
necessitate iterative development, IP safety, fast time-to-market
and device performance gains, thereby mandating AME for in-house,
rapid prototyping and production. Nano Dimension machines
serve cross-industry needs by depositing proprietary consumable
conductive and dielectric materials simultaneously, while
concurrently integrating in-situ capacitors, antennas, coils,
transformers and electromechanical components, to function at
unprecedented performance. Nano Dimension bridges the gap between
PCB and semiconductor integrated circuits. A revolution at the
click of a button: From CAD to a functional high-performance AME
device in hours, solely at the cost of the consumable
materials. 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. For example, Nano Dimension is
using forward-looking statements in this press release when it
discusses the potential of its products, changing its Go-To-Market
strategy by moving from sales through resellers to direct sales or
sales through agents and representatives, providing customers with
application support and training, as well as maintenance and
printing support activities, converting resellers to
lead-generation electronic-industry-agents and representatives,
concentrating efforts mainly on the U.S. market, followed by the
European and Asia Pacific markets, launching NaNoS, offering
customers proof of concept and prototyping services, recruiting
U.S. management, sales and customer care personnel that will
support and expand the company’s activities, and that the company
does not expect its supply chain to be negatively affected by
COVID-19. Because such statements deal with future events and are
based on Nano Dimension's current expectations, they are subject to
various risks and uncertainties. Actual results, performance or
achievements of Nano Dimension could differ materially from those
described in or implied by the statements in this press release.
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 10, 2020, and in any
subsequent filings with the SEC. 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
Consolidated Statements of Financial Position as
at
|
|
|
|
|
2018(*) |
|
|
2019 |
|
|
|
Thousand USD |
|
|
Thousand USD |
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Cash |
|
|
3,753 |
|
|
|
3,894 |
|
Restricted deposits |
|
|
21 |
|
|
|
31 |
|
Trade receivables |
|
|
1,313 |
|
|
|
1,816 |
|
Other receivables |
|
|
570 |
|
|
|
570 |
|
Inventory |
|
|
3,116 |
|
|
|
3,543 |
|
Total current
assets |
|
|
8,773 |
|
|
|
9,854 |
|
|
|
|
|
|
|
|
|
|
Restricted deposits |
|
|
347 |
|
|
|
377 |
|
Property plant and equipment, net |
|
|
5,200 |
|
|
|
4,743 |
|
Right of use asset |
|
|
- |
|
|
|
2,673 |
|
Intangible assets |
|
|
5,983 |
|
|
|
5,211 |
|
Total non-current
assets |
|
|
11,530 |
|
|
|
13,004 |
|
Total
assets |
|
|
20,303 |
|
|
|
22,858 |
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
Trade payables |
|
|
1,414 |
|
|
|
850 |
|
Other payables |
|
|
2,178 |
|
|
|
3,575 |
|
Total current
liabilities |
|
|
3,592 |
|
|
|
4,425 |
|
|
|
|
|
|
|
|
|
|
Liability in respect of government grants |
|
|
895 |
|
|
|
1,044 |
|
Lease liability |
|
|
- |
|
|
|
2,089 |
|
Liability in respect of convertible notes and warrants |
|
|
- |
|
|
|
3,698 |
|
Other long-term liabilities |
|
|
244 |
|
|
|
- |
|
Total non-current liabilities |
|
|
1,139 |
|
|
|
6,831 |
|
Total
liabilities |
|
|
4,731 |
|
|
|
11,256 |
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
Share capital |
|
|
3,291 |
|
|
|
6,441 |
|
Share premium and capital reserves |
|
|
63,969 |
|
|
|
65,202 |
|
Treasury shares |
|
|
(1,509 |
) |
|
|
(1,509 |
) |
Presentation currency translation reserve |
|
|
1,431 |
|
|
|
1,431 |
|
Accumulated loss |
|
|
(51,610 |
) |
|
|
(59,963 |
) |
Total
equity |
|
|
15,572 |
|
|
|
11,602 |
|
Total liabilities and
equity |
|
|
20,303 |
|
|
|
22,858 |
|
(*) See note 2.C to the company’s 2019 financial
reports regarding initial application of IFRS 16, Leases. According
to the transitional method that was chosen, comparative data were
not restated.
Consolidated Statements of Profit or Loss and
Other Comprehensive Income
|
|
For the Three-Month Period Ended December 31, |
For the Year Ended December 31, |
|
|
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
|
|
Thousand USD |
|
|
Thousand USD |
|
|
Thousand USD |
|
|
Thousand USD |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
1,705 |
|
|
|
1,977 |
|
|
|
5,100 |
|
|
|
|
7,070 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues |
|
|
1,378 |
|
|
|
1,129 |
|
|
|
3,594 |
|
|
|
|
4,312 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues -
amortization of intangible |
|
|
193 |
|
|
|
193 |
|
|
|
772 |
|
|
|
|
772 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cost of revenues |
|
|
1,571 |
|
|
|
1,322 |
|
|
|
4,366 |
|
|
|
|
5,084 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
134 |
|
|
|
655 |
|
|
|
734 |
|
|
|
|
1,986 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
expenses, net |
|
|
2,021 |
|
|
|
1,525 |
|
|
|
8,623 |
|
|
|
|
8,082 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses |
|
|
1,220 |
|
|
|
1,381 |
|
|
|
4,259 |
|
|
|
|
5,469 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative
expenses |
|
|
685 |
|
|
|
881 |
|
|
|
3,002 |
|
|
|
|
3,270 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
|
(3,792 |
) |
|
|
(3,132 |
) |
|
|
(15,150 |
) |
|
|
|
(14,835 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance income |
|
|
- |
|
|
|
1,842 |
|
|
|
54 |
|
|
|
|
8,765 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance expense |
|
|
175 |
|
|
|
91 |
|
|
|
392 |
|
|
|
|
2,283 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive loss |
|
|
(3,967 |
) |
|
|
(1,381 |
) |
|
|
(15,488) |
|
|
|
|
(8,353 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic loss per share (in
USD) |
|
|
(0.04 |
) |
|
|
(0.01 |
) |
|
|
(0.17) |
|
|
|
|
(0.05 |
) |
|
Basic loss per ADS (in
USD) |
|
|
(2.10 |
) |
|
|
(0.35 |
) |
|
|
(8.40) |
|
|
|
|
(2.38 |
) |
|
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