NESS ZIONA, Israel, Nov. 13, 2019 (GLOBE NEWSWIRE) --
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. |
