BOCA RATON, Fla., March 10, 2020 (GLOBE NEWSWIRE) --
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
