BOCA RATON, Fla., May 14, 2020 (GLOBE NEWSWIRE) -- Nano Dimension Ltd. (Nasdaq, TASE: NNDM), a leading Additively Manufactured Electronics (AME)/PE (Printed Electronics) provider, today announced financial results for the first quarter ended March 31, 2020.

Nano Dimension reported revenues of $702,000 for the first quarter of 2020, compared to $1,977,000 in the fourth quarter of 2019, and $1,689,000 in the first quarter of 2019. Two sale-transactions of DragonFly LDM machines that were expected to close in China in the first quarter of 2020 were disrupted as the country was then at the climax of its Covid-19 crisis. These transactions may reemerge now that China is recovering. In Europe, as the situation in the world deteriorated, the buyer of one machine tried to considerably reduce its committed payment, so Nano Dimension canceled the transaction.

Nano Dimension ended the quarter with $4,509,000 in cash, while total loss for the first quarter was $2,074,000. The present cash situation, supported by $13,300,000 additional cash from previous and new shareholders’ investments in April 2020 public offering, is expected to be sufficient in supporting the company while crossing the bridge from Covid-19-led-economics through the recovery stages, leading to an accelerated growth within a more normal business environment.

“Considering current world events, extracting conclusions from the results of the first quarter may be a somewhat futile exercise. However, we do note that our revenues from consumables were 24% of the total quarterly revenues (affected upwards as a result of the abovementioned reduced machine sales). We had two more customers showing commitment to our technology by paying for upgrades to DragonFly LDM. Two additional customers bought our annual renewable service contracts,” said Yoav Stern, President and Chief Executive Officer of Nano Dimension. “A large number of our customers are still in slow-down or shut-down modes due to Covid-19. As a result, our working assumption is that at least the second through the third quarters of 2020 will be affected by reduction of revenue, from our originally budgeted figures,” concluded Mr. Stern.

First Quarter 2020 Financial Results

• Total revenues for the first quarter of 2020 were $702,000, compared to $1,977,000 in the fourth quarter of 2019, and $1,689,000 in the first quarter of 2019. The decrease compared to both the fourth quarter of 2019 and the first quarter of 2019 is attributed to less system sales of the DragonFly Additive Manufacturing system, due to the reasons mentioned above.  
  
  
• Research and development expenses for the first quarter of 2020 were $1,702,000, compared to $1,525,000 in the fourth quarter of 2019, and $2,152,000 in the first quarter of 2019. The increase compared to the fourth quarter of 2019 was mainly attributed to an increase in payroll and related expenses. The decrease compared to the first quarter of 2019 was mainly attributed to a decrease in payroll and related expenses and materials expenses.
  
  
• Sales and marketing expenses for the first quarter of 2020 were $819,000, compared to $1,381,000 in the fourth quarter of 2019, and $1,364,000 in the first quarter of 2019. The decrease compared to both the fourth quarter of 2019 and the first quarter of 2019 was mainly attributed to a decrease in payroll and related expenses, as well as marketing and advertising expenses. The decrease compared to the fourth quarter of 2019 is also attributed to a decrease in sales commissions.  
  
  
• General and administrative expenses for the first quarter of 2020 were $1,035,000, compared to $881,000 in the fourth quarter of 2019, and $567,000 in the first quarter of 2019. The increase compared to the fourth quarter of 2019 was mainly attributed to an increase in share-based payments expenses. The increase compared to the first quarter of 2019 was mainly attributed to an increase in share-based payments expenses and professional services expenses.  
  
  
• Finance income, net, for the first quarter of 2020 was $1,388,000, compared to finance income, net, of $1,751,000 in the fourth quarter of 2019, and finance income, net, of $2,229,000 in the first quarter of 2019. The decrease compared to the fourth quarter of 2019 is mainly as a result of a decrease in income due to changes in the fair value of convertible notes and warrants, less an increase in income due to exchange rate differences. The decrease in finance income compared to the first quarter of 2019 was a result of a decrease in finance income due to changes in the fair value of convertible notes and warrants, less issuance expenses in the first quarter of 2019 that were recognized as finance expenses.  
  
  
• Net loss for the first quarter of 2020 was $2,074,000, or $0.01 per share, compared to $1,381,000, or $0.01 per share, in the fourth quarter of 2019, and $1,476,000, or $0.01 per share, in the first quarter of 2019.
  
  

Balance Sheet Highlights

• Cash and cash equivalents totaled $4,509,000 as of March 31, 2020, compared to $3,894,000 on December 31, 2019. The increase compared to December 31, 2019 mainly reflects proceeds received from the sale of American Depositary Shares (ADSs) representing the Company’s ordinary shares in the first quarter of 2020, less cash used in operations during the three months ended March 31, 2020.
  
  
• Shareholders’ equity totaled $15,320,000 as of March 31, 2020, compared to $11,602,000 as of December 31, 2019. The increase is mainly as a result of the public offering of our ADSs in February 2020, as well as conversion of convertible notes, less the loss for the three months ended March 31, 2020.

Conference call information

The Company will host a conference call to discuss these financial results today, May 14, 2020, 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/10143915. 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.

Consolidated Statements of Financial Position as at

Consolidated Statements of Profit or Loss and Other Comprehensive Income