Nano Dimension Reports 2020 Fourth Quarter and Full Year 2020 Financial Results

Rhea-AI Summary

Nano Dimension (NNDM) reported Q4 2020 revenues of $1.97 million, slightly down from $1.98 million in Q4 2019, with full-year revenues at $3.4 million, down from $7.07 million in 2019 due to COVID-19 impacts. The company ended Q4 2020 with $670.93 million in cash, up significantly from $3.89 million in 2019. Despite a net loss of $17.44 million in Q4 2020, an improvement over the previous quarter's loss, the full-year loss was $48.49 million. R&D expenses increased to $9.88 million for 2020, reflecting higher payroll and materials costs.

Positive

• Cash reserves reached $670.93 million, significantly up from $3.89 million in 2019.
• The company raised $710 million in public equity offerings during 2020.

Negative

• Q4 2020 revenues decreased year-over-year due to the COVID-19 pandemic.
• Full-year 2020 revenues dropped to $3.4 million, down from $7.07 million in 2019.
• Net loss for full year 2020 was $48.49 million, compared to $8.35 million in 2019.

Conference call to be held today at 9:00 a.m. EDT

SUNRISE, Fla., March 11, 2021 (GLOBE NEWSWIRE) -- Nano Dimension Ltd. (Nasdaq: NNDM), an industry leading Additively Manufactured Electronics (AME) / PE (Printed Electronics) provider, today announced financial results for the fourth quarter and full year 2020. 

Nano Dimension reported revenues of $1,971,000 for the fourth quarter of 2020, and $3,399,000 for the full year 2020. The company ended the fourth quarter of 2020 with $670,934,000 in cash and bank deposits, while total loss for the fourth quarter was $17,439,000.

“We ended 2020 with a strong balance sheet and $671 million in cash and bank deposits, thanks to the equity offerings we concluded during the year, and we have strengthened it even more to a balance of nearly $1.5 billion as of the end of February 2021,” said Yael Sandler, Chief Financial Officer of Nano Dimension. “We recognized revenues of $3.4 million, which is lower than last year due to the effect of the COVID-19 pandemic, but better than what we originally expected. We are focusing our efforts on fulfilling our growth plan, both internal through product development and R&D efforts, as well as through external M&A activities.” 

Corporate Updates

• During 2020, Nano Dimension raised a total gross proceeds of $710 million in public equity offerings.
  
  
• The revenues for the year ended December 31, 2020 were affected by the repercussions of the COVID-19 pandemic. As a result of the COVID-19 pandemic’s global effects, many entities held off on capital expenses; thus, the Company witnessed a significant decrease in its revenues during 2020.

Fourth Quarter 2020 Financial Results

• Total revenues for the fourth quarter of 2020 were $1,971,000, compared to $1,977,000 in the fourth quarter of 2019, and $438,000 in the third quarter of 2020. The changes are attributed to changes in sales of DragonFly LDM systems.
  
  
• Research and development (R&D) expenses for the fourth quarter of 2020 were $3,725,000, compared to $1,525,000 in the fourth quarter of 2019, and $2,556,000 in the third quarter of 2020. The increase compared to the both the fourth quarter of 2019 and the third quarter of 2020 resulted primarily from an increase in payroll and related expenses, including share-based payment expenses, as well as an increase in materials expenses due to increased R&D efforts. The R&D expenses for the fourth quarter of 2020 are presented net of government grants in the amount of $6,000.
  
  
• Sales and marketing expenses for the fourth quarter of 2020 were $2,373,000, compared to $1,381,000 in the fourth quarter of 2019, and $2,475,000 in the third quarter of 2020. The increase compared to the fourth quarter of 2019 was mainly attributed to an increase in payroll and related expenses.
  
  
• General and administrative (G&A) expenses for the fourth quarter of 2020 were $3,539,000, compared to $881,000 in the fourth quarter of 2019, and $14,805,000 in the third quarter of 2020. The increase compared to the fourth quarter of 2019 is attributed to an increase in share-based payment expenses. The decrease compared to the third quarter of 2020 is attributed to a decrease in share-based payment expenses. 
  
  
• Finance expense, net, for the fourth quarter of 2020 was $8,908,000 compared to finance income, net, of $1,751,000 in the fourth quarter of 2019, and finance expense, net, of $824,000 in the third quarter of 2020. The increase in finance expense compared to both the fourth quarter of 2019 and the third quarter of 2020 is mainly as a result of finance expense of $9,035,000 that was recognized in the fourth quarter of 2020 due to changes in the fair value of financial liabilities in respect of warrants.
  
  
• Net loss for the fourth quarter of 2020 was $17,439,000, or $0.20 per share, compared to $1,381,000, or $0.35 per share, in the fourth quarter of 2019 and $20,716,000, or $0.45 per share, in the third quarter of 2020.

Full Year 2020 Financial Results

• Total revenues for the full year 2020 were $3,399,000, compared to $7,070,000 in 2019. The decrease is due to a decrease in sales due to the COVID-19 pandemic.
  
  
• R&D expenses for 2020 were $9,878,000, compared to $8,082,000 in 2019. The increase resulted primarily from an increase in share-based payment expenses. The R&D expenses for 2020 are presented net of government grants in the amount of $21,000.
  
  
• Sales and marketing expenses for 2020 were $6,597,000, compared to $5,469,000 in 2019. The increase resulted primarily from an increase in payroll and related expenses.
  
  
• Finance expense, net for 2020 was $12,797,000, compared to finance income, net of $6,482,000 in 2019. The increase in finance expense is mainly as a result of finance expense of $12,825,000 that was recognized in 2020 due to changes in the fair value of financial liabilities in respect of warrants.
  
  
• Net loss for the full year 2020 was $48,494,000, or $1.13 per share, compared to $8,353,000, or $2.38 per share, in 2019.

Balance Sheet Highlights

• Cash and bank deposits totaled $670,934,000 as of December 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 representing the Company’s ordinary shares during 2020, less cash used in operations during the year ended December 31, 2020. In January and February 2021, Nano Dimension announced the closing of two public offerings of American Depositary Shares, with total gross proceeds of $833 million.
  
  
• Shareholders’ equity totaled $667,116,000 as of December 31, 2020, compared to $11,602,000 as of December 31, 2019.

Conference call information

The company will host a conference call to discuss these financial results today, March 11, 2021, at 9:00 a.m. EDT (4:00 p.m. IST). Investors interested in participating are invited to register for the conference call here: https://dpregister.com/sreg/10152462/e2dd1ebc94. 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
Nano Dimension (Nasdaq: 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. The DragonFly LDM® system is being deployed in a wide range of industries, including academic and research institutions, defense, aerospace, autonomous automotive, robotics, and biotech. Its ability to enable on-site prototyping in a matter of hours instead of weeks; create products with better performance; reduce the size and weight of electronic parts and devices; enable innovation; and critically important, protect IP, is a paradigm shift in how industry and research institutions will research, develop, and produce High-Performance Electronic Devices (Hi-PEDs™.) 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 its growth plan, product development and R&D efforts, as well as through and potential M&A activities. 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 11, 2021, 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 CONTACT
Yael Sandler, CFO | ir@nano-di.com 

U.S. Investor Relations:
Dave Gentry
RedChip Companies Inc.
Dave@redchip.com 
407-491-4498 or 1-800-RED-CHIP (733-2447)

Consolidated Statements of Financial Position as at

		December 31,
		2019				2020
		Thousands USD				Thousands USD
Assets
Cash			3,894				585,338
Bank deposits			-				85,596
Restricted deposits			31				62
Trade receivables			1,816				713
Other receivables			570				1,126
Inventory			3,543				3,314
Total current assets			9,854				676,149
Restricted deposits			377				406
Property plant and equipment, net			4,743				5,092
Right of use assets			2,673				3,169
Intangible assets			5,211				4,440
Total non-current assets			13,004				13,107
Total assets			22,858				689,256
Liabilities
Trade payables			850				776
Other payables			3,575				5,910
Total current liabilities			4,425				6,686
Liability in respect of government grants			1,044				850
Lease liability			2,089				2,618
Liability in respect of warrants			3,698				11,986
Total non-current liabilities			6,831				15,454
Total liabilities			11,256				22,140
Equity
Share capital			6,441				257,225
Share premium and capital reserves			65,202				518,426
Treasury shares			(1,509	)			(1,509	)
Presentation currency translation reserve			1,431				1,431
Accumulated loss			(59,963	)			(108,457	)
Total equity			11,602				667,116
Total liabilities and equity			22,858				689,256

  

Consolidated Statements of Profit or Loss and Other Comprehensive Income
  

		For the Three-Month Period Ended December 31,								For the Year Ended December 31,
		2019				2020				2019				2020
		Thousand USD				Thousand USD				Thousand USD				Thousand USD
Revenues			1,977				1,971				7,070				3,399
Cost of revenues			1,129				673				4,312				1,563
Cost of revenues - amortization of intangible			193				192				772				771
Total cost of revenues			1,322				865				5,084				2,334
Gross profit			655				1,106				1,986				1,065
Research and development expenses, net			1,525				3,725				8,082				9,878
Sales and marketing expenses			1,381				2,373				5,469				6,597
General and administrative expenses			881				3,539				3,270				20,287
Operating loss			(3,132	)			(8,531	)			(14,835	)			(35,697	)
Finance income			1,842				275				8,765				446
Finance expense			91				9,183				2,283				13,243
Total comprehensive loss			(1,381	)			(17,439	)			(8,353	)			(48,494	)
Basic loss per share (in USD) (after 1:50 reverse split effective June 29, 2020)			(0.35	)			(0.20	)			(2.38	)			(1.13	)

 

FAQ

What were Nano Dimension's revenues for Q4 2020?

Nano Dimension reported revenues of $1.97 million for Q4 2020.

How did Nano Dimension perform financially in 2020?

For the full year 2020, Nano Dimension's revenues were $3.4 million, with a net loss of $48.49 million.

What is Nano Dimension's cash position as of December 31, 2020?

As of December 31, 2020, Nano Dimension had $670.93 million in cash and bank deposits.

What were the research and development expenses for Nano Dimension in 2020?

R&D expenses for Nano Dimension in 2020 totaled $9.88 million.