Nano Dimension Reports 2020 Third Quarter Financial Results
Nano Dimension Ltd. (Nasdaq: NNDM) announced its third-quarter financial results for 2020, reporting revenues of $438,000, a decline from $2,243,000 in Q3 2019, primarily due to COVID-19 delays. The company experienced a net loss of $20,716,000 or $0.45 per share, significantly higher than $4,308,000 in Q3 2019. Despite these results, CEO Yoav Stern maintains an optimistic view, expecting mid-term growth post-COVID, and highlighted that the company has sold 60 machines internationally. Cash reserves increased to $45,720,000 as of September 30, 2020.
- Increased cash reserves to $45,720,000 as of September 30, 2020.
- Sold 60 machines, indicating market demand despite challenges.
- Revenues decreased to $438,000 from $2,243,000 in Q3 2019 due to COVID-19.
- Net loss increased to $20,716,000 compared to $4,308,000 in Q3 2019.
Conference call to be held today at 9:00 a.m. EST
Sunrise, Florida, Nov. 12, 2020 (GLOBE NEWSWIRE) -- – Nano Dimension Ltd. (Nasdaq: NNDM), a leading Additively Manufactured Electronics (AME)/PE (Printed Electronics) provider, today announced financial results for the third quarter ended September 30, 2020.
Nano Dimension reported revenues of
“These are not disappointing results per se,” said Yael Sandler, Chief Financial Officer of Nano Dimension. “As we have projected starting April 2020, the reduced revenues in 2020 as a result of the COVID-19 pandemic being prolonged and re-emerging crises, were in fact expected to be lower than we have achieved. Actually, in APAC, the revenues have seemed to already start a modest recovery in the fourth quarter of 2020. We believe that the United States is still in a process of downswing of capital expenditures under the influence of the COVID-19 pandemic, and European prospective customers are sinking back toward a commercial stand still, under the effects of its second wave. As the market stagnation is prolonged, understandably hesitant and/or careful customers tend to delay investments in breakthrough, new prototyping and fabrication technologies of unique Hi-PEDs™ (High Performance Electronic Devices). While the phenomena are clear and present, they are probably temporary,” concluded Ms. Sandler.
Mr. Yoav Stern, Chief Executive Officer and President of Nano Dimension commented: “The expectation of our market growth has not changed, and we believe that this is a interim delay. We expect the mid-term slow-down effect to act like a “sling shot” once COVID-19 will start to phase-out.1 The pressure of the trade struggles with the East is already creating an interest for reshoring electronic manufacturing. Nano Dimension technology is ideally positioned as our 3D printing machines for Hi-PEDs™ are an environmentally friendly non-polluting fabrication and overnight prototyping methodology, fitting for setting up fabrication facilities in-house on the western continents.”
Mr. Stern concluded: “As per above, we are not judging, at this point, our success by quarterly revenues. That will come later. Nano Dimension operates along an expected fail-safe investment model, where upside may resemble Biotech investments, but, contrary to those, downside in case of failure at any stage is somewhat hedged and hence protected. We have sold 60 machines already, mostly to leading blue chip defense, academic and commercial organizations worldwide. It is reasonable to assume that in case a decision is made at the right time, a sale of our existing business at improving multiples, as per future stages, is a doable task. On the upside, an exponential growth post COVID-19 may lead us to an unprecedented leadership role. Our future “Stages” as defined at this point (subject to adjustment based on advancement in R&D) are: Stage I: Materials at Commercial-Specs, Stage II: Materials at Industrial-Specs, Stage III: Materials at Mil-Specs, Stage IV: Low Production Volume 3D-System, Stage V: Medium Production Volume 3D-System.”
1 IDTechEX (2019): The total market for 3D printed electronics will be worth
The market for professional PCB prototyping is currently growing very rapidly, almost entirely due to market leader Nano Dimension, and has already overtaken the consumer and education. This growth will slow but this market segment will become the largest by 2020.
DataM Intelligence (2018): Analysts predict 3D printed electronics will be the next high-growth application for product innovation: 2017 3D printed electronics market size is estimated at
Transparency Market Research (2018): The global 3D printed electronics market was valued at US
Third Quarter 2020 Financial Results
- Total revenues for the third quarter of 2020 were
$438,000 , compared to$288,000 in the second quarter of 2020, and$2,243,000 in the third quarter of 2019. The decrease is attributed to continuing delays in identified transactions of DragonFly systems, which the Company primarily attributes to the impact of COVID-19.
- Research and development (R&D) expenses for the third quarter of 2020 were
$2,556,000 , compared to$1,895,000 in the second quarter of 2020, and$2,083,000 in the third quarter of 2019. The increase compared to both the second quarter of 2020 and the third quarter of 2019 is attributed to an increase in payroll and related expenses, as the Company is temporarily shifting resources from sales and marketing to product enhancements, as well as an increase in share-based payment expenses.
- Sales and marketing (S&M) expenses for the third quarter of 2020 were
$2,475,000 , compared to$930,000 in the second quarter of 2020, and$1,217,000 in the third quarter of 2019. The increase compared to both the second quarter of 2020 and the third quarter of 2019 is attributed to an increase in share-based payment expenses.
- General and administrative (G&A) expenses for the third quarter of 2020 were
$14,805,000 , compared to$908,000 in the second quarter of 2020, and$799,000 in the third quarter of 2019. The increase compared to both the second quarter of 2020 and the third quarter of 2019 is attributed to an increase in share-based payment expenses. In the third quarter of 2020, we recognized share-based payment expenses of approximately$13,617,000 with respect to warrants granted to our CEO and President and to one of our directors.
- Net loss for the third quarter of 2020 was
$20,716,000 , or$0.45 per share, compared to$8,265,000 , or$0.27 per share, in the second quarter of 2020, and$4,308,000 , or$1.21 per share, in the third quarter of 2019. The increase compared to both the second quarter of 2020 and the third quarter of 2019 is mainly attributed to share-based payment expenses of approximately$15,852,000 t hat were recognized in the third quarter of 2020.
Nine Months Ended September 30, 2020 Financial Results
- Total revenues for the nine months ended September 30, 2020 were
$1,428,000 , compared to$5,093,000 in the nine months ended September 30, 2019. The decrease is attributed to less sales of DragonFly systems, which the Company primarily attributes to the impact of COVID-19.
- R&D expenses for the nine months ended September 30, 2020 were
$6,153,000 , compared to$6,557,000 in the nine months ended September 30, 2019. The decrease resulted primarily from a decrease in payroll and related expenses and materials expenses, partially offset by an increase in share-based payment expenses.
- S&M expenses for the nine months ended September 30, 2020 were
$4,224,000 , compared to$4,088,000 in the nine months ended September 30, 2019. The increase is mainly attributed to an increase in share-based payment expenses, partially offset by a decrease in marketing and advertising expenses.
- G&A expenses for the nine months ended September 30, 2020 were
$16,748,000 , compared to$2,389,000 in the nine months ended September 30, 2019. The increase is mainly attributed to an increase in share-based payment expenses. In the nine months ended September 30, 2020, we recognized share-based payment expenses of approximately$13,617,000 with respect to warrants granted to our CEO and President and to one of our directors.
- Net loss for the nine months ended September 30, 2020 was
$31,055,000 , or$1.11 per share, compared to$6,972,000 , or$2.08 per share, in the nine months ended September 30, 2019. The increase is mainly attributed to share-based payment expenses of approximately$16,797,000 t hat were recognized in the nine months ended September 30, 2020.
Balance Sheet Highlights
- Cash and cash equivalents, together with short and long-term bank deposits totaled
$45,720,000 as of September 30, 2020, compared to$3,894,000 as of 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, less cash used in operations, during the nine months ended September 30, 2020.
- Shareholders’ equity totaled
$52,691,000 as of September 30, 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, November 12, 2020, at 9:00 a.m. EST (4:00 p.m. IDT). Investors interested in participating are invited to register for the conference call here: https://dpregister.com/sreg/10149108/db3a251138. 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.
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. 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. Because such statements deal with future events and are based on Nano Dimension’s current expectations, they are subject to various risks and uncertainties, and actual results, performance or achievements of Nano Dimension could differ materially from those described in or implied by the statements in this press release. For example, Nano Dimension is using forward-looking statements when it discusses the expected impact of the COVID-19 pandemic and the expected growth once it starts to phase out, the expected recovery of its revenues, including in APAC, its investment model, potential sale at improving multiples and its future stages. 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 CONTACT
Yael Sandler, CFO | ir@nano-di.com
Unaudited Consolidated Statements of Financial Position as at
| September 30, | December 31, | |||||||||||
| 2019 | 2020 | 2019(*) | ||||||||||
| (In thousands of USD) | ||||||||||||
| Assets | ||||||||||||
| Cash and cash equivalents | 5,466 | 21,020 | 3,894 | |||||||||
| Bank deposits | 16,300 | |||||||||||
| Restricted deposits | 31 | 60 | 31 | |||||||||
| Trade receivables | 2,348 | 568 | 1,816 | |||||||||
| Other receivables | 458 | 661 | 570 | |||||||||
| Inventory | 3,620 | 4,032 | 3,543 | |||||||||
| Total current assets | 11,923 | 42,641 | 9,854 | |||||||||
| Bank deposits | - | 8,400 | - | |||||||||
| Restricted deposits | 359 | 379 | 377 | |||||||||
| Property plant and equipment, net | 4,979 | 4,735 | 4,743 | |||||||||
| Right of use asset | 4,054 | 2,478 | 2,673 | |||||||||
| Intangible assets | 5,404 | 4,633 | 5,211 | |||||||||
| Total non-current assets | 14,796 | 20,625 | 13,004 | |||||||||
| Total assets | 26,719 | 63,266 | 22,858 | |||||||||
| Liabilities | ||||||||||||
| Trade payables | 487 | 842 | 850 | |||||||||
| Other payables | 3,448 | 4,420 | 3,575 | |||||||||
| Total current liabilities | 3,935 | 5,262 | 4,425 | |||||||||
| Liability in respect of government grants | 811 | 883 | 1,044 | |||||||||
| Lease liability | 3,476 | 1,829 | 2,089 | |||||||||
| Liability in respect of warrants and rights of purchase | 7,575 | 2,601 | 3,698 | |||||||||
| Total non-current liabilities | 11,862 | 5,313 | 6,831 | |||||||||
| Total liabilities | 15,797 | 10,575 | 11,256 | |||||||||
| Equity | ||||||||||||
| Share capital | 5,559 | 66,252 | 6,441 | |||||||||
| Share premium and capital reserves | 64,023 | 77,535 | 65,202 | |||||||||
| Treasury shares | (1,509 | ) | (1,509 | ) | (1,509 | ) | ||||||
| Presentation currency translation reserve | 1,431 | 1,431 | 1,431 | |||||||||
| Accumulated loss | (58,582 | ) | (91,018 | ) | (59,963 | ) | ||||||
| Total equity | 10,922 | 52,691 | 11,602 | |||||||||
| Total liabilities and equity | 26,719 | 63,266 | 22,858 | |||||||||
(*) The December 31, 2019 balances were derived from the Company’s audited annual financial statements.
Unaudited Consolidated Statements of Profit or Loss and Other Comprehensive Income
(In thousands of USD, except per share amounts)
| For the Nine-Month Period Ended September 30, | For the Three-Month Period Ended September 30, | For the Year ended December 31, | ||||||||||||||||||
| 2019 | 2020 | 2019 | 2020 | 2019(*) | ||||||||||||||||
| Revenues | 5,093 | 1,428 | 2,243 | 438 | 7,070 | |||||||||||||||
| Cost of revenues | 3,183 | 890 | 1,224 | 301 | 4,312 | |||||||||||||||
| Cost of revenues - amortization of intangible | 579 | 579 | 193 | 193 | 772 | |||||||||||||||
| Total cost of revenues | 3,762 | 1,469 | 1,417 | 494 | 5,084 | |||||||||||||||
| Gross profit (loss) | 1,331 | (41 | ) | 826 | (56 | ) | 1,986 | |||||||||||||
| Research and development expenses, net | 6,557 | 6,153 | 2,083 | 2,556 | 8,082 | |||||||||||||||
| Sales and marketing expenses | 4,088 | 4,224 | 1,217 | 2,475 | 5,469 | |||||||||||||||
| General and administrative expenses | 2,389 | 16,748 | (**) | 799 | 14,805 | (**) | 3,270 | |||||||||||||
| Operating loss | (11,703 | ) | (27,166 | ) | (3,273 | ) | (19,892 | ) | (14,835 | ) | ||||||||||
| Finance income | 6,923 | 171 | 100 | 41 | 8,765 | |||||||||||||||
| Finance expense | 2,192 | 4,060 | 1,135 | 865 | 2,283 | |||||||||||||||
| Total comprehensive loss | (6,972 | ) | (31,055 | ) | (4,308 | ) | (20,716 | ) | (8,353 | ) | ||||||||||
| Basic loss per share (after 1:50 reverse split effective June 29, 2020) | (2.08 | ) | (1.11 | ) | (1.21 | ) | (0.45 | ) | (2.38 | ) | ||||||||||
(*) The December 31, 2019 balances were derived from the Company’s audited annual financial statements.
(**) The general and administrative expenses include share-based payment expenses of approximately
Consolidated Statements of Changes in Equity (Unaudited)
(In thousands of USD)
| Share capital | Share premium and capital reserves | Treasury shares | Presentation currency translation reserve | Accumulated loss | Total equity | |||||||||||||||||||
| For the nine months ended September 30, 2020: | ||||||||||||||||||||||||
| Balance as of January 1, 2020 | 6,441 | 65,202 | (1,509 | ) | 1,431 | (59,963 | ) | 11,602 | ||||||||||||||||
| Issuance of ordinary shares, net | 55,512 | (9,743 | ) | -- | -- | -- | 45,769 | |||||||||||||||||
| Conversion of convertible notes | 2,013 | (78 | ) | -- | -- | -- | 1,935 | |||||||||||||||||
| Exercise of warrants and options | 2,286 | 2,867 | -- | -- | -- | 5,153 | ||||||||||||||||||
| Share-based payments | -- | 19,287 | -- | -- | -- | 19,287 | ||||||||||||||||||
| Net loss | -- | -- | -- | -- | (31,055 | ) | (31,055 | ) | ||||||||||||||||
| Balance as of September 30, 2020 | 66,252 | 77,535 | (1,509 | ) | 1,431 | (91,018 | ) | 52,691 | ||||||||||||||||
| For the three months ended September 30, 2020: | ||||||||||||||||||||||||
| Balance as of July 1, 2020 | 66,236 | 61,748 | (1,509 | ) | 1,431 | (70,302 | ) | 57,604 | ||||||||||||||||
| Exercise of options | 16 | (16 | ) | -- | -- | -- | -- | |||||||||||||||||
| Share-based payments | -- | 15,803 | -- | -- | -- | 15,803 | ||||||||||||||||||
| Net loss | -- | -- | -- | -- | (20,716 | ) | (20,716 | ) | ||||||||||||||||
| Balance as of September 30, 2020 | 66,252 | 77,535 | (1,509 | ) | 1,431 | (91,018 | ) | 52,691 | ||||||||||||||||
Non-IFRS measures
The following is a reconciliation of EBITDA and adjusted EBITDA to net loss:
| For the Nine-Month Period Ended September 30, | For the Three-Month Period Ended September 30, | For the Year ended December 31, | ||||||||||||||||||
| 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||
| Net loss | 6,972 | 31,055 | 4,308 | 20,716 | 8,353 | |||||||||||||||
| Interest income | - | (52 | ) | - | (52 | ) | - | |||||||||||||
| Depreciation and amortization | 2,038 | 1,958 | 702 | 667 | 2,666 | |||||||||||||||
| EBITDA | (4,934 | ) | (29,149 | ) | (3,606 | ) | (20,101 | ) | (5,687 | ) | ||||||||||
| Non-cash financial expense (income), net | (6,424 | ) | 3,941 | 566 | 876 | (8,175 | ) | |||||||||||||
| Share-based payments | 367 | 16,797 | 174 | 15,852 | 439 | |||||||||||||||
| Adjusted EBITDA | (10,991 | ) | (8,411 | ) | (2,866 | ) | (3,373 | ) | (13,423 | ) | ||||||||||
EBITDA
EBITDA is a non-IFRS measure and is defined as earnings before interest expense (income), income tax, depreciation and amortization. We believe that EBITDA, as described above, should be considered in evaluating the Company’s operations. EBITDA facilitates operating performance comparisons from period to period and company to company by backing out potential differences caused by variations in capital structures (affecting interest expenses (income), net), and the age and depreciation charges and amortization of fixed and intangible assets, respectively (affecting relative depreciation and amortization expense, respectively) and EBITDA is useful to an investor in evaluating our operating performance because it is widely used by investors, securities analysts and other interested parties to measure a company’s operating performance without regard to the items mentioned above.
Adjusted EBITDA is a non-IFRS measure and is defined as earnings before non-cash financial expense (income), income tax, depreciation and amortization, and share based payments. Non-cash financial expenses (income), net include exchange rate differences, finance expense (income) for revaluation of liability in respect of government grants, finance expense (income) for revaluation of liability in respect of warrants and rights to purchase, as well as changes in lease liability. We believe that Adjusted EBITDA, as described above, should also be considered in evaluating the Company’s operations. Like EBITDA, Adjusted EBITDA facilitates operating performance comparisons from period to period and company to company by backing out potential differences caused by variations in capital structures (affecting non-cash financial expenses (income), net), and the age and depreciation charges and amortization of fixed and intangible assets, respectively (affecting relative depreciation and amortization expense, respectively), as well as from share-based payment expenses, and Adjusted EBITDA is useful to an investor in evaluating our operating performance because it’s widely used by investors, securities analysts and other interested parties to measure a company’s operating performance without regard to non-cash items, such as expenses related to share based payments.
EBITDA and Adjusted EBITDA do not represent cash generated by operating activities in accordance with IFRS and should not be considered alternatives to net income (loss) as indicators of our operating performance or as measures of our liquidity. These measures should be considered in conjunction with net income (loss) as presented in our consolidated statements of profit or loss and other comprehensive income. Other companies may calculate EBITDA and Adjusted EBITDA differently than we do.
FAQ
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