NESS ZIONA, ISRAEL – 3-D printing OEM Nano Dimension today said its preliminary unaudited revenues for the second quarter are expected to be $1 million to $1.2 million, below management’s expectations.

The company estimates total revenues between $2.7 million to $2.9 million for the first half of 2019, compared to $1.7 million in the first half of 2018.

The company ended the quarter with approximately $5.2 million in cash, mainly as a result of an increase in inventory.

“We are disappointed with the results we presented in the first half of 2019. The company has taken several actions to change that. I believe that in the second half of 2019 we will present better results,” said Amit Dror, CEO.

To reduce operating expenses, Nano Dimension announced a restructuring including a headcount reduction of approximately 20%. In conjunction with the layoffs, Simon Fried, cofounder and president of North America, has decided to step down from his executive role to pursue other opportunities. Fried will continue to serve on the company’s board of directors and to advise the company to ensure a smooth transition.

“Nano Dimension plans to strengthen its efforts to accelerate the adoption of its products, with the sole purpose of expanding its customer use cases from prototyping to production,” said Dror. “We believe that the combined actions we have taken position the company’s products and structure better for sustainable growth. We strongly believe in our technology, which is second to none, and in the disruptive changes it is leading in the electronics industry.”

The firm also announced it has retained Stifel as exclusive financial advisor to conduct a review of strategic alternatives, including a possible sale. The company set no timetable for the conclusion of its review and does not intend to comment further.

In the first half, the company sold 13 DragonFly systems, five in the second quarter. This brings the system sales to 43 systems in total worldwide since its introduction six years ago. A new machine is on the horizon, the company said.

“In the coming weeks, after a year of extensive product development in close cooperation with select customers, the company plans to launch a new system within the DragonFly family. This new 3-D printer delivers substantial performance improvements and mission critical features that were developed in direct response to customer needs,” said Dror. “The new system is expected to significantly increase the value for our existing and targeted customers and fuel further revenue growth as we expand our end-user universe and use cases.”

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