SUNRISE, FL – Nano Dimension reported first quarter revenues were $811,000, up 15.5% year-over-year and down 58.9% sequentially. The decrease is attributed to continuing delays in sales of DragonFly systems, which the company primarily attributes to the impact of Covid-19.
Net loss was $9.3 million, compared to net loss of over $2 million in the first quarter of 2020 and $17.4 million in the fourth quarter of last year.
R&D expenses for the first quarter were $3.7 million, compared to $1.7 million in the first quarter of 2020 and flat sequentially.
Cash and cash equivalents, together with short- and long-term bank deposits, totaled $1.47 billion as of Mar. 31, compared to $670.9 million as of Dec. 31. The increase mainly reflects proceeds received from the sale of American depositary Shares representing Nano Dimension’s ordinary shares.
“Our business plan is proceeding on schedule, but uniquely to Nano Dimension, as I have explained to our supportive investors and shareholders, while we have raised the capital to comprehend Nano Dimension’s short-term advancements, one should look at our quarterly performance through a magnifying glass that can trifurcate our reported results among three orthogonal axes of intense yet temporarily perpendicular activities and developments,” said Yoav Stern, CEO of Nano Dimension. “First axis: the sale efforts of our existing early bird machines (DragonFly LDM), which are slowly recovering from a long corona-related hibernation; the second axis: Our investment and expansion of our product development efforts, which are the main reason for the larger expense line, show a positive trend as we deploy capital as planned and promised, to accelerate R&D of material and printing technologies to advance the AME product line through the milestones of fitting market specifications; the third axis: our M&A efforts. The two recent acquisitions, which have been in process for approximately six months, and the additional prospects we are working on since the second half of 2020, do not yet reflect positively on our financial statements.
“On the first axis, as we have stated before, the effects of the pandemic, which include slow vaccination processes and recurring closures, especially in Europe, are still affecting our ability to sell new machines. Our technology is in its early adoption stage, and technologically forward-thinking prospective customers have not been allowed to make large capital equipment purchases under their current Covid-19 budgetary limitations. Additionally, due to Covid-related restrictions, we cannot visit the facilities of most potential future customers, which severely limits our marketing and sales efforts.
“It is important to note academic institutions are moving more quickly than private enterprise in overcoming Covid-related restrictions in making large purchases of capital equipment. In fact, we just announced the sale of a DragonFly LDM to the University of Quebec in Canada. We are also very focused on building our sales and marketing organizations in the US, Europe and Asia, so we are prepared to ramp our sales efforts as pandemic-related restrictions are lifted. Our sales and marketing efforts are expressed in our P&L statements under the line ‘sales and marketing expenses,’ which have more than tripled over the same period last year.
“Our product development efforts on the second axis are reflected in our P&L statements in the line ‘research and development expenses,’ which have more than doubled in comparison to the first quarter of 2020.
“The evolution on the third axis, our M&A activities, are manifested in the line ‘general and administrative expenses’ in our P&L statements, which demonstrates more than tripled efforts, as we have recruited senior executive and business research personnel in comparison to the first quarter of 2020. We see positive developments. After approximately six months of due diligence and negotiations, we have completed, at the end of April 2021, two exciting acquisitions. DeepCube’s deep learning/machine learning technology will move us generations ahead of the competition with technology that will result in a much higher performance of our machines, based on self-learning, self-improvements and self-correcting algorithms. Nanofabrica, is one of the most unique DLP micro-3-D-printing machines (digital light processing) developers in the world. We are in the process of making introductions of its technology in the form of Tera 250 3-D printers to our mutual vertical market segments: defense, aerospace, aviation, advance medical and industrial.
“The much larger European and American companies we are negotiating with have been in a temporary acquisition-prohibitive status. Under the travel restrictions of the last year, we, as a buyer, refuse to close any transaction without physically visiting the facilities and undergoing a fully responsible and in-depth face-to-face due diligence process.
“We have laid the groundwork to pursue a deeper due diligence and finalize those processes, as Covid travel and other restrictions are lifted with those companies. An acquisition of any one or more of the US or European companies we are evaluating is expected to leapfrog Nano Dimension into a leading market position as we were aiming at over the last two quarters.
“Within a reasonable amount of time, all three of the axes are going to lose their orthogonality and slowly merge into one direction. Product activity, M&A and go-to-market thrusts, being built now to deliver future synergy and complementarity, are planned to gradually merge, leverage off of each other and fuel a mutually accelerated growth. The companies we have acquired and plan to procure are analyzed based on their ability to amalgamate with the marketing channels of the products we develop and the market presence we build now for our early product lines. All three axes of activity will continue, but in parallel overlapping routes, rather than perpendicularly, integrated into a clear direction and mutual goals while quickening the growth.
“Nano Dimension’s vision is to transform the electronics industry into an environmentally friendly and economically efficient additive manufacturing Industry 4.0, enabling one industrial step process for the conversion of digital designs into functioning electronic devices, on demand anytime anywhere. We are in an incredibly strong financial position and have laid the foundation for substantial future growth.”
