Nano Dimension Reports 2017 Third Quarter Financial Results
NESS ZIONA, ISRAEL / ACCESSWIRE / November 21, 2017 / Nano Dimension Ltd. (NASDAQ, TASE: NNDM), a leader in the field of 3D printed electronics, today announced financial results for the third quarter ended September 30, 2017.
Nano Dimension ended the third quarter of 2017 with $11,976,000 (NIS 42,265,000) in cash, while total loss for the quarter was $4,152,000 (NIS 14,650,000).
Management Comments
"We have made tremendous progress during the third quarter of 2017 and have reached the milestones we set forth for this quarter. Through our efforts to execute our strategic growth plan, we expanded our collaborations with distribution partners in Europe, Australia, and North America. This has allowed us to develop the commercial and service infrastructure of the DragonFly 2020 Pro 3D printer on a global scale," commented Amit Dror, Nano Dimension's CEO. "In addition, we are excited to have signed an agreement with our first commercial customer, Jabil. As we progress through the fourth quarter, we expect to increase our commercial sales in collaboration with our partners," concluded Mr. Dror.
Third Quarter 2017 Financial Results
Total revenues for the third quarter of 2017 were $143,000 (NIS 506,000), compared to $150,000 (NIS 523,000) in the second quarter of 2017 and zero in the third quarter of 2016.
Research and development (R&D) expenses for the third quarter of 2017 were $3,000,000 (NIS 10,588,000), compared to $3,212,000 (NIS 11,230,000) in the second quarter of 2017 and $674,000 (NIS 2,533,000) in the third quarter of 2016. The decrease compared to the second quarter of 2017 resulted primarily from a decrease in options expenses. The increase compared to the third quarter of 2016 is mainly a result of the cessation of the capitalization of development cost in the fourth quarter of 2016.
The R&D expenses for the third quarter of 2017 are presented net of government grants in the amount of $24,000 (NIS 83,000).
Sales, marketing and general and administrative (G&A) expenses for the third quarter of 2017 were $1,077,000 (NIS 3,800,000), compared to $1,490,000 (NIS 5,209,000) in the second quarter of 2017 and $1,049,000 (NIS 3,941,000) in the third quarter of 2016. The decrease compared to the second quarter of 2017 resulted primarily from a decrease in professional services expenses. The decrease in NIS compared to the third quarter of 2016 resulted primarily from a decrease in directors fees and other general and administrative expenses. The expenses in the third quarter of 2017 in USD increased compared to the expenses in the third quarter of 2016 in USD due to changes in the exchange rate of the dollar compared to the NIS.
Net loss for the third quarter of 2017 was $4,152,000 (NIS 14,650,000), or $0.06 (NIS 0.22) per ordinary share, compared to $5,000,000 (NIS 17,481,000), or $0.1 (NIS 0.33) per ordinary share, in the second quarter of 2017 and $1,727,000 (NIS 6,491,000), or $0.05 (NIS 0.17) per ordinary share, in the third quarter of 2016. The decrease compared to the second quarter of 2017 resulted primarily from a decrease in sales, marketing and general and administrative expenses as described above. The increase compared to the third quarter of 2016 is mainly attributed to the increase in R&D expenses as described above.
Nine Months Ended September 30, 2017 Financial Results
Total revenues for the nine months ended September 30, 2017 were $414,000 (NIS 1,459,000), compared to zero in the nine months ended September 30, 2016. The fourth quarter of 2016 was the first quarter in which Nano Dimension generated revenues.
Research and development (R&D) expenses for the nine months ended September 30, 2017 were $8,765,000 (NIS 30,930,000), compared to $1,625,000 (NIS 6,108,000) in the nine months ended September 30, 2016. The increase is mostly a result of the cessation of the capitalization of development cost in the fourth quarter of 2016.
The R&D expenses for the nine months ended September 30, 2017 are presented net of government grants in the amount of $152,000 (NIS 535,000).
Sales, marketing and general and administrative (G&A) expenses for the nine months ended September 30, 2017 were $3,860,000 (NIS 13,621,000), compared to $3,453,000 (NIS 12,975,000) in the nine months ended September 30, 2016. The increase resulted primarily from an increase in payroll and related expenses.
Net loss for the nine months ended September 30, 2017 was $13,726,000 (NIS 48,437,000), or $0.25 (NIS 0.88) per ordinary share, compared to $5,224,000 (NIS 19,633,000), or $0.14 (NIS 0.52) per ordinary share, in the nine months ended September 30, 2016. The increase is mainly attributed to the increase in R&D expenses as described above.
Balance Sheet Highlights
Cash totaled $11,976,000 (NIS 42,265,000) as of September 30, 2017, compared to $12,379,000 (NIS 47,599,000) on December 31, 2016. The decrease compared to December 31, 2016 mainly reflects the cash used during the nine months ended September 30, 2017, less the proceeds received from the private placements that occurred in the second quarter of 2017.
Shareholders' equity totaled $21,677,000 (NIS 76,501,000) as of September 30, 2017, compared to $19,302,000 (NIS 74,218,000) as of December 31, 2016.
Third Quarter Corporate Highlights:
Completed the recruitment of new applicants to the company's beta program. Following the positive feedback that the company received from its customers, the company decided that the targets of its beta program were achieved, thus allowing the transition to the next stage, targeting early access commercial sales.
Established the framework to collaborate with CAD MicroSolutions Inc., an industry-leading service provider and distributor, to develop the commercial and service infrastructure necessary to commence sales of the DragonFly 2020 3D printer in Canada.
Established the framework to collaborate with Emona Instruments Pty Ltd, a leading supplier of electronic test and measuring instruments, 3D printers and additive manufacturing solutions, to develop the commercial and service infrastructure necessary to commence sales of the DragonFly 2020 3D printer in Australia.
Signed an agreement with Jabil Inc. (NYSE:JBL) as the company's first commercial customer. Jabil is a product solutions company providing comprehensive electronics design, production and product management services to global electronics and technology companies. According to the agreement, Jabil will lease the DragonFly 2020 3D printer from Nano Dimension.
Established the framework to collaborate with CADvision, a leading 3D printing distributor in France, to develop the commercial and service infrastructure necessary to commence sales and support of the DragonFly 2020 3D Printer across France, Belgium and Switzerland.
Announced the commercial availability of the DragonFly™ 2020 Pro 3D Printer. Designers and engineers can now innovate rapidly from proof of concept, through design validation to test fixtures, by 3D printing their own multilayer PCBs.
Established the framework to collaborate with Milan-based Cadlog Srl. to develop the commercial and service infrastructure necessary to commence sales of the DragonFly™ 2020 Pro 3D Printer in Italy.
The board of directors of the company approved the appointment of Avi Reichental as the co-chairman of the company's board of directors, pending the approval of an amendment to the company's articles of association by the company's shareholders. Avi brings extensive experience from the 3D industry and public company leadership. Avi served as 3D Systems (NYSE:DDD) President and Chief Executive Officer for twelve years. Under Avi's leadership, 3D Systems emerged as a global 3D printing provider
On November 20, 2017, and effective immediately, Sharon Fima decided to step down from his role as Chief Technology Officer, to pursue new challenges. Mr. Fima will also step down from his role as a member of the company's board of directors. Mr. Fima will continue to advise the company to ensure a smooth transition. The company is currently looking for a new Chief Technology Officer.
