Nano Dimension Sells Two DragonFly LDM Systems

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Nano Dimension Ltd., a leading Additively Manufactured Electronics (AME)/PE (Printed Electronics) provider, announced that it has sold additional two DragonFly LDM systems for additive manufacturing of electronics. The systems were purchased by an Australian defense contractor and by an Asia-Pacific research center.

In a statement to the Company’s shareholders, Yoav Stern, CEO and President of Nano Dimension commented: “While these two new customers represent our main target markets during the COVID-19 era – defense contractors and research centers, the significance justifying noticing these transactions is that they may be the early birds of recovery, at least for the APAC marketplace. One of the transactions was delayed from Q1/2020. We have also noticed that the APAC geography is showing indications of recovery faster than other regions. We believe that the United States is still in a state 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 the second wave of COVID-19.   

“Thanks to shareholders’ support, we are positioned in the best possible way with more than $100M in cash that enables flexibility, internally as well as outwardly. Our foray into an M&A search, with the help of Needham & Co., is continuing actively. Our decision not to spend millions of dollars on go-to-market and sales and marketing in the short term has proven a careful and balanced one as the market stagnation is prolonged. The will of understandably hesitant and/or careful customers to invest in breakthrough, new prototyping and fabrication technologies of unique Hi-PEDs™ (High Performance Electronic Devices) is dramatically hampered. We at Nano Dimension cannot stop the tsunami. However, we have enough air to dive under it and emerge in the mid-term as even clearer winners. Potentially, maybe with a few other “last men standing.”

“Our steps taken starting approximately 90 days ago were based on the following assumptions:

• The short-term negative economic effects of COVID-19 will not subside until at least the end of Q1/2021, or maybe even the end of Q2/2021.
• Any efforts and resources allocated to sales and marketing will not show substantial enough results in the next 12 months.

“We believe that the long-term effect of COVID-19 and the trade-war crises on our industry will lead to an increase in demand for technology like ours, which enables prototyping and short-run productions of Hi-PEDs (High-Performance Electronic Devices) on-the-ground in the West, at prices and time-to-market that are competitive and superior to traditional the multi-billion dollar PCB manufacturing industry in the Far-East.

“As Dr. Joseph Kaplun has joined Nano Dimension approximately 45 days ago to lead our R&D and Materials Development teams, our efforts have expanded by approximately 50% through recruitment of industry veteran scientists aimed at leading us thorough the industrialization stages of our materials and machines. We are already seeing early results from our previously announced adjusted priorities for Q3/2020 until Q2/2021: build a stronger competitive edge by accelerating product roadmap while saving cash by investing only lightly in the commercial side of the business (sales and marketing mostly in the United States). I believe Nano Dimension will emerge out of the COVID-19 saga with a reinforced competitive market position and hence, growth potential will possibly manifest itself faster than expected.”