Nano Dimension’s Revenue Increased by 107% in 9 Months, 206% in 3 Months ended September 2021

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Nano Dimension Ltd., an industry leader in Additively Manufactured Electronics (AME), Printed Electronics (PE), and Micro Additive Manufacturing (Micro-AM), announced financial results for the third quarter ended September 30, 2021.

Nano Dimension reported revenues of $1,340,000 and $2,962,000 for the third quarter and nine-month periods ended September 30, 2021, respectively, compared to revenues of $438,000 and $1,428,000 for the third quarter and nine-month periods ended September 30, 2020, respectively. The Company ended the quarter with a cash and deposits balance of $1,385,391,000 (including short-term unrestricted bank deposits). Total operating loss for the third quarter was $24,507,000 (including approximately $12,521,000 of non-cash share-based compensation plus depreciation and amortization expenses).

CEO Message to Shareholders:

Yoav Stern, Chairman and Chief Executive Officer of Nano Dimension, commented:

“Our revenue for the nine months ended September 30, 2021, was up by more than 107% compared to the same period in 2020, with an increase of 65% in quarter-over-quarter (compared to the second quarter of 2021). While this is a substantial early indication of the build-up of our sales and marketing network, as I’ve mentioned before, these results are not necessarily a comprehensive attestation of the status of the company. Our business is positively affected by sporadic yet repetitive adjustments of the relevant industrial communities toward a ‘living with Covid-19 mentality.’ Encouraging as they are, our revenue numbers are still too small in absolute magnitude to derive any meaningful conclusions.

More important is the introduction of our new DragonFly IV system, combined with the efficiency-enhancing FLIGHT Software package. Both were introduced last week at the strategically important Productronica trade show in Munich, Germany, which resumed after a two-year hiatus resulting from the Covid-19 shutdowns.

DragonFly IV is a unique and innovative, first-to-market Dielectric & Conductive-Materials Additive Manufacturing System for the fabrication of High-Performance Electronic Devices (Hi-PEDs®) by depositing layers of proprietary materials simultaneously, while concurrently integrating in-situ capacitors, antennas, coils, transformers, and electro-mechanical components. DragonFly IV delivers improved accuracy of traces, spacing, and vias, improved high end printed circuit board (PCB) quality and the ability to design and produce 3D Hi-PEDs® in a one-step production process. New capabilities include integration with Nano Dimension’s new FLIGHT software, integration of 3D elements in PCB, 3D designed Hi-PEDs®, support of HDI level elements, 75µm traces; 100µm spacing; 150µm via, enhanced print quality, yield optimization with predictable conductivity and low thickness variation <5%.

No less important is our announcement from early November regarding the acquisition of Essemtec AG from Lucerne, Switzerland. Essemtec’s product portfolio is comprised of production equipment for placing and assembling electronic components on printed circuit boards. The products are leaders in adaptive highly flexible surface mount technology (SMT) pick-and-place equipment, sophisticated dispenser suitable for both high-speed and micro-dispensing, and intelligent production material storage and logistic system. The systems are equipped with a software package which makes extensive and efficient material management possible. Essemtec’s products portfolio will continue to be available to the thousands of organizations that have called themselves a customer of Essemtec, while also being integrated with additive 3D-printing technologies, becoming part of the AME revolution that Nano Dimension is driving with its existing product line.”

“In summary”, added Mr. Stern, “Within the foreseeable future, our three business development pillars:

• Synergetic mergers and acquisitions (M&A)
• Accelerated research and development (R&D)
• Revolution in go-to-market efforts

are planned to converge and designed to fuel a mutually accelerated scalable growth. The companies we have acquired and future potential M&A targets , are analyzed based on their ability to drive R&D efforts in ways not otherwise possible and amalgamate with the marketing channels of the products we develop and the market presence we need for success. In parallel, we have planned and are currently executing and hoping to surpass any present solutions for “robotic brains” in manufacturing, material technologies, and 3D-printing performance. Those, in turn, are aimed to create a business-disruptive set of inflection points. While, as usual, there is no guaranty for the timing thereof, these milestones will hopefully cause an increase of value by step functions and create an exceptional time-weighted return on investment for all of us, the long-term investors,” Mr. Stern concluded.

Third Quarter 2021 Financial Results

Total revenues for the third quarter of 2021 were $1,340,000, compared to $811,000 in the second quarter of 2021, and $438,000 in the third quarter of 2020. The increase is attributed to more sales of DragonFly systems in the third quarter of 2021, as well as revenues generated by Fabrica 2.0 machines.

Research and development (R&D) expenses for the third quarter of 2021 were $13,726,000, compared to $9,129,000 in the second quarter of 2021, and $2,556,000 in the third quarter of 2020. The increase compared to both the second quarter of 2021 and the third quarter of 2020 is attributed to an increase in payroll and related expenses, as well as an increase in materials, subcontractors, depreciation, and share-based payment expenses, as the Company is enhancing its R&D and product development efforts. The R&D expenses for the third quarter of 2021 include approximately $7,338,000 of non-cash share-based compensation plus depreciation expenses.

Sales and marketing (S&M) expenses for the third quarter of 2021 were $6,301,000, compared to $6,009,000 in the second quarter of 2021, and $2,475,000 in the third quarter of 2020. The increase compared to the second quarter of 2021 is attributed to an increase in share-based payment expenses. The increase compared to the third quarter of 2020 is attributed to an increase in payroll and related expenses, as well as an increase in marketing and promotion and share-based payment expenses.

General and administrative (G&A) expenses for the third quarter of 2021 were $4,843,000, compared to $4,906,000 in the second quarter of 2021, and $14,805,000 in the third quarter of 2020. The decrease compared to the second quarter of 2021 is attributed to a decrease in professional services expenses. The decrease compared to the third quarter of 2020 is attributed to a decrease in share-based payment expenses.

Net loss for the third quarter of 2021 was $18,237,000, or $0.07 per share, compared to $13,602,000, or $0.05 per share, in the second quarter of 2021, and $20,716,000, or $0.45 per share, in the third quarter of 2020.

Nine Months Ended September 30, 2021 Financial Results

Total revenues for the nine months ended September 30, 2021, were $2,962,000, compared to $1,428,000 in the nine months ended September 30, 2020. The increase is attributed to more sales of DragonFly systems in the third quarter of 2021, as well as revenues generated by Fabrica 2.0 machines.

R&D expenses for the nine months ended September 30, 2021, were $26,587,000, compared to $6,153,000 in the nine months ended September 30, 2020. The increase is attributed to an increase in payroll and related expenses, as well as an increase in materials, subcontractors, depreciation, and share-based payment expenses, as the Company is enhancing its R&D and product development efforts. The R&D expenses for the nine months ended September 30, 2021 include approximately $13,817,000 of non-cash share-based compensation plus depreciation expenses.

S&M expenses for the nine months ended September 30, 2021, were $15,023,000, compared to $4,224,000 in the nine months ended September 30, 2020. The increase is mainly attributed to an increase in payroll and related expenses, as well as an increase in marketing and promotion and share-based payment expenses.

G&A expenses for the nine months ended September 30, 2021, were $13,174,000, compared to $16,748,000 in the nine months ended September 30, 2020. The decrease is mainly attributed to a decrease in share-based payment expenses, which is partially offset by an increase in professional services expenses. 

Net loss for the nine months ended September 30, 2021, was $41,153,000, or $0.17 per share, compared to $31,055,000, or $1.11 per share, in the nine months ended September 30, 2020.

Balance Sheet Highlights

Cash and cash equivalents, together with short-term bank deposits, totaled $1,385,391,000 as of September 30, 2021, compared to $670,934,000 as of December 31, 2020. The increase compared to December 31, 2020, 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, 2021.

Total equity totaled $1,495,236,000 as of September 30, 2021, compared to $667,116,000 as of December 31, 2020.