EX-99.1 2 ea181124ex99-1_nanodimen.htm PRESS RELEASE ISSUED BY NANO DIMENSION LTD. ON JUNE 29, 2023, TITLED "NANO DIMENSION ANNOUNCES RECORD Q1/2023 RESULTS: REVENUE OF $14.97 MILLION, 43% YOY GROWTH."

Exhibit 99.1

 

 

Nano Dimension Announces Record Q1/2023 Results

Revenue of $14.97 Million, 43% YoY Growth

 

Gross Margins increased to 44% (Adjusted: 47%)

Best Quarter in the Company’s History

 

50% Organic Revenue Growth since Q3/2022

 

Company Plans to Continue its Share Buy-Back Program

 

Conference Call to be Held Today at 9:00 a.m. EDT

 

Waltham, Massachusetts, June 29, 2023 (GLOBE NEWSWIRE) -- Nano Dimension Ltd. (Nasdaq: NNDM, “Nano Dimension” or the “Company”), a leading supplier of Additively Manufactured Electronics (“AME”) and multi-dimensional polymer, metal & ceramic Additive Manufacturing (“AM”) 3D printers, today announced financial results for the first quarter ended March 31st, 2023.

 

The Company also announced the intention to promptly continue its share buy-back program.

 

Nano Dimension reported consolidated record revenues of $14.97 million for Q1/2023, an increase of:

 

●43% over Q1/2022

 

●24% over Q4/2022

 

Gross Margin (“GM”):

 

●Q1/2023: 44%

 

●Q1/2022: 10%

 

Adjusted1 Gross Margin (“Adjusted GM”):

 

●Q1/2023: 47%

 

●Q1/2022: 40%

 

Total income/loss before tax:

 

●Q1/2023 income of $22 million

 

●Q4/2022: negative $87 million

 

●Q1/2022: negative $34 million

 

Adjusted EBITDA for the Q1/2023:

 

Negative $24 million which includes research and development (R&D) expenses of $15 million2.

 

Net cash used in operations; minus interest received:

 

●Q1/2023: $17 million

 

●Q4/2022: $14 million

 

●Q1/2022: $21 million

 

 

1Excluding cost of revenues from depreciation and amortization and share-based compensation expenses
2Excluding share-based compensation expenses and depreciation

 

 

 

 

 

Details regarding Adjusted EBITDA and Adjusted GM can be found below in this press release under “non-IFRS measures.”

 

CEO MESSAGE TO SHAREHOLDERS:

 

“We delivered significant revenue growth in the first quarter of 2023, with the third record-setting quarter in a row, defined by exceptional performance and steady quarterly organic growth since July 2022. While we still have 6 months left to go in 2023, at this point we hope to be ahead of the annual budget which our Board of Directors has set for us.

 

One of the most exciting developments this quarter is the fast adoption of our Deep Learning/AI technology, developed by our DeepCube division. It is now effectively installed in our newer models of machines, advancing industrial inspection, print quality optimization, process optimization, and monitoring and maintenance of machines.

 

While DeepCube is a significant value-add to new and existing customers, we are starting to receive requests from industrial customers to sell them the “DeepCube AI Engine” by itself, to be installed on their own machines, thereby turning our DeepCube group into a “stand-alone” revenue generating division.

 

Our Additive Electronic business has been growing organically for almost a year, in spite of the continued crisis in the European economy, especially in the DACH countries. Our AME printing business is advancing on budget, supported by impressive achievements in chemical development of dielectric and conductive printing consumable materials. In parallel, IPC International, Inc. (IPC), a global association that helps original equipment manufacturers, Electronics Manufacturing services, printed circuit board manufacturers, and suppliers build electronics better, has accepted our efforts of over a year – and is now adopting new standards for AME specifications. In the Additive Manufacturing and Ink Services product lines we are experiencing steady advancements as well.

 

Our organic growth is expected to be fully supported by our merger and acquisition (M&A) strategy. Consistent with our stated long-term strategy, strong market position, and robust balance sheet, we remain ideally positioned to act as a consolidator in the highly fragmented AM market landscape, which consists of small- and medium-sized businesses that are currently cash negative and “floating” on high valuations. We intend to accelerate our M&A strategy by carefully investing in assets that will create return on investment and value expansion for our shareholders, contrary to unprofitability which is still a common denominator for many players in the AM industry.”

 

Please feel free to read our new website regarding Nano’s special tender offer to purchase ordinary shares of Stratasys and educate yourselves: www.stratasysvaluenow.com

 

For information on how to tender Stratasys shares, call Georgeson LLC, the information agent for the special tender offer, toll-free at (877) 668-1646.

 

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FINANCIAL RESULTS:

 

First Quarter 2023 Financial Results

 

●Total revenues for the first quarter of 2023 were $14,965,000, compared to $12,104,000 in the fourth quarter of 2022, and $10,430,000 in the first quarter of 2022. The increase is attributed to increased sales of the Company’s product lines.

 

●R&D expenses for the first quarter of 2023 were $19,250,000, compared to $20,993,000 in the fourth quarter of 2022, and $17,870,000 in the first quarter of 2022. The decrease compared to the fourth quarter of 2022 is mainly attributed to a decrease in materials expenses and payroll and related expenses. The increase compared to the first quarter of 2022 is mainly attributed to an increase in payroll expenses, material, subcontractors, and depreciation expenses and is partially offset by a decrease in share-based compensation expenses.

 

●Sales and marketing expenses for the first quarter of 2023 were $7,486,000, compared to $9,758,000 in the fourth quarter of 2022, and $9,308,000 in the first quarter of 2022. The decrease is mainly attributed to a decrease in share-based compensation and marketing expenses.

 

●General and administrative expenses for the first quarter of 2023 were $11,033,000, compared to $9,091,000 in the fourth quarter of 2022, and $6,742,000 in the first quarter of 2022. The increase is mainly attributed to an increase in payroll and related expenses, share-based compensation expenses, and professional services.

 

●Net income for the first quarter of 2023 was $22,222,000, or $0.09 per share, compared to net loss of $87,667,000, or $0.34 loss per share, in the fourth quarter of 2022, and net loss of $33,093,000, or $0.13 loss per share, in the first quarter of 2022.

 

Conference call information

 

The Company will host a conference call to discuss these financial results today, June 29th, 2023, at 9:00 a.m. EDT (4:00 p.m. IDT).

 

We encourage participants to pre-register for the conference call using the following link: https://dpregister.com/sreg/10179970/f9b871241c.

 

Webcast link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=p8t1ENcZ.

 

U.S. Dial-in Number: 844-695-5517, INTERNATIONAL DIAL IN: 1-412-902-6751, Israel Dial-in Number: 1-80-9212373. Please request the “Nano Dimension NNDM call” when prompted by the conference call operator. For those unable to participate in the conference call, there will be a replay available from a link on Nano Dimension’s website at http://investors.nano-di.com/events-and-presentations.

 

About Nano Dimension

 

Nano Dimension’s (Nasdaq: NNDM) vision is to transform existing electronics and mechanical manufacturing into Industry 4.0 environmentally friendly & economically efficient precision additive electronics and manufacturing – by delivering solutions that convert digital designs to electronic or mechanical devices - on demand, anytime, anywhere.

 

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Nano Dimension’s strategy is driven by the application of deep learning-based AI to drive improvements in manufacturing capabilities by using self-learning & self-improving systems, along with the management of a distributed manufacturing network via the cloud.

 

Nano Dimension serves over 2,000 customers across vertical target markets such as aerospace & defense, advanced automotive, high-tech industrial, specialty medical technology, R&D and academia. The company designs and makes Additive Electronics and Additive Manufacturing 3D printing machines and consumable materials. Additive Electronics are manufacturing machines that enable the design and development of High-Performance-Electronic-Devices (Hi-PED®s). Additive Manufacturing includes manufacturing solutions for production of metal, ceramic, and specialty polymers-based applications - from millimeters to several centimeters in size with micron precision.

 

Through the integration of its portfolio of products, Nano Dimension is offering the advantages of rapid prototyping, high-mix-low-volume production, IP security, minimal environmental footprint, and design-for-manufacturing capabilities, which is all unleashed with the limitless possibilities of additive manufacturing. For more information, please visit www.nano-di.com.

 

Forward-Looking Statements

 

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. Because such statements deal with future events and are based on Nano Dimension’s current expectations, they are subject to various risks and uncertainties, and actual results, performance or achievements of Nano Dimension could differ materially from those described in or implied by the statements in this press release. For example, Nano Dimension is using forward-looking statements when it discusses its expectations for revenues for 2023, the advantages and benefits of its products and technology, growth of AE business and advancement of AME printing business, that its organic growth in the year ahead is expected to be fully supported by its M&A strategy and its intention to lead its M&A by carefully paying for assets that will create return on investment and value expansion for its shareholders and its expectation to continue the share buyback program. The forward-looking statements contained or implied in this press release are subject to other risks and uncertainties, including those discussed under the heading “Risk Factors” in Nano Dimension’s Annual Report on Form 20-F filed with the Securities and Exchange Commission (“SEC”) on March 30, 2023, and in any subsequent filings with the SEC. Except as otherwise required by law, Nano Dimension undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. Nano Dimension is not responsible for the contents of third-party websites.

 

NANO DIMENSION INVESTOR RELATIONS CONTACT

 

Investor Relations | ir@nano-di.com

 

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Unaudited Consolidated Statements of Financial Position as at

 

   March 31,   December 31, 
(In thousands of USD)  2022   2023   20223 
  (Unaudited)   (Unaudited)     
Assets            
Cash and cash equivalents   788,141    412,172    685,362 
Bank deposits   459,824    573,847    346,663 
Restricted deposits   126    60    60 
Trade receivables   6,242    10,152    6,342 
Other receivables   7,307    6,076    6,491 
Inventory   15,063    20,040    19,400 
Total current assets   1,276,703    1,022,347    1,064,318 
                
Restricted deposits   491    1,107    850 
Bank deposits   63,128    —    — 
Investment in securities   —    160,260    114,984 
Deferred tax   1,005    118    115 
Other receivables   —    816    809 
Property plant and equipment, net   9,844    10,012    5,843 
Right-of-use assets   15,142    15,497    16,539 
Intangible assets   21,358    —    — 
Total non-current assets   110,968    187,810    139,140 
Total assets   1,387,671    1,210,157    1,203,458 
                
Liabilities               
Trade payables   3,785    5,503    3,722 
Financial derivatives and deferred consideration   19,977    5,040    8,798 
Other payables   19,304    23,180    24,150 
Current portion of other long-term liability   416    347    363 
Total current liabilities   43,482    34,070    37,033 
                
Liability in respect of government grants   1,639    1,861    1,492 
Employee benefits   4,138    1,561    1,462 
Liability in respect of warrants   1,760    123    69 
Lease liability   12,395    11,409    12,374 
Deferred tax liabilities   1,101    —    — 
Other long-term liabilities   1,849    —    — 
Loan from banks   —    686    736 
Total non-current liabilities   22,882    15,640    16,133 
Total liabilities   66,364    49,710    53,166 
                
Equity               
Non-controlling interests   787    578    767 
Share capital   386,723    389,943    388,406 
Share premium and capital reserves   1,276,443    1,300,781    1,296,194 
Treasury shares   (1,509)   (19,901)   (1,509)
Foreign currency translation reserve   1,190    973    583 
Remeasurement of net defined benefit liability (IAS 19)   —    2,508    2,508 
Accumulated loss   (342,327)   (514,435)   (536,657)
Equity attributable to owners of the Company   1,320,520    1,159,869    1,149,525 
Total equity   1,321,307    1,160,447    1,150,292 
Total liabilities and equity   1,387,671    1,210,157    1,203,458 

 

 

3The December 31, 2022 balances were derived from the Company’s audited annual financial statements

 

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Unaudited Consolidated Statements of Profit or Loss and Other Comprehensive Income

 

  

Three Months Ended

March 31,

  

Year ended

December 31,

 
   2022   2023   2022 
   Thousands   Thousands   Thousands 
   USD   USD   USD 
Revenues   10,430    14,965    43,633 
Cost of revenues   6,580    8,267    24,943 
Cost of revenues - write-down of inventories and impairment of assets recognized in business combination and technology   2,849    132    4,639 
Total cost of revenues   9,429    8,399    29,582 
Gross profit   1,001    6,566    14,051 
Research and development expenses, net   17,870    19,250    75,763 
Sales and marketing expenses   9,308    7,486    38,833 
General and administrative expenses   6,742    11,033    30,457 
Impairment losses on intangible assets   —    —    40,523 
Operating loss   (32,919)   (31,203)   (171,525)
Finance income   2,861    56,826    22,965 
Finance expense   3,685    3,590    79,471 
Income (Loss) before taxes on income   (33,743)   22,033    (228,031)
Taxes benefit (expense)   455    (74)   (264)
Income (Loss) for the period   (33,288)   21,959    (228,295)
Income (Loss) attributable to non-controlling interests   (195)   (263)   (872)
Income (Loss) attributable to owners   (33,093)   22,222    (227,423)
                
Income (Loss) per share               
Basic income (loss) per share   (0.13)   0.09    (0.88)
                
Other comprehensive income items that after initial recognition in comprehensive income were or will be transferred to profit or loss               
Foreign currency translation differences for foreign operations   (232)   403    (844)
Other comprehensive income items that will not be transferred to profit or loss               
Remeasurement of net defined benefit liability (IAS 19), net of tax   —    —    2,508 
Total other comprehensive income (loss) for the period   (232)   403    1,664 
Total comprehensive income (loss) for the period   (33,520)   22,362    (226,631)
Comprehensive loss attributable to non-controlling interests   (210)   (250)   (892)
Comprehensive income (loss) attributable to owners of the Company   (33,310)   22,612    (225,739)

 

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Consolidated Statements of Changes in Equity (Unaudited)

(In thousands of USD)

 

   Share capital   Share premium and capital reserves   Remeasurement of IAS 19   Treasury shares   Presentation / Foreign currency translation reserve   Accumulated loss   Total   Non-controlling interests   Total equity 
   Thousands   Thousands   Thousands   Thousands   Thousands   Thousands   Thousands   Thousands   Thousands 
   USD   USD   USD   USD   USD   USD   USD   USD   USD 
Balance as of December 31, 2022   388,406    1,296,194    2,508    (1,509)   583    (536,657)   1,149,525    767    1,150,292 
Investment of non-controlling party in subsidiary   —    —    —    —    —    —    —    61    61 
Income for the period   —    —    —    —    —    22,222    22,222    (263)   21,959 
Other comprehensive income for the period   —    —    —    —    390    —    390    13    403 
Exercise of warrants, options and conversion of convertible notes   1,537    (1,537)   —    —    —    —    —    —    — 
Repurchase of treasury shares   —    —    —    (18,392)   —    —    (18,392)   —    (18,392)
Share-based Compensation   —    6,124    —    —    —    —    6,124    —    6,124 
Balance as of March 31, 2023   389,943    1,300,781    2,508    (19,901)   973    (514,435)   1,159,869    578    1,160,447 

 

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Consolidated Statements of Cash Flows (Unaudited)

(In thousands of USD)

 

  

Three Months Ended

March 31,

  

Year ended

December 31

 
   2022   2023   2022 
Cash flow from operating activities:            
Net income (loss)   (33,288)   21,959    (228,295)
Adjustments:               
Depreciation and amortization   1,141    1,423    7,283 
Impairment losses on intangible assets   —    —    31,045 
Impairment losses on property plant and equipment   —    —    9,478 
Financing (income) expenses, net   2,194    (8,152)   (1,769)
Revaluation of financial liabilities accounted at fair value   (1,370)   191    (4,516)
Revaluation of financial assets accounted at fair value   —    (45,276)   62,791 
Loss from disposal of property plant and equipment and ROU Assets   (3)   124    948 
Increase in deferred tax   (461)   (3)   (581)
Share-based compensation   10,123    6,124    32,563 
Other   94    45    166 
    11,718    (45,524)   137,408 
Changes in assets and liabilities:               
Increase in inventory   (468)   (545)   (4,603)
Increase in other receivables   (851)   (851)   (1,978)
Increase in trade receivables   (2,175)   (3,708)   (1,992)
Increase in other payables   1,724    (528)   5,281 
Increase (decrease) in employee benefits   1,148    (561)   1,497 
Increase in trade payables   729    1,805    628 
    107    (4,388)   (1,167)
Net cash used in operating activities   (21,463)   (27,953)   (92,054)
                
Cash flow from investing activities:               
Change in bank deposits and loans net   (21,907)   (228,497)   141,555 
Interest received   762    11,292    17,465 
Change in restricted bank deposits   20    (271)   (327)
Acquisition of property plant and equipment   (1,975)   (3,944)   (9,388)
Acquisition of subsidiaries, net of cash acquired   (18,124)   —    (31,057)
Payment of a liability to pay a contingent consideration of business combination   —    (3,960)   (10,708)
Acquisition of financial assets in fair value through profit and loss   —    —    (177,775)
Decrease in pledged deposit   —    —    3,362 
Other   —    —    (800)
Net cash used in investing activities   (41,224)   (225,380)   (67,673)
                
Cash flow from financing activities:               
Lease payments   (796)   (1,220)   (4,151)
Repayment Long-term Bank Debt   (80)   (57)   (406)
Proceeds from non-controlling interests   —    —    510 
Amounts recognized in respect of government grants liability, net   (45)   (85)   (221)
Payments of share price protection recognized in business combination   —    —    (1,005)
Repurchase of treasury shares   —    (18,392)   — 
Net cash provided by (used in) financing activities   (921)   (19,754)   (5,273)
Decrease in cash   (63,608)   (273,087)   (165,000)
Cash at beginning of the year   853,626    685,362    853,626 
Effect of exchange rate fluctuations on cash   (1,877)   (103)   (3,264)
Cash at end of the period   788,141    412,172    685,362 
                
Non-cash transactions:               
Property plant and equipment acquired on credit   211    476    52 
Recognition of a right-of-use asset   11,237    127    15,196 

 

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Non-IFRS measures

 

The following are reconciliations of income before taxes, as calculated in accordance with International Financial Reporting Standards (“IFRS”), to EBITDA and Adjusted EBITDA, as well as of gross profit, as calculated in accordance with IFRS, to Adjusted Gross Profit:

 

   For the
Three-Month
Period Ended
March 31st,
2023		 
     
Net income   21,959 
Tax expenses   74 
Depreciation and amortization   1,423 
Interest income   (11,520)
EBITDA   11,936 
Finance income from revaluation of assets and liabilities   (44,777)
Exchange rate differences   3,045 
Share-based compensation expenses   6,124 
Adjusted EBITDA (loss)   (23,672)

 

   For the Three-Month
Period Ended
 
   March 31, 
   2022   2023 
Gross profit   1,001    6,566 
Depreciation and amortization4   2,862    66 
Share-based compensation expenses   324    422 
Adjusted gross profit   4,187    7,054 

 

EBITDA is a non-IFRS measure and is defined as income before taxes, excluding depreciation and amortization expenses and amortization of assets recognized in business combination and interest income. We believe that EBITDA, as described above, should be considered in evaluating the Company’s operations. EBITDA facilitates the Company’s performance comparisons from period to period and company to company by backing out potential differences caused by variations in capital structures, and the age and depreciation charges and amortization of fixed and intangible assets, respectively (affecting relative depreciation and amortization expense, respectively), and EBITDA is useful to an investor in evaluating our operating performance because it is widely used by investors, securities analysts and other interested parties to measure a company’s operating performance without regard to the items mentioned above.

 

Adjusted EBITDA is a non-IFRS measure and is defined as income before taxes, excluding depreciation and amortization expenses and amortization of assets recognized in business combination, interest income, finance income for revaluation of assets and liabilities, exchange rate differences and share-based payments. We believe that Adjusted EBITDA, as described above, should also be considered in evaluating the Company’s operations. Like EBITDA, Adjusted EBITDA facilitates the Company’s performance comparisons from period to period and company to company by backing out potential differences caused by variations in capital structures, and the age and depreciation charges and amortization of fixed and intangible assets, respectively (affecting relative depreciation and amortization expense, respectively), as well as from revaluation of assets and liabilities, exchange rate differences and share-based payment expenses. Adjusted EBITDA is useful to an investor in evaluating our operating performance because it is widely used by investors, securities analysts and other interested parties to measure a company’s operating performance without regard to non-cash items, such as expenses related to revaluation, exchange rate differences and share-based payments.

 

Adjusted gross profit, excluding depreciation and amortization and share-based compensation expenses, is a non-IFRS measure and is defined as gross profit excluding amortization expenses. We believe that adjusted gross profit, as described above, should also be considered in evaluating the Company’s operations. Adjusted gross profit facilitates gross profit and gross margin comparisons from period to period and company to company by backing out potential differences caused by variations in amortization of inventory and intangible assets. Adjusted gross profit is useful to an investor in evaluating our performance because it enables investors, securities analysts and other interested parties to measure a company’s performance without regard to non-cash items, such as amortization expenses. Adjusted gross margin is calculated by dividing the adjusted gross profit by the revenues.

 

EBITDA, Adjusted EBITDA, and Adjusted gross profit do not represent cash generated by operating activities in accordance with IFRS and should not be considered alternatives to net income (loss) as indicators of our operating performance or as measures of our liquidity. These measures should be considered in conjunction with net income (loss) as presented in our consolidated statements of profit or loss and other comprehensive income. Other companies may calculate these measures differently than we do.

 

 

4Including amortization of assets recognized in business combination and technology

 

 

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