Nano Dimension, the Israel-based specialist in electronics 3D printing, has today released some slightly underwhelming financial result estimates for the first half of 2019. As a result of the estimates—which are detailed below—the company is making several changes, including reducing its workforce by 20% and refocusing its efforts on launching a new system in the DragonFly 3D printer family.
Within the AM industry, Nano Dimension is something of a pioneer for 3D printed electronics thanks to its multi-layer PCB manufacturing technology. Since launching its DragonFly Pro system in 2017, the company has made an impact on the market, partnering with various high profile companies and groups in the aerospace, defense and consumer electronics markets. Notably, the U.S. Armed Forces have become an important customer for Nano Dimension.
Despite the company’s many partnerships and its growing global reseller network, Nano Dimension is readying itself for some rockier waters.
2019 preliminary results
According to a recent release about Nano Dimension’s financial results for the first half and second quarter of 2019, the company has sold and deployed a total of 43 DragonFly Pro systems, 13 of which were sold in the first half of 2019 and five of which were sold in Q2.
The company’s resulting revenues in the second quarter of 2019 were below management’s expectations, projected to be in the $1 to $1.2 million range. The total estimated revenues for the first half of 2019 do at least mark an increase compared to 2018—with estimates of between $2.7 to $2.9 million compared to $1.7 in the first half of 2018.
The company also highlights that it ended the second quarter of 2019 with roughly $5.2 million in cash on its balance sheet, largely because of an increase in inventory.
Nano Dimension CEO Amit Dror, commented on the preliminary results, saying: “We are disappointed with the results we presented in the first half of 2019. The company has taken several actions to change that. I believe that in the second half of 2019 we will present better results.”
Consolidating workforce and refocusing on hardware
The “several actions” that Dror references were also revealed today. Most notable among them is that Nano Dimension has decided to reduce its workforce by 20% in order to decrease its operating expenses and its use of cash in the coming periods.
Nano Dimension’s co-founder and former president of North America Simon Fried has also announced he will be stepping down from his executive role. The decision—reportedly separate from the company’s other announcements—will see Fried stay on to serve on Nano Dimension’s board of directors to advise the company during this transition time.
In addition to firing 20% of its employees, Nano Dimension will also be refocusing its efforts on bringing a new system to market.
“In the coming weeks, after a year of extensive product development in close cooperation with select customers, the company plans to launch a new system within the DragonFly family,” said Dror. “This new 3D printer delivers substantial performance improvements and mission critical features that were developed in direct response to customer needs. The new system is expected to significantly increase the value for our existing and targeted customers and fuel further revenue growth as we expand our end user universe and use cases.
“Nano Dimension plans to strengthen its efforts to accelerate the adoption of its products, with the sole purpose of expanding its customer use cases from prototyping to production. We believe that the combined actions we have taken position the company’s products and structure better for sustainable growth. We strongly believe in our technology, which is second to none, and in the disruptive changes it is leading in the electronics industry.”