The share price of 3D printer manufacturer Nano Dimension Ltd. (TASE: NNDM) has plunged 58% this year. The company, which today announced a profit warning for the second quarter, said it was considering strategic alternatives, and that it had hired Stifel Bank as a financial consultant for the purpose. The likely meaning of this step is that Nano Dimension is putting itself up for sale, although the company's announcement states, "It is not certain that consideration of the strategic alternatives will result in a deal. The company has set no timetable for completing its examination of the strategic alternatives, and does not intend to respond in the matter."
Share price falling
Nano Dimension's 3D printers are capable of printing various electronic components. The company, dual-listed on Nasdaq and the Tel Aviv Stock Exchange (TASE), has a $19 million market cap. The company now says that its revenue will be in the $1-1.2 million range in the second quarter, less than management's guidance and below its $1.7 million in revenue in the first quarter. Nano Dimension's projected first half revenue is now $2.7-2.9 million, compared with $1.7 million in the first half of 2018. The company says that it sold 13 DragonFly systems in the first half of the year, five of them in the second quarter, and a total of 43 systems worldwide. The company had $5.2 million cash as of the end of the second quarter, mainly due to an increase in inventory, compared with $10.2 million at the end of the first quarter, during which Nano Dimension raised $12 million on Nasdaq. This financing round, conducted during February, was at a 21.9% discount on the market price, which was then $0.75 per ADS, which compares with a current price of $0.52 per ADS.
"We are disappointed with the results for the first half of 2019," Nano Dimension CEO Amit Dror said. "The company has taken a number of steps to change this. I believe that in the second half of 2019, the company will report better results." One of the measures taken, as shown by an additional notification sent to the stock exchange today, was a 20% cut in staff in order to reduce the company's burn rate. Nano Dimension had 95 full-time managers and staff and eight part-time employees at the end of 2018, most of them in Israel.
In the same notice, Nano Dimension announced that cofounder Simon Fried, its president in the US, had resigned in order to pursue other opportunities. He will continue as a director in the company and will remain in his position during his successor's run-in period. Fried holds 1.2% of Nano Dimension's shares.
Nano Dimension also reported that since the launching of its DragonFly Pro system for the electronic market, it had successfully assembled a global network of distributors. "Through close work with customers in aviation, security, and electronic growth products, it has become clear that 3D printing of electronics is a force propelling the electronics industry, and is one of the fastest growing sectors in the additive manufacturing market," the company states. In the coming weeks, Nano Dimension will launch a new system will improvements and new features.
Published by Globes, Israel business news - en.globes.co.il - on July 8, 2019
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