Gross Margin Improvement of 235 bps46.2% in Q1/2024, Up From 43.9% in Q1/2023Adjusted Gross Margin Improvement of 265 bps49.8% in Q1/2024, Up From 47.1% in Q1/2023 "Reshaping Nano Initiative" Taking Effect with 75% Improvement in Net Cash Burn$7.0M in Q1/2024, Compared to $27.4M in Q1/2023 Outstanding Shares Reduced by 15% to 219 Million, Over the Last 15 Months Strong Capital Position and Cash Management Keeps Company On Previously Announced Path of Net Cash Burn for 2024 to be $12-20M Conference Call to be Held Today at 9:00 A.M. EDT WALTHAM, Mass., June 03, 2024 (GLOBE NEWSWIRE) -- Nano Dimension Ltd. (NASDAQ:NNDM, "Nano Dimension" or the "Company")), an industry leader in Additively Manufactured Electronics, additive PCB assembly & printhead drivers and software (AME), and a supplier of Additive Manufacturing machines and materials (AM), today announced financial results for the first quarter ended March 31st, 2024. Revenue: Q1/2024 was $13.36 million Q1/2023 was $14.97 million (unusual Q1/2023, spillover from Q4/2022) Gross Margin (GM): Q1/2024 was 46% Q1/2023 was 44% 235 bps improvement Adjusted Gross Margin1 (Adjusted GM): Q1/2024 was 50% Q1/2023 was 47% 265 bps improvement Adjusted EBITDA: Q1/2024 was negative $13.6 million Q1/2023 was negative $23.7 million 43% improvement Net cash burn2: Q1/2024 was $7.0 million Q1/2023 was $27.4 million 75% reduction Details regarding Adjusted GM and Adjusted EBITDA can be found below in this press release under "non-IFRS measures." CEO MESSAGE TO SHAREHOLDERS: Dear Shareholders,This was a quarter in which we have seen evidence that the financial results are reflecting our long-term planning. What we said will happen, has happened. I will separate my note into two main pillars in which we assess our business, and we hope you do as well: our income statement and our capital allocation – each being distinct but highly interrelated. Income statementOur income statement is naturally a key metric. We have often said it is not about one quarter, but quarters over time, and what story the numbers reveal about the direction of the business. On this note, for shareholders focused on financial discipline and moving towards profitability, there is a positive story emerging that is the product of a methodical plan. Top-lineIn 2021, we set a goal to increase revenue considerably. This should not be the sole goal of any business, nor was or is it of Nano Dimension. But it was an interim goal as a means of reaching a minimal threshold to achieve efficiencies.We have done this. In Q1/2021, the last-twelve-month (LTM) revenue was $3.5 million; in Q1/2024 the LTM revenue was $55 million, displaying compound annual growth rate (CAGR) of 150%. On a comparable basis, while Q1/2023 was nontypically high as a result of spillover from Q4/2022, we expect our budgeted growth to continue on an annual basis. Gross Margins While simultaneously making progress on our revenue growth objective, we set out another one: Increasing gross margins, which reflect how we price our sophisticated hi-tech products and our efficiency in manufacturing them vis-à-vis our costs of goods sold (COGS). Surely, this is not our end-goal either, but a critical intermediate step. We have done this. We improved our gross margins from 10% in Q1/2022 to 46% in Q1/2024, for a relative expansion of approx. 360%. Operating Expenses After growing our revenue and expanding our gross margins, we shifted our focus to reducing our operating expenses, which is critical for the ultimate goal of profitability. Our work in this area comes largely from our Reshaping Nano Initiative, which we announced in Q4/2023. We developed a detailed plan to evolve our global workforce based on the benefits of organizational synergies following a robust M&A program, while not forgoing progress in R&D innovations and go-to-market effectiveness. We have done this. We finished Q1/2024 with a notable reduction in our net cash burn down to $7 million. This is not the end of the story. With this, I want to reaffirm our guidance that we announced in our 2023 full year results: our reduced cash used in operations along with our strong cash management means our effective cash burn will be no more than $20 million for the year, and perhaps as low as $12 million. This is critical. Even without any other big developments, Nano Dimension can maintain its position of strength with minimal cash usage. Capital allocation Our balance sheet is our strategic advantage. How we manage and allocate the capital, is perhaps the greatest indicator of future success. R&D and InnovationThe list of accomplishments over the last three years is long, but one focal area has been our industrial AI work coming out of our DeepCube Group that has created differentiated, secure IP to serve the business long into the future. We have done this. Even if we just limit ourselves to Q1/2024, we have filed an important patent related to our industrial AI work from our DeepCube Group and large language models ("LLMs"). Transformational M&AThis is arguably the only area where there is not a publicly disclosable Q1/2024 development. But I want to say this clearly: This is a feature, not a bug. As we have always been, our team and banking advisors are pursuing transactions at the right cost, not at any cost. While we believe more than ever that there are great consolidation opportunities in the scope of our M&A search, it is critical we don't fall into the same mistake that many others have made and that is not thinking critically about a return-on-investment (ROI). Valuable opportunities are becoming more likely as many companies are seeing their own cash reserves dwindle with limited and arguably prohibitively costly mechanisms for securing additional capital. We are in strong AND ACTIVE positions, which are only getting stronger. Share Repurchase ProgramWe continually assess the best use of our cash. Considering that our current shares trade at a discount to cash value, we believe a share buyback should be considered in comparison to other alternatives, as it also provides value to shareholders. We said we would do this in 2023. We have done this. Outstanding Shares Reduced by 15% to 219 Million, Over the Last 15 months.We have purchased 51,064,088 ordinary shares at approx. $2-$3 per share below cash and investments value since February 2023. Our program has brought our current outstanding share count to 219,237,825 ordinary shares as of March 31st, 2024; presenting a cash and investment value of approximately $4.1 per share (without considering the value of the $55-$60 million revenue business) as of Q1/2024. In closingOur markets and their macro environments are neither perpetuum mobile, nor are they static, and so is our business. On many important items and especially those clearly within our control, what we said will happen, has happened. This is not to say there is no more to do, and some of the most important things still lie ahead. It is just the beginning. Thank you for your support. Yoav SternChief Executive Officer and a Member of the Board of Directors Nano Dimension FINANCIAL RESULTS: First Quarter 2024 Financial Results Total revenues for the first quarter of 2024 were $13,364,000, compared to $14,965,000 in the first quarter of 2023. The decrease is attributed to decreased sales of the Company's product lines. Total cost of revenues for the first quarter of 2024 was $7,186,000, compared to $8,399,000 in the first quarter of 2023. The decrease resulted primarily from the above-mentioned decrease in revenues and cost reductions that improved the gross margin. As a result of the reorganization plan executed by the Company in the fourth quarter of 2023 and other cost reduction efforts taken in 2024, the Company's operating expenses across all departments have decreased in the first quarter of 2024 compared to the first quarter of 2023. R&D expenses for the first quarter of 2024 were $9,133,000, compared to $19,250,000 in the first quarter of 2023. The decrease is mainly attributed to a decrease in payroll and related expenses, share-based compensation expenses, materials for R&D use and subcontractor services. Sales and marketing expenses for the first quarter of 2024 were $6,517,000, compared to $7,486,000 in the first quarter of 2023. The decrease is attributed mainly to payroll and related expenses, as well as share-based compensation expenses. General and administrative expenses for the first quarter of 2024 were $9,602,000, compared to $11,033,000 in the first quarter of 2023. The decrease is mainly attributed to a decrease in professional services, payroll and related expenses, and is partially offset by an increase in share-based compensation expenses. Net loss for the first quarter of 2024 was $34,772,000, or $0.15 loss per share, compared to net income of $22,222,000, or $0.09 per share, in the first quarter of 2023, with gains that quarter mainly attributed to the re-valuation of our investment in securities. Conference call information The Company will host a conference call to discuss these financial results today, June 3rd, 2024, at 9:00 a.m. EDT (4:00 p.m. IDT). The call can be accessed via webcast link or phone as detailed below.For webcast link with presentation viewing: https://event.choruscall.com/mediaframe/webcast.html?webcastid=GmLH60ir For phone:U.S. Dial-in Number (Toll Free): 1-844-695-5517International Dial-in Number: 1-412-902-6751Israel Dial-in Number (Toll Free): 1-80-9212373Please 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 DimensionNano 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. 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 has served over 2,000 customers across vertical target markets such as aerospace and 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 moving towards profitability, its expectation for its budgeted growth to continue, that its effective cash burn will be no more than $20 million for the year, and perhaps as low as $12 million, that Nano Dimension can maintain its position of strength with minimal cash usage, the Company's belief that there are great consolidation opportunities in the scope of its M&A search, that valuable opportunities are becoming more likely and the Company's belief that a share buyback provides considerable value to shareholders. 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 21, 2024, 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 Tomer Pinchas, CFO & COO | Unaudited Consolidated Statements of Financial Position as at     March 31, December 31,   2023 2024 20231 (In thousands of USD) (Unaudited) (Unaudited)   Assets       Cash and cash equivalents 412,172   251,858   309,571   Bank deposits 573,847   541,164   541,967   Restricted deposits 60   60   60   Trade receivables 10,152   11,840   12,710   Other receivables 6,076   6,419   11,290   Inventory 20,040   19,698   18,390   Total current assets 1,022,347   831,039   893,988           Restricted deposits 1,107   879   881   Investment in securities 160,260   112,657   138,446   Deferred tax 118   —   —   Other receivables 816   —   —   Property plant and equipment, net 10,012   16,078   16,716   Right-of-use assets 15,497   11,084   12,072   Intangible assets —   2,235   2,235   Total non-current assets 187,810   142,933   170,350   Total assets 1,210,157   973,972   1,064,338           Liabilities       Trade payables 5,503   4,123   4,696   Financial derivatives and deferred consideration 5,040   —   —   Other payables 18,456   21,837   25,265   Current portion of lease liability 4,724   4,317   4,473   Current portion of bank loan 347   138   38   Total current liabilities 34,070   30,415   34,472           Liability in respect of government grants 1,861   1,989   1,895   Employee benefits 1,561   4,009   2,773   Liability in respect of warrants 123   —   —   Long term lease liability 11,409   7,900   8,742   Deferred tax liabilities —   —   75   Bank loan 686   380