Following the release of Nano Dimension’s earnings report for the second quarter of 2018, CEO Amit Dror shares his thoughts on the results and what’s in store for the rest of the year.
2018 has been an exciting year for Nano Dimension thus far. Following the commercial launch of the DragonFly Pro 3D Printer late last year, we have continued to step up the execution of our global sales and channel expansion while also improving revenue generation. In many aspects, our efforts have already begun to bear fruit – in terms of new markets, new partnerships and not least, a strong Q2 financial performance.
Below are some of the key takeaways from my earnings call with analysts.
1. Sequential Revenue Growth every quarter
Since the commercial launch of the DragonFly Pro 3D printer last November, we have experienced sequential revenue growth every quarter. In Q2, Nano Dimension generated a sequential revenue growth rate of 71%. I am confident that this trajectory will continue into the second half of 2018 and beyond. We also made solid progress towards strengthening our revenue potential in two key markets: United States and China.
2. US-CAGE enables Nano Dimension to conduct business directly with U.S. federal government
In the United States, we successfully obtained a Certified Vendor status for Commercial and Government Entity Code (also known as a 'CAGE' code) from the Department of Defense Logistics Agency in May 2018. As a registered and approved vendor, Nano Dimension is now positioned to pursue and conduct business directly with the U.S. federal government and its many agencies, including the various Department of Defense entities. Since we secured the CAGE code, one of our targeted defense customers has already purchased a DragonFly Pro printer.
We believe that the defense sector represents a significant addressable vertical for additive manufacturing. As a first mover in additive electronics that is now armed with this certification, we expect to rapidly increase our penetration within this key vertical.
3. Sales Channel Expansion in the United States
We recently added Fisher Unitech, another world class value-add reseller with significant market coverage to our Tier One Reseller network in the United States, which already includes Fathom and Trimech, to enhance our overall geographical presence and speed up our revenue generation in the United States.
4. Expansion in Asia-Pacific and China in particular
In Q2, we expanded our presence and coverage in Asia-Pacific and China. Recently, we opened a Customer Experience Center in our new facility in Hong Kong Science and Technology Park. We plan to leverage this new Hong Kong facility to enable easy access for customers from mainland China who can now get hands-on experience and training with our latest solutions.
To further expand our footprint and sales coverage in China, we entered into a strategic agreement with Aurora 3D, a leading Chinese reseller. This builds upon our existing relationship with General Integration Technology in Taiwan, one of Aurora's subsidiaries.
The partnership with Aurora 3D is important. With Aurora’s caliber, we instantly enjoy experienced coverage from a company with a proven track record of growing sales of industrial 3D printers and successfully supporting customers throughout China. We believe that this collaboration will serve as a significant growth catalyst in China for both Nano Dimension and Aurora.
All in all
The commercialization process of our 3D printer and the establishment of a stronger global presence shows that we are beginning to bear positive sequential revenue growth.
Accordingly, Nano dimension remains focused on executing our strategy and continuing to deliver improved results.
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This article 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 article. For example, Nano Dimension is using forward-looking statements when it discusses pursuing new sales and relationships with U.S. federal government agencies, and expectations regarding continuous growth with the support of resellers and strategic partners. The forward-looking statements contained or implied in this article 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 15, 2018, and in any subsequent filings with the SEC. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: Nano Dimension’s ability to increase sales and revenue, its burn rate, and its ability to continue as a going concern. 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 article. Nano Dimension is not responsible for the contents of third party websites.