Nano Dimension Ltd.

Ladies and gentlemen, welcome to today's conference call to discuss Manor Dimension's third quarter 2020 financial results. My name is Rocco, and I'm your operator for today's call. On the call with us today are Yoav Stern, President and CEO, and Gail Sandler, CFO. Before we begin, may I remind our listeners that certain information provided on this call may contain forward-looking statements. The safe harbor statement outlined in today's earnings press release also pertains to this call. If you have not received a copy of the press release, please view it in the investment relations section of the company's website. Yoav will begin the call with a business update, followed by a question and answer session, at which time Yoav will answer questions regarding the third quarter 2020 financial results. I would now like to turn the call over to Nano Dimensions President and CEO, Yoav Stern.

Thank you very much. Hello, everybody. Thanks for participating. As usual, I'll just give a very brief overview based on things that was written and you've read, I hope. And then we'll open up for questions and answers. So most of the discussions will be around what is interesting for you based on your questions. So, as expected, starting the beginning of this year, when Corona erupted and I said this year is going to be nothing to write home about, it is indeed results as much as financial results or revenue are nothing to write home about. Notwithstanding the fact that after the close of the quarter, we actually started to see machines being sold again. It's not in the third quarter, but rather in the beginning of the fourth, mostly in the APAC area. as early birds. So it is seemingly starting to recover, but on the other side, in Europe, they went into a second curfew. So everything is closing down, if not closed already, for a while. And in the United States, frankly, there's no waves. It's just a slowly growing tsunami, which is causing, differentially, depends on where in the country, things... Not to work, especially when you deal with people buying our machines, when nobody is ready to risk, in many cases, to have a curfew on the CapEx as well. Yes, from that aside, we started Nano Services, Nanos, and our services are slowly growing because people are using our services, but the numbers are still small. and therefore we took a decision which you all know about it if you read our news releases over the last three months not to overspend on marketing, positioning, go to market and sales because this is like driving bicycles and turning your legs very very fast but backwards because there's nobody home to buy we're selling hardware very very sophisticated This is not software. You can't work from home. You have to be in the laboratories. You have to be on the production floors to buy a machine. We have also machines we sold, we've been paid, and we didn't even install yet in different parts of the world because the customers which paid are not allowed to open the offices for us to come and install the machine. So instead of spending money, too much money on that, We decided that we're spending it on product development in order to accelerate, so like a slingshot effect, when the market recovers, which are my working assumption, which is as good as anybody else, but I assume it's going to be the middle of 2021, and we heard about the vaccination already, which I thought and said that this is going to start the recovery, especially because of The psychological part of it, which is a big part of this whole pandemic anyhow. So until then, we are hoping that what we are investing, based on your support and the money we raised in the acceleration of the product, would take us to a very, very good spot when the CapEx is going to be released and when the machines are going to be purchased again. It could be a different machine. which we will release around that time, a better machine, and then we have a next generation machine coming based on the investments we're doing today as well, but not before the end, beginning of 2022. So we are very, very strong, very, very strong feeling about our success. I'm looking around for the M&A, as you know, and things are slowly... Developing there, but more importantly, they're just closing the transaction, which we'll eventually do. We are seeing what's happening in the market because of the research we're doing, looked at 50 companies, and I believe that our advantage is clear. I'm starting to see signs of competition, which I'm very happy about, but they are far behind. So I think we have about a two-year runway, which I mentioned, one and a half years to two years. and that will enable us mid-year, beginning of mid-year, to start to see results and positioning in the market. We have very large institutions that are potential buyers, both of our machines and of our company, that are working with us on very special projects, nanos, which are using our machines to develop very, very unique devices for them, so we are very happy about that. And bottom line, we're also happy to sell machines. So the fact that we sold two machines, one in Australia, one in another country in the APOC area, can't take away from the fact that it's an encouraging sign. Being the pessimistic AM, I'm saying let's not jump from the roof with happiness and joy, but still it's a good sign. So that's what I had to say, and... I'm looking for questions, of course, to give me direction where you want me to go. I'll just mention one thing more, thanking everybody, either they're on the line or not, that helped us in positioning ourselves to be able to execute everything I discussed here. We have above $100 million of cash by now in the company. We feel it's enough both for our acquisition plans and for our aggressive product developer plan. So we are very, very content and we are thanking you for your support. Operator, I'm now ready to take questions.

Absolutely. We are now ready for the question and answer session. To ask a question, please press star then 1 on a touchdown phone. If you're using a speakerphone, we ask that you please pick up your handset before pressing the keys. To withdraw your question, please press star then 2. We'll pause momentarily to assemble our roster. and today's first question comes from Punit Maheshwari with HRS. Please go ahead.