Nano Dimension's Q1 Revenue Drops, But Cost-Cutting Measures Show Promise
Portfolio Pulse from Anusuya Lahiri
Nano Dimension Ltd (NASDAQ:NNDM) reported a 10.7% year-on-year drop in Q1 revenue to $13.36 million, attributed to decreased sales. Despite this, the company improved its adjusted gross margin to 49.8% and reduced its operating loss to $18.97 million. The company also held $793.08 million in cash and equivalents as of March-end. Cost-cutting measures, including a 25% workforce reduction, are expected to save $30 million annually. NNDM shares are down 3.497% to $2.625.
June 03, 2024 | 2:30 pm
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Nano Dimension reported a 10.7% drop in Q1 revenue to $13.36 million, but improved its adjusted gross margin to 49.8% and reduced its operating loss. Cost-cutting measures, including a 25% workforce reduction, are expected to save $30 million annually. NNDM shares are down 3.497% to $2.625.
The significant drop in revenue and net loss are negative indicators, but the improved gross margin and cost-cutting measures provide some positive outlook. The immediate market reaction is negative, as reflected in the 3.497% drop in share price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Investors can gain exposure to Nano Dimension through the iShares Robotics And Artificial Intelligence Multisector ETF (NYSE:IRBO). The ETF may experience minor fluctuations due to NNDM's performance.
While NNDM's performance may impact IRBO, the ETF's diversified holdings will likely mitigate significant impact. Minor fluctuations are expected.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 30
NEUTRAL IMPACT
Investors can gain exposure to Nano Dimension through the iShares MSCI EAFE Small-Cap ETF (NASDAQ:SCZ). The ETF may experience minor fluctuations due to NNDM's performance.
While NNDM's performance may impact SCZ, the ETF's diversified holdings will likely mitigate significant impact. Minor fluctuations are expected.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 30