Sigma Labs, developer of quality assurance software for the commercial 3D metal printing industry, has reported its financial and operational results for the fourth quarter and full year ended December 31, 2020.
“Despite the challenges of the global pandemic, 2020 was a gratifying year for Sigma Labs,” said Mark K. Ruport, President and CEO of Sigma Labs. “We were able to achieve almost all of our objectives in a very difficult operating environment. The industries that we focus on were hit hard by COVID-19 and caused almost every opportunity we were pursuing to be delayed, reduced in scope and in a few instances, cancelled. Despite the negative impact on our pipeline, we still doubled revenue, put together a very experienced Additive Manufacturing sales team to support our partners, and greatly improved our balance sheet. For our long-term shareholders and investors, we are proud to contrast the Sigma Labs of yesterday, an R&D focused company, to where we stand today, a full-fledged commercial enterprise aggressively taking our technology to all market segments.”
Key Fourth Quarter and Subsequent Operational Highlights
– Awarded contract from Lockheed Martin Space Additive Design & Manufacturing Center for an initial system of its PrintRite3D in-process quality assurance solution.
– Closed a $5.1 million public offering of 1.7 million shares of common stock at a public offering price of $3.00, including the full exercise of the underwriter’s over-allotment option.
– Announced worldwide cooperation agreement and initial joint customer with DMG MORI as the preferred melt pool monitoring system for their LASERTEC SLM machines.
– Formed partnership with Northwestern University for the development and expansion of industry leading PrintRite3D In-Process Quality Assurance technology for an application to powder-blow Directed Energy Deposition (DED) additive processes.
– Partnered with IN4.OS, a leader in advanced manufacturing, to build Smart Factories of the Future to meet the demands of high technology sectors including defense, space, aerospace and life sciences, focusing on ensuring the highest standard of quality during the additive manufacturing process.
– Awarded contract from Coherent, Inc. (NASDAQ: COHR), one of the world’s leading providers of lasers and laser-based technology for scientific, commercial, and industrial customers, for new PrintRite3D Lite In-Process Quality Assurance System.
“Today, we are seeing increased activity in a what I believe to be a rejuvenated 3D metal printing market. More importantly, this activity is resulting in several new contracts and first quarter revenue consistent with the revenue we generated from prior initial end user contracts. I am very pleased by the start of 2021” further commented Ruport.
“We are beginning to see the value of our investments in building a multi-tiered, leveraged distribution model. It is heartening to see that all three of our most recent strategic relationships have been instrumental in the first three contract months of 2021. Both Additive Industries and Ermaksan will be doing a factory installation of PrintRite3D to be delivered with their printers. It is in anticipation of increased sales activity through these partnerships, that we have increased our headcount by approximately 50% in the last several months, adding field sales teams to work with and facilitate partner sales opportunities and engineering resources to ensure that we can meet the anticipated demand,” explained Ruport.
“Looking ahead into 2021, we are expanding our focus on new markets and opportunities, including aerospace, space exploration and defense. Our strategic alliance with IN4.OS also supports this mission as well, building Smart Factories of the Future to meet the demands of high technology sectors.
The following copany milestones were highlighted in the coming year:
– PrintRite3D Version 7.0, scheduled for this Spring, will continue to demonstrate the company ability to innovate and lead the industry for 3rd Party, agnostic, In-Process Quality Assurance solutions.
– Expanded sales of PrintRite3D® through our partnerships with DMG MORI and Additive Industries.
– Increased direct sales of PrintRite3D to global end-user manufacturers, universities and R&D organizations.
– New and expanded strategic partnerships with 3D printer OEMs, software companies, and integrators.
“This is an exciting time for the Additive Manufacturing industry and Sigma Labs. I believe we are better positioned to create sustainable value for our shareholders than at any prior time in the Company’s history,” concluded Ruport.
Fourth Quarter and Full Year 2020 Financial Results
Revenue for the full year of 2020 totaled $807,500 of which $169,500, or 21% was earned in the fourth quarter. This compares to revenues of $402,500 for the full year of 2019, of which $133,000 was earned in the fourth quarter.
Gross profit for the full year of 2020 $215,000, of which the fourth quarter contributed a negative $22,000, compared to gross profit for the full year of 2019 of negative $172,000, of which the fourth quarter contributed negative $105,000.
Total operating expenses for 2020 were $5.9 million, of which $1.5 million were incurred in the fourth quarter. Total operating expenses for 2019 totaled $6.2 million.
Cash used in operating activities for the full year ended December 31, 2020 totaled $4.8 million, compared to $5.5 million in the full year ended December 31, 2019. Cash used in operating activities totaled $1.1 million for the fourth quarter of 2020, as compared to $1.0 million in the fourth quarter of 2019.
Net loss applicable to common shareholders for the full year of 2020 was $7.0 million, as compared to a net loss applicable to common shareholders of $6.3 million, in 2019. Net loss in the fourth quarter of 2020 totaled $1.6 million, compared to a net loss of $1.6 million, in the fourth quarter of 2019.
For more information: www.sigmalabsinc.com