Good day, ladies and gentlemen. Welcome to today's conference call to discuss Nano Dimension's First Quarter 2020 Financial Results. My name is Andrew, and I'm your operator for today's call. On the call with us today are Yoav Stern, President and CEO; and Yael Sandler, CFO. Before we begin, may I remind our listeners that certain information provided on this call may contain forward-looking statements and 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 Investor 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 Yael will answer questions regarding the first quarter 2020 financial results. [Operator Instructions]. Please note, this event is being recorded. I would now like to turn the conference over to Nano Dimension's President and CEO, Yoav Stern. Yoav, please go ahead.

Thank you very much, sir. Welcome, everybody. We waited around 2, 3 minutes over 9 am in order to get all people that want to be online. So I apologize for that. And so I hope the day will start well with our call and later, have a good day in the market rather than a day like yesterday. But those are our lives on a daily basis. So we know that. What we're going to do in this call is I will speak a little bit about the business situation and where we are. We're not going to have me read anything that you could -- everybody can read on the news release in order not to waste your time. In the same manner, we're not going to have Yael read all the numbers and all the MD&A management discussions and analysis because you could read it there, and I don't want to waste your time. But on any subject afterwards that you want to ask about, we will direct the questions. Either I will direct them to myself or to Yael on anything you want to ask about numbers or anything else. And then we'll hopefully have a call that is efficient in time and content. What I'm going to tell you about the business situation, to many of you is probably known, it's only 2 weeks ago, actually 3 weeks ago that we closed the public offering. And thank you very much for the support. And during that 1 week or 8 -- 7 days roadshow, I met with 60 -- I had about 60 -- 45 to 55 meetings, actually, 50-something meetings. I don't know with 60 people or with 80 people, but I met most of you, probably. And everything I told you then is…

[Operator Instructions]. The first question comes from Brian Herman of ViewTrade Securities.

Question about the machines. It looks to me like you have two machines, the Pro and the LDM. Can you talk a little bit about the difference in capabilities of each? And is the difference an upgrade? Or is it an entirely different machine?

No. The first machine that the company put in the market was the DragonFly Pro, which was presented to the market practically in early 2018 and was sold during 2019 into beginning -- in the middle of 2019. That machine had a major flaw. And the flaw in that machine was that the printing heads, if you don't work with the machine very, very precisely according to company's instructions and deviate a little bit or if the machine was not working constantly by the conditions and the spec and stopped, you had clogged printing heads, which needed machine to stop, having somebody decided to clean it up. And therefore, the claim that the machine is a digital manufacturing piece that worked 24/7 did not actually materialize. And you had to have a person around the machine because every 2, 3 hours, you have to deal with that. That was resolved with the development effort during 2018, which culminated in August by "a new machine" called DragonFly LDM. The DragonFly Pro is totally upgradable to DragonFly LDM. The new machine -- the difference between the older machine and the new machine is the new machine had an automatic system, which is both a combination of hardware and software in the process that cleans the printing head as it prints, every few seconds. There's a printing mechanism, very sophisticated that make sure that the head is clean. So the machine can work actually almost 24/7 practically and there's no need to stop or to clean or to have a person there beside to make sure it's not clogging. So summarizing the answer, the machines are upgradable. The cost for an upgrade was $30,000 to $50,000. Your next question will be, how many people upgraded. More than 50% by now has upgraded. The upgrade is going on a quarterly-by-quarterly basis. Every quarter, we're getting 2, 3 upgrades. And we hope to complete all the upgrades for all the machines that are working and interested, which is probably 90% of the machines in the market. If not the corona, we probably would have finished already. With the corona, it may take the next quarter or two to finish them. I hope I answered your question.

Yes, you did. And how many machines are out in the market in total? Then I'll let you go to the next question.

57, 58.

[Operator Instructions]. This concludes our question-and-answer session. I would like to turn the conference back over to Yoav Stern for any closing remarks.

Can you just wait another 30 seconds to see if somebody maybe comes up with a question and maybe still thinking about it?

Yes, sir. And we have a follow-up from Brian Herman of ViewTrade Securities.

I just wanted to give everybody else the opportunity to ask, but I'll jump back in. On the 57 or 58 machines out into the market, how many different customers does that represent?

Between 30 to 40. But if your next question is, how many customers have more than 1 machine, just few. There's also machines out of the market that are in the hands of resellers, distributors. Resellers, which we are getting rid, got rid of. We are replacing resellers with direct sales force. The resellers was the biggest mistake of this company since the last 2 years, which is why the sales went up from year to year just by 39%, where there -- I think they could have gone up by 114% from 39%. Resellers clogged the channel, did not resell. So we are converting it. So they have about 14 or 15 machines with resellers, which we -- which are part of the 57. Those machines we'll come to an agreement with the resellers that we will resell it for them and have an arrangement that will make us make money and them make money.

Right. Makes a lot of sense. The OEM -- so is this the type of thing where an OEM manufacturer, a third-party manufacturer of multilayer microchips, will start using your machines in their facilities? Or is it more of a corporate initiative to do R&D in-house?

By the way, it's not microchips. Microchips is semiconductors. This is different. Semiconductors is people like Intel and AMD, and it's a different industry. It's an adjacent industry, but it's silicon. It's very -- much, much, much more expensive, much more intensive in development. So we're not competing there. We are in the PCB special devices, which are much less expensive but getting closer to the semiconductors because the performance requested are becoming higher and higher. So yes, we have -- our machines are for two purposes. First, for proof-of-concept and prototyping and are used by research institutes, et cetera, and by a very large and very high-tech companies that have in-house research in electronics, and they need a lot of designs to bring to the market faster. Our machine is a digital fabrication machine. So that's the first use. The second use is going into early production, which we're in the process of getting the machine now that is 24/7 to be used for early production. And we're going to -- and we're seeing after the corona, a very, very strong trend of large corporation who are wanting to move back production from the Far East to the continent, and we are positioned there with the digital machine. It's -- basically, it's a rolling fabrication facility for PCBs -- sophisticated PCBs because we do 20 layers, 2 layers or 50 layers easily digitally. So the next stage, the next years of our machine, which we are looking for the next 1.5 years to get into is when people start to use it as a fabrication machine for early production and short run production, and you have a digital fabrication facility that you roll these machines into a warehouse, it's all working, and there's no waste because it's all closed process. Everything is within the machine. So that's the second large breakthrough that we hope we'll see in the next few quarters beyond the prototyping and proof-of-concept.

Would it ever be used in permanent production lines of printed circuit boards?

Yes. The answers is, would it ever, yes. Any more questions, please.

We're standing by sir to see if any other questions come in. Currently we do not have any other questions.

Okay. So I will use this opportunity to, again, say thank you very much for everybody for your support and attention today and in general, your support a few weeks ago and now and moving forward. You all know that you can feel free to call me personally. And I hope to be talking to you soon, and I wish you best of health and stay safe.

Thank you.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.