Okay well, as the space exploration and travel sector continues to expand,
one company is looking to revolutionize how
spacecraft parts are produced in both investors
and analysts are bullish on what they have to offer velo three D.
Supplying mission critical parts for SpaceX engines as well as other projects.
And its latest earnings report showing not only a quarter over quarter revenue jump
but also increased customer demand for its printing systems.
The company has seen sales of 10.4 million and surpassing its booking target.
And joining me now is Benny Buller founder and Ceo of velo three D.
Benny, thanks so much for coming on the show.
This was your second earnings report since going public via SPAC back in september.
What was working for your company in the latest quarter?
And what were some of the challenges that exist?
Preston? I'm really glad to be here.
So for us, the thing that was most important is to meet the top line revenue
To create a very massive goal. Very massive backlog. Sorry, going into 2022
We have right now backlog of 60% of our revenue for this year,
a year in which we are planning to grow more than 250% compared to last year.
So this very large backlog
and very large growth
already picked up what is driving that backlog.
I know you work with SpaceX, you print, you provide three D.
Printed products for SpaceX who are some of your
other big clients or SpaceX the bulk of your business
Now.
So uh space right now in 2021 and
we disclosed that yesterday space becomes about 25%,
the whole space sector is about 25% of our business.
We have a lot of business in aviation, in power generation,
in energy and in a semiconductor
I would say that the big jump in our revenue
is related to the release of our first
of our cf RXC product, which is
a scallop product, reducing costs by about three times compared to the first
um, CFR machines.
This allows customers to dramatically reduce costs
as well as make much bigger parts
and that drives a big part of the demand and the backlog in the
Benny. How are you able to bring that cost down? Is it better? Semiconductors?
I know you said you got your hand in the semiconductor space
as well. Clearly this is technology that is printing some of your products.
But how are you able to shave costs so dramatically as you just outlined?
Yeah.
So the way we shave costs, when we say we shave costs,
we shave costs for the parts that are manufactured
on the machines. And the way we do that is
the CFR XC is a much bigger platform
with between 4 to 5 times higher productivity
compared to the previous machine.
It basically employs the same technology but many
more of those lasers that are melting the metal
work in parallel. So instead of two lasers, we now have eight
and the machine is bigger. So it
provides additional productivity benefits.
So between 42 times five times higher productivity.
But a lot of the overhead systems are actually advertised
Over this higher productivity.
So the machine is only 1.5 times more expensive also,
but the productivity is 4-5 times higher.
That's how you get to the three times
more economical production for the customers.
What are some of the key items Benny that you're printing? How big are they?
And how is the conflict in eastern europe impact,
demand and supply for your company?
So, the parts that we make could be hundreds of kg, really massive parts.
So they could be up to three ft in height, up to two ft in diameter. Very, very big part.
And as I said, they can weigh a few 100 kg regarding the conflict in Ukraine.
So, you know, I could see a situation that in the short term
maybe there will be or in the middle,
maybe there will be a tailwind to our
business because of more investment in defense,
because of higher oil prices, driving more investment in the oil and gas industry.
But you know, these are temporary things. The fundamental is not changing.
And that is,
we are providing dramatically
better and more innovative possibilities for our customers and
much more diverse and agile supply chains and customers are
seeing these opportunities and adopting them to their business
while we are reducing in a very significant way,
the barriers for adoption.
So I would say that in the last year, a year and a half,
we saw a lot of the disruptions to the supply chain and they that drove
a lot of customers to start looking at
modernizing their supply chain much more seriously.
So I think this was a wake up call.
The disruptions we are seeing now are further a wake up call for that,
but this is not going to be like an immediate bond to our business.
The technology adoption takes time but I think that
these pressures are going to help in the long run
quickly. Benny, quickly Benny, before I have to let you go.
These are massive machines
printing these massive parts that are mission critical for many
important companies out there have a supply chain challenges and
the chip shortage impacting your own company in terms of
the output that you're able to produce with these machines.
Yes. So we were able so far
to mitigate
all the effects of the supply chain and being
able to ship all the machines per schedule.
So the supply chain was not affecting our ability to ship.
However,
the supply chain shortages caused us to work much much harder
to get the parts that we need and a lot of people
you know,
jumped into helping that people that otherwise would be doing other things.
So definitely a lot of the things
that we plan to do were postponed because of the rush to get components,
but we were able to get the components and ship departs.
However, not in all areas of the progress that we plan to do.
We were able to do in the last few months to accomplish that.
Alright Benny Buller, fascinating conversation.
I hope you'll come back on the show that he is the founder and Ceo of the three D.
Printing company of Fellow three D. Thank you.