Aurora Labs Limited recently went through a lot of changes: process validation, fundings, new board member. The Australian manufacturer of metal 3D printers is still looking for its ideal business model and the development of the COVID-19 as a pandemic is not really helping the company to move forward with its activities.

Effects of this pandemic vary from one company to another, from one sector of activity to another. If some 3D printer manufacturers have witnessed a very slight increase of sales during this period, especially because the healthcare community and makers increasingly leverage 3D printing technologies to respond to shortage of medical supplies, it should be noted that for most businesses, production activities and sales are on hold.

Taking into account this reality, Aurora will implement a cost saving program effective 1 May 2020. The Company aims to target a monthly cash burn rate of $250k reduced from the recent monthly run rate of $750k.

As announced in their press release, Executive pay cuts will take effect, including Aurora’s Interim CEO, Peter Snowsill, and Aurora’s Founder and CTO, David Budge who have respectively taken a 25% and 35% reduction in their fixed remuneration. Executive pay cuts are effective immediately. The Board will review pay and spending at all levels within the Company in ninety days.

Unfortunately, these measures will include a substantial reduction to Aurora’s staffing levels by 65% and staff costs of up to 70%. The Board and management have also undertaken wider cost cutting measures with third-party service providers across the business. Annualised savings from the organisation restructure are envisaged to be approximately $6 million ($500k per month).

Commenting on the cost saving program, Non-Executive Chairman, Grant Mooney, said:These are challenging times due to the global impact from COVID-19, and the Board and senior management have spent a considerable amount of time in the last few weeks to review every aspect of the business. Regrettably, we’ve had to take some unfortunate cost-cutting measures, including a significant reduction to Aurora’s staff. The reduction in staff was taken heavy-heartedly and we will do our best to help our outgoing workforce during this period.

These measures are necessary to ensure Aurora remains in a stable financial position with low levels of cash burn and for the Company’s longer-term position in the market. These measures are also taken to ensure that the Company efficiently uses the funds entrusted to us by shareholders.

This doesn’t mean that Aurora will stay still during this period, on the contrary, a heavy push will be placed on the development of the RMP1 Beta printer and optimising its technology, whilst as a Board we will continue to review the Company’s go-to-market strategy.”

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