Digital textile printer manufacturer Kornit Digital remained upbeat after reporting a loss of $18.9 million in the first quarter due to “persistent macroeconomic pressures.”
Kornit Atlas MAX DTG production system
“Promising indicators emerged during the first quarter in certain parts of our business, despite the persistent macroeconomic pressures,” said Kornit CEO Ronen Samuel.
“These indicators included the double-digit year-over-year impressions growth from several of our larger direct-to-garment (DTG) strategic accounts in the customized design market, and the continued adoption of our MAX technology. We see tremendous opportunities with major demand-generating platforms, even though capacity utilization is not optimal. We expect the market to grow again as macroeconomic conditions improve.
“With our MAX technology as the cornerstone, we’ve been steadily gaining momentum on our strategy in targeting brands, retailers, and their global fulfillers, all of whom will greatly benefit from Kornit’s sustainable on-demand digital solutions, instead of existing analogue productio
“We had an excellent quarter for Atlas MAX Poly and we continued to consolidate our market-leading positions in direct-to fabric (DTF) through Presto MAX. The progress made in the first quarter offers additional proof points that our MAX technology is becoming the industry standard and an excellent solution that offers top retail quality output, increased productivity, better cost efficiencies, and new product capabilities and offerings.”
Samuel added: “We are excited to attend the upcoming ITMA tradeshow in Milan, where we will demonstrate how digital production goes mainstream with sustainable on-demand manufacturing at scale. We will demonstrate a variety of new DTF and DTG cutting-edge solutions, including our highly anticipated Apollo that will revolutionize the markets traditionally served by analog. These new systems and solutions significantly extend the breadth of print applications and offer levels of automation never before seen in any of the markets we serve.”
Kornit Digital, First Quarter of 2023 to March 31
– The total revenue for the first three months of 2023 is $47.8M, down from $83.3M in the same period last year. This is primarily because the expected lower system revenues.
– First Quarter GAAP Net Loss of $18.9 Million; Non-GAAP Net Loss of $13.4 Million
The Company anticipates that revenues will be between $54m – $59m for the second quarter 2023 and an adjusted EBITDA of between -19% – -27%.
A class action lawsuit has been filed by shareholders over a decline in the stock price.
Kornit Digital Ltd., (NASDAQ: KRNT), is a leader in the digital textile production industry. Kornit is headquartered in Israel and has offices in the USA and Europe. It also serves customers in over 100 countries worldwide.
www.kornit.com