New York, New York – Newsfile Corp. – April 6, 2023) Pomerantz LLP is currently investigating claims on behalf investors Kornit Digital Ltd. (“Kornit”) and the “Company” KRNT. Investors interested in such investments are advised to contact Robert S. Willoughby, [email protected], or 888-476-6529 ext. 7980.
Kornit, its officers and/or directors are being investigated for securities fraud and other illegal business practices.
[Click here for information about joining the class action]
Fanatics, Delta Apparel and Fanatics, which are two of Kornit’s most important customers, announced on March 28, 2022 that they had for months collaborated with one Kornit’s principal competitors to create a new digital printer technology that directly competes with Kornit’s products and services. Delta Apparel stated that the new technology was already in place in four of its digital printing facilities, and plans to continue expanding. Fanatics and Delta Apparel both used this competing technology, demonstrating widespread dissatisfaction among Kornit’s major customers regarding the Company’s product and customer service. It meant that Kornit would lose revenue from two its most important customers.
Kornit then reported that, despite reporting higher revenues than anticipated, it suffered a net loss in the first quarter of 2022 of $5.2million. This compares to a profit for the same period last year of $5.1million. The revenue guidance issued by the Company for the second quarter 2022 was also significantly lower than analysts’ expectations. Kornit blamed the Company’s disappointing guidance on a slowdown of orders from its customers in the ecommerce segment. The Company also admitted that it knew for at least two quarters that Delta Apparel had purchased digital printing systems from Kornit competitors.
Kornit stock fell $18.78/share, or 33.3% to close at $37.63/share on May 11, 2022.
Kornit announced on July 5, 2022 that it would report significant revenue loss for the second quarter in 2022. Kornit expects revenue to range from $56.4 million-$59.4 million for the second period. This is significantly lower than the revenue guidance that Kornit provided in May 2022, which was between $85 and $95 millions. Kornit said that the significant revenue loss was due to “a significantly slower pace in direct-to-garment orders (DTG) system orders in the second quarter compared to our previous expectations.”
Kornit stock closed at $23.46 per Share on July 6, 2022, after falling $8.10 per shares (or 25.7%).
The Pomerantz Firm has offices in New York City, Chicago, Los Angeles and London. It is well-known as one the leading firms in the fields of antitrust and securities class litigation. Abraham L. Pomerantz was the founder of the Pomerantz Firm, a pioneer in the field of securities class actions. The Pomerantz Firm, which has been in existence for more than 80 years, continues to fight for victims of securities fraud, corporate misconduct, and breaches of fiduciary duties. For class members, the Firm has won numerous multimillion-dollar damages. See www.pomerantzlaw.com.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
[email protected]
888-476-6529 ext. 7980
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/161659