Textile printing technology manufacturer Kornit Digital, distributed in Australia by Kissel+Wolf, has forecast second quarter revenue of between $56m-$59m as sales fell 'significantly' below previous expectations.
|Kornit Digital's Vulcan Plus DTG system|
| "We see meaningful post-pandemic
opportunities": Ronen Samuel,
CEO, Kornit Digital
“The overall re-calibration of e-commerce growth, combined with macro headwinds which meaningfully accelerated in the last few weeks of the quarter, as well as delays in the completion of customer production facilities, resulted in a significantly slower pace of direct-to-garment (DTG) systems orders in the second quarter as compared to our prior expectations,” said Ronen Samuel, CEO of Kornit Digital.
“We have entered a period where some of our customers are working through excess capacity built throughout the two-year pandemic period, which we expect to continue for the near-term.
“At the same time, based on our focused investments in R&D over the past several years, we are working with our customers and prospects on several meaningful growth initiatives, including new product introductions, upgrades, and novel applications that we believe will open up new addressable markets and help drive incremental demand in their businesses.
“We see meaningful post-pandemic opportunities with major brands and retailers shifting production from mass-analogue off-shore production to short-run, near-shore production, and believe Kornit is well positioned to take advantage of these trends.
“Kornit is an extremely strong company with a profitable business model, robust balance sheet, intimate customer relationships and a dedicated global team of professionals. We believe the industry will continue its long-term secular growth and are confident in our ability to successfully navigate this near-term volatility. We remain committed to profitable growth and will continue to lead the digital transformation of the industry. We look forward to providing additional updates regarding our second quarter results and operations on our next earnings conference call in August.”
In preliminary results for the second quarter ended June 30, 2022, Kornit Digital said it expected:
Revenues to be in the range of $56.4 million to $59.4 million, net of non-cash warrant impact of approximately $4.6 million.
Non-GAAP Operating Margin of between -34% and -28% and Adjusted EBITDA Margin between -30% to -24%, both net of non-cash warrant impact of approximately 10%.
The company said it expected third quarter revenues to be "at or above second quarter revenues." It plans to release full second quarter results on August 10, 2022.
Korning is distributed by Kissel + Wolf in Australia