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. While capacity utilization is still not optimal, we see immense opportunities unfolding with major demand generating platforms and expect this market to resume growth as overall macro 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 a strong quarter for Atlas MAX Poly, and continued to strengthen our market-leading position in direct-to-fabric (DTF) with 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 showcase a diverse range of new cutting-edge DTF and DTG solutions, including unveiling our highly anticipated Apollo, which will revolutionize markets traditionally served by analogue. 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 to March 31 2023
- Total revenue for the first quarter of 2023 was $47.8 million compared with $83.3 million in the prior year period, primarily due to expected lower systems revenues.
- First quarter GAAP net loss of $18.9 million; non-GAAP net loss of $13.4 million
For the second quarter of 2023, the Company expects revenues to be in the range of $54m- $59m and adjusted EBITDA margin between -19% to -27% of revenue.
The company is facing a shareholder class action over declines in the value of its stock.
Kornit Digital Ltd. (NASDAQ: KRNT) is a market leader in digital textile production technologies. Headquartered in Israel with offices in the USA, Europe, and Asia Pacific, Kornit serves customers in more than one hundred countries and states worldwide.