Digital textile printing manufacturer Kornit Digital has withdrawn its first quarter earnings guidance because of the impact of COVID-19. "The first quarter was off to an excellent start before the global effects of COVID-19 began to severely impact the fashion, apparel and home décor sectors."
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| Kornit Presto direct-to-fabric printer |
“Due to the rapidly evolving global impact of COVID-19, the Company is withdrawing first quarter 2020 guidance and currently expects first quarter 2020 revenues will be approximately 35-45% below the $47 million low-end of its prior revenue guidance,” Kornit Digital said in a statement.
“Prior guidance, which was provided on February 11, 2020, encompassed only the expected impact of COVID-19 in China and not today’s global disruption. The Company will provide further commentary when it releases its first quarter 2020 earnings results.”
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| "Restrictive environment": Kornit Digital CEO Ronen Samuel |
Ronen Samuel, Kornit Digital’s CEO said: "The first quarter was off to an excellent start before the global effects of COVID-19 began to severely impact the fashion, apparel and home décor sectors. We were expecting significant new business and expansion projects with strategic accounts and had strong momentum globally with customers of all sizes across our portfolio.
“Measures implemented to fight the pandemic such as fashion and apparel retail shutdowns, community lockdowns and curfews, school suspension at all grades, suspension of professional and recreational sports at all levels, and postponement of all corporate and entertainment promotional events, had an immediate impact on our customers, some of whom have had to cease operations entirely.
“As a result, we are seeing customers postpone their purchasing," said Samuel. "We continue to work very closely with our valued customers and partners to ensure we provide them the best possible support to execute in this restrictive environment. We believe that as things stabilize, the textile industry will have an increased urgency to accelerate the shift to proximity and on-demand digital textile production, and Kornit is ideally positioned to execute on this need.
“To all our amazing people, thank you for your commitment and continued dedication. To all our customers, I am sending a message of strength and hope. Kornit is here for you as a strategic partner and will continue to serve you through these uncertain days. And finally, to our shareholders, thank you for your continued support.”
Kornit Digital (NASDAQ: KRNT) develops, manufactures and markets industrial digital printing technologies for the garment, apparel and textile industries. Headquartered in Israel, Kornit delivers digital printing systems, inks, consumables, software and support.
