The manufacturer of digital printing solutions for textiles posted a Q1 2020 loss of $13 million due to COVID-19 but said it was “very well positioned to seize the market opportunity ahead of us.”
Kornit Digital’s total revenue for the first quarter of 2020 fell to $26.2 million, compared to $38.6 million in the prior year period. First quarter 2020 GAAP operating loss was $13.0 million.
 |
|
"Very encouraged by the global |
“While our first quarter 2020 results were significantly impacted by efforts to contain COVID-19, we are very encouraged by the global reopening of the economy and see a clear path to reaccelerating top line growth,” said Kornit Digital CEO Ronen Samuel in a press release from company headquarters in Rosh HaAyin, Israel.
“The broader market disruption of the last few months has created an inflection point in the textile industry, further accelerating the shift to e-commerce and exposing the inherent supply chain challenges faced by traditional retail. There is a need across all segments for flexible inventory management, all of which is driving an increased need for on-demand digital production and decoration of textiles in a sustainable way.
“We believe this short-term dislocation moves the market more quickly in our direction and is reflected in our strengthening pipeline. Looking at the balance of fiscal 2020, we expect that customers will accelerate their investments in Kornit as they prepare for peak activity. I am more confident than ever in our value proposition and our leadership position. Kornit is very well positioned to seize the market opportunity ahead of us, and we expect to deliver year-over-year growth for the second half of 2020.”
Guy Avidan, Kornit Digital’s chief financial officer, added: “Early on we made the decision to maintain investment in the infrastructure to support the significant growth we expect in the near future and are as ready as ever to support our customers and partners as they reopen their businesses. The market is moving quickly in our direction and this focus on efficient execution has allowed us to continue investing in innovation and long-term opportunities that will further enhance our market leadership. We believe this was the right approach and are very optimistic as we look at the remainder of the year and beyond.”
Kornit last year launched its NeoPoly Technology - the industry’s first digital, industrial process for high-quality printing on polyester.
Kornit Digital develops, manufactures and markets industrial digital printing technologies including digital printing systems, inks, consumables and software for the garment, apparel and textile industries. Founded in 2002, the company has offices in the USA, Europe and Asia Pacific, and serves customers in more than 100 countries.
Kornit Digital is represented in Australia by Kissel + Wolf.
