Kornit Digital reports second quarter 2022 results
Israel-based on-demand textile printer maker Kornit Digital Ltd. reported results for the second quarter ending June 30, 2022. Second quarter revenues of $58.1 million, net of non-cash warrants impact of $4.5 million, in line with preliminary results issued July 5, 2022 Second quarter GAAP operating loss of $24.9 million; Non-GAAP operating loss of $18.3 million, net of $4.5 million attributed to the non-cash impact of warrants.
“While the overall operating environment remains challenging, we believe the industry will continue its long-term secular growth, fueled by the mega-trends we’ve discussed in the past,” said Ronen Samuel, CEO, Kornit Digital. “We are navigating the current market dynamics by working closely with global brands, retailers and fulfillers to shift production volumes to on-demand, executing on new product introductions and adoption of these innovative technologies, and focusing on returning to profitability.
“Our vision remains unchanged and we remain extremely confident in the fundamentals of the business. With our solid financial foundation and dedicated global team of professionals, we continue to be laser-focused on leading the industry’s transformation from analog manufacturing to sustainable on-demand digital production.
“We continue to strategically look at all aspects of our business and are adjusting our cost structure as needed, including a recent focused reduction-in-force, while reallocating resources to key growth initiatives and investments in long-term programs that support our customers’ needs,” said Alon Rozner, Kornit Digital’s Chief Financial Officer. “Our extremely strong balance sheet provides us with a great foundation to navigate the current market conditions and volatility, while focusing on longer-term opportunities to drive profitable growth.”
For the third quarter of 2022, the company expects revenue to be in the range of $66 million to $70 million; non-GAAP operating margins to be in the range of -15% to -11% of revenue.
| Three Months Ended | ||||||||||||||||
| June 30, | ||||||||||||||||
| 2022 | 2021 | |||||||||||||||
| Net of Warrants Impact | Warrants Impact | Net of Warrants Impact | Warrants Impact | |||||||||||||
| Revenue | $ | 58.1 | M | $ | 4.5 | M | $ | 81.7 | M | $ | 6.6 | M | ||||
| Non-GAAP Gross Margin | 38.6 | % | 4.4 | % | 48.2 | % | 3.9 | % | ||||||||
| Non-GAAP Operating Margin | (31.4 | %) | 9.5 | % | 12.5 | % | 6.5 | % | ||||||||
| Non-GAAP Net Margin | (26.8 | %) | 9.1 | % | 12.8 | % | 6.5 | % | ||||||||
| Non-GAAP Diluted Earnings Per Share | ($ | 0.31 | ) | $ | 0.09 | $ | 0.22 | $ | 0.13 | |||||||
“We continue to strategically look at all aspects of our business and are adjusting our cost structure as needed, including a recent focused reduction-in-force, while reallocating resources to key growth initiatives and investments in long-term programs that support our customers’ needs,” said Rozner.“Our extremely strong balance sheet provides us with a great foundation to navigate the current market conditions and volatility while focusing on longer-term opportunities to drive profitable growth.”
$75 million share repurchase authorization
The company announced its Board of Directors has authorized the repurchase of up to $75 million of the company’s ordinary shares, subject to the completion of required Israeli regulatory procedures.
Announces CFO transition
The company also announced Alon Rozner, CFO, will leave the company for personal reasons. Kornit appointed Lauri Hanover as the company’s new CFO. Rozner will continue as CFO until his expected departure in November.
Since March 2015, Hanover has served as a member of the Company’s Board of Directors. Hanover has more than 25 years of CFO experience and financial expertise in the software, hardware, consumer goods, and industrial sectors. She holds a B.A. from the University of Pennsylvania, a B.S. in Economics from The Wharton School of the University of Pennsylvania, as well as an M.B.A. from New York University.