Digital garment printing specialist Kornit has declared it is confident about continuing growth despite a first-quarter operating loss and “overall macro-economic headwinds”.

Announcing mixed results for the first three months of 2022, it warned that figures for April to June would be “impacted” by global economic trends, with quarterly revenue predicted to be around $85 million to $95 million (£70 million to £78 million).

For the first quarter of 2022, it achieved revenues of $83.3 million (£68.4 million), up 26% year on year and close to analysts’ forecasts. However, there was also an operating loss of $6.91 million (£5.67 million) for the quarter compared to a profit of $3.11 million (£2.55 million) over the same period a year ago.

Ronen Samuel, CEO of Kornit Digital, said: “While we are certainly not immune to overall macro-economic headwinds and near-term volatility, which we see impacting our second-quarter growth, we continue to expect to deliver, ahead of plan, on the $125 million [£102 million] run-rate business we originally targeted for the fourth quarter 2023 and remain confident in our journey to become a billion-dollar [£820.5 million] business in 2026.”

Kornit is preparing for the latest Kornit Fashion Week, featuring catwalk shows and other events championing digital textile printing, running in London from 15 to 17 May 2022.

It will also be exhibiting at Fespa Global Print Expo in Berlin from 31 May to 3 June 2022 where it will showcase its range of direct-to-garment (DTG) machines, from the Kornit Atlas Max to the new Kornit Apollo.

Ronen said: “We are pleased to have delivered a good start to the year and are excited about our tremendous period of ground-breaking new product introductions.

“During the quarter, we made significant progress with some of the largest and most respected global brands and retailers, supported our global strategic account with major expansion and capacity initiatives, and introduced some of the most innovative and disruptive systems and solutions to the market.

“The tailwinds driving the industry to on-demand sustainable production are intensifying with an accelerated level of focus to shifting a substantial amount of impressions to nearshore, short-to-medium run production, addressing evolving online and retail business models.

“We believe our unmatched portfolio of mass-production Max solutions, including our recently announced Kornit Apollo – all powered by our unique KornitX platform – place Kornit in a great position to capitalise on these evolving and accelerating market opportunities and trends.”

In its statement, Kornit added: “The company expects revenues in the third and fourth quarters to be stronger than the second quarter. The company further expects higher operating margins in the second half of the year, with operating margins in the third and fourth quarters in the low to mid teens.”

Its chief financial officer, Alon Rozner, added: “During the first quarter, we saw good diversification across the business and strong revenue performance in all regions.

“With a pipeline of opportunities, we continue to strategically invest in the business to support our new industry-leading product initiatives and go-to-market strategies to generate profitable, long-term growth.

“Given our proactive supply chain initiatives, we remain confident in our ability to deliver on all our 2022 customer commitments and continue to leverage our strong balance sheet to secure 2023 requirements.”

www.kornit.com
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