Garment printer manufacturer Kornit Digital remains confident about long-term growth after announcing a fall in sales in its second quarter.
For the three months to 20 June 2022, it has posted revenue of $58.1 million (£47.5 million) – down by 29% compared to revenues of $81.67 million (£66.83 million) in the second quarter of 2021.
Kornit had warned about the fall in a preliminary statement in July, pointing to a “significantly slower pace” of orders for direct-to-garment (DTG) machines due to “volatile” world markets.
For the third quarter of 2022 to the end of September, the company expects revenues to edge back up to be in the range of $66 million to $70 million (£54 million to £57 million) – but still below the record third-quarter figure of $86.7 million (£70.9 million) in 2021.
To tackle short-term challenges, Kornit reported that it has embarked on initiatives to address costs, including a reduction in staffing.
Chief financial officer Alon Rozner said: “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 programmes that support our customers’ needs.
“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.”
CEO Ronen Samuel added: “While the overall operating environment remains challenging, we believe the industry will continue its long-term secular growth, fuelled by the mega-trends we’ve discussed in the past.
“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 analogue manufacturing to sustainable on-demand digital production.”
Kornit has also announced that Alon Rozner will be stepping down as CFO “for personal reasons” in November after two years in the role. He will be replaced by Lauri Hanover who has over 25 years of CFO experience and financial expertise in the software, hardware, consumer goods and industrials sectors and has served on Kornit’s board of directors as an independent director since 2015.