Kornit Digital is taking steps to “return to sustainable, profitable growth” after today reporting a quarterly loss blamed on “macro-related headwinds and other pressures”.

The digital print equipment manufacturer made a net loss of US$19 million (£16.6 million) in the three months to 30 September 2022 compared to profit of $3.87 million (£3.4 million) in the same period in 2021.

Revenue for the quarter fell from $86.7 million (£75.8 million) to $66.8 million (£58.45 million) year on year, while the company forecast that revenue would be in the range of $66 million to $70 million (£57.75 million to £61.25 million) in the last three months of 2022.

However, the Israeli-based group highlighted that revenues from consumables and services were up on the back of “solid demand from key accounts” and a “robust” contribution from upgrades to Atlas Max direct-to-garment (DTG) machines.

CEO Ronen Samuel said: “Consumables and services revenues grew nicely from the second quarter and year-over-year due to solid demand from our key strategic accounts as they gear up for their peak season, as well as the execution of a major fleet upgrade to Atlas Max with a large strategic customer.

“And while we continue to see good receptivity and interest for our Atlas Max family of products, macro-related headwinds and other pressures continue to impact customers’ systems purchasing decisions and their projected pace of growth.

“We are a resilient company, with the right strategy, product and service offerings, a pristine balance sheet, and a global team that is energised, dedicated, and focused to move the company forward.

“We have and will continue to take the necessary steps to return to sustainable, profitable growth.”

Alon Rozner, Kornit Digital’s chief financial officer, added: “Our infrastructure was built to be profitable at a materially higher revenue run rate. As macro-related and other pressures continue to impact our business in the near-term, we are building upon the decisive expense reductions and other initiatives performed earlier this year to adjust the business to the near-term market environment.”

www.kornit.com