Kornit Digital reports drop in Q2 sales, but remains confident

Kornit Digital remains ‘laser focused’ despite recording a drop in sales for the second quarter of 2022.

For the three months to June 20, 2022, Kornit posted revenue of $58.1 million (£47.5 million). This is down by 29% compared to revenue of $81.67 million (£66.83 million) in the second quarter of 2021.

Looking ahead to the next three months, Kornit expects revenues 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.

Addressing these short-term challenges, Alon Rozner, Kornit Digital’s CFO, said they are strategically looking at all aspects of the business and adjusting the 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,” he added.

Ronen Samuel, CEO of Kornit Digital, said: “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 also announced that Mr Rozner is leaving the company after two years as CFO for personal reasons and will be replaced by Lauri Hanover in November.

Ms Hanover has served on the company’s board of directors since March 2015. She has over 25 years of CFO experience and financial expertise in the software, hardware, consumer goods, and industrials sectors.