Kornit Digital 1st Qtr results convey significant impact of COVID-19 on textile industry

Kornit Digital’s 1^st Quarter results show that total revenue for the first quarter of 2020 decreased to $26.2 million compared to $ 38.6 million in the same period last year. Despite this, the company says it is highly confident that year-over-year growth will be achieved for the second half of 2020.

“While our first quarter 2020 results were significantly impacted by efforts to contain COVID-19, we are very encouraged by the global reopening of the economy and see a clear path to reaccelerating top line growth,” said Ronen Samuel, Kornit Digital’s Chief Executive Officer. “The broader market disruption of the last few months has created an inflection point in the textile industry, further accelerating the shift to e-commerce and exposing the inherent supply chain challenges faced by traditional retail. There is a need across all segments for flexible inventory management, all of which is driving an increased need for on-demand digital production and decoration of textiles in a sustainable way.”

 “We believe this short-term dislocation moves the market more quickly in our direction and is reflected in our strengthening pipeline. Looking at the balance of fiscal 2020, we expect that customers will accelerate their investments in Kornit as they prepare for peak activity. I am more confident than ever in our value proposition and our leadership position. Kornit is very well positioned to seize the market opportunity ahead of us, and we expect to deliver year-over-year growth for the second half of 2020,” he contined.

 “Early on we made the decision to maintain investment in the infrastructure to support the significant growth we expect in the near future and are as ready as ever to support our customers and partners as they reopen their businesses,” added Guy Avidan, Kornit Digital’s Chief Financial Officer.

“The market is moving quickly in our direction and this focus on efficient execution has allowed us to continue investing in innovation and long-term opportunities that will further enhance our market leadership. We believe this was the right approach and are very optimistic as we look at the remainder of the year and beyond.”

A replay of the company’s recent conference outlining its expectations for the second quarter and the rest of 2020 is available on the Kornit Investor Relations website - ir.kornit.com until 11.59 pm ET on 2 June 2020.