Kornit responds to COVID-19
The company is withdrawing first quarter 2020 guidance.
Kornit Digital Ltd. provided an update in response to the impact of the coronavirus pandemic (COVID-19) on its business and operations. Due to the rapidly evolving global impact of COVID-19, the company is withdrawing first quarter 2020 guidance and currently expects first quarter 2020 revenues will be approximately 35-45% below the $47 million low-end of its prior revenue guidance. Prior guidance, which was provided on Feb. 11, 2020, encompassed only the expected impact of COVID-19 in China and not today’s global disruption. The company will provide further commentary when it releases its first quarter 2020 earnings results. "The first quarter was off to an excellent start before the global effects of COVID-19 began to severely impact the fashion, apparel and home décor sectors. We were expecting significant new business and expansion projects with strategic accounts and had strong momentum globally with customers of all sizes across our portfolio. Measures implemented to fight the pandemic such as fashion and apparel retail shutdowns, community lockdowns and curfews, school suspension at all grades, suspension of professional and recreational sports at all levels, and postponement of all corporate and entertainment promotional events, had an immediate impact on our customers, some of whom have had to cease operations entirely. As a result, we are seeing customers postpone their purchasing," said Ronen Samuel, Kornit Digital’s CEO.
"We continue to work very closely with our valued customers and partners to ensure we provide them the best possible support to execute in this restrictive environment. We believe that as things stabilize, the textile industry will have an increased urgency to accelerate the shift to proximity and on-demand digital textile production, and Kornit is ideally positioned to execute on this need.” Added Guy Avidan, Kornit Digital’s CFO: “Kornit has a strong balance sheet and a high degree of financial liquidity. We ended the fourth quarter of 2019 with $264 million of cash, cash equivalents, and marketable securities and no debt. We are prudently balancing the need to operate within the current environment, managing our costs, capex, and working capital, so that we are prepared to support our customers and continue growing once the crisis subsides.” “To all our amazing people, thank you for your commitment and continued dedication. To all our customers, I am sending a message of strength and hope. Kornit is here for you as a strategic partner and will continue to serve you through these uncertain days. And finally, to our shareholders, thank you for your continued support,” Samuel concluded.