ROSH-HA`AYIN, Israel, April 23, 2025 (GLOBE NEWSWIRE) -- Kornit Digital Ltd. (NASDAQ:KRNT) ("Kornit" or the "Company"), a global pioneer in sustainable, on-demand, digital fashion and textile production technologies, announced today that it will release its financial results for the first quarter ended March 31, 2025 on Wednesday, May 14, prior to the market open.  The Company will host an earnings conference call and webcast reviewing these results and its operations on Wednesday, May 14, 2025 at 8:30 am E ...

ROSH-HA`AYIN, Israel, March 28, 2025 (GLOBE NEWSWIRE) -- Kornit Digital LTD. (NASDAQ: KRNT) (“Kornit Digital” or the “Company”), a global pioneer in sustainable, on-demand digital fashion and textile production technologies, today announced that it has filed its annual report on Form 20-F for the fiscal year ended December 31, 2024, with the U.S. Securities and Exchange Commission (the "SEC"). The annual report, which contains Kornit Digital's audited financial statements, can be accessed at the SEC's websi ...

Currency and Economic Risks - The NIS depreciated relative to the U.S. dollar by 4.0%, 9.7%, and 0.4% in 2022, 2023, and 2024, respectively, while the annual inflation rate in Israel was 5.3%, 3.0%, and 3.2% for the same years [81]. - A significant portion of the company's leases are denominated in currencies other than the U.S. dollar, mainly in NIS, which may result in material foreign exchange gains or losses due to remeasurement of lease liabilities [81]. - The company has instituted a foreign currency cash flow hedging program to mitigate risks associated with NIS-denominated expenses, although it cannot guarantee the success of these hedging activities [81]. - The ongoing conflict in Israel has led to a downgrade in Israel's credit rating by Moody's and S&P Global, which may impact the company's operations [129]. - The company does not have commercial insurance covering losses from security situations in the Middle East, which could materially affect its business [131]. Personnel and Management Changes - The company has experienced changes in senior personnel, including the EVP of operations in December 2023 and the Chief Marketing Officer in March 2024, which could adversely affect performance [82]. - The ongoing war in Israel has reduced the available workforce for key personnel, impacting the company's ability to attract and retain qualified employees [83]. - The company competes to attract qualified personnel, facing challenges from competitors with greater resources and the impact of non-competition agreements [83]. Legal and Regulatory Risks - The company is currently subject to securities class action litigation, which may have a significant adverse effect on its financial condition or profitability [97]. - The company may face claims of intellectual property infringement, which could result in litigation and adversely affect its business and financial condition [105]. - The company follows Israeli corporate governance practices, which may provide less protection to investors compared to Nasdaq requirements [113]. - The company is exempt from U.S. proxy rules and certain Exchange Act reports, reducing the frequency and scope of information available to investors [114]. - The company is required to comply with the SEC's rules under the Sarbanes-Oxley Act, including management certification of financial information [120]. Financial Performance and Shareholder Matters - The market price of the company's ordinary shares has been volatile, influenced by various factors including financial performance and market conditions [109]. - The company has repurchased $75 million of the $100 million authorized under its new share repurchase program, totaling 2,467,206 ordinary shares [112]. - The company has never declared or paid cash dividends on its share capital and does not anticipate doing so in the foreseeable future [110]. - The market price of the company's ordinary shares could decline due to future sales or perceived sales of substantial numbers of shares [116]. - The company has a share repurchase program that may reduce the public float of shares available for trading, potentially causing volatility in share price [112]. Intellectual Property and Innovation - As of December 31, 2024, the company owned 54 issued patents in the United States and 27 provisional or pending U.S. patent applications, along with 41 pending non-U.S. patent applications [100]. - The company has 42 patents issued in non-U.S. jurisdictions, including China and the European Union [100]. - The company has implemented confidentiality agreements to protect its proprietary information, but unauthorized use or disclosure may still occur [102]. - The company may not be able to effectively enforce its issued patents or other intellectual property rights, which could harm its business prospects [99]. - The company’s ability to sell technology assets outside of Israel may be impaired due to restrictions imposed by the Innovation Law [137]. Tax and Compliance Issues - The company may face additional tax liabilities due to audits of its tax returns, having recently settled a tax audit with the Israeli Tax Authority for the years 2020 to 2021 [93]. - The statutory corporate tax rate for Israeli companies is 23% since January 1, 2018, which may increase costs if tax benefits are reduced or eliminated [134]. - The company must comply with the Innovation Law, which restricts the transfer of know-how and technology developed with government grants outside of Israel without prior approval [136]. - The company has received grants from the Israeli National Authority for Technological Innovation, reimbursing up to 55% of R&D expenses for projects, totaling approximately $1.1 million to date [135]. - The company has received commitments for non-royalty bearing grants from the Innovation Authority for 2021 to 2024, with amounts of NIS 2 million, NIS 3.6 million, NIS 2.6 million, and NIS 1.2 million respectively [135]. Operational Risks - The company has implemented contingency plans to mitigate risks of delivery interruptions due to political and military events, including increasing inventory levels in localized regions [133]. - The company faces potential delays in shipping and delivery of products due to external factors, which could materially impact revenues [133]. - As of the report date, the company's facilities have not been damaged, but prolonged conflict could disrupt operations and supply chains [130]. - The company may acquire other businesses, which could require significant management attention and disrupt operations if integration is unsuccessful [92]. - The company is subject to Israeli corporate law regulations that may impede mergers or acquisitions, requiring significant shareholder approval [139]. Shareholder Obligations - Shareholders may face additional obligations under Israeli law that differ from those typically imposed on U.S. shareholders, including duties of fairness and good faith [143]. - The company may lose its foreign private issuer status if a majority of its directors or executive officers are U.S. citizens or residents, leading to higher regulatory costs [115]. - The company believes it was not classified as a passive foreign investment company (PFIC) for the taxable year ended December 31, 2024, but future classification is uncertain [123].

Grunt Style significantly increases production speed and shortens reaction time for surging customer demand – powered by the automated Kornit Apollo direct-to-garment digital print solution.Addition of digital production to existing screen printing ensures no item is ever out of stock as demand grows for patriotic apparel ROSH-HA`AYIN, Israel, March 26, 2025 (GLOBE NEWSWIRE) -- Kornit Digital LTD. (NASDAQ:KRNT) ("Kornit" or the "Company"), a global pioneer in sustainable, on-demand digital fashion and texti ...

Grunt Style significantly increases production speed and shortens reaction time for surging customer demand – powered by the automated Kornit Apollo direct-to-garment digital print solution.Addition of digital production to existing screen printing ensures no item is ever out of stock as demand grows for patriotic apparel ROSH-HA`AYIN, Israel, March 26, 2025 (GLOBE NEWSWIRE) -- Kornit Digital LTD. (NASDAQ: KRNT) (“Kornit” or the “Company”), a global pioneer in sustainable, on-demand digital fashion and text ...

Group 1 - Kornit Digital LTD. announced that American Classics Apparel, Inc. is adopting the Kornit Apollo platform to enhance its production capabilities and meet increasing customer demand in the e-tailer marketplace [1][4][7] - American Classics Apparel has been a reputable name in licensed apparel for nearly three decades, offering products associated with iconic brands in music, movies, and television, sold through major retailers and online platforms [2][6] - The integration of Kornit Apollo, along with existing Kornit systems, will enable American Classics to deliver faster, more efficient, and high-quality products [3][5] Group 2 - The adoption of Kornit Apollo is seen as a strategic move to address labor shortages and the need for speed and flexibility in production, which is critical in the licensed apparel market [4][5][7] - Kornit Digital positions itself as a leader in sustainable, on-demand digital fashion and textile production technologies, serving customers in over 100 countries [6]

Core Insights - Kornit Digital LTD. has announced that American Classics Apparel, Inc. is adopting the Kornit Apollo platform to enhance its production capabilities and meet increasing customer demand [1][4][7] - The Kornit Apollo platform represents a shift from traditional screen printing to high-speed digital production, allowing American Classics to improve efficiency and quality [1][3][5] Company Overview - American Classics Apparel, Inc. is a well-established wholesaler of licensed apparel, known for its iconic designs from music, movies, and television, and has been in operation for nearly three decades [2] - The company sells its products through major retailers like Walmart and online platforms such as Amazon, establishing itself as a leader in fan gear [2] Technological Advancements - The integration of Kornit Apollo, along with existing Kornit systems, positions American Classics to deliver faster production times and maintain high-quality standards [3][4] - The Kornit Apollo platform is expected to address labor shortages and enhance production flexibility, which is crucial in the fast-paced licensed apparel market [4][5] Industry Impact - The adoption of Kornit Apollo by American Classics is seen as a significant advancement in the licensed apparel sector, setting a new standard for speed and quality in production [5][6] - Kornit Digital is recognized as a leader in sustainable, on-demand digital fashion and textile production technologies, serving customers globally [6]

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Financial Data and Key Metrics Changes - Q4 2024 revenues were reported at $60.7 million, reflecting a year-over-year growth of 7% driven by system sales and revenue from the AIC model [21][24] - For the full year 2024, revenues totaled $203.8 million, down from $219.8 million in 2023, primarily due to lower systems and services sales, partially offset by growth in consumables [21][22] - Non-GAAP gross margin for Q4 was 55.1%, up from 48.6% in the same period last year, while the full year gross margin improved to 48.6% from 38.4% in 2023 [22][25] - Adjusted EBITDA for Q4 was $8.4 million, significantly up from $0.2 million in the same period last year, with a margin of 13.8% compared to 0.3% [24][25] - Operating cash flow for Q4 increased to $26.7 million from $2.6 million year-over-year, with full year cash flow at $48.7 million compared to negative $34.7 million in 2023 [26] Business Line Data and Key Metrics Changes - The Apollo platform was highlighted as a key driver of performance, with 15 systems delivered in 2024, contributing to mass-scale digital production [10][12] - The company successfully transitioned customers from Atlas to Atlas MAX and is now upgrading to Atlas MAX Plus, indicating strong adoption of new technology [13] - The AIC model is driving strong adoption and generating meaningful annual recurring revenue (ARR), which will be reported starting Q1 2025 [13][30] Market Data and Key Metrics Changes - Kornit expanded into new markets such as bulk apparel, footwear, and home decor, with significant steps taken in the footwear sector, including deliveries to major customers in Asia [14][15] - The company noted a shift towards on-demand manufacturing among brands and retailers, which is critical for responding to consumer demand while minimizing excess inventory [17][18] Company Strategy and Development Direction - Kornit aims to build a resilient and profitable business, focusing on execution in 2025 to translate the foundation laid in 2024 into scalable growth [19][20] - The company is emphasizing customer success, account management, and recurring revenue growth, with a strong focus on innovation and disciplined financial management [15][20] - Kornit plans to deliver 30 Apollo systems in 2025, doubling the number delivered in 2024, indicating confidence in demand and market potential [39][95] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2025, citing a strong pipeline and visibility for revenue growth, particularly from the Apollo and AIC models [46][47] - However, they acknowledged macroeconomic uncertainties, including potential tariffs and inflationary pressures that could impact consumer purchasing power [18][19] - The company is closely monitoring customer behavior in light of geopolitical developments and potential tariffs, with a "wait and see" approach from customers [76][78] Other Important Information - Kornit executed $75 million of its $100 million share repurchase program, with plans to complete the remaining amount by mid-2025 [16][27] - The company is focused on improving gross margins and expects a moderate improvement in 2025 compared to 2024 [92][93] Q&A Session Summary Question: Goals for 2025 and top line growth potential - Management highlighted 2024 as a transformative year with clear targets set for positive EBITDA and substantial cash generation, with a focus on execution in 2025 [35][38] Question: Roll-to-roll opportunity in 2025 - Management noted improvements in the roll-to-roll market due to new product releases and increased demand from customers, indicating optimism for 2025 [50][57] Question: Performance of Apollo during the holiday season - Apollo systems exceeded expectations during the peak season, with high customer satisfaction and plans for additional orders [60][64] Question: Equipment purchases or upgrades from strategic accounts - Management confirmed ongoing upgrades from key customers, including Printful, and expressed satisfaction with the performance of upgraded systems [70][72] Question: Gross margins in Q1 - Management indicated that Q1 is typically the lowest gross margin quarter due to seasonality, but improvements in cost efficiency are expected [75][82] Question: Customer behavior regarding tariffs - Customers are uncertain about potential tariffs and are adopting a "wait and see" approach, with some considering moving operations onshore [76][78] Question: Number of customers for Apollo systems in 2025 - Management indicated a mix of existing and new customers for the 30 Apollo systems planned for 2025, with a balanced approach to installations [99][101]

Kornit Digital (KRNT) came out with quarterly earnings of $0.18 per share, missing the Zacks Consensus Estimate of $0.21 per share. This compares to earnings of $0.08 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -14.29%. A quarter ago, it was expected that this digital textile printer would post earnings of $0.08 per share when it actually produced earnings of $0.11, delivering a surprise of 37.50%.Over the last four quarte ...