NEW YORK, April 08, 2023 (GLOBE NEWSWIRE) — Pomerantz LLP is investigating claims on behalf of investors of Kornit Digital Ltd. (“Kornit” or the “Company”) (NASDAQ: KRNT). These investors should contact Robert S. Willoughby at [email protected] or 888-476–6529, ext. 7980.
Kornit, its officers and/or directors are being investigated for securities fraud and other illegal business practices.
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On March 28, 2022, Delta Apparel and Fanatics—two of Kornit’s major customers—announced that for months they had collaborated with one of Kornit’s principal competitors to develop a new digital printing technology that directly competed with products and services Kornit offered. Delta Apparel stated that the new technology was already in place in four of its digital printing facilities, and plans to continue expanding. The utilization of this new, competing technology by Delta Apparel and Fanatics reflected widespread dissatisfaction of Kornit’s major customers with the Company’s product quality and customer service and meant that Kornit would likely lose revenue from two of its most important customers.
On May 11, 2022 Kornit reported a net loss (a loss) of $5.2 million for its first quarter 2022. This was despite reporting revenue that was higher than expected. It had a profit of $5.1million in the previous year. The Company also issued revenue guidance for the second quarter of 2022 that was significantly below analysts’ expectations. Kornit attributed its disappointing guidance to a slowdown in orders from the Company’s customers in the e-commerce segment. Kornit also acknowledged that for the past two quarters, it knew that Delta Apparel was one of its largest customers and had bought digital printing systems form a competitor to Kornit.
On this news, Kornit’s stock price fell $18.78 per share, or 33.3%, to close at $37.63 per share on May 11, 2022.
Kornit announced on July 5, 2022 that it would report significant revenue loss for the second quarter in 2022. Kornit forecasted that revenue for the second quarter would be between $56.4 million and $59.4 millions. This is far below the $85 million to $95 million revenue guidance the Company gave less than two months ago, in May 2022. Kornit attributed the substantial revenue miss to “a significantly slower pace of direct-to-garment (DTG) systems orders in the second quarter as compared to our prior expectations.”
On this news, Kornit’s stock price fell $8.10 per share, or 25.7%, to close at $23.46 per share on July 6, 2022.
The Pomerantz Firm has offices in New York City, Chicago, Los Angeles and London. It is widely recognized as one the top firms in the fields of antitrust and securities class litigation. Abraham L. Pomerantz was the founder of the Pomerantz Firm, a pioneer in the field of securities class actions. The Pomerantz Firm, which has been in existence for more than 80 years, continues to fight for victims of securities fraud, corporate misconduct, and breaches of fiduciary duties. For class members, the Firm has won numerous multimillion-dollar damages. See www.pomerantzlaw.com.
Robert S. Willoughby
888-476-6529 ext. 7980
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