NEW YORK, April 3, 2023 /PRNewswire/ — Pomerantz LLP is investigating claims on behalf of investors of Kornit Digital Ltd. (“Kornit” or the “Company”) KRNT. Investors in this category are encouraged to 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 said that the technology had been installed in four of its existing digital printers and it was planning to expand. Fanatics and Delta Apparel both used this competing technology, causing Kornit to lose revenue from two of the most important customers.
Then, on May 11, 2022Kornit reported an unexpected net loss of $2.2 million despite reporting revenues exceeding expectations. $5.2 million Comparable to a profit in the first quarter 2022, $5.1 million In the previous year period. Revenue guidance was also issued by the Company for 2022, which was significantly lower than analysts’ estimates. Kornit said that the Company’s disappointing guidance was due to a slower pace of orders from customers in the electronic 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.
Kornit’s stock prices fell on the news $18.78 To close at, per share or 33.3% $37.63 per share on May 11, 2022.
Then, on July 5, 2022After the market closed, Kornit announced that it would report a significant revenue shortfall for the second quarter 2022. Kornit forecasted that revenue for the second quarter would be between $200,000 and $35,000 $56.4 Million To $59.4 millionsThis is far less than the revenue guidance for between $85 million $95 Million The Company had not provided information for two months prior to the incident. May 2022. Kornit explained that the significant revenue loss was due to “a significantly slower pace for direct-to-garment orders (DTG) system orders in the second quarter compared to our previous expectations.”
Kornit’s stock prices fell on the news $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, Chicago, Los Angeles, LondonAnd Paris is recognized as one of the most prominent firms in the areas corporate, securities, antitrust and class litigation. The late Founder Abraham L. PomerantzThe Pomerantz Firm was the 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. On behalf of class members, the Firm has secured numerous multimillion-dollar damages awards. See www.pomerantzlaw.com.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
[email protected]
888-476-6529 ext. 7980
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SOURCE Pomerantz LLP