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 and some of its officers or directors may have been involved in securities fraud, or other unlawful 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 exceeded expectations. It had a profit of $5.1million in the previous year period. 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. The Company also admitted that it knew for at least two quarters that Delta Apparel had purchased digital printing systems from Kornit competitors.
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 expects revenue to range from $56.4 million-$59.4 million for the second period. This is significantly lower than the revenue guidance that Kornit provided in May 2022, which was between $85 and $95 millions. 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.
With offices in New York and Paris, the Pomerantz Firm is recognized as one of the most respected firms in antitrust, corporate and securities class litigation. Abraham L. Pomerantz was the founder of the Pomerantz Firm, a pioneer in the field of securities class action litigation. 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
888-476-6529 ext. 7980
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