ROSH-HA`AYIN, Israel-Kornit releases its preliminary results for the third quarter of 2017. The report details updates in non-GAAP revenue and operating margin.
The company says it projects a third-quarter non-GAAP revenue in the range of $27-28.5 million. This amount differs from Kornit’s previous guidance, roughly $34-38 million. The organization attributes the shortfall to “a single customer, who is unable to take delivery as scheduled of a large number of systems,” because of delays in regulatory permits for a new facility.
In addition to revenue adjustments, the company expects a third-quarter non-GAAP operating margin of 3-5 percent of non-GAAP revenue, versus an original estimate of 13-17 percent. Kornit says it predicts a favorable gross margin performance due to the higher mix of ink and consumables relative to system sales and an increase in service revenue.
“We are disappointed in the further delay of a key customer’s site launch which caused a significant reduction in our quarterly revenues,” says Gabi Seligsohn, CEO of Kornit. “At the same time, this important customer remains committed to the Kornit platform, and we stand ready to execute on the program when site permit issues abate. This issue notwithstanding, our underlying business continues to grow, and we continue to drive meaningful progress in achieving our strategic objectives.”
Seligsohn (Image courtesy Kornit)
The update comes as Kornit continues a busy year. In early 2017, the company announced it had signed an agreement with Amazon to supply the online retailer with direct-to-garment systems for its branded apparel programs.
To hear an archived version of the full report from a recent investor’s conference call, visit ir.kornit.com.