Kornit Digital (KRNT) Misses Q1 EPS by 3c

Kornit Digital (NASDAQ: KRNT) reported Q1 EPS of $0.03, $0.03 worse than the analyst estimate of $0.06. Revenue for the quarter came in at $38.16 million versus the consensus estimate of $38.14 million.

• Strong first quarter revenue of $38.2 million, up 22.6% net of $1.0 million attributed to the non-cash impact of warrants, compared to $31.1 million net of $42 thousand attributed to the non-cash impact of warrants in the prior year period.
• First quarter 2019 GAAP net operating loss of $1.5 million; Non-GAAP operating profit of $1.6 million net of $1.0 million attributed to the non-cash impact of warrants, or 4.2% net of 242 basis points attributed to the non-cash impact of warrants.
• First quarter 2019 GAAP net loss of $0.05 per diluted share; Non-GAAP net income of $0.03 per diluted share, net of $0.03 per diluted share attributed to the non-cash impact of warrants.
• Record quarterly revenue from sale of systems.
• Strong Atlas orders and Poly Pro pipeline following successful product launches; momentum continues with HD platforms and Eco Rapid consumables.
• Solid geographic momentum with successful transition to direct model in North America, ongoing strength in EMEA, and a continued sharp improvement in APAC.

Ronen Samuel, Kornit Digital’s Chief Executive Officer, commented, “We kicked off 2019 with an excellent start. We delivered a record quarter of revenues from the sale of systems and service and an overall 22.6% revenue growth despite a one-time effect of approximately $2 million on our ink revenues derived from the timing of our transition to a fully direct business model in North America, and a greater impact from the warrants resulting from a higher share price.

"This quarter, we experienced continued business momentum with our HD platforms and the roll-out of our odorless Eco Rapid consumables. We had an exceptionally strong start with our new product introductions with a double-digit number of customers placing orders for our newly launched Atlas and a strong and growing pipeline as it relates to the Poly Pro and Presto. We expect that these new products will have a material contribution to our revenues as early as Q2-2019.”

Samuel added, “We continue to make good progress with our business plan as it relates to expanding our Go-To-Market and services. This quarter, we successfully completed the business model transition in North America, continued our strong business momentum in EMEA and executed on another strong quarter in Asia Pacific with record quarterly revenues, following our focus in scaling and improving our performance in that region. I am very satisfied with the solid execution our global teams continue to deliver as we scale up our go-to-market. We are on track with our internal growth plans and excited to continue driving the business forward. I would like to thank all our devoted employees globally on their hard work, commitment and their ongoing focus on our customers success.”

For earnings history and earnings-related data on Kornit Digital (KRNT) click here.

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