Kornit Digital Reports 2016 Third Quarter Results

Highlights
  • Third quarter 2016 sales of $30.9 million, an increase of 40.3% over the prior-year
  • Third quarter GAAP operating income of $0.7 million, compared to $2.2 million in Third quarter 2015
  • Third quarter Non-GAAP operating income of $3.9 million, up 28.9% year-over-year
  • Third quarter GAAP operating margin of 2.1% of sales
  • Non-GAAP operating margin of 12.5% of sales; ahead of company guidance range
  • Third quarter GAAP earning per diluted share of $0.01; Non-GAAP earnings per diluted share of $0.11, up 22.2% year-over-year

ROSH-HA`AYIN, Israel, Nov. 09, 2016 (GLOBE NEWSWIRE) -- Kornit Digital Ltd. (NASDAQ:KRNT), a leading provider of digital printing solutions for the global printed textile industry, today reported results for the third quarter ended September 30, 2016.

Revenues for the third quarter of 2016 increased 40.3% to $30.9 million, compared to the prior year period of $22.0 million. Record sales in the quarter were achieved by significant growth throughout the company's product offerings, including systems sold and ink and consumables. Increased sales of Avalanche 1000 were a substantial driver of revenue growth in the quarter.

Third quarter GAAP net income was $0.4 million, or $0.01 per diluted share, compared to net income of $2.1 million in the third quarter of 2015. Non-GAAP net income in the third quarter of 2016 was $3.6 million, or $0.11 per diluted share, compared to prior-year net income of $2.9 million, or $0.09 per diluted share.

Gabi Seligsohn, Kornit Digital's Chief Executive Officer, commented, "We expected a large step-up in revenue in the third quarter, and our performance exceeded the high end of our plan. We are pleased with revenue growth of over 40% year-over-year, which was led by the expanded role our large customers now play in our quarterly revenues from both system and ink and consumable sales. System sales to these accounts consisted primarily of our flagship model, the Avalanche 1000. Higher revenue also demonstrated the leverage in our model, as Non-GAAP operating margin was 12.5%, despite the sizable investments we continued to make in our global infrastructure in sales, marketing, and R&D, while GAAP operating margin was 2.1%."

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