KORNIT DEADLINE ALERT: Securit – GuruFocus.com
NEW YORK, March 18, 2023 /PRNewswire/ — Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Kornit Digital Ltd. (“Kornit ” or the “Company”) (NASDAQ: KRNT) and reminds investors of the April 17, 2023 Deadline to apply for the position of lead plaintiff in the federal securities class action against the Company
You suffered losses exceeding $100,000 Kornit options and stock can be purchased between February 17, 2021 And July 5, 2022and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson You can contact directly At 877-247-4292 Oder 212-983-9330 (Ext. 1310). Click here to get more information. www.faruqilaw.com/KRNT.
There are no costs or obligations.
Faruqi & Faruqi is a leading minority And Woman-owned national securities law firm with offices in New York, Pennsylvania, California and Georgia.
Kornit is a manufacturer of industrial digital printing solutions that are used in the apparel, textile and garment industries. The unique eco-friendly technology used by Kornit’s digital inkjet printers allows them to print directly on finished garments as well as large rolls of unfinished material.
The Company’s revenues come from the sale of its printing systems, as well as textile inks or other consumables for its digital printers. Kornit provides technical support, maintenance and repair services as well as customer assistance to end-users. Kornit also expanded its business during the Class Period and started offering software services to customers. This includes a suite end-to-end fulfillment solutions and production solutions called KornitX. The Company offers, among others, automated production systems, workflow, and inventory management.
Amazon.com, Inc. is Kornit’s largest customer. The Company had other major customers during the Class period, including Delta Apparel, Inc. (aka Delta Apparel) and Fanatics, Inc. (aka Fanatics), which are both apparel and activewear brands. Kornit’s ten largest customers account for more than 60% of its revenue. Kornit’s largest customers account for a significant percentage of its revenues. Therefore, it was essential that Kornit maintains these major customers and continues to grow its customer base to meet its ambitious goal. $1 billion In revenue by 2026
The complaint claims that Defendants made a number of materially false and misleading statements about Kornit’s operations and business during the Class Period. In particular, the Defendants repeated the Company’s competitive advantages and assured investors that there was virtually no competition in the “direct to-garment” printing market. Investors were also assured by Defendants that Kornit’s digital printing system and consumable products (such as textile inks) are in high demand. They also provided services to customers to help them maintain and manage their digital printers and manage their customer workflows. Investors were also assured by Defendants that Kornit’s strong demand for its products and services would allow it to retain its existing customers and attract new ones. This would reduce the risk associated with a large portion of its revenues being concentrated in a few large customers.
In reality, defendants knew, or at the very least, disregard, that Company’s digital printing business was plagued in severe quality control issues, and customer service deficiencies. These problems and deficiencies led Kornit to lose market share to its competitors. This resulted in a decline in revenue for the Company as customers moved to other digital printing companies. Because of the misrepresentations by Defendants, Kornit’s ordinary shares were traded at artificially high prices throughout the Class Period.
The truth was finally revealed to investors March 28, 2022, when 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 Kornit’s products and services. Kornit would lose revenue from two of the most important customers.
On May 11, 2022Kornit reported a net loss in spite of reporting revenue that exceeded expectations. $5.2 million For the first quarter in 2022, it was a profit of $5.1 Million in the preceding year period. The revenue guidance issued by the Company for its second quarter in 2022 was also significantly below analysts’ estimates. Kornit said that the Company’s disappointing guidance was due to slowdown in orders from customers on the ecommerce market. The Company also admitted that it knew for at least two quarters that Delta Apparel had purchased digital printing systems from Kornit competitors. These disclosures led to a decline in the Kornit share price $18.78 Each share is 33%
Then, on July 5, 2022Kornit declared that it would report significant revenue loss for the second quarter in 2022. Kornit forecasted that revenue for the quarter would be between $1.01 and $1.02. $56.4 Million To $59.4 millionsThis is well below the revenue guidance of between $85 million And $95 million The Company provided less revenue than it had two months ago. Kornit stated that the significant revenue decline was due to “a substantially slower pace of direct to-garment (DTG), systems orders in quarter two than our expectations.” These disclosures caused Kornit shares’ price to fall by another $8.10 Each share is 25.7%
The court-appointed plaintiff lead is the investor who has the largest financial interest. This is an individual who is representative of the class and who oversees the litigation for the putative classes. Any member or potential class member may petition the Court to be appointed lead plaintiff by counsel of their choosing, or they may remain absent and choose not to act. The decision to serve or not as lead plaintiff does not affect your ability to share in any recovery.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Kornit’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). The past results don’t guarantee or predict the outcome of any future matter. We would love to have a discussion about your case. All communications will be treated confidentially.
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SOURCE Faruqi & Faruqi, LLP