KORNIT DEADLINE ALERT: Securit – GuruFocus.com

NEW YORK, Feb. 25, 2023

NEW YORK, Feb. 25, 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 become the lead plaintiff in a federal class action for securities against the Company


If you have suffered losses exceeding $100,000 Investing in Kornit stock options or stock 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 Or 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 develops and manufactures digital printing solutions for textile, garment, and apparel industries. The Company’s unique eco-friendly technology allows them to print directly onto both finished garments, as well on large rolls unfinished fabric.

The Company makes revenue through the sales of its printing equipment, textile inks, and other consumable products that can be used in its digital printers. Kornit offers customer assistance and other services to its end-users. These include technical support, maintenance, repair, and customer support contracts. Kornit began offering software services during the Class Period. These include a suite called KornitX that provides end-to–end fulfillment and production solutions.

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 generates a large portion of its revenues from its largest customers. It was therefore crucial for the Company to maintain these customers and expand its customer base to reach its ambitious goal of generating 80% of its revenue. $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. Particularly, Defendants repeatedly praised Kornit’s technological advantages and promised investors that they faced little competition in “direct-to–garment” printing. Investors were assured that Kornit’s digital printing technology and consumable products such as textile dyes, are in strong demand. Defendants also stated that the Company offers services to its customers to help manage and maintain their digital printers as well as manage 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, the Defendants knew or at least recklessly ignored that the Company’s digital printer business was plagued with quality control issues and poor customer service. 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.

Investors started to realize the truth. 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 was likely to lose revenue from these two 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 previous year period. The revenue guidance issued by the Company for its second quarter in 2022 was also significantly lower than analysts’ estimates. Kornit blamed the disappointing guidance on a slowdown of orders from customers in e-commerce. Kornit also acknowledged that the Company knew that Delta Apparel, a competitor to Kornit, had acquired digital printing equipment for at most the past two quarters. These disclosures led to a decline in the Kornit share price $18.78 Per share or 33%

Then, on July 5, 2022Kornit stated that it expected to report a significant revenue gap for the second quarter 2022. Kornit expects revenue to reach between $200,000 and $35,000 for the second quarter. $56.4 million To $59.4 MillionThis is well below the revenue guidance of between $85 million And $95 million The Company had not provided the Company with a report for two months before. 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 Per share or 25.7%

The court-appointed plaintiff lead is the investor who has the largest financial interest. This is an individual who is adequate and typical for class members and who oversees and directs the litigation in favor of the putative classes. Any member of the putative group may request the Court to appoint a lead plaintiff through any counsel they choose, or can opt to remain an absent member of the class and do nothing. You are still eligible to share in any recovery, regardless of whether you serve as the lead plaintiff.

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). Precedent results are not indicative of a similar outcome in future matters. We would love to have a discussion about your case. All communications will be treated confidentially.

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SOURCE Faruqi & Faruqi, LLP