Due to the lower system revenue, the company also announced that it expects consolidated third quarter non-GAAP operating margin to be in the range of 3.0-5.0 per cent of non-GAAP revenue, compared with its previously disclosed third quarter guidance of 13.0-17.0 per cent. However, it hopes of a favourable gross margin performance resulting from the higher mix of ink and consumables relative to system sales, as well as 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. At the same time, this important customer remains committed to the Kornit platform and we stand ready to execute on the programme 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," said Gabi Seligsohn, Kornit Digital chief executive officer.
"During the third quarter we have added two new Vulcan customers, received an order for multiple Storm Hexa systems from a leading Chinese e-commerce player and continue to increase sales of upgrades, bringing us close to our targeted breakeven point in our services business. I am confident that our strategy will allow us to continue to lead the DTG market as well as expand our position in the roll-to-roll market at a time when digital printing is enabling an online revolution," concluded Seligsohn. (RR)
Fibre2Fashion News Desk – India
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