KORNIT DEADLINE ALERT: Securit – GuruFocus.com

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 Due date to be considered as the lead plaintiff in any federal securities class-action that has been brought against the Company.

You suffered losses of more than $100,000 Investing in Kornit options or stock is possible between February 17, 2021 And July 5, 2022and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson Direct At 877-247-4292 Or 212-983-9330 (Ext. 1310). Click here to get more details. www.faruqilaw.com/KRNT.

You are not required to pay any fees.

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 products for textile, garment and apparel industries. Its unique eco-friendly technology allows it to print both on the finished garments and large rolls unfinished fabric.

Sales of both its printing systems and textile inks as well as other consumable products used in the Company’s digital printers generate revenue. Kornit offers customer service and technical support to its end-users. This includes repair, maintenance and technical support. Kornit began to offer software services during the Class period. These include a complete suite of production and fulfillment solutions, called KornitX. It provides automated workflows and inventory management, as well as production and workflow systems.

Amazon.com, Inc., is Kornit’s largest client. The company’s largest customer during the class period was also an apparel and activewear brand, Delta Apparel, Inc. (“Delta Apparel”), along with Fanatics, Inc. (“Fanatics”), which provides licensed sports merchandise. Kornit’s ten biggest customers account for more than 60%. Kornit has a substantial portion of its revenue coming from the ten largest customers. Therefore, it is crucial for Kornit to keep these major customers in place and to continue expanding its customer base. Kornit’s ambition to generate $1.5 billion was not possible without them. $1.25 billion In revenue by 2026

According to the complaint, defendants made many materially misleading and false statements about Kornit’s operations and business during the Class Period. In particular, the Defendants repeated the Company’s competitive advantage and assured investors there was virtually no competition in “direct to-garment” printing. Investors were assured that Kornit’s digital print systems, consumables (such as inks for textiles), and the Company’s services for maintaining and managing its digital printers as well as managing customer workflows are in high demand. The Defendants also stated that Kornit would be able to retain its current customer base as well as attract new ones, due to the high demand for its products and services. They would minimize the potential risks of a large portion of its revenue being concentrated with only a handful of large customers.

In reality, the Defendants were aware of, or worse, had a reckless disregard for, the fact that Company’s digital printing company was plagued with severe quality control issues and poor customer service. These issues and deficiencies caused Kornit a loss of market share, which in turn led to lower revenue. Customers went to digital printers that were more reliable. Due to Defendants’ misrepresentations Kornit ordinary stock shares trade at artificially inflated prices all through the Class Period.

The truth began to dawn on 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 was likely to lose two of its largest customers.

Continue reading April 11, 2022Kornit posted a net loss in spite of reporting revenue that was higher than expected. $5.2 Million For the first quarter in 2022, it was a loss of $5.1million In the previous year period. Revenue guidance was also released by the Company for the second quarter 2022, which was considerably below analyst expectations. Kornit blamed the disappointing guidance on a slower pace of orders received from customers within the e-commerce marketplace. Kornit also acknowledged that the Company knew, at least for the last two quarters of the year, that Delta Apparel had purchased digital printing equipment from a Kornit competitor. The disclosures led to a decline in the Kornit share price $18.78 Per share or 33%

Then, on July 5, 2022Kornit declared that there would be a large revenue shortfall in the second quarter 2022. Kornit forecasted that revenue would be between $1.25 and $2.50 for the quarter. $56.4 Million You can find more information here $59.4 MillionThis is well below the revenue guidance for between $85,000,000 And $95 Million The Company had provided the Company with less than two months’ notice. Kornit stated that there was a significant drop in revenue due to “a slower pace of orders for DTG systems (direct-to-garment) system products during the second quarter compared with our expectations.” Kornit stock prices fell by another resulting from these disclosures $8.10 Per share or 25,7%

A court-appointed plaintiff leads and supervises litigation for the benefit of the potential class. This is usually the most typical and adequate class member. A member of the putative group may request the Court to appoint a lead plaintiff by contacting counsel of their choosing, or they may opt to remain absent and do nothing. The decision to be a lead plaintiff does not affect your ability to share 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 foretell a similar outcome in future matters. Let us know about your case. All communication will be kept confidential.

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SOURCE Faruqi & Faruqi, LLP