Digital textile printing company Kornit Digital Ltd. today reported a loss for the second quarter, driven by investments in strengthening its platform.
Kornit Digital, which is based in Israel but has its North American headquarters in Mequon, manufactures direct to garment and roll-to-roll printing systems, in addition to other products and services. The company reported a $127,000 loss, or 0 cents per share, in the second quarter, compared with net income of $718,000, or 2 cents per share, in the second quarter of 2015.
Revenue was up 12 percent, to $24 million, from $21.3 million in the year-ago quarter.
Operating income was $125,000 in the quarter, down from $1.1 million in the same period last year. Selling and marketing expenses increased year-over-year, as did operating expenses, which were $11.6 million, up from $9 million in the second quarter of 2015. The company increased headcount in its research and development department during the quarter.
“As previously communicated, we will continue to layer on operating expenses in several parts of the organization during the balance of the year to develop a stronger platform,” said Gabi Seligsohn, chief executive officer. “Adoption of our systems and product offerings is continuing to increase throughout the marketplace and these investments position us to capture an acceleration of growth in the second half of 2016. Over time, we believe these investments will drive the benefits of scale and ensure a strong level of execution for our customers.”
The company on July 1 acquired the digital direct-to-garment printing assets of SPSI Inc., one of its North American distributors.
“We are pleased with the ongoing growth we have seen in the first half of 2016,” Seligsohn said. “We are continuing to ramp up our large, undisclosed customer and are seeing a significant increase in sales with multiple large accounts within the United States, which we expect to continue well into the second half of the year.”
