Revenue Increased 152% Year-Over-Year
Record Shipments of Mass Production Systems
- First quarter revenue grew 152% year-over-year to
$66.1 million , net of non-cash warrants impact of$3.1 million - First quarter GAAP operating profit of
$3.1 million ; non-GAAP operating profit of$6.5 million , in each case net of$3.1 million attributed to the non-cash impact of warrants - Revenue growth and profitability significantly exceeded expectations
- Executing on major global expansion projects with strategic customers
- Introduction of breakthrough MAX technology and
ATLAS MAX establishes new standard for sustainable on-demand textile production
ROSH-HA`AYIN,
“We are excited to share a strong start to the year and outstanding first quarter results. We significantly exceeded our expectations for revenue and profitability, and our outlook for the year is very strong,” said
The following table compares the adverse, non-cash impact that the Company’s outstanding warrants had on the Company’s results of operations during the first quarters of 2021 and 2020, respectively:
First Quarter Warrants Impact
Three Months Ended | ||||||||||
March 31, | ||||||||||
2021 | 2020 | |||||||||
Net of Warrants Impact | Warrants Impact | Net of Warrants Impact | Warrants Impact | |||||||
Revenue | ||||||||||
Non-GAAP Gross Margin | 47.1% | 240bps | 33.0% | 141bps | ||||||
Non-GAAP Operating Margin | 9.8% | 409bps | (40.1%) | 295bps | ||||||
Non-GAAP | 11.7% | 400bps | (34.0%) | 282bps | ||||||
Non-GAAP Diluted Earnings Per Share | ( |
“We are very pleased with our strong first quarter results, which were driven by a record quarter for mass production system shipments,” said
First Quarter 2021 Results of Operations
- Total revenue for the first quarter of 2021 was
$66.1 million , net of$3.1 million attributed to the non-cash impact of warrants, compared to$26.2 million , net of$0.6 million attributed to the non-cash impact of warrants in the prior year period. - GAAP net income for the first quarter of 2021 was
$5.1 million , or$0.11 per diluted share, compared to net loss of$10.1 million , or$0.25 per basic share, for the first quarter of 2020. - Non-GAAP net income for the first quarter of 2021 was
$7.7 million , or$0.16 per diluted share, net of$0.07 per diluted share attributed to the non-cash impact of warrants, compared to non-GAAP net loss of$8.9 million , or$0.22 per basic share, net of$0.02 per diluted share attributed to the non-cash impact of warrants, for the first quarter of 2020.
Second Quarter 2021 Guidance
The Company will discuss the details of its guidance live during its earnings conference call, which will be available for replay via webcast at ir.kornit.com, as referenced below.
First Quarter Earnings Conference Call Information
The Company will host a conference call today at
To listen to a telephonic replay of the conference call, dial toll-free 1-844-512-2921 or +1-412-317-6671 (international) and enter confirmation code 13719064. The telephonic replay will be available beginning at
Forward Looking Statements
Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and other
Non-GAAP Discussion Disclosure
Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude the impact of share-based compensation expenses, acquisition related expenses, excess cost of acquired inventory, foreign exchange differences associated with ASC 842, amortization of acquired intangible assets, deferred tax impact and the one-time impact of COVID-19, and the tax effect of the foregoing. The purpose of such adjustments is to provide an indication of the Company’s performance exclusive of non-cash charges and other items that are considered by management to be outside of the Company’s core operating results. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Furthermore, the non-GAAP measures are regularly used internally to understand, manage and evaluate the Company’s business and make operating decisions, and the Company believes that they are useful to investors as a consistent and comparable measure of the ongoing performance of the Company’s business. However, the Company’s non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with the Company’s consolidated financial statements prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies.
About Kornit
AND ITS SUBSIDIARIES | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
( | |||||||
2021 | 2020 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 94,171 | $ | 125,777 | |||
Short-term bank deposit | 243,659 | 224,804 | |||||
Marketable securities | 25,836 | 13,718 | |||||
Trade receivables, net | 53,054 | 51,566 | |||||
Inventories | 52,750 | 52,487 | |||||
Other accounts receivable and prepaid expenses | 7,500 | 9,178 | |||||
Total current assets | 476,970 | 477,530 | |||||
LONG-TERM ASSETS: | |||||||
Marketable securities | 74,986 | 71,636 | |||||
Deposits and other long-term assets | 405 | 395 | |||||
Severance pay fund | 324 | 337 | |||||
Deferred taxes | 5,473 | 5,096 | |||||
Property,plant and equipment, net | 31,708 | 29,255 | |||||
Operating lease right-of-use assets | 20,319 | 21,053 | |||||
Intangible assets, net | 6,809 | 7,221 | |||||
16,466 | 16,466 | ||||||
Total long-term assets | 156,490 | 151,459 | |||||
Total assets | $ | 633,460 | $ | 628,989 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
CURRENT LIABILITIES: | |||||||
Trade payables | $ | 26,517 | $ | 32,016 | |||
Employees and payroll accruals | 16,569 | 15,022 | |||||
Deferred revenues and advances from customers | 23,647 | 27,019 | |||||
Operating lease liabilities | 3,721 | 3,957 | |||||
Other payables and accrued expenses | 13,467 | 11,613 | |||||
Total current liabilities | 83,921 | 89,627 | |||||
LONG-TERM LIABILITIES: | |||||||
Accrued severance pay | 1,171 | 1,214 | |||||
Operating lease liabilities | 17,334 | 18,688 | |||||
Other long-term liabilities | 742 | 443 | |||||
Total long-term liabilities | 19,247 | 20,345 | |||||
SHAREHOLDERS' EQUITY | 530,292 | 519,017 | |||||
Total liabilities and shareholders' equity | $ | 633,460 | $ | 628,989 | |||
AND ITS SUBSIDIARIES | |||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
( | |||||||
Three Months Ended | |||||||
2021 | 2020 | ||||||
(Unaudited) | |||||||
Revenues | |||||||
Products | $ | 57,946 | $ | 22,387 | |||
Services | 8,177 | 3,825 | |||||
Total revenues | 66,123 | 26,212 | |||||
Cost of revenues | |||||||
Products | 28,175 | 12,156 | |||||
Services | 7,538 | 6,028 | |||||
Total cost of revenues | 35,713 | 18,184 | |||||
Gross profit | 30,410 | 8,028 | |||||
Operating expenses: | |||||||
Research and development, net | 9,444 | 6,483 | |||||
Sales and marketing | 11,049 | 8,497 | |||||
General and administrative | 6,808 | 6,070 | |||||
Total operating expenses | 27,301 | 21,050 | |||||
Operating income (loss) | 3,109 | (13,022 | ) | ||||
Financial income, net | 2,065 | 2,205 | |||||
Income (loss) before taxes on income (tax benefit) | 5,174 | (10,817 | ) | ||||
Taxes on income (Tax benefit) | 75 | (763 | ) | ||||
Net income (loss) | 5,099 | (10,054 | ) | ||||
Basic earnings (losses) per share | $ | 0.11 | $ | (0.25 | ) | ||
Weighted average number of shares | |||||||
used in computing basic earnings (losses) | |||||||
per share | 46,041,253 | 40,762,688 | |||||
Diluted earnings (losses) per share | $ | 0.11 | $ | (0.25 | ) | ||
Weighted average number of shares | |||||||
used in computing diluted earnings (losses) | |||||||
per share | 47,568,215 | 40,762,688 | |||||
AND ITS SUBSIDIARIES | ||||||||||||
RECONCILATION OF GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
( | ||||||||||||
Three Months Ended | ||||||||||||
2021 | 2020 | |||||||||||
(Unaudited) | ||||||||||||
GAAP cost of revenues | $ | 35,713 | $ | 18,184 | ||||||||
Cost of product recorded for share-based compensation (1) | (299 | ) | (214 | ) | ||||||||
Cost of service recorded for share-based compensation (1) | (233 | ) | (150 | ) | ||||||||
Intangible assets amortization on cost of product (2) | (25 | ) | (25 | ) | ||||||||
Intangible assets amortization on cost of service (2) | (160 | ) | - | |||||||||
COVID-19 one time impact (3) | - | (244 | ) | |||||||||
Non-GAAP cost of revenues | $ | 34,996 | $ | 17,551 | ||||||||
GAAP gross profit | $ | 30,410 | $ | 8,028 | ||||||||
Gross profit adjustments | 717 | 633 | ||||||||||
Non-GAAP gross profit | $ | 31,127 | $ | 8,661 | ||||||||
GAAP operating expenses | $ | 27,301 | $ | 21,050 | ||||||||
Share-based compensation (1) | (2,540 | ) | (1,744 | ) | ||||||||
Intangible assets amortization (2) | (119 | ) | (135 | ) | ||||||||
COVID-19 one time impact (3) | - | (11 | ) | |||||||||
Non-GAAP operating expenses | $ | 24,642 | $ | 19,160 | ||||||||
GAAP Financial income, net | $ | 2,065 | $ | 2,205 | ||||||||
Foreign exchange gain associated with ASC 842 | (802 | ) | (610 | ) | ||||||||
Non-GAAP Financial income, net | $ | 1,263 | $ | 1,595 | ||||||||
GAAP Taxes on income (Tax benefit) | $ | 75 | $ | (763 | ) | |||||||
Tax effect on to the above non-GAAP adjustments | 191 | (82 | ) | |||||||||
Taxes on income (Tax benefit) (a) | (248 | ) | 846 | |||||||||
Non-GAAP Taxes on income | $ | 18 | $ | 1 | ||||||||
GAAP net income (loss) | $ | 5,099 | $ | (10,054 | ) | |||||||
Share-based compensation (1) | 3,072 | 2,108 | ||||||||||
Intangible assets amortization (2) | 304 | 160 | ||||||||||
COVID-19 one time impact (3) | - | 255 | ||||||||||
Foreign exchange gain associated with ASC 842 | (802 | ) | (610 | ) | ||||||||
Tax effect on to the above non-GAAP adjustments | (191 | ) | 82 | |||||||||
Deferred taxes on income (Tax benefit) (a) | 248 | (846 | ) | |||||||||
Non-GAAP net income (loss) | $ | 7,730 | $ | (8,905 | ) | |||||||
GAAP diluted earnings (losses) per share | $ | 0.11 | $ | (0.25 | ) | |||||||
Non-GAAP diluted earnings (losses) per share | $ | 0.16 | $ | (0.22 | ) | |||||||
Weighted average number of shares | ||||||||||||
Shares used in computing GAAP diluted net earnings (losses) per share | 47,568,215 | 40,762,688 | ||||||||||
Shares used in computing Non-GAAP diluted net earnings (losses) per share | 47,692,101 | 40,762,688 | ||||||||||
(1) Share-based compensation | ||||||||||||
Cost of product revenues | 299 | 214 | ||||||||||
Cost of service revenues | 233 | 150 | ||||||||||
Research and development | 502 | 344 | ||||||||||
Selling and marketing | 1,072 | 641 | ||||||||||
General and administrative | 966 | 759 | ||||||||||
3,072 | 2,108 | |||||||||||
(2) Intangible assets amortization | ||||||||||||
Cost of product revenues | 25 | 25 | ||||||||||
Cost of service revenues | 160 | - | ||||||||||
Research and development | - | - | ||||||||||
Selling and marketing | 119 | 135 | ||||||||||
304 | 160 | |||||||||||
(3) COVID-19 one time impact | ||||||||||||
Cost of product revenues | - | 244 | ||||||||||
Cost of service revenues | - | - | ||||||||||
Research and development | - | - | ||||||||||
Selling and marketing | - | 11 | ||||||||||
General and administrative | - | - | ||||||||||
- | 255 | |||||||||||
(a) | Non cash impact related to the recognition of deferred taxes with respect to carryforward losses in | |||||||||||
AND ITS SUBSIDIARIES | |||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
( | |||||||||
Three Months Ended | |||||||||
2021 | 2020 | ||||||||
(Unaudited) | |||||||||
Cash flows from operating activities: | |||||||||
Net income (loss) | $ | 5,099 | $ | (10,054 | ) | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
Depreciation and amortization | 1,492 | 1,101 | |||||||
Fair value of warrants deducted from revenues | 3,139 | 565 | |||||||
Share-based compensation | 3,072 | 2,108 | |||||||
Amortization of discount on marketable securities | (817 | ) | 89 | ||||||
Realized gain on sale of marketable securities | - | (102 | ) | ||||||
Change in operating assets and liabilities: | |||||||||
Trade receivables, net | (1,488 | ) | 7,385 | ||||||
Other accounts receivables and prepaid expenses | 1,550 | (979 | ) | ||||||
Inventories | (672 | ) | (9,503 | ) | |||||
Operating leases right-of-use assets | (56 | ) | 63 | ||||||
Deferred taxes | (320 | ) | (1,106 | ) | |||||
Deposits and long-term assets | (10 | ) | 5 | ||||||
Trade payables | (6,056 | ) | (1,504 | ) | |||||
Operating lease liabilities | (800 | ) | (609 | ) | |||||
Employees and payroll accruals | 2,235 | (353 | ) | ||||||
Deferred revenues and advances from customers | (3,372 | ) | (95 | ) | |||||
Other payables and accrued expenses | 1,854 | (360 | ) | ||||||
Accrued severance pay, net | (30 | ) | (29 | ) | |||||
Other long-term liabilities | 299 | (130 | ) | ||||||
Loss from sale and disposal of property and Equipment | - | 75 | |||||||
Foreign currency translation income (loss) on inter company balances with foreign subsidiaries | - | 310 | |||||||
Net cash provided by (used in) operating activities | 5,119 | (13,123 | ) | ||||||
Cash flows from investing activities: | |||||||||
Purchase of property, plant and equipment | (2,567 | ) | (3,575 | ) | |||||
Acquisition of intangible assets and capitalization of software development costs | - | (81 | ) | ||||||
Proceeds from sale of property, plant and equipment | - | 4 | |||||||
Investment in short-term bank deposits | (18,855 | ) | 13,850 | ||||||
Proceeds from sale of marketable securities | - | 20,802 | |||||||
Proceeds from maturity of marketable securities | - | 12,102 | |||||||
Investment in marketable securities | (15,290 | ) | (8,741 | ) | |||||
Net cash provided by (used in) investing activities | (36,712 | ) | 34,361 | ||||||
Cash flows from financing activities: | |||||||||
Exercise of employee stock options | 675 | 1,568 | |||||||
Payments related to shares withheld for taxes | (688 | ) | (53 | ) | |||||
Net cash provided by (used in) financing activities | (13 | ) | 1,515 | ||||||
Foreign currency translation adjustments on cash and cash equivalents | - | (19 | ) | ||||||
Increase (decrease) in cash and cash equivalents | (31,606 | ) | 22,734 | ||||||
Cash and cash equivalents at the beginning of the period | 125,777 | 40,743 | |||||||
Cash and cash equivalents at the end of the period | 94,171 | 63,477 | |||||||
Non-cash investing and financing activities: | |||||||||
Purchase of property and equipment on credit | 1,477 | 1,909 | |||||||
Inventory transferred to be used as property and equipment | 412 | 298 | |||||||
Property and equipment transferred to be used as inventory | 3 | - | |||||||
Lease liabilities arising from obtaining right-of-use assets | 263 | 1,653 | |||||||
Capitalization of software development costs | - | 40 |
Investor Contact:
(212) 871-3927
Monica@blueshirtgroup.com
Source:
2021 GlobeNewswire, Inc., source