Highlights
- GAAP third quarter 2017 revenues of $28.5 million reflects pre-announced delay of a large customer order.
- Non-GAAP third quarter 2017 revenues of $28.6 million, compared to the prior year period of $30.9 million.
- Third quarter 2017 GAAP operating loss of $0.2 million, compared to operating profit of $0.7 million in the prior year.
- Third quarter non-GAAP operating profit of $1.7 million, compared to $3.9 million in the prior year.
- Third quarter GAAP net loss of $(0.1) million, or $(0.00) per diluted share; non-GAAP net income of $1.7 million, or $0.05
per diluted share.
ROSH-HA`AYIN, Israel, Nov. 07, 2017 (GLOBE NEWSWIRE) -- Kornit Digital Ltd. (NASDAQ:KRNT), a leading provider of
digital printing solutions for the global printed textile industry, today reported results for the third quarter ended September
30, 2017.
Third quarter GAAP revenues which are net of the fair value of the warrants associated with revenues recognized
from Amazon in the period were $28.5 million, compared to the prior year period of $30.9 million. On a non-GAAP basis, Kornit
reported sales of $28.6 million, down from the prior year level of $30.9 million. Lower revenues were driven by a previously
disclosed large customer who was unable to take scheduled delivery of a large number of systems due to unforeseen protracted delays
in the receipt of regulatory permits. Excluding this customer issue, the Company continued to realize growth in sales of systems,
ink and consumables and services.
Gabi Seligsohn, Kornit Digital’s Chief Executive Officer commented, “As mentioned during our pre-announcement
call at the end of September, our financial results during the quarter were strongly impacted by a customer delay. While our near
term business is impacted by this postponed customer order and slower than expected ramp up in Vulcan revenues, we see the concept
of proximity decoration gaining momentum, and driving demand in the apparel industry for direct-to-garment systems which should
lead to significant growth in 2018.”
During the third quarter, Kornit attended several events, including SGIA in New Orleans where the Company
showcased its latest technology and introduced neon ink printing on its Allegro roll-to-roll printer, which enables new and
creative applications for customers and was well received by event participants. Seligsohn added, “During this important event we
noted a strong uptick in interest from screen printers, which is a direct response to their customers demanding smaller batch
manufacturing requiring digital capabilities. This is encouraging to the long-term adoption rate of our highest throughput systems,
such as the Vulcan and Avalanche.”
Third Quarter Results of Operations
Third quarter GAAP sales which are net of the fair value of the warrants associated with revenues recognized from Amazon during the
period was $28.5 million, down from the prior year level of $30.9 million. On a non-GAAP basis, Kornit reported sales of $28.6
million, down from the prior year level of $30.9 million.
GAAP third quarter gross profit increased by 7.2% to $14.6 million, or 51.3% of sales, compared with $13.6
million, or 44.1% of sales, in the prior year. GAAP gross margin was 51.3%, compared with 44.1% in the third quarter of 2016.
Higher gross margin was driven by mix shift weighted towards ink and consumables, as a result of customer shipment delays during
the period. Non-GAAP gross profit in the third quarter was $15 million, or 52.3% of sales, compared with $15.2 million, or 49.2% of
sales in the prior year.
GAAP total operating expenses in the third quarter were $14.8 million, or 52% of sales, compared to $13.0
million, or 41.9% of sales, in the prior year period. The increase in operating expenses as a percentage of sales was consistent
with the Kornit's previously communicated plans to continue to invest in its global infrastructure buildout. Non-GAAP operating
expenses in the third quarter increased to $13.2 million, or 46.2% of sales, compared to $11.4 million, or 36.7% of sales in the
prior year.
Third quarter GAAP research and development expenses were $5.9 million, or 20.5% of sales, compared to the prior
year period of $4.4 million, or 14.2% of sales. Third quarter non-GAAP research and development expenses were $5.6 million, or
19.5% of sales, compared to $4.4 million, or 14.2% of sales in the prior year.
Third quarter GAAP selling and marketing expenses were $5.3 million, or 18.6% of sales compared to the prior
year period of $4.8 million, or 15.6% of sales. Third quarter non-GAAP selling and marketing expenses were $4.8 million, or 16.7%
of sales, compared to $4.6 million, or 14.8% of sales in the prior year.
Third quarter GAAP general and administrative expenses were $3.4 million, or 12% of sales, compared to the prior
year period of $3.8 million, or 12.1% of sales. Third quarter non-GAAP general and administrative expenses were $2.9 million, or
10.1% of sales, compared to $2.4 million, or 7.8% of sales in the prior year.
On a GAAP basis, third quarter operating loss was $0.2 million, or (0.7%) of sales, compared to the prior year
period profit of $0.7 million, or 2.1% of sales. Non-GAAP operating profit in the third quarter decreased to $1.7 million, compared
to $3.9 million in the prior year. As a percent of sales, non-GAAP operating margin for the third quarter was 6.1% of sales,
compared with 12.5% of sales in the prior year.
On a GAAP basis, the Company reported a net loss of $(0.1) million, or $(0.00) per diluted share, compared to
net income of $0.4 million, or $0.01 per diluted share in the third quarter of 2016. Non-GAAP net income for the third
quarter of 2017 was $1.7 million, or $0.05 per diluted share, compared to $3.5 million, or $0.11 per diluted share, in the prior
year period.
Balance Sheet and Cash Flow
At September 30, 2017, the Company had cash and marketable securities of $86.5 million, and no long-term debt. Cash flow used in
operations for the third quarter of 2017 was $5.9 million, attributable mostly to the increase in inventory.
Fourth Quarter 2017 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.
Conference Call Information
Gabi Seligsohn, the Company’s Chief Executive Officer, and Guy Avidan, the Company’s Chief Financial Officer, will host a
conference call today at 5:00 p.m. ET, or 0:00 a.m. Israel time, to discuss the results, followed by a question and answer session
for the investment community. A live webcast of the call can be accessed at ir.kornit.com. To access the call, participants
may dial toll-free at 1-800-289-0498 or +1-719-457-2647. The toll-free Israeli number is 1 80 925 8243. The confirmation code is
8033685.
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 8033685. The telephonic replay will be available beginning at 8:00 p.m. ET on Tuesday,
November 7, 2017, and will last through 11:59 p.m. ET on Tuesday, November 21, 2017. The call will also be available for
replay via the webcast link on Kornit’s Investor Relations website.
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 U.S. securities laws. Forward-looking statements are characterized by the use of
forward-looking terminology such as "will," "expects," "anticipates," "continue," "believes," "should," "intended," "guidance,"
"preliminary," "future," "planned," or other words. These forward-looking statements include, but are not limited to, statements
relating to the company's objectives, plans and strategies, statements of preliminary or projected results of operations or of
financial condition and all statements that address activities, events or developments that the company intends, expects, projects,
believes or anticipates will or may occur in the future. Forward-looking statements are not guarantees of future performance and
are subject to risks and uncertainties. The company has based these forward-looking statements on assumptions and assessments made
by its management in light of their experience and their perception of historical trends, current conditions, expected future
developments and other factors they believe to be appropriate. Important factors that could cause actual results, developments and
business decisions to differ materially from those anticipated in these forward-looking statements include, among other things: our
success in developing, introducing and selling new or improved products and product enhancements, our ability to consummate sales
to large accounts with multi-system delivery plans, our ability to fill orders for our systems, our ability to continue to increase
sales of our systems and ink and consumables, our ability to leverage our global infrastructure build-out, the development of the
market for digital textile printing, availability of alternative ink, competition, sales concentration, changes to our
relationships with suppliers, our success in marketing, and those factors referred to under "Risk Factors" in the company's Annual
Report on Form 20-F filed with the U.S. Securities and Exchange Commission on March 30, 2017. Any forward-looking statements in
this press release are made as of the date hereof, and the company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Non-GAAP Discussion Disclosure
Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude impact of the fair value of
warrants deducted from revenues, acquisition related expenses, share-based compensation expenses, amortization of acquired
intangible assets. The purpose of such adjustments is to give an indication of our performance exclusive of non-cash charges and
other items that are considered by management to be outside of our 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 our business and make operating decisions, and we believe that they are useful
to investors as a consistent and comparable measure of the ongoing performance of our business. However, our 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 our 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. The Company has not reconciled
its non-GAAP guidance to the nearest equivalent GAAP measure. Such reconciliation is not available without unreasonable effort
because the fair value of the warrants which is a key element of the Company’s non-GAAP financial measures is impacted by the
Company’s share price, which is information the Company cannot predict.
About
Kornit
Kornit Digital (NASDAQ:KRNT) develops, manufactures and markets industrial digital printing technologies for the garment, apparel
and textile industries. Kornit delivers complete solutions, including digital printing systems, inks, consumables, software and
after-sales support. Leading the digital direct-to-garment printing market with its exclusive eco-friendly NeoPigment printing
process, Kornit caters directly to the changing needs of the textile printing value chain. Kornit’s technology enables innovative
business models based on web-to-print, on-demand and mass customization concepts. With its immense experience in the
direct-to-garment market, Kornit also offers a revolutionary approach to the roll-to-roll textile printing industry: digitally
printing with a single ink set onto multiple types of fabric with no additional finishing processes. Founded in 2003, Kornit
Digital is a global company, headquartered in Israel with offices in the USA, Europe and Asia Pacific, and serves customers in more
than 100 countries worldwide.
| |
| KORNIT DIGITAL LTD. |
| AND ITS SUBSIDIARIES |
| CONSOLIDATED STATEMENTS OF
OPERATIONS |
| (U.S. dollars in thousands, except share and per
share data) |
| |
|
|
|
|
|
|
|
| |
Nine Months Ended |
|
Three Months Ended |
| |
September
30, |
|
September
30, |
| |
|
2017 |
|
|
|
2016 |
|
|
2017 |
|
|
|
2016 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(Unaudited) |
|
(Unaudited) |
| |
|
|
|
|
|
|
|
| Revenues, net |
$ |
84,138 |
|
|
$ |
76,707 |
|
$ |
28,447 |
|
|
$ |
30,920 |
|
| Cost of revenues |
|
44,482 |
|
|
|
40,924 |
|
|
13,851 |
|
|
|
17,299 |
|
| Gross profit |
|
39,656 |
|
|
|
35,783 |
|
|
14,596 |
|
|
|
13,621 |
|
| |
|
|
|
|
|
|
|
| Operating expenses: |
|
|
|
|
|
|
|
| Research and development |
|
15,187 |
|
|
|
12,293 |
|
|
5,845 |
|
|
|
4,397 |
|
| Selling and marketing |
|
16,126 |
|
|
|
13,585 |
|
|
5,297 |
|
|
|
4,813 |
|
| General and administrative |
|
9,545 |
|
|
|
9,279 |
|
|
3,407 |
|
|
|
3,751 |
|
| Restructuring expenses |
|
339 |
|
|
|
- |
|
|
246 |
|
|
|
- |
|
| Total operating |
|
41,197 |
|
|
|
35,157 |
|
|
14,795 |
|
|
|
12,961 |
|
| Operating income (loss) |
|
(1,541 |
) |
|
|
626 |
|
|
(199 |
) |
|
|
660 |
|
| Financial income (expenses), net |
|
298 |
|
|
|
93 |
|
|
205 |
|
|
|
(3 |
) |
| Income (loss) before taxes on income |
|
(1,243 |
) |
|
|
719 |
|
|
6 |
|
|
|
657 |
|
| |
|
|
|
|
|
|
|
| Taxes on income |
|
403 |
|
|
|
711 |
|
|
130 |
|
|
|
296 |
|
| Net income (loss) |
|
(1,646 |
) |
|
|
8 |
|
|
(124 |
) |
|
|
361 |
|
| |
|
|
|
|
|
|
|
| Basic net income (loss) per share |
$ |
(0.05 |
) |
|
$ |
0.00 |
|
$ |
(0.00 |
) |
|
$ |
0.01 |
|
| |
|
|
|
|
|
|
|
| Weighted average number of shares |
|
|
|
|
|
|
|
| used in computing basic net |
|
|
|
|
|
|
|
| income (loss) per share |
|
34,445,168 |
|
|
|
30,474,462 |
|
|
34,883,772 |
|
|
|
34,883,772 |
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| Diluted net income (loss) per share |
$ |
(0.05 |
) |
|
$ |
0.00 |
|
$ |
(0.00 |
) |
|
$ |
0.01 |
|
| |
|
|
|
|
|
|
|
| Weighted average number of shares |
|
|
|
|
|
|
|
| used in computing diluted |
|
|
|
|
|
|
|
| net income (loss) per share |
|
34,445,168 |
|
|
31,739,909 |
|
|
34,883,772 |
|
|
|
31,795,707 |
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
| KORNIT DIGITAL LTD. |
| AND ITS SUBSIDIARIES |
| RECONCILIATION OF GAAP TO
NON-GAAP CONSOLIDATED
STATEMENTS OF OPERATIONS |
| (U.S. dollars in thousands, except share and per
share data) |
| |
| |
Nine Months Ended |
|
|
Three Months Ended |
| |
September
30, |
|
|
September
30, |
| |
|
2017 |
|
|
|
2016 |
|
|
|
|
2017 |
|
|
|
2016 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(Unaudited) |
|
|
(Unaudited) |
| |
|
|
|
|
|
|
|
|
| GAAP revenues |
$ |
84,138 |
|
|
$ |
76,707 |
|
|
|
$ |
28,447 |
|
|
$ |
30,920 |
|
| Fair value of warrants deducted from revenues (a) |
|
2,502 |
|
|
|
- |
|
|
|
|
149 |
|
|
|
- |
|
| Non-GAAP revenues |
$ |
86,640 |
|
|
$ |
76,707 |
|
|
|
$ |
28,596 |
|
|
$ |
30,920 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| GAAP cost of revenues |
$ |
44,482 |
|
|
$ |
40,924 |
|
|
|
$ |
13,851 |
|
|
$ |
17,299 |
|
| Expenses recorded for share-based compensation (1) |
|
(472 |
) |
|
|
(337 |
) |
|
|
|
(185 |
) |
|
|
(131 |
) |
| Intangible assets amortization (3) |
|
(75 |
) |
|
|
(169 |
) |
|
|
|
(25 |
) |
|
|
(56 |
) |
| Excess cost of acquired inventory (b) |
|
- |
|
|
|
(1,398 |
) |
|
|
|
- |
|
|
|
(1,398 |
) |
| Non-GAAP cost of revenues |
$ |
43,935 |
|
|
$ |
39,020 |
|
|
|
$ |
13,641 |
|
|
$ |
15,714 |
|
| |
|
|
|
|
|
|
|
|
| GAAP gross profit |
$ |
39,656 |
|
|
$ |
35,783 |
|
|
|
$ |
14,596 |
|
|
$ |
13,621 |
|
| Gross profit adjustments |
|
3,049 |
|
|
|
1,904 |
|
|
|
|
359 |
|
|
|
1,585 |
|
| Non-GAAP gross profit |
$ |
42,705 |
|
|
$ |
37,687 |
|
|
|
$ |
14,955 |
|
|
$ |
15,206 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| GAAP operating expenses |
$ |
41,197 |
|
|
$ |
35,157 |
|
|
|
$ |
14,795 |
|
|
$ |
12,961 |
|
| Expenses recorded for share-based compensation (1) |
|
(2,721 |
) |
|
|
(1,743 |
) |
|
|
|
(1,060 |
) |
|
|
(487 |
) |
| Acquisition related expenses (2) |
|
- |
|
|
|
(831 |
) |
|
|
|
- |
|
|
|
(731 |
) |
| Intangible assets amortization (3) |
|
(943 |
) |
|
|
(147 |
) |
|
|
|
(266 |
) |
|
|
(147 |
) |
| Other one time expense |
|
- |
|
|
|
(241 |
) |
|
|
|
- |
|
|
|
(241 |
) |
| Restructuring expenses |
|
(339 |
) |
|
|
- |
|
|
|
|
(246 |
) |
|
|
- |
|
| Non-GAAP operating expenses |
$ |
37,194 |
|
|
$ |
32,195 |
|
|
|
$ |
13,223 |
|
|
$ |
11,355 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| GAAP tax and financial expenses (income) |
$ |
105 |
|
|
$ |
618 |
|
|
|
$ |
(75 |
) |
|
$ |
299 |
|
| Taxes on income related to non-GAAP adjustments |
|
443 |
|
|
|
93 |
|
|
|
|
137 |
|
|
|
62 |
|
| Non-GAAP tax and financial expenses (income) |
$ |
548 |
|
|
$ |
711 |
|
|
|
$ |
62 |
|
|
$ |
361 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| GAAP net income (loss) |
$ |
(1,646 |
) |
|
$ |
8 |
|
|
|
$ |
(124 |
) |
|
$ |
361 |
|
| Fair value of warrants deducted from revenues (a) |
|
2,502 |
|
|
|
- |
|
|
|
|
149 |
|
|
|
- |
|
| Expenses recorded for share-based compensation (1) |
|
3,193 |
|
|
|
2,080 |
|
|
|
|
1,245 |
|
|
|
618 |
|
| Acquisition related expenses (2) |
|
- |
|
|
|
831 |
|
|
|
|
- |
|
|
|
731 |
|
| Intangible assets amortization (3) |
|
1,018 |
|
|
|
316 |
|
|
|
|
291 |
|
|
|
203 |
|
| Excess cost of acquired inventory (b) |
|
- |
|
|
|
1,398 |
|
|
|
|
- |
|
|
|
1,398 |
|
| Other one time expense |
|
- |
|
|
|
241 |
|
|
|
|
- |
|
|
|
241 |
|
| Restructuring expenses |
|
339 |
|
|
|
- |
|
|
|
|
246 |
|
|
|
- |
|
| Taxes on income related to non-GAAP adjustments |
|
(443 |
) |
|
|
(93 |
) |
|
|
|
(137 |
) |
|
|
(62 |
) |
| Non-GAAP net income |
$ |
4,963 |
|
|
$ |
4,781 |
(*) |
|
|
$ |
1,670 |
|
|
$ |
3,490 |
(*) |
| |
|
|
|
|
|
|
|
|
|
|
| GAAP diluted income (loss) per share |
$ |
(0.05 |
) |
|
$ |
0.00 |
|
|
|
$ |
(0.00 |
) |
|
$ |
0.01 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Non-GAAP diluted income per share |
$ |
0.14 |
|
|
$ |
0.15 |
|
|
|
$ |
0.05 |
|
|
$ |
0.11 |
|
| |
|
|
|
|
|
|
|
|
| Weighted average number of shares |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Weighted average number of shares used in computing diluted |
|
|
|
|
|
|
|
|
| GAAP net income (loss) per share |
34,445,168 |
|
|
31,739,909 |
|
|
|
|
34,883,772 |
|
|
31,795,707 |
| |
|
|
|
|
|
|
|
|
| Weighted average number of shares used in computing diluted |
|
|
|
|
|
|
|
|
| non GAAP net income per share |
34,877,281 |
|
|
32,018,295 |
|
|
|
|
35,242,293 |
|
|
32,043,179 |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| (1) Expenses recorded for share-based compensation |
|
|
|
|
|
|
|
|
| |
Cost of revenues |
|
472 |
|
|
|
337 |
|
|
|
|
185 |
|
|
|
131 |
|
| |
Research and development |
|
569 |
|
|
|
126 |
|
|
|
|
272 |
|
|
|
(30 |
) |
| |
Selling and marketing |
|
688 |
|
|
|
435 |
|
|
|
|
258 |
|
|
|
103 |
|
| |
General and administrative |
|
1,464 |
|
|
|
1,182 |
|
|
|
|
530 |
|
|
|
414 |
|
| |
|
|
3,193 |
|
|
|
2,080 |
|
|
|
|
1,245 |
|
|
|
618 |
|
| (2) Acquisition related expenses |
|
|
|
|
|
|
|
|
| |
Research and development |
|
- |
|
|
|
150 |
|
|
|
|
- |
|
|
|
50 |
|
| |
General and administrative |
|
- |
|
|
|
681 |
|
|
|
|
- |
|
|
|
681 |
|
| |
|
|
- |
|
|
|
831 |
|
|
|
|
- |
|
|
|
731 |
|
| (3) Intangible assets amortization |
|
|
|
|
|
|
|
|
| |
Cost of revenues |
|
75 |
|
|
|
169 |
|
|
|
|
25 |
|
|
|
56 |
|
| |
Selling and marketing |
|
943 |
|
|
|
147 |
|
|
|
|
266 |
|
|
|
147 |
|
| |
|
|
1,018 |
|
|
|
316 |
|
|
|
|
291 |
|
|
|
203 |
|
| |
|
|
|
|
|
|
|
|
|
| (a) |
Reflects a non cash expense for warrants granted to Amazon that is being accounted
for as deduction from revenues |
|
|
|
|
|
|
|
|
| (b) |
Consists of charges to cost of revenues for
the difference between the higher carrying cost of the acquired inventory from a distributer purchased on July 1, 2016 which
was recorded at fair value and the standard cost of the Company's inventory, which adversely impacts the Company's gross
profit |
| |
| (*) |
Non-GAAP net income updated from prior reports to reflect taxes on
income related to non-GAAP adjustment. |
|
|
| |
|
| |
|
| KORNIT DIGITAL LTD. |
|
| AND ITS SUBSIDIARIES |
|
| CONDENSED
CONSOLIDATED BALANCE SHEETS |
|
| (U.S. dollars in thousands) |
|
| |
|
| |
|
September 30, |
|
December 31, |
|
| |
|
2017 |
|
2016 |
|
| |
|
(Unaudited) |
|
|
|
| ASSETS |
|
|
|
|
|
| CURRENT ASSETS: |
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
14,290 |
|
$ |
22,789 |
|
| Available for sale marketable securities |
|
|
3,709 |
|
|
16,500 |
|
| Trade receivables, net |
|
|
32,926 |
|
|
31,638 |
|
| Other accounts receivables and prepaid expenses |
|
|
4,112 |
|
|
3,735 |
|
| Inventory |
|
|
35,865 |
|
|
24,122 |
|
| Total current assets |
|
|
90,902 |
|
|
98,784 |
|
| |
|
|
|
|
|
| LONG-TERM ASSETS: |
|
|
|
|
|
| Available for sale marketable securities |
|
|
68,478 |
|
|
21,724 |
|
| Severance pay fund |
|
|
503 |
|
|
768 |
|
| Deferred tax asset |
|
|
1,080 |
|
|
439 |
|
| Property and equipment, net |
|
|
10,565 |
|
|
9,247 |
|
| Intangible assets, net |
|
|
2,367 |
|
|
3,385 |
|
| Goodwill |
|
|
5,092 |
|
|
5,092 |
|
| Other assets |
|
|
631 |
|
|
607 |
|
| Total long-term assets |
|
|
88,716 |
|
|
41,262 |
|
| |
|
|
|
|
|
| Total assets |
|
$ |
179,618 |
|
$ |
140,046 |
|
| |
|
|
|
|
|
| LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
| CURRENT LIABILITIES: |
|
|
|
|
|
| Trade payables |
|
$ |
14,243 |
|
$ |
16,433 |
|
| Employees and payroll accruals |
|
|
5,772 |
|
|
5,918 |
|
| Deferred revenues and advances from customers |
|
|
1,943 |
|
|
1,679 |
|
| Other payables and accrued expenses |
|
|
6,259 |
|
|
6,103 |
|
| Total current liabilities |
|
|
28,217 |
|
|
30,133 |
|
| |
|
|
|
|
|
| LONG-TERM LIABILITIES: |
|
|
|
|
|
| Accrued severance pay |
|
|
1,246 |
|
|
1,269 |
|
| Payment obligation related to acquisition |
|
|
323 |
|
|
1,070 |
|
| Other long-term liabilities |
|
|
887 |
|
|
386 |
|
| |
|
|
|
|
|
| Total long-term liabilities |
|
|
2,456 |
|
|
2,725 |
|
| |
|
|
|
|
|
| SHAREHOLDERS' EQUITY |
|
|
148,945 |
|
|
107,188 |
|
| |
|
|
|
|
|
| Total liabilities and shareholders' equity |
|
$ |
179,618 |
|
$ |
140,046 |
|
| |
|
|
|
|
|
| |
|
|
| |
KORNIT DIGITAL LTD. |
|
| |
AND ITS SUBSIDIARIES |
|
| |
CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
| |
(U.S. dollars in thousands) |
|
| |
|
|
|
|
|
| |
|
Nine Months Ended |
|
Three Months Ended |
|
| |
|
September
30, |
|
September
30, |
|
| |
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(Unaudited) |
|
(Unaudited) |
|
| |
|
|
|
|
|
|
|
|
|
| |
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Net income (loss) |
$ |
(1,646 |
) |
|
$ |
8 |
|
|
$ |
(124 |
) |
|
$ |
361 |
|
|
| |
Adjustments to reconcile net income (loss) to net cash provided by (used in)
operating activities: |
|
|
|
|
|
|
|
|
| |
Depreciation and amortization |
|
3,631 |
|
|
|
2,007 |
|
|
|
1,204 |
|
|
|
897 |
|
|
| |
Fair value of warrants deducted from revenues |
|
2,502 |
|
|
|
- |
|
|
|
149 |
|
|
|
- |
|
|
| |
Share-based compensation |
|
3,193 |
|
|
|
2,080 |
|
|
|
1,245 |
|
|
|
618 |
|
|
| |
Amortization of premium on marketable securities |
|
404 |
|
|
|
341 |
|
|
|
127 |
|
|
|
120 |
|
|
| |
Realized gain on sale of marketable securities |
|
(29 |
) |
|
|
(3 |
) |
|
|
- |
|
|
|
- |
|
|
| |
Increase (decrease) in accrued severance pay, net |
|
242 |
|
|
|
(158 |
) |
|
|
214 |
|
|
|
(113 |
) |
|
| |
Increase in trade receivables |
|
(730 |
) |
|
|
(6,730 |
) |
|
|
(3,624 |
) |
|
|
(3,170 |
) |
|
| |
Decrease in other receivables and prepaid expenses |
|
(396 |
) |
|
|
(529 |
) |
|
|
(1,143 |
) |
|
|
(1,020 |
) |
|
| |
Decrease (increase) in inventory |
|
(11,631 |
) |
|
|
(4,739 |
) |
|
|
(2,979 |
) |
|
|
264 |
|
|
| |
Increase in deferred taxes, net |
|
(641 |
) |
|
|
(368 |
) |
|
|
(458 |
) |
|
|
(236 |
) |
|
| |
Increase in other long term assets |
|
(15 |
) |
|
|
(198 |
) |
|
|
(209 |
) |
|
|
(230 |
) |
|
| |
Increase (decrease) in trade payables |
|
(1,538 |
) |
|
|
1,449 |
|
|
|
522 |
|
|
|
3,129 |
|
|
| |
Increase (decrease) in employees and payroll accruals |
|
(194 |
) |
|
|
199 |
|
|
|
639 |
|
|
|
459 |
|
|
| |
Increase in deferred revenues |
|
217 |
|
|
|
298 |
|
|
|
909 |
|
|
|
95 |
|
|
| |
Increase in other payables and accrued expenses |
|
754 |
|
|
|
2,061 |
|
|
|
632 |
|
|
|
1,209 |
|
|
| |
Increase in other long term liabilities |
|
501 |
|
|
|
90 |
|
|
|
132 |
|
|
|
135 |
|
|
| |
Loss from sale of property and equipment |
|
228 |
|
|
|
6 |
|
|
|
199 |
|
|
|
6 |
|
|
| |
Foreign currency translation loss on inter company balances with foreign
subsidiaries |
|
(798 |
) |
|
|
(138 |
) |
|
|
(203 |
) |
|
|
(56 |
) |
|
| |
|
|
|
|
|
|
|
|
|
| |
Net cash provided by (used in) operating activities |
|
(5,946 |
) |
|
|
(4,324 |
) |
|
|
(2,768 |
) |
|
|
2,468 |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Purchase of property and equipment |
|
(4,500 |
) |
|
|
(4,487 |
) |
|
|
(1,069 |
) |
|
|
(2,954 |
) |
|
| |
Proceeds from sale of property and equipment |
|
6 |
|
|
|
- |
|
|
|
6 |
|
|
|
- |
|
|
| |
Cash paid in connection with acquisition |
|
- |
|
|
|
(9,206 |
) |
|
|
- |
|
|
|
(9,206 |
) |
|
| |
Proceeds from bank deposits, net |
|
- |
|
|
|
22,000 |
|
|
|
- |
|
|
|
18,001 |
|
|
| |
Proceeds from sale of marketable securities |
|
38,312 |
|
|
|
1,523 |
|
|
|
- |
|
|
|
- |
|
|
| |
Proceeds from maturity of marketable securities |
|
6,740 |
|
|
|
3,500 |
|
|
|
- |
|
|
|
1,000 |
|
|
| |
Purchase of marketable securities |
|
(79,255 |
) |
|
|
(9,564 |
) |
|
|
(8,607 |
) |
|
|
(2,433 |
) |
|
| |
Net cash provided by (used in) investing activities |
|
(38,697 |
) |
|
|
3,766 |
|
|
|
(9,670 |
) |
|
|
4,408 |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Proceeds from issuance of ordinary shares in a follow on offering, net |
|
35,077 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
| |
Exercise of employee stock options |
|
2,343 |
|
|
|
564 |
|
|
|
996 |
|
|
|
291 |
|
|
| |
Payment of contingent consideration |
|
(1,400 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
| |
Net cash provided by financing activities |
|
36,020 |
|
|
|
564 |
|
|
|
996 |
|
|
|
291 |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Foreign currency translation adjustments on cash and cash equivalents |
|
124 |
|
|
|
7 |
|
|
|
25 |
|
|
|
1 |
|
|
| |
Increase (decrease) in cash and cash equivalents |
|
(8,623 |
) |
|
|
6 |
|
|
|
(11,442 |
) |
|
|
7,167 |
|
|
| |
Cash and cash equivalents at the beginning of the period |
|
22,789 |
|
|
|
18,464 |
|
|
|
25,707 |
|
|
|
11,309 |
|
|
| |
Cash and cash equivalents at the end of the period |
|
14,290 |
|
|
|
18,477 |
|
|
|
14,290 |
|
|
|
18,477 |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Non-cash investing and financing activities: |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Purchase of property and equipment on credit |
|
142 |
|
|
|
95 |
|
|
|
142 |
|
|
|
95 |
|
|
| |
Inventory transferred to be used as property and equipment |
|
293 |
|
|
|
1,090 |
|
|
|
126 |
|
|
|
290 |
|
|
| |
|
|
|
|
|
|
|
|
|
Investor Contact:
Michael Callahan, ICR
(203) 682-8311
Michael.Callahan@icrinc.com
