Thyme Digital (NYSE: KRNT), which develops digital printers, reported a 17% drop in revenue, along with a $ 1.3 million loss in the second quarter of 2020. As part of the forecast for the next quarter, revenue is expected to range from $ 53.5-57.5 million, Above analysts’ expectations. In addition, the company reports on the acquisition of the British software provider Custom Gateway ”.
The Company’s revenues in the second quarter amounted to approximately $ 37.4 million, net of approximately $ 0.8 million attributed to the accounting effect of the warrants in respect of the Amazon transaction, a decrease of approximately 17% compared to revenues of approximately $ 45.3 million, net of approximately $ 1 million. Attributed to the accounting effect of the warrants in respect of the Amazon transaction, in the corresponding quarter of 2019.
Bottom line, the company posted a net loss (GAAP) of approximately $ 4.6 million (11 cents per share), compared to a net profit of approximately $ 1.9 million (5 cents per share) in the corresponding quarter of 2019.
The net loss (Non-GAAP) was about $ 1.3 million (3 cents per share), compared to a net profit of about $ 4.3 million in the corresponding quarter of 2019 (5 cents per share). The company surpassed analysts’ expectation of a loss of 7 cents per share.
The operating loss (Non-GAAP) amounted to about $ 2.5 million (about 6.8% of sales), compared to an operating profit of about $ 4.2 million (about 9.2% of sales) in the corresponding quarter last year.
As of the end of the second quarter, the Company has cash and cash equivalents, short-term deposits and marketable securities totaling approximately $ 237.4 million.
Forecast for the third quarter
The company provided a forecast for the third quarter of 2020 as part of last night’s conference call. Revenue in the third quarter will be in the range of $ 53.5-57.5 million, and the operating profit ratio (Non-GAAP) will be in the range of 8% -11% (without the accounting effect of options).
Purchasing a Custom Gateway
Alongside the reports, the company is reporting on the acquisition of Custom Gateway, a UK software solution provider of cloud-based workflow solutions for on-demand manufacturing business models.
According to the company’s announcement, the ‘Custom Gateway’ cloud platform is suitable for both B2B and B2C business processes and handles the optimization of the textile production stages on demand. The platform handles content sourcing, creation, content management and display at the front end. Orders received are delivered to the production floor, routed and managed in a smart way that enables efficient production on demand in bulk. The entire process, from creating orders to delivery, is enriched with integrations to existing IT environments, data-driven decisions and business intelligence analysis.
Ronen Samuel, CEO of Kornit Digital: “We are very pleased to see a strong momentum in the business with the reopening of our customers’ businesses in April, and their entry into large projects in response to significant demand, especially in the online channels. We believe we are in one of the most exciting periods in the company’s history. “We believe that this turning point in the textile industry is leading to a strong recovery in business, as we help strategic brands and partners quickly adopt efficient and sustainable digital production of textiles, on demand.”
“In addition, we are very excited to announce the acquisition of ‘Custom Gateway’, a leading software provider of cloud workflow solutions. This strategic acquisition accelerates our organic development effort, and in combination with Thyme’s technologies, will bring to the market a comprehensive and unique on-demand textile management solution. “The innovative combination of Thyme and ‘Custom Gateway’ further expands our market leadership.”
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