After the profit warning, there are also layoffs in the company Thyme Digital . Globes has learned that the company, which manufactures digital printing systems for printing on textiles, is laying off 30 employees. At the end of 2021, Kornit employed 882 workers (of whom about 500 in Israel), which means that it was laying off about 3.5% of its workforce. No response was received from the company.
Thyme is managed by Ronen Samuel And it is trading at NASDAQ at a market value of $ 1.3 billion, after its stock lost 85% of the high it traded last November. Two weeks ago, the company issued a profit warning for the second quarter of the year. It cut its revenue forecast from $ 85-95 million to $ 85-95 million. $ 56.4-59.4 million, and while it was previously expected to show a balance in the non-GAAP operating profit line, it now expects an operating loss of about $ 18 million. Dollars, while previously it was supposed to account for 0% -4% of quarterly revenue.
The company’s customers come from the fashion world and they produce with the help of Thyme’s technology items according to the demand of consumers and in their vicinity. The profit warning was due to negative macroeconomic effects and delays in the completion of production facilities of the company’s customers, which led to a lower-than-expected ordering rate. The company also noted at the time that some customers work with excess capacity accumulated in the two years of the Corona plague.
On the positive side, the company said at the time that it was looking forward to big opportunities with brands and retailers after the epidemic, and was expected to launch new products that would help it increase demand. It was also reported at the time that the company had a strong balance sheet. Recall that Kornit raised $ 300 million in a share issue when the stock was close to a record price. The raising was made at $ 151 per share, compared to about $ 27 today. At the end of the first quarter, Kornit had $ 735 million in cash.