Shares of Kornit Digital Ltd (NASDAQ:KRNT) jumped nearly 14% by 12:30 p.m. EDT on Wednesday after the printing solutions company posted expectation-beating first-quarter results.
Kronit Digital's revenue rose 14.8% in the first quarter to $31.1 million, which beat analysts' expectations by $1.7 million. The company also beat on the bottom line after posting non-GAAP net income of $2.1 million, or $0.06 per share, which was surprisingly good since analysts expected a $0.02 per-share loss for the quarter.
"We are pleased to report an exceptionally strong start to the year, with sales and operating margins both ahead of our expected guidance range," stated to CEO Gabi Seligsohn. One of the highlights was the faster-than-expected adoption of the company's newly introduced Avalanche HD system, which brought in $5 million of orders during the first quarter. Further, Kronit Digital has already received orders for an additional $10 million of Avalanche HD systems and upgrades in the second quarter.
The strong start to 2018 helps ease the sting from last year's sell-off after the company reported poor third-quarter results. Shares, however, are still down nearly 30% over the past year even with today's pop, suggesting that there might be more upside ahead if the brisk sales momentum of Kronit's new Avalanche HD system continues.