For the second quarter Kornit Digital’s GGAP gross profit increased 12.6 per cent. Non-GAAP gross profit in the second quarter was 49.1 per cent of sales compared with 49.5 per cent of sales in the prior-year. On a non-GAAP basis, Kornit’s sales were up 25.3 per cent compared with the prior-year level. Higher revenues were due to an increase across all revenue sources, most notably services which included an increase in system upgrades.

Kornit is a provider of digital printing solutions for the global printed textile industry. Higher profitability on a non-GAAP basis was the result of 25.3 per cent revenue growth year-over-year, improved gross margin, and improved operating cost efficiencies which were reflected in lower operating expenses as a percentage of sales based on higher revenue levels.

The printed textile market continues to evolve, demanding faster turnaround times and greater options. This trend has continued to drive demand for Kornit’s industrial systems, while high customer utilization rates expand the usage for its inks and consumables. Its strong first half results with 27 per cent non-GAAP revenue growth reflect the market success of its products that support this ongoing evolution in the supply chain.

The company also recognized substantial operating leverage in the second quarter as its global infrastructure investments are now running below the pace of revenue growth. This led to a 500 basis point expansion in its non-GAAP operating margin which, combined with its revenue growth, nearly tripled its non-GAAP operating profit compared to the second quarter of 2016.