- Revenue of $84.2 million, at the
upper end of guidance range
- Q1 loss per share of $(0.38);
Non-GAAP earnings per share ("EPS") of $0.09, above guidance range
- Cash flow from operations of $6.6
million
LAKE
MARY, Fla., May 1, 2024
/PRNewswire/ -- FARO® Technologies, Inc. (Nasdaq: FARO), a global
leader in 4D digital reality solutions, today announced its
financial results for the first quarter ended March 31,
2024.
"We're pleased with our strong start to the year, with our first
quarter financial performance providing a solid foundation from
which we expect to continue to invest in our strategic initiatives
within our core markets," said Peter
Lau, President & Chief Executive Officer. "GAAP loss per
share of $(0.38) and non-GAAP EPS of
$0.09 exceeded the high end of our
guidance range. GAAP net loss of $7.3 million and Adjusted EBITDA of
$5.6 million, or 6.6% of
revenue, demonstrates the progress we continue to make towards our
aspirational financial goals. In addition, we again expanded our
cash position by generating $6.6 million of operating cash flow in the
quarter, driven by profitability and efficiencies in working
capital."
First Quarter 2024 Financial Summary
- Total sales of $84.2 million,
down 1% year over year
- Gross margin of 51.4%, compared to 46.7% in the prior year
period
- Non-GAAP gross margin of 51.8%, compared to 47.6% in the prior
year period
- Operating expenses of $48.6
million, compared to $58.3
million in the prior year period
- Non-GAAP operating expenses of $40.7
million, compared to $48.8
million in the prior year period
- Net loss of $7.3 million, or
$(0.38) per share compared to net
loss of $21.2 million, or
$(1.12) per share in the prior year
period
- Non-GAAP net income of $1.7
million, or $0.09 per share
compared to non-GAAP net loss of $7.1
million, or $(0.38) per share
in the prior year period
- Adjusted EBITDA of $5.6 million,
or 6.6% of total sales compared to negative $5.5 million, or 6.5% of total sales in the prior
year period
- Cash, cash equivalents & short-term investments of
$99.3 million compared to
$96.3 million as of December 31, 2023
* A reconciliation of the non-GAAP financial measures to the
most directly comparable GAAP financial measures is provided in the
financial schedules portion at the end of this press release. An
additional explanation of these measures is included below under
the heading "Non-GAAP Financial Measures".
Outlook for the Second Quarter 2024
For the second quarter ending June 30,
2024, FARO currently expects:
- Revenue in the range of $79 to
$87 million
- Gross margin in the range of 50.5% to 52.0%. Non-GAAP gross
margin in the range of 51.0% to 52.5%
- Operating expenses in the range of $46 to $48 million.
Non-GAAP operating expenses in the range of $41 to $43
million
- Net loss per share in the range of ($0.43) to ($0.23).
Non-GAAP net loss to net income per share in the range of
$(0.08) to $0.12.
Conference Call
The Company will host a conference call to discuss these results
on Thursday, May 2, 2024, at 8:00 a.m.
ET. Interested parties can access the conference call by
dialing (888) 632-3384 (U.S.) or +1 (785) 424-1794 (International)
and using the passcode FARO. A live webcast will be available in
the Investor Relations section of FARO's website at:
https://www.faro.com/en/About-Us/Investor-Relations/Financial-Events-and-Presentations
A replay webcast will be available in the Investor Relations
section of the Company's web site approximately two hours after the
conclusion of the call and will remain available for approximately
30 calendar days.
About FARO
For 40 years, FARO has provided industry-leading technology
solutions that enable customers to measure their world, and then
use that data to make smarter decisions faster. FARO continues to
be a pioneer in bridging the digital and physical worlds through
data-driven reliable accuracy, precision, and immediacy. For more
information, visit www.faro.com.
Non-GAAP Financial Measures
This press release contains information about our financial
results that are not presented in accordance with U.S. generally
accepted accounting principles ("GAAP"). These non-GAAP financial
measures, including non-GAAP gross profit, non-GAAP gross margin,
non-GAAP operating expenses, non-GAAP income from operations,
non-GAAP net income and non-GAAP net income per share, exclude the
impact of purchase accounting intangible amortization expense,
stock-based compensation, restructuring and other charges, and
other tax adjustments, and are provided to enhance
investors' overall understanding of our historical operations
and financial performance.
In addition, we present EBITDA, which is calculated as net
income (loss) before interest (income) expense, net, income tax
benefit (expense) and depreciation and amortization, and Adjusted
EBITDA, which is calculated as EBITDA, excluding other (income)
expense, net, stock-based compensation, and restructuring and other
charges, as measures of our operating profitability. The most
directly comparable GAAP measure to EBITDA and Adjusted EBITDA is
net income (loss). We also present Adjusted EBITDA margin, which is
calculated as Adjusted EBITDA as a percent of total sales.
In our first quarter reporting, we have included non-GAAP total
sales on a constant currency basis. The most directly comparable
GAAP measure to total sales on a constant currency basis is total
sales. We believe constant currency information is useful in
analyzing underlying trends in our business and the commercial
performance of our products by eliminating the impact of highly
volatile fluctuations in foreign currency markets and allows for
period-to-period comparisons of our performance. For simplicity, we
may elect to omit this information in future periods if we
determine a lack of material impact. To present this information,
current period performance for entities reporting in currencies
other than U.S. dollars are converted to U.S. dollars at the
exchange rate in effect during the last day of the prior comparable
period.
Management believes that these non-GAAP financial measures
provide investors with relevant period-to-period comparisons of our
core operations using the same methodology that management employs
in its review of the Company's operating results. These financial
measures are not recognized terms under GAAP and should not be
considered in isolation or as a substitute for a measure of
financial performance prepared in accordance with GAAP.
These non-GAAP financial measures have limitations that should
be considered before using these measures to evaluate a company's
financial performance. These non-GAAP financial measures, as
presented, may not be comparable to similarly titled measures of
other companies due to varying methods of calculation. The
financial statement tables that accompany this press release
include a reconciliation of these non-GAAP financial measures to
the most directly comparable GAAP financial measures.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
that are subject to risks and uncertainties, such as statements
about the outlook for the second quarter of 2024, demand for and
customer acceptance of FARO's products, FARO's product development
and product launches, FARO's growth, strategic and restructuring
plans and initiatives, including but not limited to the additional
restructuring charges expected to be incurred in connection with
our restructuring and integration plans and the timing and amount
of cost savings and other benefits expected to be realized from the
restructuring and integration plans and other strategic
initiatives, and FARO's growth potential and profitability.
Statements that are not historical facts or that describe the
Company's plans, objectives, projections, expectations,
assumptions, strategies, or goals are forward-looking statements.
In addition, words such as "is," "will" and similar expressions or
discussions of FARO's plans or other intentions identify
forward-looking statements. Forward-looking statements are not
guarantees of future performance and are subject to various known
and unknown risks, uncertainties, and other factors that may cause
actual results, performances, or achievements to differ materially
from future results, performances, or achievements expressed or
implied by such forward-looking statements. Consequently, undue
reliance should not be placed on these forward-looking
statements.
Factors that could cause actual results to differ materially from
what is expressed or forecasted in such forward-looking statements
include, but are not limited to:
- the Company's ability to realize the intended benefits of its
undertaking to transition to a company that is reorganized around
functions to improve the efficiency of its sales organization and
to improve operational effectiveness;
- the Company's inability to successfully execute its strategic
plan, restructuring plan and integration plan, including but not
limited to additional impairment charges and/or higher than
expected severance costs and exit costs, and its inability to
realize the expected benefits of such plans;
- the changes in our executive management team in 2023 and 2024
and the loss of any of our executive officers or other key
personnel, which may be impacted by factors such as our inability
to competitively address inflationary pressures on employee
compensation and flexibility in employee work arrangements;
- the outcome of any litigation to which the Company is or may
become a party;
- loss of future government sales;
- potential impacts on customer and supplier relationships and
the Company's reputation;
- development by others of new or improved products, processes or
technologies that make the Company's products less competitive or
obsolete;
- the Company's inability to maintain its technological advantage
by developing new products and enhancing its existing
products;
- declines or other adverse changes, or lack of improvement, in
industries that the Company serves or the domestic and
international economies in the regions of the world where the
Company operates and other general economic, business, and
financial conditions;
- the effect of general economic and financial market conditions,
including in response to public health concerns;
- assumptions regarding the Company's financial condition or
future financial performance may be incorrect;
- the impact of fluctuations in foreign exchange rates and
inflation rates; and
- other risks and uncertainties discussed in Part I, Item 1A.
Risk Factors in the Company's Annual Report on Form 10-K for the
year ended December 31, 2023, filed
with the Securities and Exchange Commission on February 28, 2024, as supplemented by the
Company's Quarterly Reports on Form 10-Q, and in other SEC
filings.
Forward-looking statements in this release represent the
Company's judgment as of the date of this release. The Company
undertakes no obligation to update publicly any forward-looking
statements, whether as a result of new information, future events,
or otherwise, unless otherwise required by law.
FARO TECHNOLOGIES,
INC. AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(UNAUDITED)
|
|
|
Three Months
Ended
|
(in thousands, except
share and per share data)
|
March 31,
2024
|
|
March 31,
2023
|
Sales
|
|
|
|
Product
|
$
63,536
|
|
$
65,240
|
Service
|
20,708
|
|
19,727
|
Total sales
|
84,244
|
|
84,967
|
Cost of
sales
|
|
|
|
Product
|
30,452
|
|
33,957
|
Service
|
10,485
|
|
11,294
|
Total cost of
sales
|
40,937
|
|
45,251
|
Gross profit
|
43,307
|
|
39,716
|
Operating
expenses
|
|
|
|
Selling, general and
administrative
|
39,593
|
|
41,376
|
Research and
development
|
9,024
|
|
12,718
|
Restructuring
costs
|
—
|
|
4,238
|
Total operating
expenses
|
48,617
|
|
58,332
|
Loss from
operations
|
(5,310)
|
|
(18,616)
|
Other (income)
expense
|
|
|
|
Interest
expense
|
831
|
|
835
|
Other (expense)
income, net
|
25
|
|
(220)
|
Loss before income
tax
|
(6,166)
|
|
(19,231)
|
Income tax
expense
|
1,101
|
|
1,933
|
Net loss
|
$
(7,267)
|
|
$
(21,164)
|
Net loss per share -
Basic
|
$
(0.38)
|
|
$
(1.12)
|
Net loss per share -
Diluted
|
$
(0.38)
|
|
$
(1.12)
|
Weighted average shares
- Basic
|
19,046,855
|
|
18,816,110
|
Weighted average shares
- Diluted
|
19,046,855
|
|
18,816,110
|
FARO TECHNOLOGIES,
INC. AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED
BALANCE SHEETS
|
(UNAUDITED)
|
|
(in thousands, except
share and per share data)
|
March 31,
2024
|
|
December 31,
2023
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
79,518
|
|
$
76,787
|
Short-term
investments
|
19,763
|
|
19,496
|
Accounts receivable,
net
|
88,908
|
|
92,028
|
Inventories,
net
|
35,376
|
|
34,529
|
Prepaid expenses and
other current assets
|
32,854
|
|
38,768
|
Total current
assets
|
256,419
|
|
261,608
|
Non-current
assets:
|
|
|
|
Property, plant and
equipment, net
|
19,855
|
|
21,181
|
Operating lease
right-of-use assets
|
11,075
|
|
12,231
|
Goodwill
|
108,359
|
|
109,534
|
Intangible assets,
net
|
47,057
|
|
47,891
|
Service and sales
demonstration inventory, net
|
20,655
|
|
23,147
|
Deferred income tax
assets, net
|
24,933
|
|
25,027
|
Other long-term
assets
|
3,951
|
|
4,073
|
Total assets
|
$
492,304
|
|
$
504,692
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
25,314
|
|
$
27,404
|
Accrued
liabilities
|
26,567
|
|
29,930
|
Income taxes
payable
|
5,907
|
|
5,699
|
Current portion of
unearned service revenues
|
41,012
|
|
40,555
|
Customer
deposits
|
5,031
|
|
4,251
|
Lease
liabilities
|
5,106
|
|
5,434
|
Total current
liabilities
|
108,937
|
|
113,273
|
Loan - 5.50%
Convertible Senior Notes
|
72,872
|
|
72,760
|
Unearned service
revenues - less current portion
|
20,142
|
|
20,256
|
Lease liabilities -
less current portion
|
9,690
|
|
10,837
|
Deferred income tax
liabilities
|
12,543
|
|
13,308
|
Income taxes payable -
less current portion
|
6,123
|
|
5,629
|
Other long-term
liabilities
|
17
|
|
23
|
Total
liabilities
|
230,324
|
|
236,086
|
Commitments and
contingencies
|
|
|
|
Shareholders'
equity:
|
|
|
|
Common stock - par
value $0.001, 50,000,000 shares authorized;
20,578,403 and 20,343,359 issued, respectively; 19,205,361 and
18,968,798
outstanding, respectively
|
20
|
|
20
|
Additional paid-in
capital
|
350,816
|
|
346,277
|
Retained
earnings
|
(17,056)
|
|
(9,789)
|
Accumulated other
comprehensive loss
|
(41,145)
|
|
(37,247)
|
Common stock in
treasury, at cost - 1,373,042 and 1,374,561 shares held,
respectively
|
(30,655)
|
|
(30,655)
|
Total shareholders'
equity
|
261,980
|
|
268,606
|
Total liabilities and
shareholders' equity
|
$
492,304
|
|
$
504,692
|
FARO TECHNOLOGIES,
INC. AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(UNAUDITED)
|
|
|
Three Months Ended
March 31,
|
(in
thousands)
|
2024
|
|
2023
|
Cash flows
from:
|
|
|
|
Operating
activities:
|
|
|
|
Net loss
|
$
(7,267)
|
|
$
(21,164)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Depreciation and
amortization
|
3,621
|
|
4,413
|
Stock-based
compensation
|
4,539
|
|
3,634
|
Deferred income tax
(benefit) and other non-cash charges
|
(805)
|
|
562
|
Provision for excess
and obsolete inventory
|
152
|
|
344
|
Amortization of debt
discount and issuance costs
|
112
|
|
—
|
Loss on disposal of
assets
|
96
|
|
69
|
Provisions for bad
debts, net of recoveries
|
300
|
|
33
|
Change in operating
assets and liabilities:
|
|
|
|
Decrease (Increase)
in:
|
|
|
|
Accounts
receivable
|
1,405
|
|
2,378
|
Inventories
|
1,957
|
|
(1,530)
|
Prepaid expenses and
other current assets
|
5,587
|
|
(4,219)
|
(Decrease) Increase
in:
|
|
|
|
Accounts payable and
accrued liabilities
|
(5,721)
|
|
(2,450)
|
Income taxes
payable
|
783
|
|
(102)
|
Customer
deposits
|
819
|
|
(433)
|
Unearned service
revenues
|
1,282
|
|
121
|
Other
liabilities
|
(285)
|
|
—
|
Net cash provided by
(used in) operating activities
|
6,575
|
|
(18,344)
|
Investing
activities:
|
|
|
|
Purchases of property
and equipment
|
(1,323)
|
|
(1,688)
|
Purchases of
short-term investments
|
—
|
|
(20,024)
|
Cash paid for
technology development, patents and licenses
|
(1,442)
|
|
(1,820)
|
Net cash used in
investing activities
|
(2,765)
|
|
(23,532)
|
Financing
activities:
|
|
|
|
Payments on finance
leases
|
(40)
|
|
(44)
|
Cash settlement of
equity awards
|
—
|
|
14
|
Proceeds from issuance
of 5.50% Convertible Senior Notes, due 2028, net of discount,
issuance cost and accrued interest
|
—
|
|
72,310
|
Net cash (used in)
provided by financing activities
|
(40)
|
|
72,280
|
Effect of exchange rate
changes on cash and cash equivalents
|
(1,039)
|
|
348
|
Increase in cash and
cash equivalents
|
2,731
|
|
30,752
|
Cash and cash
equivalents, beginning of period
|
76,787
|
|
37,812
|
Cash and cash
equivalents, end of period
|
$
79,518
|
|
$
68,564
|
FARO TECHNOLOGIES,
INC. AND SUBSIDIARIES
|
RECONCILIATION OF GAAP
TO NON-GAAP
|
(UNAUDITED)
|
|
|
Three Months Ended
March 31,
|
(dollars in thousands,
except per share data)
|
2024
|
|
2023
|
Gross profit, as
reported
|
$
43,307
|
|
$
39,716
|
Stock-based
compensation (1)
|
330
|
|
272
|
Restructuring and
other costs (2)
|
8
|
|
435
|
Non-GAAP adjustments
to gross profit
|
338
|
|
707
|
Non-GAAP gross
profit
|
$
43,645
|
|
$
40,423
|
Gross margin, as
reported
|
51.4 %
|
|
46.7 %
|
Non-GAAP gross
margin
|
51.8 %
|
|
47.6 %
|
|
|
|
|
Selling, general and
administrative, as reported
|
$
39,593
|
|
$
41,376
|
Stock-based
compensation (1)
|
(3,942)
|
|
(2,568)
|
Purchase accounting
intangible amortization
|
(543)
|
|
(673)
|
Non-GAAP selling,
general and administrative
|
$
35,108
|
|
$
38,135
|
|
|
|
|
Research and
development, as reported
|
$
9,024
|
|
$
12,718
|
Stock-based
compensation (1)
|
(267)
|
|
(794)
|
Purchase accounting
intangible amortization
|
(489)
|
|
(499)
|
Non-GAAP research and
development
|
$
8,268
|
|
$
11,425
|
|
|
|
|
Operating expenses, as
reported
|
$
48,617
|
|
$
58,332
|
Stock-based
compensation (1)
|
(4,209)
|
|
(3,362)
|
Restructuring and
other costs (2)
|
(2,708)
|
|
(5,033)
|
Purchase accounting
intangible amortization
|
(1,032)
|
|
(1,172)
|
Non-GAAP adjustments
to operating expenses
|
(7,949)
|
|
(9,567)
|
Non-GAAP operating
expenses
|
$
40,668
|
|
$
48,765
|
|
|
|
|
Loss from operations,
as reported
|
$
(5,310)
|
|
$ (18,616)
|
Non-GAAP adjustments
to gross profit
|
338
|
|
707
|
Non-GAAP adjustments
to operating expenses
|
7,949
|
|
9,567
|
Non-GAAP loss from
operations
|
$
2,977
|
|
$
(8,342)
|
|
|
|
|
Net loss, as
reported
|
$
(7,267)
|
|
$ (21,164)
|
Non-GAAP adjustments
to gross profit
|
338
|
|
707
|
Non-GAAP adjustments
to operating expenses
|
7,949
|
|
9,567
|
Income tax effect of
non-GAAP adjustments (3)
|
(2,072)
|
|
(2,569)
|
Other tax adjustments
(4)
|
2,748
|
|
6,383
|
Non-GAAP net
gain/(loss)
|
$
1,696
|
|
$
(7,076)
|
|
|
|
|
Net loss per share -
Diluted, as reported
|
$
(0.38)
|
|
$
(1.12)
|
Stock-based
compensation (1)
|
0.24
|
|
0.19
|
Restructuring and
other costs (2)
|
0.14
|
|
0.29
|
Purchase accounting
intangible amortization
|
0.06
|
|
0.06
|
Income tax effect of
non-GAAP adjustments (3)
|
(0.11)
|
|
(0.14)
|
Other tax adjustments
(4)
|
0.14
|
|
0.34
|
Non-GAAP net
income/(loss) per share - Diluted
|
$
0.09
|
|
$
(0.38)
|
(1)
We exclude stock-based compensation, which is non-cash, from the
non-GAAP financial measures because the Company believes that such
exclusion provides a better comparison of results of ongoing
operations for current and future periods with such results from
past periods.
|
|
(2)
On February 14, 2020, our Board of Directors approved a global
restructuring plan (the "Restructuring Plan"), which is intended to
support our strategic plan in an effort to improve operating
performance and ensure that we are appropriately structured and
resourced to deliver increased and sustainable value to our
shareholders and customers. On February 7, 2023, our Board of
Directors approved an integration plan (the "Integration Plan"),
which is intended to streamline and simplify operations,
particularly around our recent acquisitions and the resulting
redundant operations and offerings. The Restructuring and other
costs primarily consist of severance and related benefits
associated with the Restructuring Plan, Integration Plan, and
executive transitions.
|
|
(3)
The Income tax effect of non-GAAP adjustments is calculated by
applying a statutory tax rate to Non-GAAP adjustments, including
Stock-based compensation, Restructuring and other costs, and
Purchase accounting intangible amortization.
|
|
(4) When estimating our
Non-GAAP income tax rate, we exclude the effect of items that
impact our reported income tax rate that we do not believe are
representative of our ongoing operating results, including the
impact of valuation allowances we are currently recording in
certain jurisdictions and certain discrete items such as
adjustments to uncertain tax position reserves, as these items are
difficult to predict and can impact our effective income tax
rate.
|
FARO TECHNOLOGIES,
INC. AND SUBSIDIARIES
|
RECONCILIATION OF NET
LOSS TO EBITDA AND ADJUSTED EBITDA
|
(UNAUDITED)
|
|
|
Three Months Ended
March 31,
|
(in
thousands)
|
2024
|
|
2023
|
Net loss
|
$
(7,267)
|
|
$ (21,164)
|
Interest expense,
net
|
831
|
|
835
|
Income tax
expense
|
1,101
|
|
1,933
|
Depreciation and
amortization
|
3,621
|
|
3,978
|
EBITDA
|
(1,714)
|
|
(14,418)
|
Other expense
(income), net
|
25
|
|
(220)
|
Stock-based
compensation
|
4,539
|
|
3,634
|
Restructuring and
other costs (1)
|
2,716
|
|
5,468
|
Adjusted
EBITDA
|
$
5,566
|
|
$
(5,536)
|
Adjusted EBITDA margin
(2)
|
6.6 %
|
|
(6.5) %
|
(1) On February 14, 2020, our
Board of Directors approved the Restructuring Plan, which is
intended to support our strategic plan in an effort to improve
operating performance and ensure that we are appropriately
structured and resourced to deliver increased and sustainable value
to our shareholders and customers. On February 7, 2023, our Board
of Directors approved the Integration Plan, which is intended to
streamline and simplify operations, particularly around our recent
acquisitions and the resulting redundant operations and offerings.
The Restructuring and other costs primarily consist of severance
and related benefits associated with the Restructuring Plan,
Integration Plan, and executive transitions.
|
|
(2) Calculated as Adjusted
EBITDA as a percentage of total sales.
|
FARO TECHNOLOGIES,
INC. AND SUBSIDIARIES
|
KEY SALES
MEASURES
|
(UNAUDITED)
|
|
|
Three Months Ended
March 31,
|
(in
thousands)
|
2024
|
|
2023
|
Total sales to
external customers as reported
|
|
|
|
Americas
(1)
|
$
37,228
|
|
$
42,343
|
EMEA
(1)
|
25,435
|
|
24,165
|
APAC
(1)
|
21,581
|
|
18,459
|
|
$
84,244
|
|
$
84,967
|
|
|
|
|
|
Three Months Ended
March 31,
|
(in
thousands)
|
2024
|
|
2023
|
Total sales to
external customers in constant currency (2)
|
|
|
|
Americas
(1)
|
$
37,037
|
|
$
42,434
|
EMEA
(1)
|
25,218
|
|
24,486
|
APAC
(1)
|
22,826
|
|
18,460
|
|
$
85,081
|
|
$
85,380
|
(1)
Regions represent North America and South America ("Americas");
Europe, the Middle East, and Africa ("EMEA"); and the Asia-Pacific
("APAC").
|
|
(2)
We compare the change in the sales from one period to another
period using constant currency disclosure. We present constant
currency information to provide a framework for assessing how our
underlying business performed excluding the effect of foreign
currency rate fluctuations. To present this information, current
and comparative prior period results for entities reporting in
currencies other than United States dollars are converted into
United States dollars at the exchange rate in effect during the
last day of the prior comparable period, rather than the actual
exchange rates in effect during the respective periods.
|
|
Three Months Ended
March 31,
|
(in
thousands)
|
2024
|
|
2023
|
|
|
|
|
Hardware
|
$
52,616
|
|
$
54,961
|
Software
|
10,920
|
|
10,279
|
Service
|
20,708
|
|
19,727
|
Total Sales
|
$
84,244
|
|
$
84,967
|
|
|
|
|
Hardware as a
percentage of total sales
|
62.5 %
|
|
64.7 %
|
Software as a
percentage of total sales
|
13.0 %
|
|
12.1 %
|
Service as a percentage
of total sales
|
24.6 %
|
|
23.2 %
|
|
|
|
|
Total Recurring Revenue
(3)
|
$
16,717
|
|
$
16,685
|
Recurring revenue as a
percentage of total sales
|
19.8 %
|
|
19.6 %
|
(3)
Recurring revenue is comprised of hardware service contracts,
software maintenance contracts, and subscription based software
applications.
|
FARO TECHNOLOGIES,
INC. AND SUBSIDIARIES
|
FREE CASH FLOW
RECONCILIATION
|
(UNAUDITED)
|
|
|
Three Months Ended
March 31,
|
(in
thousands)
|
2024
|
|
2023
|
Net cash provided by
(used in) operating activities
|
$
6,575
|
|
$
(18,344)
|
Purchases of property
and equipment
|
(1,323)
|
|
(1,688)
|
Cash paid for
technology development, patents and licenses
|
(1,442)
|
|
(1,820)
|
Free Cash
Flow
|
3,810
|
|
(21,852)
|
Restructuring and
other cash payments (1)
|
403
|
|
796
|
Adjusted Free Cash
Flow
|
$
4,213
|
|
$
(21,056)
|
(1) On February 7, 2023, our
Board of Directors approved the Integration Plan, which is intended
to streamline and simplify operations, particularly around our
recent acquisitions and the resulting redundant operations and
offerings. The Restructuring and other costs primarily consist of
severance and related benefits associated with the Restructuring
Plan, Integration Plan, and executive transitions.
|
FARO TECHNOLOGIES,
INC. AND SUBSIDIARIES
|
RECONCILIATION OF
OUTLOOK - GAAP TO NON-GAAP
|
|
|
Fiscal quarter ending
June 30, 2024
|
|
Low
|
|
High
|
GAAP gross
margin
|
50.5 %
|
|
52.0 %
|
Stock-based
compensation
|
0.5 %
|
|
0.5 %
|
Non-GAAP gross
margin
|
51.0 %
|
|
52.5 %
|
|
|
|
Fiscal quarter ending
June 30, 2024
|
(in
thousands)
|
Low
|
|
High
|
GAAP operating
expenses
|
$46,000
|
|
$48,000
|
Stock-based
compensation
|
(3,300)
|
|
(3,300)
|
Purchase accounting
intangible amortization
|
(1,200)
|
|
(1,200)
|
Restructuring and
other costs
|
(500)
|
|
(500)
|
Non-GAAP operating
expenses
|
$41,000
|
|
$43,000
|
|
|
|
Fiscal quarter ending
June 30, 2024
|
|
Low
|
|
High
|
GAAP diluted loss per
share range
|
$(0.43)
|
|
$(0.23)
|
Stock-based
compensation
|
0.19
|
|
0.19
|
Purchase accounting
intangible amortization
|
0.06
|
|
0.06
|
Restructuring and
other costs
|
0.02
|
|
0.02
|
Non-GAAP tax
adjustments
|
0.08
|
|
0.08
|
Non-GAAP diluted loss
per share
|
$(0.08)
|
|
$0.12
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/faro-announces-first-quarter-financial-results-302133579.html
SOURCE FARO Technologies