FARO Technologies, Inc. announced results for the fourth quarter and fiscal year ended December 31, 2014. Sales in the fourth quarter of 2014 increased 15.9% to $104.2 million from $89.9 million in the fourth quarter of 2013. Net income increased $2.8 million, or 34.6%, to $11.1 million, or $0.64 per share, in the fourth quarter of 2014 from $8.3 million, or $0.48 per share, in the fourth quarter of 2013.
Fiscal 2014 sales increased 17.2% to $341.8 million compared with the preceding year. Net income for fiscal 2014 increased 56.4% to $33.6 million or $1.93 per share, as compared with $21.5 million or $1.25per share in fiscal 2013. Excluding a discrete tax benefit of $4.5 million recorded in the third quarter of 2014, net income for fiscal 2014 would have been $29.1 million or $1.67 per share, up 35.4% from fiscal 2013.
New order bookings for the fourth quarter of 2014 increased $10.6 million, or 10.7%, to $109.2 million from$98.6 million in the fourth quarter of 2013 representing a 1.05 book to bill ratio for the quarter.
Gross profit in the fourth quarter increased $8.0 million, or 16.1%, to $57.3 million from $49.3 million in the prior year quarter primarily driven by strong sales volume in Arms due to the release of the Company's new Laser Line Probe HD. Gross margin of 55.0% increased 10 basis points from the fourth quarter of 2013 primarily driven by a favorable sales mix with the strong sales volume of Arms combined with an increase in average selling price of Arms.
Operating margin decreased slightly to 12.5% in the fourth quarter of 2014 from 12.6% in the fourth quarter of 2013 mainly due to the Company's commitment to increasing its investment in developing new disruptive products and executing infrastructure growth projects. In fiscal year 2014, operating margin increased by 60 basis points to 10.9%.
"Market demand remained strong in the fourth quarter, driving 16% sales growth. We demonstrated market leadership, with the new FARO Laser Line Probe HD and the FARO Laser Scanner performing particularly well. In total, 2014 was a good year for the Company. We achieved mid-teens top line growth, increased our operating margin, executed on several planned infrastructure projects, and completed the acquisition of The CAD Zone," stated Jay Freeland, FARO's President and CEO. "We entered 2015 by launching a brand new product for the Company, the FARO Freestyle, an innovative, hand-held 3D Laser Scanner. We also announced the acquisition of ARAS 360, a leader in accident and crime scene reconstruction software. In the year ahead, we will continue driving towards our longer term model of mid-teens organic growth, accelerating product innovation, and capitalizing on market opportunities to expand our offerings."
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