CIMdata PLM Industry Summary Online Archive
27 February 2013
Financial News
FARO Reports Fourth Quarter and Full Year 2012 Results
FARO Technologies, Inc. announced results for the fourth quarter ended December 31, 2012. Sales in the fourth quarter of 2012 increased 4.7% to $80.7 million, from $77.1 million in the fourth quarter of 2011. The Company reported net income decreased to $7.8 million, or $0.46 per share, in the fourth quarter of 2012, from$9.5 million, or $0.56 per share, in the fourth quarter of 2011.
Fiscal 2012 sales were $273.4 million, an increase of 7.6% compared to fiscal 2011 sales of $254.2 million. Net income for fiscal 2012 was $23.0 million compared to $23.4 million in fiscal 2011. The decline in net income was attributable in part to legal fees of$3.7 million in fiscal 2012, compared with $1.3 million in 2011, associated with the FCPA Monitor and the Nikon Patent case, both of which were substantially and favorably resolved during 2012. Cash flow from operating activities for 2012 was $27.9 million, compared to $8.7 million in 2011.
New order bookings for the fourth quarter of 2012 were $82.1 million, an increase of $5.0 million, or 6.5%, compared to $77.1 million in the fourth quarter of 2011. New order bookings for fiscal 2012 were $276.2 million, an increase of 8.0% from $255.7 million in fiscal 2011.
"Performance in the fourth quarter and for the full year was solid in light of the economic headwinds we faced in most of our end markets. Although customer interest was strong throughout the year and our new products were well received, deal closure rates were slower reflecting continued economic uncertainty," stated Jay Freeland, FARO's President & CEO.
Sales of the Focus Laser Scanner were particularly strong. Gross margins on this product are lower than the Company's other products primarily because of greater reliance on the distribution channel compared to the Company's other products. However, those sales involve minimal associated sales and marketing expenses. Overall gross margin for the fourth quarter of 2012 was 53.4%, compared to 56.5% in the fourth quarter of 2011.
The Company's operating margin for the fourth quarter decreased to 13.9%, compared to 16.7% in the fourth quarter of 2011 and included approximately $0.4 million of professional fees related to the Company's patent litigation.
"Although our overall 2012 results were satisfactory, they did not meet our expectations. In 2013, we anticipate continuing market uncertainty. To address this and drive improved performance, we expect to continue to strengthen our product portfolio, increase sales coverage around the world, and tighten cost controls across the Company's operations," Freeland concluded.
To view an unabridged version of this press release, visit: http://phoenix.corporate-ir.net/phoenix.zhtml?c=99722&p=irol-newsArticle&ID=1790120&highlight=
Become a member of the CIMdata PLM Community to receive your daily PLM news and much more.
Tell us what you think of the CIMdata Newsletter. Send your feedback.
CIMdata is committed to your privacy. Your personal information will never be sold or shared outside of CIMdata without your express permission.