FARO® Technologies, Inc., a global leader in 4D digital reality solutions, 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.
