Faro Technologies Inc. FARO

NAS: FARO | ISIN: US3116421021   20/12/2024
26,07 USD (+1,72%)
(+1,72%)   20/12/2024

FARO Announces Fourth Quarter and Full Year 2023 Financial Results

  • Q4 revenue of $98.8 million, at the upper end of our guidance range
  • Q4 earnings per share ("EPS") of $0.08; Non-GAAP EPS of $0.36, above our guidance range
  • Significant improvement in cash flow, which results in positive Q4 and FY2023 cash flow from operations

LAKE MARY, Fla., Feb. 27, 2024 /PRNewswire/ -- FARO® Technologies, Inc. (Nasdaq: FARO), a global leader in 4D digital reality solutions, today announced its financial results for the fourth quarter and full year ended December 31, 2023.

"We are pleased with our improved financial performance and remain excited about the long term prospects of our integrated hardware and software solutions strategy to create customer value in our core markets," said Peter Lau, President & Chief Executive Officer. "GAAP EPS of $0.08 and non-GAAP EPS of $0.36 exceeded the high end of our guidance range. GAAP net income of $1.6 million and Adjusted EBITDA of $13.2 million, an increase of 12% year over year, attributed to higher than anticipated revenue and continued improvement in operational execution. We also expanded our cash position by generating $18.7 million of operating cash flow in the quarter, driven by profitability and efficiencies in working capital."

Fourth Quarter 2023 Financial Summary

  • Total sales of $98.8 million, down 5% year over year
  • Gross margin of 50.9%, compared to 49.1% in the prior year period
  • Non-GAAP gross margin of 52.5%, compared to 52.8% in the prior year period
  • Operating expenses of $48.9 million, compared to $52.7 million in the prior year period
  • Non-GAAP operating expenses of $41.3 million, compared to $45.8 million in the prior year period
  • Net income of $1.6 million, or $0.08 per share compared to net loss of $2.2 million, or $(0.12) per share in the prior year period
  • Non-GAAP net income of $6.8 million, or $0.36 per share compared to net income of $7.1 million, or $0.38 per share in the prior year period
  • Adjusted EBITDA of $13.2 million, or 13.3% of total sales compared to $11.7 million, or 11.3% of total sales in the prior year period
  • Cash, cash equivalents & short-term investments of $96.3 million, compared to $79.9 million as of September 30, 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".

Full Year 2023 Financial Summary

  • Total sales of $358.8 million, up 4% compared to the prior year period
  • Net loss of $56.6 million, or $(2.99) per share compared to net loss of $26.8 million, or $(1.46) per share in the prior year period
  • Non-GAAP net loss of $2.4 million, or $(0.13) per share compared to non-GAAP net income of $4.6 million, or $0.25 per share in the prior year period

Outlook for the First Quarter 2024
For the first quarter ending March 31, 2024, FARO currently expects:

  • Revenue in the range of $77 to $85 million
  • Gross margin in the range of 49.0% - 50.5%. Non-GAAP gross margin in the range of 49.5% - 51.0% 
  • Operating expenses in the range of $47.5 - $49.5 million. Non-GAAP operating expenses in the range of $41 - $43 million
  • Net loss per share in the range of ($0.66) - ($0.46). Non-GAAP loss per share in the range of ($0.20) to $0.00

Conference Call
The Company will host a conference call to discuss these results on Wednesday, February 28, 2024, at 8:00 a.m. ET. Interested parties can access the conference call by dialing (800) 245-3047 (U.S.) or +1 (203) 518-9708 (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 and fair value adjustments, 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 fair value adjustments, 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 fourth 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 first 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 that will be filed with the SEC following this earnings release, 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
CONSOLIDATED STATEMENTS OF OPERATIONS



Three Months Ended


Twelve Months Ended

(in thousands, except share and per share data)

December 31,
2023


December 31,
2022


December 31,
2023


December 31,
2022

Sales








Product

$         78,818


$         83,265


$       278,572


$       265,280

Service

20,022


20,594


80,259


80,485

Total sales

98,840


103,859


358,831


345,765

Cost of sales








Product

37,781


40,957


150,472


123,836

Service

10,773


11,867


43,360


46,166

Total cost of sales

48,554


52,824


193,832


170,002

Gross profit

50,286


51,035


164,999


175,763

Operating expenses








Selling, general and administrative

39,429


37,923


157,336


146,657

Research and development

9,238


12,659


41,806


49,415

Restructuring costs

263


2,102


15,393


4,614

Total operating expenses

48,930


52,684


214,535


200,686

Income (loss) from operations

1,356


(1,649)


(49,536)


(24,923)

Other (income) expense








Interest expense (income)

819


(8)


3,348


(36)

Other expense (income), net

1,303


(159)


1,178


(3,236)

Loss before income tax

(766)


(1,482)


(54,062)


(21,651)

Income tax (benefit) expense

(2,354)


753


2,515


5,105

Net income (loss)

$           1,588


$         (2,235)


$       (56,577)


$       (26,756)

Net income (loss) per share - Basic

$              0.08


$            (0.12)


$            (2.99)


$            (1.46)

Net income (loss) per share - Diluted

$              0.08


$            (0.12)


$            (2.99)


$            (1.46)

Weighted average shares - Basic

18,961,632


18,780,081


18,917,778


18,318,191

Weighted average shares - Diluted

21,086,277


18,780,081


18,917,778


18,318,191

 

FARO TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS


(in thousands, except share and per share data)

December 31,
2023


December 31,
2022

ASSETS




Current assets:




Cash and cash equivalents

$           76,787


$           37,812

Short-term investments

19,496


Accounts receivable, net

92,028


90,326

Inventories, net

34,529


50,026

Prepaid expenses and other current assets

38,768


41,201

Total current assets

261,608


219,365

Non-current assets:




Property, plant and equipment, net

21,181


19,720

Operating lease right-of-use asset

12,231


18,989

Goodwill

109,534


107,155

Intangible assets, net

47,891


48,978

Service and sales demonstration inventory, net

23,147


30,904

Deferred income tax assets, net

25,027


24,192

Other long-term assets

4,073


4,044

Total assets

$         504,692


$         473,347

LIABILITIES AND SHAREHOLDERS' EQUITY




Current liabilities:




Accounts payable

$           27,404


$           27,286

Accrued liabilities

29,930


23,345

Income taxes payable

5,699


6,767

Current portion of unearned service revenues

40,555


36,407

Customer deposits

4,251


6,725

Lease liability

5,434


5,709

Total current liabilities

113,273


106,239

Loan - 5.50% Convertible Senior Notes

72,760


Unearned service revenues - less current portion

20,256


20,947

Lease liability - less current portion

10,837


14,649

Deferred income tax liabilities

13,308


11,708

Income taxes payable - less current portion

5,629


8,706

Other long-term liabilities

23


49

Total liabilities

236,086


162,298

Commitments and contingencies




Shareholders' equity:




Common stock - par value $0.001, 50,000,000 shares authorized; 20,343,359 and
20,156,233 issued; 18,968,798 and 18,780,013 outstanding, respectively

20


20

Additional paid-in capital

346,277


328,227

(Accumulated deficit) Retained earnings

(9,789)


46,788

Accumulated other comprehensive loss

(37,247)


(33,331)

Common stock in treasury, at cost - 1,376,220 and 1,376,220 shares held, respectively

(30,655)


(30,655)

Total shareholders' equity

268,606


311,049

Total liabilities and shareholders' equity

$         504,692


$         473,347

 

FARO TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS



Twelve Months Ended

December 31,

(in thousands)

2023


2022

Cash flows from:




Operating activities:




Net loss

$           (56,577)


$           (26,756)

Adjustments to reconcile net loss to net cash used by operating activities:




Depreciation and amortization

15,377


13,983

Stock-based compensation

17,833


13,317

Inventory write-downs

9,340


Asset impairment charges

5,707


507

Provision for bad debts, net of recoveries

1,030


163

Amortization of debt discount and issuance costs

450


Loss on disposal of assets

274


156

Provision for excess and obsolete inventory

2,361


(68)

Impairment of intangible assets


1,135

Deferred income tax expense (benefit)

(26)


2,412

Change in operating assets and liabilities, net of acquisitions:




(Increase) decrease in:




Accounts receivable, net

(50)


(11,198)

Inventories

736


3,379

Prepaid expenses and other assets

3,387


(21,239)

(Decrease) increase in:




Accounts payable and accrued liabilities

4,421


4,777

Income taxes payable

(3,808)


(1,904)

Customer deposits

(2,533)


1,343

Unearned service revenues

2,786


(4,863)

Other liabilities

367


Net cash provided by (used in) operating activities

1,075


(24,856)

INVESTING ACTIVITIES:




Purchases of property and equipment

(6,817)


(6,371)

Purchases of short-term investments

(19,496)


Cash paid for technology development, patents and licenses

(7,177)


(10,567)

Acquisitions of businesses and minority share investments, net of cash received


(32,959)

Net cash used in investing activities

(33,490)


(49,897)

Financing activities:




Payments on capital leases

(154)


(220)

Cash settlement of equity awards

217


(1,892)

Short term debt


1,115

Proceeds from issuance of 5.50% Convertible Senior Notes, due 2028, net of discount, issuance
cost and accrued interest

72,310


Payment of contingent consideration for business acquisition

(1,098)


Net cash provided by (used in) financing activities

71,275


(997)

Effect of exchange rate changes on cash and cash equivalents

115


(8,427)

Increase (Decrease) in cash and cash equivalents

38,975


(84,177)

Cash and cash equivalents, beginning of period

37,812


121,989

Cash and cash equivalents, end of period

$             76,787


$             37,812

 

FARO TECHNOLOGIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP
(UNAUDITED)



Three Months Ended December 31,


Twelve Months Ended December 31,

(dollars in thousands, except per share data)

2023


2022


2023


2022

Gross profit, as reported

$          50,286


$          51,035


$        164,999


$        175,763

Stock-based compensation (1)

364


294


1,335


1,050

Inventory reserve charge (3)

1,208



9,340


Restructuring and other costs(2)

51



1,377


Purchase accounting intangible amortization and fair value
adjustments


3,550



3,550

Non-GAAP adjustments to gross profit

1,623


3,844


12,052


4,600

Non-GAAP gross profit

$          51,909


$          54,879


$        177,051


$        180,363

Gross margin, as reported

50.9 %


49.1 %


46.0 %


50.8 %

Non-GAAP gross margin

52.5 %


52.8 %


49.3 %


52.2 %









Selling, general and administrative, as reported

$          39,429


$          37,923


$        157,336


$        146,657

Stock-based compensation (1)

(4,488)


(2,179)


(14,198)


(9,654)

Purchase accounting intangible amortization

(634)


(811)


(2,658)


(1,373)

Non-GAAP selling, general and administrative

$          34,307


$          34,933


$        140,480


$        135,630









Research and development, as reported

$            9,238


$          12,659


$          41,806


$          49,415

Stock-based compensation (1)

(705)


(818)


(2,300)


(2,611)

Purchase accounting intangible amortization

(475)


(488)


(2,016)


(2,010)

Non-GAAP research and development

$            8,058


$          11,353


$          37,490


$          44,794









Operating expenses, as reported

$          48,930


$          52,684


$        214,535


$        200,686

Stock-based compensation (1)

(5,194)


(2,997)


(16,498)


(12,265)

Restructuring and other costs (2)

(1,329)


(2,604)


(17,666)


(7,548)

Purchase accounting intangible amortization

(1,109)


(1,299)


(4,674)


(3,383)

Non-GAAP adjustments to operating expenses

(7,632)


(6,900)


(38,838)


(23,196)

Non-GAAP operating expenses

$          41,298


$          45,784


$        175,697


$        177,490









Income (loss) from operations, as reported

$            1,356


$          (1,649)


$        (49,536)


$        (24,923)

Non-GAAP adjustments to gross profit

1,622


3,844


12,052


4,600

Non-GAAP adjustments to operating expenses

7,632


6,900


38,838


23,196

Non-GAAP income from operations

$          10,610


$            9,095


$            1,354


$            2,873









Net income (loss), as reported

$            1,588


$          (2,235)


$        (56,577)


$        (26,756)

Non-GAAP adjustments to gross profit

1,622


3,844


12,052


4,600

Non-GAAP adjustments to operating expenses

7,632


6,900


38,838


23,196

Income tax effect of non-GAAP adjustments

(2,314)


(2,149)


(12,723)


(6,163)

Other tax adjustments (4)

(1,738)


772


15,962


9,675

Non-GAAP net income (loss)

$            6,790


$            7,132


$          (2,448)


$            4,552









Net income (loss) per share - Diluted, as reported

$              0.08


$            (0.12)


$            (2.99)


$            (1.46)

Stock-based compensation (1)

0.28


0.18


0.94


0.73

Restructuring and other costs (2)

0.07


0.14


1.01


0.41

Inventory reserve charge(3)

0.06



0.49


Purchase accounting intangible amortization and fair value
adjustments

0.06


0.25


0.25


0.37

Income tax effect of non-GAAP adjustments

(0.11)


(0.11)


(0.67)


(0.33)

Other tax adjustments (4)

(0.08)


0.04


0.84


0.53

Non-GAAP net income (loss) per share - Diluted

$              0.36


$              0.38


$            (0.13)


$              0.25



(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.



(3)

During 2023, we recorded a charge of $9.3 million, increasing our reserve for excess and obsolete inventory, based on our analysis of our inventory reserves in connection with our strategy to simplify our product portfolio and cease selling certain products.



(4)

The other tax adjustments primarily relate to the impact of certain jurisdictions maintaining a full valuation allowance where benefit is not accrued on U.S. GAAP pre-tax book losses.

 

FARO TECHNOLOGIES, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA
(UNAUDITED)



Three Months Ended December 31,


Twelve Months Ended December 31,

(in thousands)

2023


2022


2023


2022

Net income (loss)

$          1,588


$        (2,235)


$      (56,577)


$      (26,756)

Interest (income) expense, net

819


(8)


3,348


(36)

Income tax (benefit) expense

(2,354)


753


2,515


5,105

Depreciation and amortization and fair value adjustments

3,649


7,472


15,377


17,533

EBITDA

3,702


5,982


(35,337)


(4,154)

Other (income) expense, net

1,303


(159)


1,178


(3,236)

Stock-based compensation

5,557


3,291


17,833


13,315

Inventory reserve charge(3)

1,208



9,340


Restructuring and other costs (1)

1,380


2,604


19,043


7,548

Adjusted EBITDA

$        13,150


$        11,718


$        12,057


$        13,473

Adjusted EBITDA margin (2)

13.3 %


11.3 %


3.4 %


3.9 %



(1)

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.



(2)

Calculated as Adjusted EBITDA as a percentage of total sales.



(3)

During 2023, we recorded a charge of $9.3 million, increasing our reserve for excess and obsolete inventory, based on our analysis of our inventory reserves in connection with our strategy to simplify our product portfolio and cease selling certain products.

 

FARO TECHNOLOGIES, INC. AND SUBSIDIARIES
KEY SALES MEASURES
(UNAUDITED)



For the Three Months Ended
December 31,


For the Twelve Months Ended
December 31,

(in thousands)

2023


2022


2023


2022

Total sales to external customers as reported








Americas (1)

$           42,535


$           44,345


$         167,269


$         154,422

EMEA (1)

33,657


31,680


108,298


98,174

APAC (1)

22,648


27,834


83,264


93,169


$           98,840


$         103,859


$         358,831


$         345,765










For the Three Months Ended
December 31,


For the Twelve Months Ended
December 31,

(in thousands)

2023


2022


2023


2022

Total sales to external customers in constant currency (2)








Americas (1)

$           42,044


$           44,008


$         165,715


$         154,545

EMEA (1)

33,028


33,109


105,545


99,355

APAC (1)

23,873


28,392


85,948


92,268


$           98,945


$         105,509


$         357,208


$         346,168



(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.

 


For the Three Months Ended
December 31,


For the Twelve Months Ended
December 31,

(in thousands)

2023


2022


2023


2022









Hardware

$       66,640


$       70,322


$     234,124


$     220,919

Software

12,178


12,943


44,448


44,361

Service

20,022


20,594


80,259


80,485

Total Sales

$       98,840


$     103,859


$     358,831


$     345,765









Hardware as a percentage of total sales

67.4 %


67.7 %


65.2 %


63.9 %

Software as a percentage of total sales

12.3 %


12.5 %


12.4 %


12.8 %

Service as a percentage of total sales

20.3 %


19.8 %


22.4 %


23.3 %









Total Recurring Revenue (3)

$       17,360


$       18,088


$       67,497


$       68,272

Recurring revenue as a percentage of total sales

17.6 %


17.4 %


18.8 %


19.7 %



(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 December 31,


Twelve Months Ended December 31,

(in thousands)

2023


2022


2023


2022

Net cash provided by (used in) operating activities

$            18,655


$            (6,700)


$              1,075


$          (24,856)

Purchases of property and equipment

(1,801)


(1,393)


(6,817)


(6,371)

Cash paid for technology development, patents and licenses

(2,106)


(1,413)


(7,177)


(10,567)

Free Cash Flow

14,748


(9,506)


(12,919)


(41,794)

Restructuring and other cash payments (1)

2,665


454


14,380


6,364

Adjusted Free Cash Flow

$            17,413


$            (9,052)


$              1,461


$          (35,430)



(1)

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 cash payments primarily consist of severance and related benefits.

 

FARO TECHNOLOGIES, INC. AND SUBSIDIARIES
RECONCILIATION OF OUTLOOK - GAAP TO NON-GAAP



Fiscal quarter ending March 31, 2024


Low


High

GAAP gross margin

49.0 %


50.5 %

Stock-based compensation

0.5 %


0.5 %

Non-GAAP gross margin

49.5 %


51.0 %

 


Fiscal quarter ending March 31, 2024

(in thousands)

Low


High

GAAP operating expenses

$47,500


$49,500

Stock-based compensation

(3,300)


(3,300)

Purchase accounting intangible amortization

(1,200)


(1,200)

Restructuring and other costs

(2,000)


(2,000)

Non-GAAP operating expenses

$41,000


$43,000

 


Fiscal quarter ending March 31, 2024


Low


High

GAAP diluted loss per share range

$(0.66)


$(0.46)

Stock-based compensation

0.19


0.19

Purchase accounting intangible amortization

0.06


0.06

Restructuring and other costs

0.11


0.11

Non-GAAP tax adjustments

0.10


0.10

Non-GAAP diluted loss per share

$(0.20)


$0.00

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/faro-announces-fourth-quarter-and-full-year-2023-financial-results-302073287.html

SOURCE FARO

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