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
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.
