- Revenue of $86.8 million, exceeded high-end of expectations
- First full quarter of cost reductions achieved quarterly expense expectations
- Profitability exceeded expectations
FARO® Technologies, Inc. (Nasdaq: FARO), a global leader in 4D digital reality solutions, announced its financial results for the third quarter ended September 30, 2023.
“Third quarter financial performance with revenue of $86.8 million and non-GAAP EPS of $0.02, exceeded the high-end of our expectations driven by a combination of moderate improvements in end market demand and operational performance,” said Peter Lau, President & Chief Executive Office of FARO. “We are excited about the mid to long-term prospects for our business and remain focused on improved execution of our hardware and software enabled strategy, exemplified by the recent launch of the highly differentiated Orbis Mobile Scanner and release of an enhanced version of FARO Sphere XG.”
Third Quarter 2023 Financial Summary
- Total sales of $86.8 million, up 2% year over year
- Software sales of $11.2 million, up 6% compared to the prior year period
- Recurring revenue of $17.1 million, up 3% year on year
- Gross margin of 48.0%, compared to 50.7% in the prior year period
- Non-GAAP gross margin of 48.9%, compared to 51.0% in the prior year period
- Operating expenses of $48.6 million, compared to $50.4 million in the prior year period
- Non-GAAP operating expenses of $41.5 million, compared to $44.3 million in the prior year period
- Net loss of $8.8 million, or $(0.46) per share compared to net loss of $6.3 million, or $(0.34) per share in the prior year period
- Non-GAAP net income of $0.5 million, or $0.02 per share compared to non-GAAP net gain of $0.5 million, or $0.03 per share in the prior year period
- Adjusted EBITDA of $3.5 million, or 4.1% of total sales compared to $2.0 million, or 2.3% of total sales in the prior year period
- Cash and cash equivalent of $79.9 million, compared to $88.5 million as of June 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”.
Outlook for the Fourth Quarter 2023
For the fourth quarter ending December 31, 2023, FARO currently expects:
- Revenue in the range of $92 to $100 million
- Gross margin in the range of 49.5% to 51.0%. Non-GAAP gross margin in the range of 50.5% to 52.0%
- Operating expenses in the range of $47.5 to $49.5 million. Non-GAAP operating expenses in the range of $41.0 to $43.0 million
- Net loss per share in the range of ($0.30) to ($0.15). Non-GAAP net income per share in the range of $0.18 to $0.34
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