Restructuring and Operational Changes - FARO Technologies reported a total restructuring charge of $26.7 million since the approval of the Integration Plan, with cash payments of $10.4 million primarily for severance and related benefits[89]. - The company completed its Restructuring Plan actions as of March 31, 2023, with total payments of $24.8 million, mainly for severance and related benefits[88]. - The 2024 Restructuring Plan aims to improve operating performance and streamline operations, particularly in underperforming countries due to economic challenges in the manufacturing and construction sectors[90]. - FARO Technologies expects to recognize $0.1 million in employee severance and other costs associated with the 2024 Restructuring Plan in Q1 2025[91]. - The company has transitioned manufacturing services to Sanmina, which is expected to support volume requirements during 2025[86]. - The company has abandoned 17,000 square feet of unused manufacturing space in Exton, Pennsylvania, as part of its restructuring efforts[88]. - FARO Technologies is focused on consolidating its cloud-based offerings into a single customer platform to enhance operational efficiency[89]. Financial Performance - Total sales for the three months ended March 31, 2025, were $82.9 million, a decrease of $1.4 million or 1.7% compared to $84.2 million for the same period in 2024[99]. - Gross profit increased by $3.9 million, or 9.1%, to $47.2 million for the three months ended March 31, 2025, with a gross margin of 57.0%, up from 51.4% in the prior year[100]. - Recurring revenue for the three months ended March 31, 2025, was $17.3 million, an increase from $16.7 million in the same period of 2024[93]. - Research and development expenses rose by $0.5 million, or 5.1%, to $9.5 million for the three months ended March 31, 2025, representing 11.4% of total sales[103]. - Selling, general and administrative expenses decreased by $5.8 million, or 14.6%, to $33.8 million for the three months ended March 31, 2025, accounting for 40.8% of total sales[102]. - Net income for the three months ended March 31, 2025, was $0.9 million, compared to a net loss of $7.3 million for the same period in 2024[108]. - Cash and cash equivalents increased by $3.7 million to $92.4 million at March 31, 2025, from $88.7 million at December 31, 2024[109]. Currency and Interest Rate Exposure - As of March 31, 2025, over 61% of the company's revenue was invoiced in foreign currencies, with approximately 42% of its assets denominated in foreign currencies[121]. - The company had short-term investments of $10.2 million and cash equivalents of $20.3 million, all denominated in U.S. dollars[122]. - The company does not believe that a 5% increase or decrease in interest rates would materially affect its business or financial condition[124]. - The company has not utilized off-balance sheet financial instruments for hedging foreign currency exchange rate exposure as of March 31, 2025[121]. - Future investment income may fall short of expectations due to changes in interest rates, potentially leading to losses in principal[123]. - The company’s exposure to foreign exchange risks may increase if the percentage of non-U.S. dollar revenues from international sales rises[121]. - Fixed rate securities may see a negative impact on market value due to rising interest rates, while floating rate securities may yield less income if rates fall[123]. Inflation and Economic Impact - Rising general inflation has negatively impacted the company's cost of sales and operating expenses, affecting customer purchasing power[125]. - The impact of future inflation fluctuations on the company's operations cannot be accurately predicted[125]. Other Information - The company released the first phase of FARO Sphere to customers in Q2 2022, with FARO Sphere XG announced on October 23, 2023, enhancing cloud-based software offerings[92]. - Interest expense for the three months ended March 31, 2025, was $0.9 million, compared to $0.8 million for the same period in 2024[104]. - The company has not experienced changes in critical accounting policies since its last annual report[119].

Exhibit 99.1 FARO Announces First Quarter Financial Results LAKE MARY, FL, April 24, 2025 - FARO® Technologies, Inc. (Nasdaq: FARO), a global leader in 4D digital reality solutions, today announced its financial results for the first quarter ended March 31, 2025. "We're very pleased with our strong start to the year, with our first quarter financial results exceeding our expectations and reflecting the successful execution of our strategic growth initiatives," said Peter Lau, President & Chief Executive Off ...

Core Viewpoint - FARO Technologies, Inc. will release its financial results for Q1 2025 on April 24, 2025, and will host a conference call to discuss these results [1]. Group 1 - The financial results will cover the period ended March 31, 2025 [1]. - The conference call will be led by Peter Lau, President and CEO, and Matthew Horwath, Senior Vice President and CFO [1]. - The call is scheduled for 8:00 am ET on April 24, 2025 [1]. Group 2 - Interested parties can access the conference call via specific phone numbers and a passcode [2]. - A live webcast will be available on FARO's Investor Relations website [2]. - A replay of the webcast will be accessible for approximately 30 calendar days after the call [2]. Group 3 - FARO has over 40 years of experience in providing technology solutions that enable customers to measure their world [3]. - The company is recognized for its innovation in bridging digital and physical realms through data-driven accuracy and precision [3]. - More information about FARO can be found on their official website [3].

Stunning Visuals, Automated Workflows and One Touch Insights FARO Blink Reality Capture Solution From Site to Insights, in a Blink FARO Blink Reality Capture Solution From Site to Insights, in a Blink Lake Mary, Fla, April 15, 2025 (GLOBE NEWSWIRE) -- LAKE MARY, Fla. (April 15, 2025) — FARO® Technologies, Inc. (Nasdaq: FARO) has announced the launch of a unique 3D reality capture solution, FARO Blink, marking an important milestone in its mission to streamline and democratize the process of 3D realit ...

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $93.5 million, down 5% year-over-year, but above the midpoint of guidance [30] - Non-GAAP gross margin increased to 57.4%, up 650 basis points year-over-year [32] - Non-GAAP EPS for Q4 was $0.50, a $0.25 improvement from Q4 2023 [33] - Annual non-GAAP EPS improved to $0.97, a $1.49 increase year-over-year [36] Business Line Data and Key Metrics Changes - Hardware revenue decreased by 7% year-over-year to $62.3 million [31] - Software revenue was down 5% to $11.6 million, while service revenue decreased by 2% to $19.7 million [31] - Recurring revenue represented 18% of sales, declining by 2% year-over-year [31] Market Data and Key Metrics Changes - The Americas and European regions saw revenue declines of 5% and 2% respectively, while Asia Pacific experienced a decline of over 11% primarily due to weakness in China [30] - The company noted stable demand in sectors like 3D metrology but faced challenges in commercial construction in regions like China and Germany [10] Company Strategy and Development Direction - The company is in a multi-year strategy divided into three phases, focusing first on operational excellence, then on organic growth initiatives, and finally on strategic investments [12][13] - Key initiatives include refreshing core solutions, expanding addressable opportunities, and forming strategic partnerships [16][20] - The company aims to increase its addressable opportunity by 40% through new solutions aligned with its core business [22] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the market outlook beyond the next quarter, citing ongoing economic uncertainties and customer hesitance due to tariff-related issues [11][38] - Despite challenges, management remains optimistic about growth initiatives and believes they will help offset industry softness [38][39] Other Important Information - The company achieved a record year in 2024, with significant improvements in cash flow and operational metrics [11][36] - The company signed two significant global partnership agreements, one with Topcon and another in the 3D metrology space, expected to enhance market reach [24][25] Q&A Session Summary Question: Differences in OEM distribution agreements with Topcon - Management highlighted a comprehensive growth plan with Topcon, expecting significant revenue contributions as the partnership ramps up [44][45] Question: Timeline for the digital metrology agreement - Management indicated that the unnamed partnership would likely launch in the fourth quarter of 2025, focusing on global scalability [50][52] Question: Market conditions and growth initiatives - Management noted that current market conditions are similar to Q4, with expectations for growth initiatives to help the company outpace market growth [60][62] Question: Impact of tariffs on customer behavior - Management observed that customers are being cautious due to tariff uncertainties, particularly in regions like Canada and Latin America [80][84] Question: Pricing strategy and competitive landscape - Management confirmed recent price increases and noted that competitors are also raising prices, allowing for flexibility in competitive situations [86][88]

Revenue and Sales Performance - Approximately 85% of the company's revenue in 2024 was attributable to sales to existing customers[86] - Total sales for 2024 were $342,427,000, a decrease of 4.3% from $358,831,000 in 2023[292] - Total product sales for 2024 were $260.194 million, a decrease of 6.5% from $278.572 million in 2023[337] - Service sales for 2024 amounted to $82.233 million, reflecting a slight increase from $80.259 million in 2023[337] - Total sales to external customers in the Americas for 2024 were $158.311 million, down from $167.269 million in 2023, representing a decline of 6.4%[337] - The company recognized revenue from invoicing activity of $34.133 million for the year ended December 31, 2024, compared to $33.7 million in 2023[341] Financial Position and Assets - As of December 31, 2024, the company holds $44.1 million in intangible assets and $106.6 million in goodwill, with potential future impairments impacting financial condition[120] - The outstanding principal balance of the company's Convertible Senior Notes was $72 million as of December 31, 2024, indicating a need for additional capital[122] - The company had short-term investments of $10.0 million and cash equivalents of $20.5 million as of December 31, 2024[271] - The company's total assets decreased from $504.7 million in 2023 to $483.0 million in 2024, a decline of approximately 4.3%[290] - The total current assets decreased from $261.6 million in 2023 to $248.2 million in 2024, a decline of approximately 5.2%[290] - The company reported total property, plant, and equipment at cost of $124.4 million as of December 31, 2024, a decrease from $126.2 million in 2023[314] Profitability and Expenses - The net loss for 2024 was $9,066,000, significantly improved from a net loss of $56,577,000 in 2023[295] - Gross profit increased to $187,153,000 in 2024, compared to $164,999,000 in 2023, reflecting a gross margin improvement[292] - Operating expenses decreased to $183,824,000 in 2024, down from $214,535,000 in 2023, primarily due to lower selling, general and administrative expenses[292] - Research and development expenses were $40,056,000 in 2024, slightly down from $41,806,000 in 2023, reflecting ongoing investment in innovation[292] - The company reported a comprehensive loss of $20,838,000 for 2024, compared to $60,493,000 in 2023, indicating a reduction in overall losses[295] Risks and Challenges - The company faces risks related to attracting and retaining qualified personnel, which could negatively impact profitability[80] - The company is vulnerable to the effects of pandemics, which could materially impact its business and financial condition[97] - Reductions in defense spending could adversely affect the company's financial position, results of operations, and cash flows, particularly due to reliance on U.S. government contracts[105] - The company faces significant exposure to foreign exchange rate risk due to a substantial portion of revenues, expenses, and assets being denominated in foreign currencies[114] - The company is exposed to risks related to the availability and cost of raw materials, which could negatively impact profitability and operational efficiency[144] Compliance and Regulatory Issues - The company is subject to various governmental regulations, including the EU's RoHS2 and WEEE directives, which could impact its operations and results if compliance is not maintained[148] - The company must comply with data protection laws, such as the EU GDPR, which could materially impact its business operations and data handling practices[149] - Compliance with anti-corruption laws is critical, as violations could lead to significant penalties and reputational harm[163] - The company faces significant compliance costs due to evolving data protection regulations in the U.S. and internationally, which may require substantial investments in security measures[150] Market and Competitive Landscape - The company competes in a highly competitive market for measurement systems, requiring continued investment in technology and product development to maintain its competitive edge[145] - The company's financial performance is highly dependent on the automotive, aerospace, and heavy equipment industries, which are cyclical and sensitive to economic conditions[112] - The effectiveness of the company's sales promotions and geographic expansion efforts may significantly influence future operating results[118] Currency and Taxation - In 2024, 59% of the company's revenue was invoiced in foreign currencies, with 41% of its assets also denominated in foreign currencies[270] - The company had U.S. federal net operating loss carryforwards of $13.2 million and state net operating loss carryforwards of $133.5 million as of December 31, 2024[363] - The income tax expense for 2024 was $8,132 million, a significant increase from $2,515 million in 2023[362] - The total deferred tax liabilities increased from $2,583 million in 2023 to $3,120 million in 2024[362] Corporate Governance and Internal Controls - A material weakness in internal controls related to IT general controls was identified, but remediation actions have been implemented and deemed successful as of December 31, 2024[127] - The company has adopted a new sales strategy for government contracts through approved distributors to mitigate compliance risks[161]

Financial Performance - Q4 2024 revenue was $93.5 million, down 5% year-over-year, but at the upper end of guidance range [4] - Q4 2024 net loss was $1.0 million, or $(0.05) per share, compared to net income of $1.6 million, or $0.08 per share in the prior year period [5] - Full year 2024 total sales were $342.4 million, down 5% compared to the prior year period [11] - Full year 2024 net loss was $9.1 million, or $(0.47) per share, compared to a net loss of $56.6 million, or $(2.99) per share in the prior year [11] - The company reported a net loss of $9.1 million for the twelve months ended December 31, 2024, compared to a net loss of $56.6 million in 2023, indicating a positive trend in financial recovery [31] Adjusted Metrics - Adjusted EBITDA for Q4 2024 was $16.7 million, or 17.9% of total sales, compared to $11.9 million, or 12.1% of total sales in the prior year period [10] - Non-GAAP net income for the full year 2024 was $18.5 million, or $0.97 per share, compared to a non-GAAP net loss of $9.9 million, or $(0.52) per share in the prior year [11] - Adjusted EBITDA for the twelve months ended December 31, 2024, was $39.6 million, significantly up from $2.7 million in 2023, reflecting a substantial improvement in operational performance [31] - The company reported a non-GAAP income from operations of $28.2 million for 2024, a significant recovery from a loss of $8.0 million in 2023 [29] Cash and Investments - Cash, cash equivalents, and short-term investments increased to $98.7 million as of December 31, 2024, compared to $88.9 million as of September 30, 2024 [10] - Cash and cash equivalents rose to $88.7 million at the end of 2024, compared to $76.8 million at the end of 2023, an increase of approximately 15.5% [27] Profitability Metrics - The company achieved a decade-high adjusted EBITDA margin of 18% in Q4 2024, marking the first double-digit adjusted EBITDA margin since 2018 [2] - Gross margin improved to 54.7% in 2024 from 46.0% in 2023, reflecting a positive trend in profitability [29] - The company’s GAAP gross margin for the fiscal quarter ending March 31, 2025, is projected to be between 54.5% and 56.0%, with a Non-GAAP gross margin expected between 55.0% and 56.5% [37] Expenses and Liabilities - Operating expenses for Q4 2024 were $48.4 million, a slight decrease from $48.9 million in the prior year period [5] - Total liabilities decreased from $236.1 million in 2023 to $233.4 million in 2024, a reduction of about 1.1% [25] - Research and development expenses for 2024 were $40.1 million, slightly decreased from $41.8 million in 2023 [29] Sales and Revenue Composition - Total recurring revenue for the twelve months ended December 31, 2024, was $68.4 million, representing 20.0% of total sales, an increase from 18.8% in 2023 [33] - Hardware sales for the three months ended December 31, 2024, were $62.3 million, accounting for 66.6% of total sales, compared to 67.4% in the same period of 2023 [33] - The company’s total sales in constant currency for the twelve months ended December 31, 2024, were $349.0 million, a decrease from $361.1 million in 2023 [33] Restructuring and Future Outlook - The company has completed substantially all planned activities under its Restructuring and Integration Plans, with a new restructuring plan approved on November 1, 2024, to address underperforming operations [30] - The company expects Q1 2025 revenue in the range of $77 to $85 million, with a gross margin between 54.5% and 56.0% [11] - The company’s restructuring and other costs for the twelve months ended December 31, 2024, amounted to $8.9 million, down from $19.0 million in 2023, reflecting the completion of planned restructuring activities [31] Shareholder Returns - The company repurchased $10.0 million worth of common stock during the year, indicating a commitment to returning value to shareholders [27]

Q4 revenue of $93.5 million, at the upper end of our guidance rangeQ4 net loss of $1.0 million, or $(0.05) per share; Non-GAAP EPS of $0.50, at the high end of guidance rangeSignificant improvement in cash flow, which results in positive Q4 and FY2024 cash flow from operations LAKE MARY, Fla., Feb. 24, 2025 (GLOBE NEWSWIRE) -- 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, ...

LAKE MARY, Fla., Feb. 17, 2025 (GLOBE NEWSWIRE) -- FARO® Technologies, Inc. (Nasdaq: FARO), a global leader in 4D digital reality solutions, today announced that after market close on Monday, February 24, 2025, it will release its financial results for the fourth quarter and full year ended December 31, 2024. In conjunction with the release, Peter Lau, President and Chief Executive Officer, and Matthew Horwath, Senior Vice President and Chief Financial Officer, will host a conference call on Monday, Februar ...

Core Insights - FARO Technologies, Inc. has launched the FARO Leap ST, a new handheld scanning solution that enhances its product portfolio and strengthens its position in the manufacturing sector [1][2][7] - The Leap ST features five operating modes designed for various scanning needs, emphasizing speed, accuracy, and versatility in 3D metrology [2] - The updated FARO CAM2 software complements the Leap ST, offering tailored versions for specific manufacturing measurement requirements [3] Company Developments - The launch of Leap ST is part of FARO's strategy to maintain momentum in product innovation, following a series of new product launches in 2024 [2] - FARO has been a pioneer in 3D metrology for over 40 years, focusing on bridging digital and physical worlds through reliable technology solutions [5] Customer Impact - RFK Racing, a long-time customer, has praised the Leap ST for its potential to enhance manufacturing efficiency and streamline processes through integration with CAM2 software [4]