Financial Performance - Revenue for Q3 2024 was $82.6 million, down 5% year over year, but at the upper end of guidance range[3] - Gross margin was 55.7%, significantly improved from 48.0% in the prior year period[3] - Non-GAAP earnings per share (EPS) was $0.21, compared to $0.03 in the prior year period, indicating strong profitability improvement[3] - Adjusted EBITDA for Q3 2024 was $8.9 million, representing 10.7% of total sales, up from 4.1% in the prior year[3] - The net loss for Q3 2024 was $0.3 million, or $(0.02) per share, a significant improvement from a net loss of $8.8 million, or $(0.46) per share, in the prior year[3] - Gross profit for the three months ended September 30, 2024, was $45,976,000, compared to $41,674,000 for the same period in 2023, representing a 5.5% increase[19] - Non-GAAP gross profit for the nine months ended September 30, 2024, was $135,159,000, up from $117,011,000 in 2023, reflecting a 15.5% increase[19] - The net loss for the three months ended September 30, 2024, was $289,000, significantly improved from a net loss of $8,756,000 in the same period of 2023[19] - Adjusted EBITDA for the three months ended September 30, 2024, was $3,520,000, compared to a loss of $9,225,000 in 2023, indicating a recovery in operational performance[22] - The company reported a non-GAAP net income of $3,995,000 for the three months ended September 30, 2024, compared to $457,000 in 2023, marking a substantial increase[19] Cash Flow and Assets - Cash flow from operations was $2.6 million, with cash and short-term investments totaling $88.9 million[4] - Net cash provided by operating activities was $13,355 thousand for the nine months ended September 30, 2024, compared to a net cash used of $17,580 thousand in the prior year[18] - Cash and cash equivalents increased from $76,787 thousand to $88,913 thousand, representing a growth of about 15.5%[18] - Total current assets decreased from $261,608 thousand as of December 31, 2023, to $245,428 thousand as of September 30, 2024, a decline of approximately 6.1%[17] - Total liabilities decreased from $236,086 thousand as of December 31, 2023, to $234,112 thousand as of September 30, 2024, a reduction of approximately 0.8%[17] - Total shareholders' equity decreased from $268,606 thousand to $255,518 thousand, reflecting a decline of about 4.9%[17] - The company reported a decrease in accounts receivable from $92,028 thousand to $83,208 thousand, a decline of approximately 9.6%[17] - The company reported an increase in inventories from $34,529 thousand to $39,055 thousand, an increase of approximately 13.5%[17] Future Projections - For Q4 2024, the company expects revenue in the range of $88 to $96 million and gross margin between 55.6% to 57.1%[5] - Operating expenses for Q4 2024 are projected to be between $47.4 million and $49.4 million[5] - The company expects a GAAP gross margin between 55.6% and 57.1% for the fiscal quarter ending December 31, 2024[26] - Non-GAAP diluted earnings per share are projected to be between $0.32 and $0.52 for the fiscal quarter ending December 31, 2024[27] Sales and Revenue Composition - Total sales to external customers for Q3 2024 were $82,563,000, a decrease of 4.0% compared to $86,813,000 in Q3 2023[23] - Hardware sales accounted for 60.9% of total sales in Q3 2024, down from 64.2% in Q3 2023[24] - Total recurring revenue for Q3 2024 was $17,431,000, representing 21.1% of total sales, compared to 19.6% in Q3 2023[24] - Total sales in constant currency for the Americas in Q3 2024 were $40,707,000, slightly down from $40,879,000 in Q3 2023[23] - Total sales in constant currency for EMEA in Q3 2024 were $24,278,000, compared to $24,954,000 in Q3 2023[23] - Total sales in constant currency for APAC in Q3 2024 were $16,497,000, down from $19,883,000 in Q3 2023[23] Strategic Initiatives - The company launched new products including the Quantum X Arm and next generation Focus Premium Max Laser Scanner to drive organic revenue growth[2] - The company is implementing a global restructuring plan aimed at improving operating performance and streamlining operations following recent acquisitions[21] - The company is implementing an Integration Plan to streamline operations following recent acquisitions[25] Shareholder Returns - Share repurchases during the quarter amounted to $10 million, reflecting the company's commitment to returning value to shareholders[1] - The company incurred $10,014 thousand in common stock repurchases during the nine months ended September 30, 2024[18]

Core Insights - FARO Technologies, Inc. reported third-quarter revenue of $82.6 million, which is at the upper end of its guidance range, despite a 5% decline year-over-year [1][3] - The company achieved a gross margin of 55.7%, significantly improved from 48.0% in the prior year, and a non-GAAP gross margin of 56.1% [3][20] - Non-GAAP earnings per share (EPS) reached $0.21, exceeding guidance, while the net loss per share was $(0.02), a substantial improvement from $(0.46) in the same period last year [1][3][21] - Adjusted EBITDA was reported at $8.9 million, representing 10.7% of total sales, compared to $3.5 million or 4.1% of total sales in the prior year [2][3][24] Financial Performance - Total sales for the third quarter were $82.6 million, down from $86.8 million in the prior year [3][25] - Operating expenses decreased to $43.8 million from $48.6 million year-over-year, with non-GAAP operating expenses also declining [3][20] - The company reported a net loss of $0.3 million, a significant improvement from a net loss of $8.8 million in the prior year [3][20] Cash Flow and Shareholder Actions - Cash flow from operations was $2.6 million, and the company executed share repurchases totaling $10 million during the quarter [1][3] - As of September 30, 2024, cash, cash equivalents, and short-term investments amounted to $88.9 million, down from $96.3 million at the end of 2023 [3][20] Future Outlook - For the fourth quarter of 2024, FARO expects revenue in the range of $88 to $96 million, with gross margins projected between 55.6% and 57.1% [4] - The company anticipates operating expenses to be between $47.4 million and $49.4 million, with non-GAAP operating expenses expected to range from $40.5 million to $42.5 million [4]

LAKE MARY, Fla., Oct. 18, 2024 /PRNewswire/ -- FARO® (Nasdaq: FARO), a global leader in 4D digital reality solutions, today announced the appointment of Phillip Delnick to lead FARO's global sales organization as its SVP, Global Sales, effective October 21, 2024. "Phillip brings a wealth of expertise in sales leadership to FARO, with a proven track record of driving revenue growth, profit growth, and customer satisfaction across multiple product sectors over nearly two decades at Ingersoll Rand," said Peter ...

New FARO Focus Premium Max leads refreshed lineup LAKE MARY, Fla., Oct. 15, 2024 /PRNewswire/ -- FARO Technologies, Inc. (Nasdaq: FARO) has launched the next generation in the FARO Focus 3D Laser Scanner portfolio. The Focus product line offers a complete 3D laser scanning solution, delivering a more efficient experience from data capture to insights. The Focus Laser Scanner Solution offers up to 400 meters in range.The Focus Laser Scanner Solution offers up to 400 meters in range. The latest addition to th ...

Revenue and Sales Performance - Revenue for Q2 2024 was $82.1 million, down 7% year-over-year[2] - Total sales for the six months ended June 30, 2024 were $166.3 million, compared to $173.2 million in the prior year period[14] - Total sales to external customers for Q2 2024 were $82.085 million, a decrease from $88.211 million in Q2 2023[23] - Hardware sales accounted for 61.0% of total sales in Q2 2024, down from 64.4% in Q2 2023[24] - Recurring revenue increased to $17.139 million in Q2 2024, representing 20.9% of total sales, up from 18.6% in Q2 2023[24] - Q3 2024 revenue is expected to be in the range of $76 to $84 million[4] Gross Margin and Profitability - Gross margin for Q2 2024 was 54.6%, compared to 37.8% in the prior year period[2] - Non-GAAP gross margin for Q2 2024 was 55.0%, compared to 38.7% in the prior year period[2] - Gross profit for Q2 2024 increased to $44.8 million, up from $33.3 million in Q2 2023, with a gross margin of 54.6% compared to 37.8% in the same period last year[19] - Non-GAAP gross profit for Q2 2024 was $45.2 million, with a non-GAAP gross margin of 55.0%, compared to $34.2 million and 38.7% in Q2 2023[19] - Q3 2024 gross margin is expected to be in the range of 53.0% to 54.5%, with Non-GAAP gross margin in the range of 53.5% to 55.0%[4] - Non-GAAP gross margin for Q3 2024 is projected to be between 53.5% and 55.0%[26] Operating Expenses and Costs - Operating expenses for Q2 2024 decreased to $43.0 million from $58.7 million in Q2 2023, with non-GAAP operating expenses at $40.0 million compared to $44.1 million[19] - Research and development expenses for Q2 2024 decreased to $9.8 million from $11.7 million in Q2 2023, with non-GAAP R&D expenses at $8.7 million compared to $10.1 million[19] - Selling, general, and administrative expenses for Q2 2024 were $32.6 million, down from $38.6 million in Q2 2023, with non-GAAP SG&A expenses at $31.3 million compared to $34.0 million[19] - Q3 2024 operating expenses are expected to be in the range of $45 to $47 million, with Non-GAAP operating expenses in the range of $40 to $42 million[4] - Non-GAAP operating expenses for Q3 2024 are expected to range from $40.000 million to $42.000 million[26] - Stock-based compensation for Q2 2024 was $1.2 million, down from $5.0 million in Q2 2023[22] - Restructuring and other costs for Q2 2024 were $1.4 million, compared to $9.2 million in Q2 2023[22] Net Loss and Earnings - Net loss for Q2 2024 was $524,000, significantly lower than the $28.2 million net loss in Q2 2023, with non-GAAP net income of $3.4 million compared to a non-GAAP net loss of $10.8 million[19] - Net loss for the six months ended June 30, 2024, was $7,791 thousand, compared to a net loss of $49,409 thousand for the same period in 2023, showing a significant improvement[18] - Q3 2024 net loss per share is expected to be in the range of ($0.32) to ($0.12), with Non-GAAP net loss to net income per share in the range of $(0.01) to $0.19[4] - Non-GAAP diluted loss per share for Q3 2024 is forecasted to be between $(0.01) and $0.19[27] Cash Flow and Liquidity - Cash, cash equivalents & short-term investments were $97.9 million as of June 30, 2024, compared to $96.3 million as of December 31, 2023[2] - Cash and cash equivalents increased to $97,914 thousand in June 2024 from $76,787 thousand in December 2023, reflecting a growth of 27.5%[15] - Cash and cash equivalents at the end of the period were $97,914 thousand in June 2024, compared to $68,228 thousand in June 2023, showing a growth of 43.5%[18] - Net cash provided by operating activities was $10,787 thousand for the six months ended June 30, 2024, compared to a net cash used in operating activities of $13,207 thousand for the same period in 2023[18] - Net cash provided by investing activities was $14,929 thousand for the six months ended June 30, 2024, compared to a net cash used in investing activities of $27,952 thousand for the same period in 2023[18] - Free Cash Flow for Q2 2024 was $1.897 million, compared to $717 thousand in Q2 2023[25] - Adjusted Free Cash Flow for Q2 2024 was $4.251 million, up from $3.909 million in Q2 2023[25] Adjusted EBITDA - Adjusted EBITDA for Q2 2024 was $8.4 million, or 10.3% of total sales, compared to $(7.2) million, or (1.0%) of total sales in the prior year period[2] - Adjusted EBITDA for Q2 2024 was $8.4 million, a significant improvement from the $7.2 million loss in Q2 2023, with an adjusted EBITDA margin of 10.3%[22] Balance Sheet and Equity - Accounts receivable decreased to $84,868 thousand in June 2024 from $92,028 thousand in December 2023, a reduction of 7.8%[15] - Total current liabilities decreased to $106,334 thousand in June 2024 from $113,273 thousand in December 2023, a decline of 6.1%[16] - Total shareholders' equity decreased to $256,596 thousand in June 2024 from $268,606 thousand in December 2023, a decline of 4.5%[17] - Retained earnings decreased to $(17,580) thousand in June 2024 from $(9,789) thousand in December 2023, reflecting a decline of 79.6%[17] - Accumulated other comprehensive loss increased to $(47,038) thousand in June 2024 from $(37,247) thousand in December 2023, a rise of 26.3%[17] Tax Adjustments - Other tax adjustments for Q2 2024 included $0.8 million related to valuation allowance adjustments and $0.3 million related to other discrete items[21]

Revenue of $82.1 million Gross margin of 54.6%; Non-GAAP gross margin 55.0%, above guidance range Loss per share of $(0.03); Non-GAAP earnings per share ("EPS") of $0.18, above guidance range Cash flow from operations of $4.2 million LAKE MARY, Fla., Aug. 8, 2024 /PRNewswire/ -- FARO® Technologies, Inc. (Nasdaq: FARO), a global leader in 4D digital reality solutions, today announced its financial results for the second quarter ended June 30, 2024. "As I reflect on the completion of my first year at FARO, I ...

LAKE MARY, Fla., July 26, 2024 /PRNewswire/ -- FARO® Technologies, Inc. (Nasdaq: FARO), a global leader in 4D digital reality solutions, today announced that after market close on Thursday, August 8, 2024, it will release its financial results for the second quarter ended June 30, 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 Thursday, August 8, 2024, at 4:30 pm. ...

Financial Data and Key Metrics - Q1 2024 revenue was $84.2 million, towards the high end of guidance, with non-GAAP EPS of $0.09, above the high end of guidance [7] - Adjusted EBITDA was $5.6 million, and free cash flow was $4.2 million, marking the first positive Q1 in several years [7][11] - Non-GAAP gross margin improved by 420 basis points year-over-year to 51.8% [18] - GAAP operating loss was $5.3 million, compared to a loss of $18.6 million in Q1 2023, while non-GAAP operating income was $3 million, up from a loss of $8.3 million in Q1 2023 [31] - Cash and short-term investments at the end of Q1 were $99.3 million, up $3 million from Q4 2023 [33] Business Line Performance - Hardware revenue was $52.6 million, down 4% year-over-year, while software revenue grew 6% to $10.9 million, and service revenue increased 5% to $20.7 million [28] - Recurring revenue was $16.7 million, representing 20% of total sales [28] - Mobile scanning solutions revenue grew double digits year-over-year, reflecting increasing adoption of the technology [20] Market Performance - Strong demand in Europe and Asia Pacific offset softness in the Americas due to elongated sales cycles [28] - Large manufacturing orders in the Asia Pacific region, particularly China, drove better-than-expected performance, though the construction market in China remains weak [9][28] - In mature markets like the U.S. and Western Europe, customers prioritized larger capacity-related investments, leading to longer sales cycles [17][49] Strategic Direction and Industry Competition - The company is focused on productivity, expanding gross margins, and strategic investments in new products and technologies [12] - The success of Orbis highlights growth opportunities in adjacent markets, with the mobile scanning market expanding the served addressable market [13] - The R&D roadmap aims to increase the served addressable market by 40% over the strategic horizon, with new product launches expected in 2024 [23] - The company is committed to accelerating revenue growth, growing earnings faster than revenue, and expanding free cash flow [24] Management Commentary on Operating Environment and Future Outlook - The company remains cautious on the near-term outlook in Asia Pacific due to challenges in China's construction market [9] - Despite a choppy macro environment, the company is confident in its ability to expand gross margins, control operating expenses, and generate positive free cash flow [35] - Q2 2024 revenue is expected to be between $79 million and $87 million, with non-GAAP EPS ranging from -$0.08 to $0.12 [36] Other Important Information - The company announced a stock grant program for all employees to align interests with long-term goals [15] - Multiple software updates were rolled out, including enhancements to FARO CAM2 and FARO Connect, improving customer experience [21][22] Q&A Session Summary Question: Seasonal Improvement and Market Headwinds - The low end and midpoint of Q2 guidance imply minimal seasonal improvement, attributed to large orders in Q1 from Asia Pacific and elongated sales cycles in developed markets [39][40] - Large orders in China were primarily in the manufacturing sector, driven by government stimulus, and were a mix of direct sales and channel partners [42][43][44] Question: Elongated Sales Cycles - Elongated sales cycles are concentrated in the U.S. and Western Europe, particularly in manufacturing, where customers are prioritizing larger CapEx initiatives [47][48][49] - The company expects sales cycles to normalize in Q2 but remains cautious [49] Question: Macro Indicators and Business Performance - PMI stabilization and upticks are seen as leading indicators, with a 2-4 quarter lag before impacting the company's revenue [50][51][55] Question: Price Increases - Price increases announced at the beginning of the year have received positive feedback, but the full impact has not yet been recognized in results [56]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact Name of Registrant as Specified in Its Charter) Florida 59-3157093 (State or other Jurisdiction of Incorporation or Organization) 125 Technology Park, Lake Mary 32746 Florida (Address of Principal Executive Offices) (Zip Code) (I.R.S. Employer Identification No.) (407) 333-9911 (Registrant's Telephone Num ...

Exhibit 99.1 For the second quarter ending June 30, 2024, FARO currently expects: 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 ...