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 For the quarterly period ended September 30, 2022 OR ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | --- | |---------------------------------------------------------------------------------|--------------------------------------------------|---------- ...

Summary of FARO Technologies, Inc. Q2 Earnings Conference Call Company Overview - **Company**: FARO Technologies, Inc. (NASDAQ:FARO) - **Date of Call**: August 3, 2022 - **Participants**: - Michael Burger - CEO - Allen Muhich - CFO - Michael Funari - Sapphire IR Key Industry and Company Insights Industry Context - The company operates in the 3D measurement and laser scanning technology industry, which is experiencing healthy demand across service markets. Financial Performance - **Q2 Revenue**: $79.9 million, down approximately 3% year-over-year [14] - **Constant Currency Revenue**: $83.9 million, representing a 3% year-over-year increase [7][15] - **Hardware Revenue**: $49.2 million, down 2% year-over-year [16] - **Software Revenue**: $10.5 million, up 4% year-over-year [16] - **Service Revenue**: $20.2 million, down 7% year-over-year [16] - **Recurring Revenue**: $17.1 million, up 8% year-over-year [16] Product Demand and Backlog - Strong demand for Quantum Max scan arm and Focus Premium laser scanner, with overall orders in the Americas growing 14% year-over-year [16] - Backlog increased due to strong demand, particularly in the last month of the quarter [30][32] Currency Impact - Approximately 60% of revenue was impacted by a stronger U.S. dollar, which appreciated about 10% against major currencies [7][15] - The strengthening dollar adversely affected gross margins and revenue recognition [17][18] Gross Margin and Operating Expenses - **GAAP Gross Margin**: 50.6%, lower than historical levels due to currency effects and lower-margin configurations [17] - **Non-GAAP Gross Margin**: 51% [17] - **GAAP Operating Loss**: $9 million, compared to a loss of $650,000 in Q2 2021 [19] - **Non-GAAP Operating Loss**: $2.5 million, compared to a profit of $3.9 million in Q2 2021 [19] Strategic Initiatives - Transition of manufacturing to Sanmina in Thailand is largely complete, expected to yield $12 million in annualized savings, although timing is delayed due to supply chain disruptions [9] - Launch of FARO Sphere, a cloud-based platform for 3D model creation and collaboration, is progressing well with positive adoption rates [10][13] - HoloBuilder's construction progress management application is set to be integrated into the Sphere platform by year-end [11] Market Outlook - Guidance for Q3 revenue is projected between $79 million and $87 million, contingent on currency stability [22] - The company remains cautiously optimistic about the second half of the year, driven by new product traction and a growing opportunity pipeline [38][40] Risks and Challenges - Ongoing supply chain disruptions and potential recessionary impacts are being monitored closely [13][40] - The company has not yet seen direct effects from recessionary rhetoric but remains cautious [13][50] Long-term Vision - The goal is to achieve 25% of total revenue from recurring sources, with a current CAGR of 8% in recurring revenue since 2019 [43] - The company is focused on leveraging its technology to capitalize on the growing market for digitizing physical objects [25] Additional Important Points - The company has maintained a strong capital structure with a cash balance of $102 million and no debt [21] - Significant progress has been made in reducing aged receivables and short-term inventory [21] - The highest non-Q4 quarter of laser scanner units booked in the company's history was recorded [23] This summary encapsulates the key points discussed during the FARO Technologies Q2 earnings call, highlighting the company's performance, strategic initiatives, and market outlook.

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 For the quarterly period ended June 30, 2022 OR ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | --- | |-----------------------------------------------------------------------------|-----------------------------------|---------------------------------- ...

FARO Technologies, Inc. (NASDAQ:FARO) Q4 2021 Earnings Conference Call February 16, 2021 5:00 PM ET Company Participants Michael Burger – Chief Executive Officer Allen Muhich – Chief Financial Officer Michael Funari – Sapphire Investor Relations Conference Call Participants Greg Palm – Craig-Hallum Capital James Ricchiuti – Needham & Company Andrew DeGasperi – Berenberg Capital Robert Mason – Baird Ben Rose – Battle Road Research Operator Please stand by your program is about to begin. Good afternoon everyo ...

FARO Technologies, Inc. (NASDAQ:FARO) Q1 2022 Earnings Conference Call April 27, 2022 5:00 PM ET Company Participants Michael Funari - Sapphire Investor Relations Michael Burger - Chief Executive Officer Allen Muhich - Chief Financial Officer Conference Call Participants Greg Palm - Craig-Hallum Jim Ricchiuti - Needham & Company Rob Mason - R.W. Baird Ben Rose - Battle Road Research Andrew DeGasperi - Berenberg Capital Markets Operator Good afternoon, everyone. And welcome to the FARO Technologies First Qua ...

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 For the quarterly period ended March 31, 2022 OR ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | --- | |-----------------------------------------------------------------------------|-----------------------------------|--------------------------------- ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | --- | |--------------------------------------------------------------------------------------|----------------------------------------------------------------------|-- ...

FARO Technologies, Inc. (NASDAQ:FARO) Q3 2021 Earnings Conference Call October 27, 2021 5:00 PM ET Company Participants Michael Funari - Sapphire IR Michael Burger - CEO Allen Muhich - CFO Conference Call Participants Greg Palm - Craig-Hallum Capital Andrew DeGasperi - Berenberg Capital Robert Mason - Baird Ben Rose - Battle Road Research Operator Good afternoon everyone and welcome to today's FARO Technologies' Third Quarter 2021 Earnings Call. For opening remarks and introductions, I will now turn the cal ...

Table of Contents Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, par value $.001 FARO Nasdaq Global Select Market LLC 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 For the quarterly period ended September 30, 2021 OR ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF ...

FARO Technologies, Inc. (NASDAQ:FARO) Q2 2021 Results Conference Call July 29, 2021 8:00 AM ET Company Participants Michael Funari - Sapphire Investor Relations Michael Burger - Chief Executive Officer Allen Muhich - Chief Financial Officer Conference Call Participants Greg Palm - Craig-Hallum Capital James Ricchiuti - Needham & Co. Andrew DeGasperi - Berenberg Capital Robert Mason - Baird Operator Good morning, everyone, and welcome to today's FARO Technologies' Second Quarter 2021 Earnings Call. For open ...