FARO Technologies(FARO)2024-08-08 20:15Revenue 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]