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FARO Technologies(FARO) - 2024 Q3 - Quarterly Results
FAROFARO Technologies(FARO)2024-11-06 21:17

Financial Performance - Revenue for Q3 2024 was 82.6million,down582.6 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 0.03intheprioryearperiod,indicatingstrongprofitabilityimprovement[3]−AdjustedEBITDAforQ32024was0.03 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 0.3million,or0.3 million, or (0.02) per share, a significant improvement from a net loss of 8.8million,or8.8 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,comparedto45,976,000, 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,upfrom135,159,000, 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,significantlyimprovedfromanetlossof289,000, 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,comparedtoalossof3,520,000, 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 3,995,000forthethreemonthsendedSeptember30,2024,comparedto3,995,000 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 2.6million,withcashandshort−terminvestmentstotaling2.6 million, with cash and short-term investments totaling 88.9 million[4] - Net cash provided by operating activities was 13,355thousandfortheninemonthsendedSeptember30,2024,comparedtoanetcashusedof13,355 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 76,787thousandto76,787 thousand to 88,913 thousand, representing a growth of about 15.5%[18] - Total current assets decreased from 261,608thousandasofDecember31,2023,to261,608 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 236,086thousandasofDecember31,2023,to236,086 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 268,606thousandto268,606 thousand to 255,518 thousand, reflecting a decline of about 4.9%[17] - The company reported a decrease in accounts receivable from 92,028thousandto92,028 thousand to 83,208 thousand, a decline of approximately 9.6%[17] - The company reported an increase in inventories from 34,529thousandto34,529 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 88to88 to 96 million and gross margin between 55.6% to 57.1%[5] - Operating expenses for Q4 2024 are projected to be between 47.4millionand47.4 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 0.32and0.32 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,adecreaseof4.082,563,000, 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,representing21.117,431,000, 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 40,879,000inQ32023[23]−TotalsalesinconstantcurrencyforEMEAinQ32024were40,879,000 in Q3 2023[23] - Total sales in constant currency for EMEA in Q3 2024 were 24,278,000, compared to 24,954,000inQ32023[23]−TotalsalesinconstantcurrencyforAPACinQ32024were24,954,000 in Q3 2023[23] - Total sales in constant currency for APAC in Q3 2024 were 16,497,000, down from 19,883,000inQ32023[23]StrategicInitiatives−ThecompanylaunchednewproductsincludingtheQuantumXArmandnextgenerationFocusPremiumMaxLaserScannertodriveorganicrevenuegrowth[2]−Thecompanyisimplementingaglobalrestructuringplanaimedatimprovingoperatingperformanceandstreamliningoperationsfollowingrecentacquisitions[21]−ThecompanyisimplementinganIntegrationPlantostreamlineoperationsfollowingrecentacquisitions[25]ShareholderReturns−Sharerepurchasesduringthequarteramountedto19,883,000 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]