FARO Technologies(US:FARO)2024-11-06 21:17Financial 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]