FARO Technologies(US:FARO)2024-02-26 16:00Financial Performance - Q4 2023 revenue was $98.8 million, down 5% year over year, but at the upper end of guidance range [4] - GAAP net income for Q4 was $1.6 million, or $0.08 per share, compared to a net loss of $2.2 million, or $(0.12) per share in the prior year [5] - Non-GAAP EPS for Q4 was $0.36, exceeding the high end of the guidance range [2] - Adjusted EBITDA for Q4 was $13.2 million, representing 13.3% of total sales, an increase from 11.3% in the prior year [5] - Full year 2023 total sales reached $358.8 million, up 4% compared to the prior year [10] - Full year net loss was $56.6 million, or $(2.99) per share, compared to a net loss of $26.8 million, or $(1.46) per share in the prior year [10] - Non-GAAP gross profit for 2023 was $177.1 million, down from $180.4 million in 2022, a decrease of 1.8% [28] - Non-GAAP net income for the three months ended December 31, 2023, was $6.8 million, compared to $7.1 million in the same period of 2022, a decline of 4.2% [28] - Adjusted EBITDA for the twelve months ended December 31, 2023, was $12,057 thousand, a decrease from $13,473 thousand in 2022, with an adjusted EBITDA margin of 3.4% [30] Cash Flow and Liquidity - Operating cash flow for Q4 was $18.7 million, contributing to a cash position of $96.3 million, up from $79.9 million as of September 30, 2023 [5] - Cash and cash equivalents rose to $76.8 million in 2023, compared to $37.8 million in 2022, reflecting an increase of 103% [26] - Operating cash flow for 2023 was $1.1 million, a significant improvement from a cash outflow of $24.9 million in 2022 [26] - Free cash flow for the three months ended December 31, 2023, was $14,748 thousand, a significant improvement from a negative free cash flow of $(9,506) thousand in the same period of 2022 [34] Expenses and Liabilities - Operating expenses for Q1 2024 are expected to be between $47.5 million and $49.5 million [10] - Research and development expenses decreased to $41.8 million in 2023 from $49.4 million in 2022, a reduction of 15.5% [28] - Total liabilities increased to $236.1 million in 2023, up from $162.3 million in 2022, marking a rise of 45.4% [24] Inventory and Write-downs - The company recorded an inventory write-down of $9.3 million in 2023 as part of its strategy to simplify its product portfolio [29] - The company recorded a charge of $9.3 million for excess and obsolete inventory in 2023 as part of its strategy to simplify the product portfolio [30] Future Guidance - For Q1 2024, revenue is expected to be in the range of $77 to $85 million, with gross margin projected between 49.0% and 50.5% [10] - For the fiscal quarter ending March 31, 2024, the GAAP gross margin is projected to be between 49.0% and 50.5% [36] - Non-GAAP diluted loss per share for the fiscal quarter ending March 31, 2024, is expected to range from $(0.20) to $0.00 [36] Strategic Initiatives - The company continues to focus on improving operational effectiveness and executing its strategic plan amid ongoing restructuring efforts [18] - The company approved an integration plan on February 7, 2023, aimed at streamlining operations following recent acquisitions [30] Regional Performance - The Americas region reported total sales of $167,269 thousand for the twelve months ended December 31, 2023, an increase from $154,422 thousand in 2022 [32] - Total recurring revenue for the twelve months ended December 31, 2023, was $67,497 thousand, representing 18.8% of total sales [32] Assets - Total assets increased to $504.7 million in 2023, up from $473.3 million in 2022, representing a growth of 6.5% [24] - Net loss for the twelve months ended December 31, 2023, was $56.6 million, compared to a net loss of $26.8 million in 2022, indicating a deterioration of 111% [26]