FARO Technologies(FARO) - 2024 Q1 - Quarterly Results

Financial Performance - Revenue for Q1 2024 was $84.2 million, down 1% year over year, and at the upper end of the guidance range[5] - GAAP net loss was $7.3 million, or $(0.38) per share, compared to a net loss of $21.2 million, or $(1.12) per share in the prior year period[6] - Non-GAAP EPS for Q1 2024 was $0.09, exceeding the guidance range, while non-GAAP net income was $1.7 million[3] - Adjusted EBITDA for the quarter was $5.6 million, representing 6.6% of total sales, compared to negative $5.5 million in the prior year[6] - Net loss for the three months ended March 31, 2024, was $7,267,000, an improvement compared to a net loss of $21,164,000 for the same period in 2023, representing a reduction of about 65.6%[25] - Non-GAAP gross profit increased to $43,645,000 for Q1 2024, up from $40,423,000 in Q1 2023, reflecting a growth of approximately 5.5%[27] - Adjusted EBITDA for the three months ended March 31, 2024, was $5,566,000, compared to a negative adjusted EBITDA of $5,536,000 in Q1 2023, indicating a significant turnaround[30] - The company reported a non-GAAP net gain of $1,696,000 for Q1 2024, compared to a non-GAAP net loss of $7,076,000 in Q1 2023, indicating a significant improvement in financial performance[27] Operational Efficiency - Operating expenses decreased to $48.6 million from $58.3 million in the prior year, with non-GAAP operating expenses at $40.7 million[6] - Research and development expenses decreased to $9,024,000 in Q1 2024 from $12,718,000 in Q1 2023, a decline of about 29.0%[27] - Stock-based compensation increased to $4,539,000 in Q1 2024 from $3,634,000 in Q1 2023, representing an increase of approximately 24.9%[27] Cash Flow and Investments - Cash flow from operations was $6.6 million, contributing to an increase in cash and short-term investments to $99.3 million[5] - Cash and cash equivalents increased from $76,787,000 at the beginning of the period to $79,518,000 at the end of the period, marking an increase of approximately 3.4%[25] - Net cash provided by operating activities was $6,575,000, a significant improvement from a cash used of $(18,344,000) in the same quarter of 2023[34] - Free cash flow for the quarter was $3,810,000, recovering from a negative free cash flow of $(21,852,000) in the prior year[34] Sales and Revenue Breakdown - Total sales for the three months ended March 31, 2024, were $84,244,000, a slight decrease of 0.9% compared to $84,967,000 in the same period of 2023[32] - Hardware sales amounted to $52,616,000, representing 62.5% of total sales, down from 64.7% in 2023[32] - Total recurring revenue for the period was $16,717,000, accounting for 19.8% of total sales, compared to 19.6% in the previous year[32] - Total sales in constant currency for the Americas were $37,037,000, down from $42,434,000 in 2023, indicating a decline of 12.5%[32] - EMEA sales increased to $25,218,000 from $24,486,000, reflecting a growth of 3.0%[32] - APAC sales rose to $22,826,000, up from $18,460,000, marking an increase of 23.0%[32] Future Outlook - For Q2 2024, the company expects revenue in the range of $79 to $87 million and gross margin between 50.5% and 52.0%[11] - The company expects a GAAP gross margin between 50.5% and 52.0% for the fiscal quarter ending June 30, 2024[36] - Non-GAAP diluted loss per share is projected to range from $(0.08) to $0.12 for the same fiscal quarter[36] Strategic Initiatives - The company continues to focus on strategic initiatives within core markets to drive future growth[3] - FARO is committed to enhancing its product offerings and operational efficiency as part of its restructuring plans[18] Asset and Liability Management - Total assets decreased from $504,692,000 on December 31, 2023, to $492,304,000 on March 31, 2024, a decline of approximately 2.5%[23] - Total current liabilities decreased from $113,273,000 on December 31, 2023, to $108,937,000 on March 31, 2024, a reduction of approximately 3.0%[23]