FARO Announces Third Quarter Financial Results

Core Insights - FARO Technologies, Inc. reported third-quarter revenue of $82.6 million, which is at the upper end of its guidance range, despite a 5% decline year-over-year [1][3] - The company achieved a gross margin of 55.7%, significantly improved from 48.0% in the prior year, and a non-GAAP gross margin of 56.1% [3][20] - Non-GAAP earnings per share (EPS) reached $0.21, exceeding guidance, while the net loss per share was $(0.02), a substantial improvement from $(0.46) in the same period last year [1][3][21] - Adjusted EBITDA was reported at $8.9 million, representing 10.7% of total sales, compared to $3.5 million or 4.1% of total sales in the prior year [2][3][24] Financial Performance - Total sales for the third quarter were $82.6 million, down from $86.8 million in the prior year [3][25] - Operating expenses decreased to $43.8 million from $48.6 million year-over-year, with non-GAAP operating expenses also declining [3][20] - The company reported a net loss of $0.3 million, a significant improvement from a net loss of $8.8 million in the prior year [3][20] Cash Flow and Shareholder Actions - Cash flow from operations was $2.6 million, and the company executed share repurchases totaling $10 million during the quarter [1][3] - As of September 30, 2024, cash, cash equivalents, and short-term investments amounted to $88.9 million, down from $96.3 million at the end of 2023 [3][20] Future Outlook - For the fourth quarter of 2024, FARO expects revenue in the range of $88 to $96 million, with gross margins projected between 55.6% and 57.1% [4] - The company anticipates operating expenses to be between $47.4 million and $49.4 million, with non-GAAP operating expenses expected to range from $40.5 million to $42.5 million [4]