"Improving demand for our products, including the recently launched Focus Premium laser scanner and Quantum Max scan arm generated revenue of $79.9 million or $83.9 million on a constant currency basis, adjusting for the significant strengthening of the US dollar in the second quarter," stated Michael Burger, President and Chief Executive Officer. "We believe the building momentum for our updated product line-up demonstrates the progress we've made in aligning our hardware and software roadmaps to add value to our customer's workflows, resulting in differentiated offerings in our target markets."
Second Quarter 2022 Financial Summary
- Total sales of $79.9 million, down 3% compared to the prior year period
- Total sales on a Non-GAAP constant currency basis of $83.9 million, up 3% compared to the prior year period
- Software sales, of $10.5 million or 13% of revenue, up from 12% in the prior year period
- Recurring revenue of $17.1 million or 21% of revenue (actual currency basis), grew 8% compared to the prior year period
- Gross margin of 50.6%, compared to 55.4% in the prior year period
- Non-GAAP gross margin of 51.0%, compared to 55.7% in the prior year period
- Operating expenses of $49.4 million, compared to $46.1 million in the prior year period
- Non-GAAP operating expenses of $43.2 million, compared to $41.8 million in the prior year period
- Net loss of $8.6 million, or ($0.47) per share compared to $1.2 million, or ($0.06) per share in the prior year period
- Non-GAAP net loss of $0.6 million, or ($0.03) per share compared to net profit of $2.2 million, or $0.12 per share in the prior year period
- Adjusted EBITDA of $0.5 million, or 0.6% of total sales compared to $6.5 million, or 7.9% of total sales in the prior year period
- Cash and short-term investments of $102.0 million, compared to $107.2 million as of March 31, 2022
* A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures is provided in the financial schedules portion at the end of this press release. An additional explanation of these measures is included below under the heading "Non-GAAP Financial Measures".
Outlook for the Third Quarter 2022
For the third quarter ending September 30, 2022, FARO currently expects:
- Revenue in the range of $79 to $87 million
- Non-GAAP (loss) earnings per share in the range of ($0.08) to $0.08
Conference Call
The Company will host a conference call to discuss these results on Wednesday, August 3, 2022 at 5:00 p.m. ET. Interested parties can access the conference call by dialing (800) 245-3047 (U.S.) or +1 (203) 518-9765 (International) and using the passcode FARO. A live webcast will be available in the Investor Relations section of FARO's website at: https://www.faro.com/en/About-Us/Investor-Relations/Financial-Events-and-Presentations
A replay webcast will be available in the Investor Relations section of the company's web site approximately two hours after the conclusion of the call and will remain available for approximately 30 calendar days.
About FARO
FARO serves the 3D Metrology, AEC (Architecture, Engineering & Construction), O&M (Facilities Operations & Maintenance), and Public Safety Analytics markets. For over 40 years, FARO has provided industry-leading technology solutions that enable customers to digitize their world, and then use that data to make smarter decisions faster. FARO continues to be a pioneer in bridging the digital and physical worlds through data-driven accuracy, precision, and immediacy. For more information, visit http://www.faro.com
Non-GAAP Financial Measures
This press release contains information about our financial results that are not presented in accordance with U.S. generally accepted accounting principles ("GAAP"). These non-GAAP financial measures, including non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP (loss) income from operations, non-GAAP net (loss) income and non-GAAP net (loss) income per share, exclude the impact of purchase accounting intangible amortization expense, stock-based compensation, restructuring charges, transaction costs, and other tax adjustments, and are provided to enhance investors' overall understanding of our historical operations and financial performance.
