For the Three Months Ended September
30,

For the Nine Months Ended September
30,

(in thousands)

2022

2021

2022

2021

Hardware

$        54,971

$        46,839

$      150,597

$      141,363

Software

10,610

10,999

31,418

31,385

Service

19,751

21,331

59,891

64,862

Total Sales

$        85,332

$        79,169

$      241,906

$      237,610

Hardware as a percentage of total sales

64.4 %

59.2 %

62.3 %

59.5 %

Software as a percentage of total sales

12.4 %

13.9 %

13.0 %

13.2 %

Service as a percentage of total sales

23.1 %

26.9 %

24.8 %

27.3 %

Total Recurring Revenue ⁽³⁾

$        16,591

$        16,301

$        50,184

$        47,599

Recurring revenue as a percentage of total sales

19.4 %

20.6 %

20.7 %

20.0 %

⁽³⁾ Recurring revenue is comprised of hardware service contracts, software maintenance contracts, and subscription based software applications.

FARO TECHNOLOGIES, INC. AND SUBSIDIARIES
RECONCILIATION OF OUTLOOK - GAAP TO NON-GAAP

Fiscal quarter ending December 31, 2022

GAAP diluted (loss) earnings per share range

($0.03) - $0.10

Stock-based compensation

0.19

Purchase accounting intangible amortization

0.06

Restructuring and other costs

0.02

Non-GAAP tax adjustments

0.01 - 0.08

Non-GAAP diluted earnings per share

$0.25 - $0.45