For the Three Months Ended
December 31,

For the Twelve Months Ended
December 31,

(in thousands)

2022

2021

2022

2021

Hardware

$       70,322

$       64,661

$     220,919

$     206,024

Software

12,943

13,694

44,361

45,079

Service

20,594

21,849

80,485

86,711

Total Sales

$     103,859

$     100,204

$     345,765

$     337,814

Hardware as a percentage of total sales

67.7 %

64.5 %

63.9 %

61.0 %

Software as a percentage of total sales

12.5 %

13.7 %

12.8 %

13.3 %

Service as a percentage of total sales

19.8 %

21.8 %

23.3 %

25.7 %

Total Recurring Revenue ⁽³⁾

$       18,088

$       16,468

$       68,272

$       64,067

Recurring revenue as a percentage of total sales

17.4 %

16.4 %

19.7 %

19.0 %

⁽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 March 31, 2023

Low

High

GAAP diluted loss per share range

$(0.80)

$(0.54)

Stock-based compensation

0.18

0.18

Purchase accounting intangible amortization

0.06

0.06

Restructuring and other costs

0.20

0.20

Non-GAAP tax adjustments

0.14

0.08

Non-GAAP diluted loss per share

$(0.22)

$(0.02)