NASDAQ$FARO

FARO Technologies Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

FARO's financial performance declined due to market softness and COVID-19 impacts, but restructuring efforts progressed as planned.

FARO Technologies reported a decrease in total sales and new order bookings for Q1 2020 compared to Q1 2019. The company experienced a net loss, but restructuring plans are on track to achieve targeted savings.

  • Total sales decreased to $79.5 million from $93.6 million year-over-year due to market softness and COVID-19 uncertainty.
  • New order bookings declined by 23% to $77.9 million compared to $100.7 million in the prior year.
  • A net loss of $14.8 million, or $0.84 per share, was recorded, compared to a net income of $0.2 million, or $0.01 per share, in Q1 2019.
  • Restructuring plan implementation is progressing well, targeting $40 million in annualized savings by year-end.

Headline financials

Total Revenue

$79.5M

Previous: $93.6M-15.1%
EPS (adj)

-$0.02

Previous: $0.01-300.0%
Gross Margin

55.2%

No prior period
Non-GAAP Gross Margin

55.5%

No prior period
Capital Expenditures

$757K

Previous: $1.54M-50.9%
Free Cash Flow

$15.6M

Previous: $4.27M+264.6%
Net Income

-$14.8M

Previous: $152K-9852.0%
Operating Income

-$16.6M

Previous: $358K-4724.0%
Gross Profit

$43.9M

Previous: $55M-20.3%
Cash & Equivalents

$157M

Previous: $111M+42.0%
Total Assets

$470M

Previous: $518M-9.3%
Stock-Based Comp

$2.18M

Previous: $2.56M-15.1%

Revenue & EPS history

FARO · Revenue · Quarterly

$79.5M

Q1 2020-15.1%vs Q1 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

FARO · $79.5M total across 2 segments · Q1 2020

  • Product Sales
    $56.5M
  • Service Sales
    $23M

Forward guidance

FARO is optimistic that its new strategy will enable it to emerge as a stronger, more efficient business with a highly scalable financial model when the business environment returns to normalized levels.

Tailwinds

  • Restructuring plan progressing well, on track to achieve targeted $40 million in annualized savings by the end of the year.
  • Strong balance sheet positions FARO well for the current environment.
  • Limited disruption to manufacturing supply chain to date.
  • Sales team remains enthusiastic about the new go-to-market strategy.
  • New strategy expected to enable FARO to emerge as a stronger, more efficient business with a highly scalable financial model.

Headwinds

  • Near-term demand visibility remains challenged due to the global pandemic.
  • Total sales decreased due to market softness and order pushouts.
  • New order bookings decreased compared to the previous year.
  • The company recorded additional non-recurring charges related to expected cash severance payments.
  • Net loss was recorded for the quarter, compared to net income in the same period last year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 6 quarterly earnings reports

Historical avg

+1.8%

Avg return

Earnings day

+19.0%

Avg return

5 days after

+17.2%

Avg return

30 days after

56%

35 / 62 earnings

Positive

+41.4%

Q3 2024

Best reaction

-42.7%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025
Q3 2025
Q2 2025
Q1 2025+34.7%+34.5%+34.9%
Q4 2024+17.3%+17.9%+4.9%
Q3 2024+41.4%+53.9%+46.9%
Q2 2024+7.1%+9.3%+18.1%
Q1 2024-2.1%-2.8%-0.4%
Q4 2023+2.8%+1.1%-1.2%
Q3 2023+13.5%
Q2 2023+17.0%
Q1 2023-42.7%
Q4 2022+3.1%
Q3 2022+1.7%
Q2 2022+10.3%
Q1 2022-23.0%
Q4 2021-7.1%
Q3 2021-0.1%
Q2 2021+1.3%
Q1 2021-7.8%
Q4 2020+12.9%
Q3 2020-2.7%
Q2 2020-4.2%
Q1 2020+13.0%
Q4 2019+14.0%
Q3 2019+0.4%
Q2 2019-1.1%
Q1 2019-2.2%
Q4 2018-7.2%
Q3 2018-8.7%
Q2 2018+17.2%
Q1 2018-15.8%
Q4 2017+16.2%
Q3 2017+19.2%
Q2 2017-6.2%
Q1 2017-5.8%
Q4 2016-6.5%
Q3 2016-8.9%
Q2 2016-9.5%
Q1 2016+13.4%
Q4 2015+14.5%
Q3 2015-27.9%
Q2 2015+15.3%
Q1 2015-5.6%
Q4 2014+2.2%
Q3 2014+7.2%
Q2 2014+15.0%
Q1 2014-17.3%
Q4 2013+2.1%
Q3 2013+11.8%
Q2 2013-1.5%
Q1 2013-11.7%
Q4 2012+21.3%
Q3 2012-18.0%
Q2 2012-23.7%
Q1 2012+5.1%
Q4 2011+0.6%
Q4 2009+0.6%
Q3 2011+12.6%
Q3 2010+12.6%
Q2 2010-9.2%
Q2 2011-9.2%
Q4 2010+7.3%
Q1 2010+7.3%
Q1 2011+7.3%

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