FARO Technologies Inc · Q1 2023 earnings

Briefing

FARO's first quarter revenue remained strong, driven by shipments of the new Focus Premium Laser Scanner, but experienced customer purchase decision delays due to a softening macroeconomic environment.

FARO Technologies reported strong first-quarter revenue of $85.0 million, an 11% increase year-over-year, driven by shipments of the new Focus Premium Laser Scanner. The company is implementing cost-saving initiatives to offset the impact of delayed customer purchase decisions and inflationary pressures.

• Total sales reached $85.0 million, up 11% compared to the prior year period.
• Software sales were $10.3 million, representing 12% of revenue and remaining approximately flat year-over-year.
• Recurring revenue was $16.7 million, accounting for 20% of revenue, a decrease from 22% in the prior year period.
• Net loss was $21.2 million, or ($1.12) per share, compared to a net loss of $9.7 million, or ($0.53) per share in the prior year period.

Headline financials

Revenue & EPS history

For the second quarter ending June 30, 2023, FARO currently expects revenue in the range of $79 to $87 million. Gross margin in the range of 44% to 47%. Non-GAAP gross margin in the range of 45% to 48%. Operating expenses in the range of $58.0 to $67.0 million. Non-GAAP operating expenses in the range of $45.0 to $46.5 million Net income (loss) per share in the range of ($1.80) to ($1.13). Non-GAAP net income (loss) per share in the range of ($0.47) to ($0.22).