"Customer demand across our served markets remained healthy, with revenue on a constant currency basis of $91.5 million, increasing 14% year on year and up 9% sequentially. Due to continued strengthening of the US dollar, sales on an actual currency basis were $85.3 million, up 8% compared to the prior year period," stated Michael Burger, President and Chief Executive Officer. "Together with the building momentum of our recent product releases, the recent acquisition of GeoSLAM and the launch of FARO Sphere for cloud-based 3D model creation and collaboration, we have one of the industry's most comprehensive suites of digital 3D solutions. I am excited by the early customer response we have received on our combined offerings and the enormous market opportunity represented by digitalizing the physical world."
Third Quarter 2022 Financial Summary
- Total sales of $85.3 million, up 8% compared to the prior year period
- Total sales on a Non-GAAP constant currency basis of $91.5 million, up 14% compared to the prior year period
- Software sales, of $10.6 million or 12% of revenue, down from 14% in the prior year period due to the relative strength of our hardware offerings
- Recurring revenue of $16.6 million or 19% of revenue on an actual currency basis, was up 2% year on year
- Gross margin of 50.7%, compared to 53.5% in the prior year period with the reduction primarily a result of the strengthening US dollar to foreign currency exchange rates
- Non-GAAP gross margin of 51.0%, compared to 53.7% in the prior year period
- Operating expenses of $50.4 million, compared to $47.5 million in the prior year period
- Non-GAAP operating expenses of $44.3 million, compared to $42.4 million in the prior year period
- Net loss of $6.3 million, or ($0.34) per share compared to $3.9 million, or ($0.21) per share in the prior year period
- Non-GAAP net income of $0.5 million, or $0.03 per share compared to net loss of $0.1 million, or ($0.01) per share in the prior year period
- Adjusted EBITDA of $2.0 million, or 2.3% of total sales compared to $2.7 million, or 3.4% of total sales in the prior year period
- Cash and short-term investments of $48.5 million, compared to $102.0 million as of June 30, 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 Fourth Quarter 2022
For the fourth quarter ending December 31, 2022, FARO currently expects:
- Revenue in the range of $99.0 to $107.0 million
- Non-GAAP earnings per share in the range of $0.25 to $0.45
Note: Constant currency revenue performance is provided such that users of the financial statements may assess our underlying performance excluding the effect of foreign currency rate fluctuations. To present this information, current period performance for entities reporting in currencies other than United States dollars are converted to United States dollars at the exchange rates in effect on September 30, 2021.
Conference Call
The Company will host a conference call to discuss these results on Wednesday, November 2, 2022 at 5:00 p.m. ET. Interested parties can access the conference call by dialing (800) 245-3047 (U.S.) or +1 (203) 518-9708 (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 digitalize 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
