FARO TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

June 30, 2018 (unaudited)

December 31, 2017

ASSETS

Current assets:

Cash and cash equivalents

$

133,554

$

140,960

Short-term investments

10,998

10,997

Accounts receivable, net

71,641

72,105

Inventories, net

60,349

53,786

Prepaid expenses and other current assets

21,086

16,311

Total current assets

297,628

294,159

Property and equipment:

Machinery and equipment

70,332

66,514

Furniture and fixtures

6,650

6,945

Leasehold improvements

20,039

19,872

Property and equipment at cost

97,021

93,331

Less: accumulated depreciation and amortization

(66,321)

(61,452)

Property and equipment, net

30,700

31,879

Goodwill

53,584

52,750

Intangible assets, net

23,842

22,540

Service and sales demonstration inventory, net

38,346

39,614

Deferred income tax assets, net

15,691

15,606

Other long-term assets

4,678

2,030

Total assets

$

464,469

$

458,578

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

11,764

$

11,569

Accrued liabilities

24,950

27,362

Income taxes payable

1,672

4,676

Current portion of unearned service revenues

30,179

29,674

Customer deposits

2,944

2,604

Total current liabilities

71,509

75,885

Unearned service revenues - less current portion

13,291

11,815

Deferred income tax liabilities

590

695

Income taxes payable - less current portion

14,578

15,952

Other long-term liabilities

1,798

2,165

Total liabilities

101,766

106,512

Shareholders' equity:

Common stock - par value $.001, 50,000,000 shares authorized; 18,440,073 and
18,277,142 issued, respectively; 16,978,758 and 16,796,884 outstanding, respectively

18

18

Additional paid-in capital

233,755

223,055

Retained earnings

172,649

168,624

Accumulated other comprehensive loss

(11,985)

(7,822)

Common stock in treasury, at cost; 1,461,315 and 1,480,258 shares, respectively

$

(31,734)

$

(31,809)

Total shareholders' equity

$

362,703

$

352,066

Total liabilities and shareholders' equity

$

464,469

$

458,578