FARO TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

September 30,
2019 (unaudited)

December 31,
2018

ASSETS

Current assets:

Cash and cash equivalents

$

119,083

$

108,783

Short-term investments

24,868

24,793

Accounts receivable, net

64,708

88,927

Inventories, net

69,779

65,444

Prepaid expenses and other current assets

28,084

28,795

Total current assets

306,522

316,742

Property and equipment:

Machinery and equipment

82,578

76,048

Furniture and fixtures

6,172

6,749

Leasehold improvements

21,066

20,304

Property and equipment at cost

109,816

103,101

Less: accumulated depreciation and amortization

(81,411)

(72,684)

Property and equipment, net

28,405

30,417

Operating lease right-of-use asset

18,672

—

Goodwill

69,712

67,274

Intangible assets, net

27,530

33,054

Service and sales demonstration inventory, net

39,509

39,563

Deferred income tax assets, net

14,693

14,719

Other long-term assets

2,987

4,475

Total assets

$

508,030

$

506,244

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

11,705

$

20,093

Accrued liabilities

35,255

36,327

Income taxes payable

1,081

5,081

Current portion of unearned service revenues

35,273

32,878

Customer deposits

2,419

3,144

Lease liability

6,615

—

Total current liabilities

92,348

97,523

Unearned service revenues - less current portion

18,171

15,505

Lease liability - less current portion

13,922

—

Deferred income tax liabilities

2,466

736

Income taxes payable - less current portion

12,567

12,247

Other long-term liabilities

1,031

3,624

Total liabilities

140,505

129,635

Shareholders' equity:

Common stock - par value $.001, 50,000,000 shares authorized; 18,816,598 and
18,676,059 issued, respectively; 17,404,087 and 17,253,011 outstanding, respectively

19

19

Additional paid-in capital

260,737

251,329

Retained earnings

162,574

175,353

Accumulated other comprehensive loss

(24,430)

(18,483)

Common stock in treasury, at cost; 1,412,511 and 1,423,048 shares, respectively

(31,375)

(31,609)

Total shareholders' equity

367,525

376,609

Total liabilities and shareholders' equity

$

508,030

$

506,244