Technology
FARO Announces Second Quarter Financial Results
Published
1 month agoon
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Revenue of $82.1 millionGross margin of 54.6%; Non-GAAP gross margin 55.0%, above guidance rangeLoss per share of $(0.03); Non-GAAP earnings per share (“EPS”) of $0.18, above guidance rangeCash flow from operations of $4.2 million
LAKE MARY, Fla., Aug. 8, 2024 /PRNewswire/ — FARO® Technologies, Inc. (Nasdaq: FARO), a global leader in 4D digital reality solutions, today announced its financial results for the second quarter ended June 30, 2024.
“As I reflect on the completion of my first year at FARO, I am pleased with the execution of the first phase of our journey to drive operational excellence and we are pacing well ahead of our expectations,” said Peter Lau, President & Chief Executive Officer. “By continuing to build a strong base of financial performance, marked by consistent EBITDA and free cash flow generation, we are investing in several multi-year value creation activities. Against the backdrop of a difficult macroeconomic environment, FARO delivered GAAP net loss of $0.5 million and $8.4 million of adjusted EBITDA, or 10.3% of revenue, concluding a first half of 2024 adjusted EBITDA that exceeded full year fiscal 2023 adjusted EBITDA. Looking forward, we are excited about the next phase in our journey, as we communicated in March, to deliver on the key organic growth plans which our operational improvements has enabled.”
Second Quarter 2024 Financial Summary
Total sales of $82.1 million, down 7% year over yearGross margin of 54.6%, compared to 37.8% in the prior year periodNon-GAAP gross margin of 55.0%, compared to 38.7% in the prior year periodOperating expenses of $43.0 million, compared to $58.7 million in the prior year periodNon-GAAP operating expenses of $40.0 million, compared to $44.1 million in the prior year periodNet loss of $0.5 million, or $(0.03) per share compared to net loss of $28.2 million, or $(1.49) per share in the prior year periodNon-GAAP net income of $3.4 million, or $0.18 per share compared to non-GAAP net loss of $10.8 million, or $(0.57) per share in the prior year periodAdjusted EBITDA of $8.4 million, or 10.3% of total sales compared to $(7.2) million, or (1.0%) of total sales in the prior year periodCash, cash equivalents & short-term investments of $97.9 million compared to $96.3 million as of December 31, 2023
* 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 Third Quarter 2024
For the third quarter ending September 30, 2024, FARO currently expects:
Revenue in the range of $76 to $84 millionGross margin in the range of 53.0% to 54.5%. Non-GAAP gross margin in the range of 53.5% to 55.0%Operating expenses in the range of $45 to $47 million. Non-GAAP operating expenses in the range of $40 to $42 millionNet loss per share in the range of ($0.32) to ($0.12). Non-GAAP net loss to net income per share in the range of $(0.01) to $0.19.
Conference Call
The Company will host a conference call to discuss these results on Thursday, August 8, 2024, at 4:30 p.m. ET. Interested parties can access the conference call by dialing (800) 267-6316 (U.S.) or +1 (203) 518-9783 (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
For over 40 years, FARO has provided industry-leading technology solutions that enable customers to measure 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 reliable accuracy, precision, and immediacy. For more information, visit www.faro.com.
Non-GAAP Financial Measures
This press release contains information about our financial results that are not presented in accordance with U.S. generally accepted accounting principles (“GAAP”). These non-GAAP financial measures, including non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income (loss) from operations, non-GAAP net income (loss) and non-GAAP net income (loss) per share, exclude the impact of purchase accounting intangible amortization expense, stock-based compensation, restructuring and other charges, and other tax adjustments, and are provided to enhance investors’ overall understanding of our historical operations and financial performance.
In addition, we present EBITDA, which is calculated as net income (loss) before interest (income) expense, net, income tax benefit (expense) and depreciation and amortization, and Adjusted EBITDA, which is calculated as EBITDA, excluding other (income) expense, net, stock-based compensation, and restructuring and other charges, as measures of our operating profitability. The most directly comparable GAAP measure to EBITDA and Adjusted EBITDA is net income (loss). We also present Adjusted EBITDA margin, which is calculated as Adjusted EBITDA as a percent of total sales.
We have included non-GAAP total sales on a constant currency basis. The most directly comparable GAAP measure to total sales on a constant currency basis is total sales. We believe constant currency information is useful in analyzing underlying trends in our business and the commercial performance of our products by eliminating the impact of highly volatile fluctuations in foreign currency markets and allows for period-to-period comparisons of our performance. For simplicity, we may elect to omit this information in future periods if we determine a lack of material impact. To present this information, current period performance for entities reporting in currencies other than U.S. dollars are converted to U.S. dollars at the exchange rate in effect during the last day of the prior comparable period.
Management believes that these non-GAAP financial measures provide investors with relevant period-to-period comparisons of our core operations using the same methodology that management employs in its review of the Company’s operating results. These financial measures are not recognized terms under GAAP and should not be considered in isolation or as a substitute for a measure of financial performance prepared in accordance with GAAP.
These non-GAAP financial measures have limitations that should be considered before using these measures to evaluate a company’s financial performance. These non-GAAP financial measures, as presented, may not be comparable to similarly titled measures of other companies due to varying methods of calculation. The financial statement tables that accompany this press release include a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties, such as statements about the outlook for the third quarter of 2024, demand for and customer acceptance of FARO’s products, FARO’s product development and product launches, FARO’s growth, strategic and restructuring plans and initiatives, including but not limited to the additional restructuring charges expected to be incurred in connection with our restructuring and integration plans and the timing and amount of cost savings and other benefits expected to be realized from the restructuring and integration plans and other strategic initiatives, and FARO’s growth potential and profitability. Statements that are not historical facts or that describe the Company’s plans, objectives, projections, expectations, assumptions, strategies, or goals are forward-looking statements. In addition, words such as “is,” “will” and similar expressions or discussions of FARO’s plans or other intentions identify forward-looking statements. Forward-looking statements are not guarantees of future performance and are subject to various known and unknown risks, uncertainties, and other factors that may cause actual results, performances, or achievements to differ materially from future results, performances, or achievements expressed or implied by such forward-looking statements. Consequently, undue reliance should not be placed on these forward-looking statements.
Factors that could cause actual results to differ materially from what is expressed or forecasted in such forward-looking statements include, but are not limited to:
the Company’s ability to realize the intended benefits of its undertaking to transition to a company that is reorganized around functions to improve the efficiency of its sales organization and to improve operational effectiveness;the Company’s inability to successfully execute its strategic plan, restructuring plan and integration plan, including but not limited to additional impairment charges and/or higher than expected severance costs and exit costs, and its inability to realize the expected benefits of such plans;the changes in our executive management team in 2023 and 2024 and the loss of any of our executive officers or other key personnel, which may be impacted by factors such as our inability to competitively address inflationary pressures on employee compensation and flexibility in employee work arrangements;the outcome of any litigation to which the Company is or may become a party;loss of future government sales;potential impacts on customer and supplier relationships and the Company’s reputation;development by others of new or improved products, processes or technologies that make the Company’s products less competitive or obsolete;the Company’s inability to maintain its technological advantage by developing new products and enhancing its existing products;declines or other adverse changes, or lack of improvement, in industries that the Company serves or the domestic and international economies in the regions of the world where the Company operates and other general economic, business, and financial conditions;the effect of general economic and financial market conditions, including in response to public health concerns;assumptions regarding the Company’s financial condition or future financial performance may be incorrect;the impact of fluctuations in foreign exchange rates and inflation rates; andother risks and uncertainties discussed in Part I, Item 1A. Risk Factors in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission on February 28, 2024, as supplemented by the Company’s Quarterly Reports on Form 10-Q, and in other SEC filings.
Forward-looking statements in this release represent the Company’s judgment as of the date of this release. The Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise, unless otherwise required by law.
FARO TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended
Six Months Ended
(in thousands, except share and per share data)
June 30, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Sales
Product
$ 61,312
$ 67,603
$ 124,848
$ 132,843
Service
20,773
20,608
41,481
40,335
Total sales
82,085
88,211
166,329
173,178
Cost of sales
Product
26,119
44,094
56,571
78,051
Service
11,177
10,794
21,662
22,088
Total cost of sales
37,296
54,888
78,233
100,139
Gross profit
44,789
33,323
88,096
73,039
Operating expenses
Selling, general and administrative
32,590
38,561
72,183
79,937
Research and development
9,833
11,662
18,857
24,380
Restructuring costs
616
8,450
616
12,688
Total operating expenses
43,039
58,673
91,656
117,005
Income (loss) from operations
1,750
(25,350)
(3,560)
(43,966)
Other (income) expense
Interest expense
761
1,003
1,592
1,838
Other income (expense), net
(43)
476
(18)
256
Income (loss) before income tax
1,032
(26,829)
(5,134)
(46,060)
Income tax expense
1,556
1,416
2,657
3,349
Net loss
$ (524)
$ (28,245)
$ (7,791)
$ (49,409)
Net loss per share – Basic
$ (0.03)
$ (1.49)
$ (0.41)
$ (2.62)
Net loss per share – Diluted
$ (0.03)
$ (1.49)
$ (0.41)
$ (2.62)
Weighted average shares – Basic
19,293,778
18,920,675
19,183,822
18,871,007
Weighted average shares – Diluted
19,293,778
18,920,675
19,183,822
18,871,007
FARO TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands, except share and per share data)
June 30,
2024
December 31,
2023
ASSETS
Current assets:
Cash and cash equivalents
$ 97,914
$ 76,787
Short-term investments
—
19,496
Accounts receivable, net
84,868
92,028
Inventories, net
34,409
34,529
Prepaid expenses and other current assets
30,468
38,768
Total current assets
247,659
261,608
Non-current assets:
Property, plant and equipment, net
18,412
21,181
Operating lease right-of-use assets
10,960
12,231
Goodwill
108,164
109,534
Intangible assets, net
46,135
47,891
Service and sales demonstration inventory, net
21,044
23,147
Deferred income tax assets, net
24,792
25,027
Other long-term assets
3,915
4,073
Total assets
$ 481,081
$ 504,692
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$ 27,867
$ 27,404
Accrued liabilities
25,373
29,930
Income taxes payable
3,227
5,699
Current portion of unearned service revenues
40,014
40,555
Customer deposits
5,208
4,251
Lease liabilities
4,645
5,434
Total current liabilities
106,334
113,273
Loan – 5.50% Convertible Senior Notes
69,983
72,760
Unearned service revenues – less current portion
19,984
20,256
Lease liabilities – less current portion
9,556
10,837
Deferred income tax liabilities
12,498
13,308
Income taxes payable – less current portion
6,114
5,629
Other long-term liabilities
16
23
Total liabilities
224,485
236,086
Commitments and contingencies
Shareholders’ equity:
Common stock – par value $0.001, 50,000,000 shares authorized;
20,779,711 and 20,343,359 issued, respectively; 19,406,669 and 18,968,798
outstanding, respectively
20
20
Additional paid-in capital
351,849
346,277
Retained earnings
(17,580)
(9,789)
Accumulated other comprehensive loss
(47,038)
(37,247)
Common stock in treasury, at cost – 1,373,042 and 1,374,561 shares held,
respectively
(30,655)
(30,655)
Total shareholders’ equity
256,596
268,606
Total liabilities and shareholders’ equity
$ 481,081
$ 504,692
FARO TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Six Months Ended June 30,
(in thousands)
2024
2023
Cash flows from:
Operating activities:
Net loss
$ (7,791)
$ (49,409)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization
7,788
7,925
Stock-based compensation
5,703
8,584
Inventory write-downs
—
8,132
Asset impairment charges
—
4,571
Deferred income tax (benefit) and other non-cash charges
(1,327)
(41)
Provision for excess and obsolete inventory
490
1,033
Amortization of debt discount and issuance costs
223
181
Loss on disposal of assets
994
130
Provisions for bad debts, net of recoveries
304
408
Change in operating assets and liabilities:
Decrease (Increase) in:
Accounts receivable
3,943
3,280
Inventories
(3,764)
1,587
Prepaid expenses and other current assets
7,771
3,105
(Decrease) Increase in:
Accounts payable and accrued liabilities
(3,087)
(277)
Income taxes payable
(1,853)
(263)
Customer deposits
1,126
(1,210)
Unearned service revenues
965
(750)
Other liabilities
(698)
(193)
Net cash provided by (used in) operating activities
10,787
(13,207)
Investing activities:
Purchases of property and equipment
(1,688)
(4,312)
Maturity of short-term investments
20,009
(20,024)
Cash paid for technology development, patents and licenses
(3,392)
(3,616)
Net cash provided by (used in) investing activities
14,929
(27,952)
Financing activities:
Payments on finance leases
(109)
(105)
Cash settlement of equity awards
—
(277)
Proceeds from issuance of 5.50% Convertible Senior Notes, due 2028, net of discount,
issuance cost and accrued interest
—
72,310
Repayment of 5.50% Convertible Senior Notes, due 2028
(2,685)
—
Net cash (used in) provided by financing activities
(2,794)
71,928
Effect of exchange rate changes on cash and cash equivalents
(1,795)
(353)
Increase in cash and cash equivalents
21,127
30,416
Cash and cash equivalents, beginning of period
76,787
37,812
Cash and cash equivalents, end of period
$ 97,914
$ 68,228
FARO TECHNOLOGIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP
(UNAUDITED)
Three Months Ended June 30,
Six Months Ended June 30,
(dollars in thousands, except per share data)
2024
2023
2024
2023
Gross profit, as reported
$ 44,789
$ 33,323
$ 88,096
$ 73,039
Stock-based compensation (1)
374
419
704
691
Restructuring and other costs (2)
—
435
3
870
Non-GAAP adjustments to gross profit
374
854
707
1,561
Non-GAAP gross profit
$ 45,163
$ 34,177
$ 88,803
$ 74,600
Gross margin, as reported
54.6 %
37.8 %
53.0 %
42.2 %
Non-GAAP gross margin
55.0 %
38.7 %
53.4 %
43.1 %
Selling, general and administrative, as reported
$ 32,590
$ 38,561
$ 72,183
$ 79,937
Stock-based compensation (1)
(196)
(3,554)
(4,138)
(6,122)
Restructuring and other costs (2)
(745)
(359)
(3,453)
(1,154)
Purchase accounting intangible amortization
(341)
(688)
(884)
(1,361)
Non-GAAP selling, general and administrative
$ 31,308
$ 33,960
$ 63,708
$ 71,300
Research and development, as reported
$ 9,833
$ 11,662
$ 18,857
$ 24,380
Stock-based compensation (1)
(594)
(977)
(861)
(1,771)
Purchase accounting intangible amortization
(515)
(541)
(1,004)
(1,040)
Non-GAAP research and development
$ 8,724
$ 10,144
$ 16,992
$ 21,569
Operating expenses, as reported
$ 43,039
$ 58,673
$ 91,656
$ 117,005
Stock-based compensation (1)
(790)
(4,531)
(4,999)
(7,893)
Restructuring and other costs (2)
(1,361)
(8,809)
(4,069)
(13,842)
Purchase accounting intangible amortization
(856)
(1,229)
(1,888)
(2,401)
Non-GAAP adjustments to operating expenses
(3,007)
(14,569)
(10,956)
(24,136)
Non-GAAP operating expenses
$ 40,032
$ 44,104
$ 80,700
$ 92,869
Income (loss) from operations, as reported
$ 1,750
$ (25,350)
$ (3,560)
$ (43,966)
Non-GAAP adjustments to gross profit
374
854
707
1,561
Non-GAAP adjustments to operating expenses
3,007
14,569
10,956
24,136
Non-GAAP income (loss) from operations
$ 5,131
$ (9,927)
$ 8,103
$ (18,269)
Net loss, as reported
$ (524)
$ (28,245)
$ (7,791)
$ (49,409)
Non-GAAP adjustments to gross profit
374
854
707
1,561
Non-GAAP adjustments to operating expenses
3,007
14,569
10,956
24,136
Income tax effect of non-GAAP adjustments (3)
(641)
(5,888)
(2,713)
(8,457)
Other tax adjustments (3)
1,146
7,959
3,894
14,342
Non-GAAP net income (loss)
$ 3,362
$ (10,751)
$ 5,053
$ (17,827)
Net loss per share – Diluted, as reported
$ (0.03)
$ (1.49)
$ (0.41)
$ (2.62)
Stock-based compensation (1)
0.06
0.26
0.30
0.46
Restructuring and other costs (2)
0.07
0.49
0.21
0.78
Purchase accounting intangible amortization
0.05
0.06
0.10
0.13
Income tax effect of non-GAAP adjustments (3)
(0.03)
(0.31)
(0.14)
(0.45)
Other tax adjustments (3)
0.06
0.42
0.20
0.76
Non-GAAP net income (loss) per share – Diluted
$ 0.18
$ (0.57)
$ 0.26
$ (0.94)
(1) We exclude stock-based compensation, which is non-cash, from the non-GAAP financial measures because the Company believes that such exclusion provides a better comparison of results of ongoing operations for current and future periods with such results from past periods.
(2) On February 14, 2020, our Board of Directors approved a global restructuring plan (the “Restructuring Plan”), which is intended to support our strategic plan in an effort to improve operating performance and ensure that we are appropriately structured and resourced to deliver increased and sustainable value to our shareholders and customers. On February 7, 2023, our Board of Directors approved an integration plan (the “Integration Plan”), which is intended to streamline and simplify operations, particularly around our recent acquisitions and the resulting redundant operations and offerings. The Restructuring and other costs primarily consist of severance and related benefits associated with the Restructuring Plan, Integration Plan, and executive transitions.
(3) The Income tax effect of non-GAAP adjustments is calculated by applying a statutory tax rate to Non-GAAP adjustments, including Stock-based compensation, Restructuring and other costs, non-recurring Inventory reserve charges, and Purchase accounting intangible amortization and fair value adjustments. In addition, when estimating our Non-GAAP income tax rate, we exclude the impact of items that impact our reported income tax rate that we do not believe are representative of our ongoing operating results, including the impact of valuation allowances we are currently recording in certain jurisdictions and certain discrete items such as adjustments to uncertain tax position reserves, as these items are difficult to predict and can impact our effective income tax rate. Specifically, Other tax adjustments during the six months ended June 30, 2024 were comprised of $3.6 million related to the impact of valuation allowance adjustments and $0.3 million related to other discrete items. During the three months ended June 30, 2024, Other tax adjustments were comprised of $0.8 million related to the impact of valuation allowance adjustments and $0.3 million related to other discrete items. In 2023, Other tax adjustments during the six months ended June 30, 2023 were comprised of $9.2 million related to the impact of valuation allowance adjustments and $5.3 million related to other items, including equity based compensation book to tax differences, non-GAAP adjustments impact on Global intangible low-taxed income and Prepaid tax on intercompany profit. During the three months ended June 30, 2023, Other tax adjustments were comprised of $4.6 million related to the impact of valuation allowance adjustments and $3.4 million related to other items, including equity based compensation book to tax differences, non-GAAP adjustments impact on Global intangible low-taxed income and Prepaid tax on intercompany profit.
FARO TECHNOLOGIES, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA
(UNAUDITED)
Three Months Ended June 30,
Six Months Ended June 30,
(in thousands)
2024
2023
2024
2023
Net loss
$ (524)
$ (28,245)
$ (7,791)
$ (49,409)
Interest expense, net
761
1,003
1,592
1,838
Income tax expense
1,556
1,416
2,657
3,349
Depreciation and amortization
4,167
3,947
7,788
7,925
EBITDA
5,960
(21,879)
4,246
(36,297)
Other expense (income), net
(43)
476
(18)
256
Stock-based compensation
1,164
4,950
5,703
8,584
Restructuring and other costs (1)
1,361
9,244
4,072
14,712
Adjusted EBITDA
$ 8,442
$ (7,209)
$ 14,003
$ (12,745)
Adjusted EBITDA margin (2)
10.3 %
1.0 %
8.4 %
(2.7) %
(1) On February 14, 2020, our Board of Directors approved the Restructuring Plan, which is intended to support our strategic plan in an effort to improve operating performance and ensure that we are appropriately structured and resourced to deliver increased and sustainable value to our shareholders and customers. On February 7, 2023, our Board of Directors approved the Integration Plan, which is intended to streamline and simplify operations, particularly around our recent acquisitions and the resulting redundant operations and offerings. The Restructuring and other costs primarily consist of severance and related benefits associated with the Restructuring Plan, Integration Plan, and executive transitions.
(2) Calculated as Adjusted EBITDA as a percentage of total sales.
FARO TECHNOLOGIES, INC. AND SUBSIDIARIES
KEY SALES MEASURES
(UNAUDITED)
Three Months Ended June 30,
Six Months Ended June 30,
(in thousands)
2024
2023
2024
2023
Total sales to external customers as reported
Americas (1)
$ 40,167
$ 41,358
$ 77,395
$ 83,701
EMEA (1)
24,600
24,855
50,035
49,020
APAC (1)
17,318
21,998
38,899
40,457
$ 82,085
$ 88,211
$ 166,329
$ 173,178
Three Months Ended June 30,
Six Months Ended June 30,
(in thousands)
2024
2023
2024
2023
Total sales to external customers in constant currency (2)
Americas (1)
$ 40,425
$ 41,482
$ 77,714
$ 83,210
EMEA (1)
24,931
24,964
50,395
47,860
APAC (1)
17,783
21,446
39,552
38,544
$ 83,139
$ 87,892
$ 167,661
$ 169,614
(1) Regions represent North America and South America (“Americas”); Europe, the Middle East, and Africa (“EMEA”); and the Asia-Pacific (“APAC”).
(2) We compare the change in the sales from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying business performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rate in effect during the last day of the prior comparable period, rather than the actual exchange rates in effect during the respective periods.
Three Months Ended June 30,
Six Months Ended June 30,
(in thousands)
2024
2023
2024
2023
Hardware
$ 50,051
$ 56,816
$ 102,667
$ 111,778
Software
11,262
10,786
22,182
21,065
Service
20,772
20,609
41,480
40,335
Total Sales
$ 82,085
$ 88,211
$ 166,329
$ 173,178
Hardware as a percentage of total sales
61.0 %
64.4 %
61.7 %
64.5 %
Software as a percentage of total sales
13.7 %
12.2 %
13.3 %
12.2 %
Service as a percentage of total sales
25.3 %
23.4 %
24.9 %
23.3 %
Total Recurring Revenue (3)
$ 17,139
$ 16,396
$ 33,856
$ 33,081
Recurring revenue as a percentage of total sales
20.9 %
18.6 %
20.4 %
19.1 %
(3) Recurring revenue is comprised of hardware service contracts, software maintenance contracts, and subscription based software applications.
FARO TECHNOLOGIES, INC. AND SUBSIDIARIES
FREE CASH FLOW RECONCILIATION
(UNAUDITED)
Three Months Ended June 30,
Six Months Ended June 30,
(in thousands)
2024
2023
2024
2023
Net cash provided by (used in) operating activities
$ 4,212
$ 5,137
$ 10,787
$ (13,207)
Purchases of property and equipment
(365)
(2,624)
(1,688)
(4,312)
Cash paid for technology development, patents and licenses
(1,950)
(1,796)
(3,392)
(3,616)
Free Cash Flow
1,897
717
5,707
(21,135)
Restructuring and other cash payments (1)
2,354
3,192
2,757
3,988
Adjusted Free Cash Flow
$ 4,251
$ 3,909
$ 8,464
$ (17,147)
(1) On February 7, 2023, our Board of Directors approved the Integration Plan, which is intended to streamline and simplify operations, particularly around our recent acquisitions and the resulting redundant operations and offerings. The Restructuring and other costs primarily consist of severance and related benefits associated with the Restructuring Plan, Integration Plan, and executive transitions.
FARO TECHNOLOGIES, INC. AND SUBSIDIARIES
RECONCILIATION OF OUTLOOK – GAAP TO NON-GAAP
Fiscal quarter ending September 30, 2024
Low
High
GAAP gross margin
53.0 %
54.5 %
Stock-based compensation
0.5 %
0.5 %
Non-GAAP gross margin
53.5 %
55.0 %
Fiscal quarter ending September 30, 2024
(in thousands)
Low
High
GAAP operating expenses
$45,000
$47,000
Stock-based compensation
(4,000)
(4,000)
Purchase accounting intangible amortization
(1,000)
(1,000)
Non-GAAP operating expenses
$40,000
$42,000
Fiscal quarter ending September 30, 2024
Low
High
GAAP diluted loss per share range
$(0.32)
$(0.12)
Stock-based compensation
0.19
0.19
Purchase accounting intangible amortization
0.05
0.05
Non-GAAP tax adjustments
0.07
0.07
Non-GAAP diluted loss per share
$(0.01)
$0.19
View original content to download multimedia:https://www.prnewswire.com/news-releases/faro-announces-second-quarter-financial-results-302218336.html
SOURCE FARO Technologies
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Siemon Announces Optical Patching Solutions for GenAI Networks Using NVIDIA Accelerated Computing
Published
5 hours agoon
September 22, 2024By
Siemon announces it is offering its full range of optical patching solutions to work specifically with NVIDIA AI infrastructure for generative AI networks.
WATERTOWN, Conn., Sept. 22, 2024 /PRNewswire-PRWeb/ — The Siemon Company, a global leader in network infrastructure solutions, today announced it is offering its full range of optical patching solutions to work specifically with NVIDIA AI infrastructure for generative AI networks. Large complex GPU clusters can benefit from using structured cabling patch panels versus point-to-point cabling. Siemon acts as a trusted advisor to customers by providing expert advice and best practice recommendations for design & deployment of NVIDIA AI Infrastructure.
As part of the solution integration, Siemon has joined the NVIDIA Partner Network (NPN) as a Solution Advisor Consultant. NPN Solution Advisor Consultants provide consultation services and expert advice to customers looking to implement NVIDIA-based solutions or technologies. Siemon joins the network to offer its expertise in addressing the unique infrastructure and cabling challenges presented by accelerated computing.
NVIDIA optical reach specifications are calculated assuming two optical patch panels are used in the link and assuming each employ two optical connectors, which makes for a total allowance of four optical connectors in the link. The Siemon optical patching solutions meet NVIDIA requirements and provide customers with flexibility and ease of management.
Media Contact
Brian Baum, Siemon, 1 8609454200, brian_baum@siemon.com
View original content:https://www.prweb.com/releases/siemon-announces-optical-patching-solutions-for-genai-networks-using-nvidia-accelerated-computing-302254640.html
SOURCE Siemon
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AMSimpkins & Associates Awarded Wisconsin Technical Purchasing Consortium Contract RFB 25-002TP – for Identity Verification Solutions
Published
6 hours agoon
September 22, 2024By
AMSimpkins & Associates has been awarded the Wisconsin Technical Colleges Purchasing Consortium (WTC-PC) contract for Identity Verification Solutions. This partnership includes providing their advanced S.A.F.E. (Student Application Fraudulent Examination) platform to 16 Wisconsin technical colleges, enhancing security and safeguarding against fraudulent student applications. With a focus on higher education, AMSA aims to support these institutions in maintaining the integrity of their admissions processes and preventing identity fraud. This collaboration underscores AMSA’s commitment to delivering innovative solutions tailored for the education sector.
ATLANTA, Sept. 22, 2024 /PRNewswire-PRWeb/ — AMSimpkins & Associates is proud to announce its selection by the Wisconsin Technical College System Purchasing Consortium (WTC-PC) to provide Identity Verification Solutions through the S.A.F.E. platform. The WTC-PC comprises 16 independent, publicly funded two-year technical colleges across Wisconsin, including Blackhawk Technical College, Chippewa Valley Technical College, Fox Valley Technical College, and Milwaukee Area Technical College, among others.
With a focus on preventing identity fraud, AMSimpkins & Associates’ comprehensive solutions will strengthen the security measures across admissions, enrollment, and financial aid processes, ensuring secure verification and compliance with federal and state regulations. S.A.F.E. will now support Wisconsin’s higher education system, offering its cutting-edge technology to streamline operations and safeguard student data.
“We are honored by the Wisconsin Technical College Consortium’s trust in AMSimpkins & Associates,” said Maurice Simpkins, President and Founder. “This partnership further emphasizes our commitment to providing secure, innovative identity verification solutions that support the needs of educational institutions in protecting their students and operations.”
As part of this agreement, AMSimpkins & Associates will deliver comprehensive services, including system integration, training, and ongoing support to ensure seamless implementation. S.A.F.E.’s capabilities are designed to evolve with growing threats of fraudulent activities, keeping institutions one step ahead in securing student identities.
Institutions in the Wisconsin Technical College System:
Blackhawk Technical CollegeChippewa Valley Technical CollegeFox Valley Technical CollegeGateway Technical CollegeLakeshore Technical CollegeMadison Area Technical CollegeMid-State Technical CollegeMilwaukee Area Technical CollegeMoraine Park Technical CollegeNicolet Area Technical CollegeNorthcentral Technical CollegeNortheast Wisconsin Technical CollegeNorthwood Technical CollegeSouthwest Wisconsin Technical CollegeWaukesha County Technical CollegeWestern Technical College
The S.A.F.E. platform’s advanced identity verification services will play a pivotal role in securing sensitive data and ensuring a safe and fraud-free environment for Wisconsin’s technical colleges and their students.
For more information about AMSimpkins & Associates and the S.A.F.E. platform, please visit amsa-highered.com.
Media Contact
LAQWACIA SIMPKINS, AMSimpkins & Associates, 1 6786824193, LSIMPKINS@AMSA-CONSULTING.COM, amsa-highered.com
View original content:https://www.prweb.com/releases/amsimpkins–associates-awarded-wisconsin-technical-purchasing-consortium-contract-rfb-25-002tp—for-identity-verification-solutions-302253867.html
SOURCE AMSimpkins & Associates
Technology
Shijingshan: Committed to High-Level Openness
Published
11 hours agoon
September 22, 2024By
BEIJING, Sept. 22, 2024 /PRNewswire/ — Following the third plenary session of the 20th Central Committee of the Communist Party of China, China successfully hosted its first national-level international large-scale fair—the China International Fair for Trade in Services (CIFTIS) 2024, which concluded on September 16. The event featured exhibitors from 85 countries and international organizations, participating under their national governments or headquarters, with over 450 Fortune Global 500 companies and industry leaders showcasing their offerings both online and offline.
Adhering to the open, cooperative and mutually beneficial principle, the CIFTIS injects new momentum into global economic development through concrete actions. As one of the “dual venues” for the fair, Shijingshan District hosted a variety of business activities, including exhibitions, negotiations, and conferences. While providing meeting organization services, it showcased the achievements of Shijingshan in fostering openness and development. By leveraging the Fair’s platform, Shijingshan seeks to promote its developmental advantages globally and aims to attract more partners to this welcoming district for mutually beneficial and win-win cooperation.
Presenting Achievements in Open Cooperation and Development in Multiple Dimensions
This CIFTIS’s Shougang Park venue is composed of nine thematic exhibitions, including telecommunications, computer and information services; financial services; culture & tourism services; education services; sports services; supply chain & business services; engineering consulting & construction services; health services; and environmental services. It circles around cultivating new quality productive forces while showcasing the latest achievements, technologies, and applications in the digitalization, intelligentization, and greening of services trade, creating a “debut stage” for global services trade.
Shijingshan leverages its strengths by organizing five thematic exhibitions and four promotional booths on-site. The culture & tourism services exhibition promoted Shijingshan’s rich culture and tourism resources, while also building a support area for paired assistance to highlight its revitalization efforts to a global audience. The financial services exhibition showcased its achievements in economic development across five sectors, that is, sci-tech finance, green finance, inclusive finance, pension finance, and digital finance. The exhibition of telecommunications, computer and information services highlighted the growth of Shijingshan’s the artificial intelligence large model industry cluster and key humanoid robot enterprises. In addition, the primary and secondary school science education experimental zone invited participation from six national-level science education centers, including Shijingshan District, to display their accomplishments. Four schools, including the Beijing National Day School Shijingshan, showcased their scientific research and learning outcomes through visual presentations and videos, while also engaging visitors in interactive science experiments.
The AIES Beijing Open is made up of four competition areas, virtual cycling, virtual rowing, virtual dance, and virtual table tennis. The event welcomed international competitors, domestic professional athletes, high-level amateurs, and university students, while showing the achievements of the “digital + sports” industry. Besides, four promotional booths focused on taxation, justice, investment, and commerce showcases Shijingshan’s tax and judicial policies, offering one-stop policy guidance for participating businesses and visitors. These booths also clarified investment promotion policies, creating a unique event that integrates commerce, tourism, culture, and sports.
Working Together for Global Open Cooperation and Development
The Open Cooperation Forum 2024 was held on the afternoon of September 13. Experts, scholars, government representatives, and business leaders from both domestic and international backgrounds gathered at the Shougang Park to engage in in-depth discussions on promoting high-level open cooperation and supporting regional economic development. Shijingshan District is committed to taking industrial transformation as the strategic foundation for its initiatives, establishing several distinctive industrial parks, including the Intelligent Technology Park, Industrial Internet Park, Virtual Reality Park, Science Fiction Industry Cluster, and Artificial Intelligence Large Model Cluster. What’s more, the district is focusing on new opportunities in future information, future health, future manufacturing, and future space, continually enhancing its innovation capacity, development vitality, economic strength, and overall competitiveness.
It is dedicated to expanding openness as a key driver for integrating into the capital’s new development pattern. The district capitalizes on a range of policy opportunities, including the construction of Beijing’s two zones, effectively leveraging the role of expanding services and deepening economic reforms. It continues to optimize the business environment, actively participates in organizing the CIFTIS, and develops high-standard international cooperation zones to provide a broad platform and efficient services for enterprises to settle and cluster. Shijingshan aims to implement high-level openness to promote high-quality development, enhance mechanisms for foreign openness, innovate and elevate services trade, and align with international economic and trade standards, creating a premier business environment characterized by marketization, rule of law, and internationalization.
Three parallel forums took place during this CIFTIS. With the theme of “Leveraging Overseas Strength for Development • Pursuing Broad Horizons Through Innovation”, the Dream Incubator of Overseas Chinese Beijing Forum set up ten sub-venues abroad, aiming to enhance the involvement of overseas Chinese’s capital and expertise in Beijing’s high-quality development. The Artificial General Intelligence Computility Forum focused on “Releasing New Quality Productive Forces with Unbounded Intelligence and Computational Foundations”, where industry experts and scholars explored new possibilities in artificial general intelligence computility. The Digital Energy Development Forum 2024, themed as “Energizing the Future with Digital Innovation”, showcased a range of quality development achievements and finalized partnerships for several high-quality projects, uniting all parties to advance digital innovation and development.
The rich array of side events is one of the highlights of this CIFTIS. The International Open Cooperation Promotion Conference circled around developing the international open cooperation zone, drawing representatives from international organizations, leading global companies, and prospective businesses seeking to establish a presence in these areas. It centered on the advantages of Shijingshan’s key industries to attract target enterprises. Furthermore, the Roundtable Discussion of Foreign-Funded Enterprises engaged representatives from international organizations, business associations, and foreign-funded companies from countries like Malaysia, Singapore, and France to explore collaboration in aligning with high-standard international economic and trade rules, as well as market access in the service sector, sharing the successes of modernization with Chinese characteristics.
To enhance the consumer experience for attendees of the CIFTIS, Shijingshan has expanded its comprehensive service offerings in areas such as food, accommodation, transportation, tourism, entertainment and shopping. The Second “Here I Am for CIFTIS” Shijingshan Culture and Tourism Carnival has been significantly upgraded, evidenced by the “Divine Beasts Ascend to Immortal Mountain”: Enchanting Night Tour in Shijing Mountain. The “Surprises Await in Shijingshan. Hey There, CIFTIS!” promotional event was held during the 14th Shijingshan Consumption Festival. This included online surprise announcements and a consumption map showcasing quality shopping venues. Special surprise floats were on display, with oversized themed shopping bags distributed. Shopping centers like Joy City, Xirondo Plaza, Modern Plaza, and Chang’an Mills in Shijingshan also launched supporting promotional activities. Business tours in Shijingshan offered three dedicated routes, inviting exhibitors from digital technology, finance and insurance, culture and tourism, and sports related industries to explore relevant industrial parks and attractions for in-depth exchanges.
The China International Fair for Trade in Services 2024 has successfully concluded. Utilizing this platform, Shijingshan has once again showed its high-quality development achievements and favorable business environment to a global audience. We look forward to collaborating with more partners in an open and inclusive manner to create a win-win future.
View original content:https://www.prnewswire.com/news-releases/shijingshan-committed-to-high-level-openness-302254872.html
SOURCE Open Cooperation Forum
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