{"id":519347,"date":"2021-07-28T16:23:53","date_gmt":"2021-07-28T20:23:53","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/faro-announces-second-quarter-2021-financial-results\/"},"modified":"2021-07-28T16:23:53","modified_gmt":"2021-07-28T20:23:53","slug":"faro-announces-second-quarter-2021-financial-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/faro-announces-second-quarter-2021-financial-results\/","title":{"rendered":"FARO Announces Second Quarter 2021 Financial Results"},"content":{"rendered":"
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PR Newswire<\/p>\n<\/p><\/div>\n

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\n LAKE MARY, Fla.<\/span>, July 28, 2021<\/span> \/PRNewswire\/ —\u00a0FARO\u00ae (Nasdaq: FARO), a global leader of 3D measurement, imaging, and realization solutions for the 3D Metrology, AEC (Architecture, Engineering & Construction), and Public Safety Analytics markets, today announced its financial results for the second quarter ended June 30, 2021<\/span>.<\/p>\n

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\n \"FARO
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“Second quarter demand reflected a return to seasonal growth, with broad based improvement across our served markets,” stated Michael Burger<\/span>, President and Chief Executive Officer. “While demand recovers, we remain focused on creating opportunities to drive topline growth such as the expansion of our Digital Twin offering through the addition of Holobuilder’s photogrammetry capabilities and our recently announced next generation Quantum Max ScanArm family of products, as well as further streamlining our operational cost structure with the recently announced shift to outsourced manufacturing.”<\/p>\n

Mr. Burger continued, “Through the combination of strategic initiatives implemented over the last two years and the investments we continue to make in our hardware, software and solution offerings to directly address our customer’s workflow needs, we believe we are well positioned to drive strong operating leverage and long-term differentiation as the market grows.”<\/p>\n

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\n Second Quarter 2021 Financial Summary
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\n <\/b>Total sales were $82.1 million<\/span> for second quarter 2021 representing an 8% sequential quarterly increase when compared to $76.3 million<\/span> in the first quarter 2021, and a 36% increase when compared with total sales of $60.6 million<\/span> for second quarter 2020.\u00a0 The sequential sales increase represents typical market seasonality while the year over year growth was primarily a result of pandemic related softness in the prior year period.\u00a0 Similarly, new order bookings of $88.2 million<\/span> increased 9% sequentially compared to $80.6 million<\/span> in the first quarter 2021 and increased 44% when compared to $61.4 million<\/span> for the second quarter 2020.<\/p>\n

Gross margin was 55.4% for the second quarter 2021, as compared to 47.7% for the same prior year period. Non-GAAP gross margin was 55.7% for the second quarter 2021 compared to 48.4% for the second quarter 2020. The annual increase in gross margin was primarily a result of higher volume compared to the prior year period.<\/p>\n

Operating expenses were $46.1 million<\/span> for the second quarter 2021, compared to $40.9 million<\/span> for the same prior year period. Non-GAAP operating expenses were $41.8 million<\/span> for the second quarter 2021 compared to $37.7 million<\/span> for the second quarter 2020. <\/p>\n

Net loss was $1.2 million<\/span>, or $0.06<\/span> per share, for the second quarter 2021, as compared to a net loss of $8.9 million<\/span>, or $0.50<\/span> per share, for the second quarter 2020. Non-GAAP net income was $2.2 million<\/span>, or $0.12<\/span> per share, for the second quarter 2021 compared to Non-GAAP net loss of $6.3 million<\/span>, or $0.36<\/span> per share, for the second quarter 2020.\u00a0 <\/p>\n

Adjusted EBITDA was $6.5 million<\/span>, or 7.9% of Non-GAAP total sales, for the second quarter of 2021 compared to Adjusted EBITDA of negative $5.0 million<\/span>, or 8.2% of Non-GAAP total sales, for the second quarter of 2020.<\/p>\n

The Company’s cash and short-term investments decreased $36.6 million<\/span> to $133.3 million<\/span> as of the end of the second quarter of 2021, primarily due to the $34 million<\/span> acquisition of HoloBuilder which closed in the quarter.\u00a0 The Company remained debt-free.\u00a0 <\/p>\n

* 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”.<\/p>\n

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\n Conference Call
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\n <\/b>The Company will host a conference call to discuss these results on Thursday, July 29, 2021<\/span> at 8:00 a.m. ET<\/span>. Interested parties can access the conference call by dialing (877) 876-9176 (U.S.) or +1 (785) 424-1669 (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\/about-faro\/investor-relations\/events<\/a><\/p>\n

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.<\/p>\n

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\n About FARO
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\n <\/b>For 40 years, FARO has provided industry-leading technology solutions that enable customers to quickly and easily 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\u00a0http:\/\/www.faro.com<\/a><\/p>\n

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\n Non-GAAP Financial Measures
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\n <\/b>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 total sales, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income (loss) from operations, non-GAAP other expense (income), net, non-GAAP net income (loss) and non-GAAP net income (loss) per share, exclude the GSA sales adjustment (as defined in the tables below), the impact of purchase accounting intangible amortization expense, stock-based compensation, imputed interest expense recorded related to the GSA Matter, restructuring charges, and other tax adjustments, and are provided to enhance investors’ overall understanding of our historical operations and financial performance. <\/p>\n

In addition, we present Adjusted EBITDA, which is calculated as net loss before interest expense, net, income tax benefit and depreciation and amortization, excluding other expense (income), net, stock-based compensation, the GSA sales adjustment, and restructuring charges, as measures of our operating profitability. The most directly comparable GAAP measure to Adjusted EBITDA is net loss. We also present Adjusted EBITDA margin, which is calculated as Adjusted EBITDA as a percent of Non-GAAP total sales.\u00a0\u00a0\u00a0 <\/p>\n

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.<\/p>\n

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.<\/p>\n

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\n Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
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\n <\/b>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 demand for and customer acceptance of FARO’s products, FARO’s product development and product launches, the anticipated benefits of FARO’s acquisition of Holobuilder, 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 plan and the timing and amount of cost savings and other benefits expected to be realized from the restructuring plan 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.\u00a0In 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.<\/p>\n

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:<\/p>\n