Faro Announced Half-Year Financial Results
FARO has announced its financial results for the second quarter ended June 30, 2020.
Total sales were $60.6 million for second quarter 2020, as compared with $93.5 million for second quarter 2019. The company stated that the decrease in sales was primarily a result of end market demand softness related to the COVID-19 pandemic.
New order bookings were $61.4 million for the second quarter 2020, down compared to $106.0 million for the second quarter 2019.
Gross margin was 47.7% for the second quarter 2020, as compared to 54.3% for the same prior year period. The decrease in gross margin was primarily a result of the impact of lower sales resulting from the COVID-19 pandemic.
Net loss was $8.9 million for the second quarter 2020, as compared to a net loss of $6.4 million for the second quarter 2019.
The Company’s cash and short-term investments increased $0.5 million to $173.7 million as of the end of the second quarter of 2020, and the Company remained debt-free.
“I remain pleased with the progress we’ve made executing our strategic initiatives, despite the soft market environment. Our efforts combined with additional prudent cost control measures have enabled us to beat our non-GAAP operating expense objective a full six months earlier than expected. Further, the revitalized sales organization has embraced the new reality of a virtual sales model that I expect will continue to enable sales efficiencies when world conditions normalize,” stated Michael Burger, President and Chief Executive Officer. “While the discretionary capital nature of our markets limits our visibility towards the timing of a recovery, we remain confident the actions we are taking will drive a meaningful increase in growth and profitability in the years ahead.”
Total sales decreased by $47.0 million (25.1%) to $140.1 million for the six months ended June 30, 2020 from $187.1 million for the six months ended June 30, 2019. Total product sales decreased by $43.8 million (30.7%) to $98.8 million for the six months ended June 30, 2020 from $142.6 million for the six months ended June 30, 2019. The company reported poduct sales decreased primarily due to the unfavorable impact of end market demand softness related to the COVID-19 pandemic.
Service revenue decreased by $3.2 million (7.2%) to $41.3 million for the six months ended June 30, 2020 from $44.5 million for the six months ended June 30, 2019, again primarily due to the unfavorable impact of end market demand softness related to the COVID-19 pandemic. Foreign exchange rates had a negative impact on total sales of $2.1 million, increasing the percent that overall sales declined by approximately 1.1%.
For more information: www.faro.com
