FARO Announces First Quarter Financial Results

FARO has announced its financial results for the first quarter ended March 31, 2020.

First Quarter 2020 Financial Summary

Total sales were $79.5 million for first quarter 2020, as compared with $93.6 million for first quarter 2019. The decrease was a result of continuing market softness in many of the Company’s served markets, along with order pushouts at the end of March due to COVID-19 uncertainty. New order bookings were $77.9 million for the first quarter 2020, down 23% as compared to $100.7 million for the first quarter 2019.

“The implementation of our restructuring plan, which we announced in February, has progressed well in the first quarter and we remain on track to achieve our targeted $40 million in annualized savings by the end of the year. While these changes were not made anticipating COVID-19, when combined with our strong balance sheet they have positioned us well for the current environment,” stated Michael Burger, President and Chief Executive Officer. “Further, while near-term demand visibility remains challenged due to the global pandemic, to date there has been limited disruption to our manufacturing supply chain and our sales team remains enthusiastic about our new go-to-market strategy. I am optimistic that our new strategy will enable FARO to emerge as a stronger, more efficient business with a highly scalable financial model when the business environment returns to normalized levels.”

In the first quarter of 2020, the Company recorded additional non-recurring charges of approximately $13.8 million that were predominantly related to expected cash severance payments associated with the implementation of its new strategic plan.

Gross margin was 55.2% for the first quarter 2020, as compared to 56.6% for the same prior year period.

The Company’s cash and short-term investments increased $14.7 million to $173.2 million as of the end of the first quarter of 2020, and the Company remained debt-free.

For more information: www.faro.com