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FARO Announces Second Quarter Financial Results

FARO has announced its financial results for the second quarter 2022.

“Improving demand for our products, including the recently launched Focus Premium laser scanner and Quantum Max scan arm generated revenue of $79.9 million or $83.9 million on a constant currency basis, adjusting for the significant strengthening of the US dollar in the second quarter,” stated Michael Burger, President and Chief Executive Officer. “We believe the building momentum for our updated product line-up demonstrates the progress we’ve made in aligning our hardware and software roadmaps to add value to our customer’s workflows, resulting in differentiated offerings in our target markets.”

Second Quarter 2022 Financial Summary

– Total sales of $79.9 million, down 3% compared to the prior year period

– Total sales on a Non-GAAP constant currency basis of $83.9 million, up 3% compared to the prior year period

– Software sales, of $10.5 million or 13% of revenue, up from 12% in the prior year period

– Recurring revenue of $17.1 million or 21% of revenue (actual currency basis), grew 8% compared to the prior year period

– Gross margin of 50.6%, compared to 55.4% in the prior year period

Faro recorded a net loss of $8.6 million compared to a net loss of $1.2 million in the prior year period.

Faro recorded a net loss of $18.3 million YTD in 2022 compared to a net loss of $4.4 million in the prior year equivalent period.

Cash and short-term investments were $102.0 million, compared to $107.2 million as of March 31, 2022.

During the investor conferenece call Michael Berger stated “We believe the improved speed and ease of use of the Focus Premium scanner coupled with stream our new mobile scanning application are key differentiating features that compare favorably against our competitors products. These two repressed product lines represent 75% of our historical hardware revenue. In the second quarter shipments of our scan arm and our laser tracker product lines were sourced from Sanmina, Thailand facility. We continue to be pleased with Sanmina’s quality levels as well as their ability to meet required volumes.

At the end of the second quarter and consistent with our plans, we completed the move of our laser scanner product line to Sanmina. As a result, our manufacturing actual outsource initiative is now largely complete. We continue to believe in the long term financial and operational benefits of this transition. And while the timing of the previously mentioned $12 million in annualized savings is delayed, due to the ongoing disruptions in supply chain, we’re beginning to have line of sight to have phased shifting of supply chain partners to Southeast Asia that will allow us to begin seeing savings in 2023.”

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