FARO has announced its financial results for the first quarter ended March 31, 2018.
Highlights from the quarter included:
- Quarterly sales of $92.8 million, up 13.8% year-over-year
- Construction BIM segment quarterly sales of $22.7 million, up 19.8% year-over-year
- Increased gross margin year-over-year to 57.9% for the quarter
“Our first quarter performance provides another quarter that validates our vertical market strategy and growth initiatives with our third consecutive quarter of double digit sales growth and gross margin increase year-over-year,” stated Dr. Simon Raab, President and Chief Executive Officer. “We continued our innovation in the construction BIM market by releasing FARO BuildIT Construction software to leverage laser scanner technology to eliminate waste and enhance quality control in construction projects. Our emerging verticals of product design and public safety forensics combined to deliver strong year-over-year sales growth, demonstrating the high growth potential in these markets and the returns associated with our sales headcount investments. Quarterly earnings were affected by our intentional acceleration of R&D activities for the fast-growing BIM and 3D machine vision markets. In the quarter, we kicked off our global lean continuous improvement initiative named FARO Best! to further drive efficiencies and improvement in operating margin. With these initiatives and continued investment in R&D, both organically and through the acquisition of strong talent and technologies, we continue to provide more value to our customers and shareholders.”
Total sales increased by $11.2 million, or 13.8%, to $92.8 million for the quarter ended March 31, 2018 from $81.6 million for the quarter ended March 31, 2017. The sales increase was primarily driven by a strong increase in product unit sales in the construction BIM segment, higher average selling prices in the 3D factory segment, and continued service revenue growth. New order bookings increased by $9.2 million, or 10.6%, to $96.1 million for the quarter ended March 31, 2018 from $86.9 million for the quarter ended March 31, 2017.
As of March 31, 2018, cash and short-term investments totaled $149.8 million..