Faro Technologies has reported its financial results for the fourth quarter 2021 along with full year 2021 financial summary.
Fourth Quarter 2021 Financial Summary
Total sales were $100.2 million for fourth quarter 2021 representing a 27% sequential quarterly increase when compared to $79.2 million in the third quarter 2021, and an 8% increase when compared with total sales of $93.0 million for fourth quarter 2020. The sales increases were primarily driven by seasonal fourth quarter strength as well as increased demand for our Quantum Max product, and continued recovery from pandemic related softness in the prior year period.
Gross margin was 55.6% for the fourth quarter 2021, as compared to 54.6% for the same prior year period. Non-GAAP gross margin was 55.8% for the fourth quarter 2021 compared to 54.9% for the fourth quarter 2020. The annual increase in gross margin was primarily a result of higher volume compared to the prior year period.
Net loss was $31.7 million for the fourth quarter 2021, as compared to a net income of $27.4 million for the fourth quarter 2020. Fourth quarter 2021 GAAP net loss included income tax expense of $26.5 million associated with the creation of a valuation allowance against primarily US deferred tax assets. Non-GAAP net income was $8.7 million for the fourth quarter 2021 compared to non-GAAP net income of $6.3 million for the fourth quarter 2020.
The Company’s cash and short-term investments decreased $3.8 million to $122.0 million as of the end of the fourth quarter of 2021 due primarily to timing of customer cash receipts. Accounts receivable increased $19.6 million in the fourth quarter. The Company remained debt-free.
“Fourth quarter revenue grew sequentially 27% to $100.2 million as a result of continued pandemic related market recovery, seasonal strength and a 43% sequential increase in arm shipments fueled by our recently released Quantum Max ScanArm, while a strong dollar exchange rate and supply chain challenges muted overall reported revenue levels,” stated Michael Burger, President and Chief Executive Officer. “Additionally, our Holobuilder SaaS revenue remains on track to double over the next year, with the addition of a mid-six figure annual recurring revenue deal signed in the quarter.”
Mr. Burger continued, “Looking ahead, we are encouraged by the pace of demand recovery and while the current supply chain environment creates uncertainty, we believe the combination of new product introductions and the launch of FARO Sphere will further strengthen demand as we move through 2022.”
Full Year 2021 Financial Summary
Total sales were $337.8 million for the full year 2021, as compared with $303.8 million for 2020. New order bookings were $351.5 million for 2021, as compared to $306.4 million for 2020.
Net loss was $40.0 million for 2021, as compared to net income of approximately $0.6 million for 2020. Non-GAAP net income was $10.2 million for 2021 compared to net loss of $1.8 million for 2020.
For more information: www.faro.com