Faro, the first of the publicly traded metrology companies to report, has announced its financial results for the second quarter ended June 30, 2019.
Total sales were $93.5 million for second quarter 2019, as compared with $98.2 million for second quarter 2018, which included the unfavorable impacts of $5.8 million from a GSA sales adjustment and $2.5 million from changes in foreign exchange rates. Excluding the impact of the GSA sales adjustment, non-GAAP total sales were $99.3 million for second quarter 2019, up 1.1% as compared with $98.2 million for second quarter 2018.
Faro grew service revenues year-over-year by 13.2% in second quarter 2019, driven by the growth of its installed base and focused after-market sales initiatives. Product sales for second quarter 2019 decreased year-over-year primarily due to the GSA sales adjustment, the impact of changes in foreign exchange rates, and a decrease in unit sales within its 3D manufacturing segment, especially in the Asia-Pacific region. New order bookings were $106.1 million for second quarter 2019, down 0.4% as compared with $106.5 million for second quarter 2018.
As previously disclosed by the company, Faro have sold products and related services to the U.S. Government under General Services Administration (“GSA”) Federal Supply Schedule contracts since 2002. On February 14, 2019, Faro reported to the GSA and its Office of Inspector General that a preliminary internal review determined that it may have overcharged the Government under the Contracts.
Faro reported a net loss of $6.4 million for second quarter 2019, as compared to net income of $1.2 million for second quarter 2018. Non-GAAP net income was $2.5 million for second quarter 2019. Faro generated $11.9 million in cash flow from operations for second quarter 2019 and remained debt-free, with cash and short-term investments totaling $145.4 million.
“I’m excited to have joined FARO in mid-June and to lead the company through its next phase of evolution,” stated Michael Burger, President and Chief Executive Officer. “I am very encouraged by our company’s technological, manufacturing, and organizational strengths and FARO’s potential for growth. Looking forward, we will be developing a strategy to leverage our capabilities to deliver long-term shareholder value.”
For more information: www.faro.com