Faro Technologies has reported its first quarter 2022 financial result. Total sales were $76.7 million, in line with the prior year period; software sales, of $10.3M or 13% of revenue remained in line with the prior year period. Operating expenses for the period were reported at $48.2 million, compared to $46.8 million in the prior year period. Net loss of $9.7 million was reported compared to $3.2 million in the prior year period. Faro reported cash and short-term investments of $107.2 million, compared to $122.0 million as of December 31, 2021.
Total sales increased by $0.4 million, or 0.4%, to $76.7 million for the three months ended March 31, 2022 from $76.3 million for the three months ended March 31, 2021. Total product sales increased by $2.1 million, or 3.8%, to $56.7 million for the three months ended March 31, 2022 from $54.6 million for the three months ended March 31, 2021.
“First quarter revenue came in below expectations as the Chinese government’s mandated COVID lockdown in Shanghai prevented shipments from our lone Chinese logistics center at the end of March. Additionally, ongoing supply chain shortages and softer than expected demand in the AEC market further impacted our Q1 revenue,” stated Michael Burger, President and Chief Executive Officer. “With the launch of our new Focus Premium Laser Scanner in April and the Quantum Max FaroArm in the second half of 2021, we have refreshed three quarters of FARO’s hardware revenue which positions us very well competitively.”
Mr. Burger continued, “Our focus remains on providing the market increasing levels of analytics, insights and value from 3D models captured by FARO’s hardware products and accessed through FARO Sphere, our recently announced cloud-based environment. While the ongoing uncertainties in the market create risks to near-term results, the long-term opportunity for FARO remains as exciting as ever. Our high accuracy expertise and focus on enabling customers to efficiently and easily manage their assets virtually, positions us well to capitalize on the massive potential of the digital reality market.”
On the earnings conference call Michael stated “Despite our overall disappointment with our first quarter revenue and profit performance, we remain excited about the continued progress toward our long-term strategic goals. Our manufacturing outsource initiative with Sanmina remains on track, as we have now moved manufacturing of both our ScanArm and Laser Tracker product lines to Sanmina’s Thailand facility. All future shipments of these two product lines will now be sourced from Sanmina and shipped through our existing logistics center.
We have stopped manufacturing activities in both of our U.S. sites as of the end of Q1. We expect to complete this transition of the remaining Laser Scanner product line by the end of this current quarter.”
For more information: www.faro.com