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Faro Technologies Inc (FARO) Reports Q3 2023 Earnings: Revenue Up 2% YoY

  • Faro Technologies Inc (NASDAQ:FARO) reported Q3 2023 revenue of $86.8 million, a 2% increase year over year.

  • Software sales grew by 6% compared to the same period last year, reaching $11.2 million.

  • Recurring revenue also saw a 3% increase year on year, amounting to $17.1 million.

  • However, the company reported a net loss of $8.8 million, compared to a net loss of $6.3 million in the same period last year.

On November 1, 2023, Faro Technologies Inc (NASDAQ:FARO), a global leader in 4D digital reality solutions, announced its financial results for the third quarter ended September 30, 2023. The company reported total sales of $86.8 million, marking a 2% increase year over year. This exceeded the high-end of the company's expectations, driven by moderate improvements in end market demand and operational performance.

Financial Highlights

The company's software sales for the quarter stood at $11.2 million, up 6% compared to the prior year period. Recurring revenue also saw a 3% year-on-year increase, reaching $17.1 million. However, the company reported a net loss of $8.8 million, or $(0.46) per share, compared to a net loss of $6.3 million, or $(0.34) per share in the prior year period.

Operating expenses for the quarter were $48.6 million, down from $50.4 million in the same period last year. The company's gross margin was 48.0%, compared to 50.7% in the prior year period. Non-GAAP net income was $0.5 million, or $0.02 per share, compared to a non-GAAP net gain of $0.5 million, or $0.03 per share in the prior year period.

Balance Sheet and Cash Flow

As of the end of Q3 2023, Faro Technologies Inc (NASDAQ:FARO) had cash and cash equivalents of $79.9 million, down from $88.5 million as of June 30, 2023. The company used $17.6 million in operating activities during the first nine months of 2023, mainly due to the net loss reported.

Outlook

For the fourth quarter ending December 31, 2023, FARO expects revenue in the range of $92 to $100 million, gross margin in the range of 49.5% to 51.0%, and operating expenses in the range of $47.5 to $49.5 million. The company anticipates a net loss per share in the range of ($0.30) to ($0.15).

Despite the net loss, the company remains optimistic about its mid to long-term prospects and is focused on improving the execution of its hardware and software-enabled strategy.

Explore the complete 8-K earnings release (here) from Faro Technologies Inc for further details.

This article first appeared on GuruFocus.

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