FARO Reports First Quarter 2013 Results PR Newswire LAKE MARY, Fla., April 30, 2013 LAKE MARY, Fla., April 30, 2013 /PRNewswire/ --FARO Technologies, Inc. (NASDAQ: FARO) today announced results for the first quarter ended March 30, 2013. Sales in the first quarter of 2013 increased $0.2 million to $65.4 million, from $65.2 million in the first quarter of 2012. The Company reported net income of $4.6 million, or $0.27 per share, in the first quarter of 2013, compared with $6.7 million, or $0.39 per share, in the first quarter of 2012. (Logo: http://photos.prnewswire.com/prnh/20110415/MM84316LOGO ) New order bookings for the first quarter of 2013 were $64.6 million, an increase of 4.0% from $62.1 million in the first quarter of 2012. Gross margin for the first quarter of 2013 was 56.3%, compared with 57.0% in the first quarter of 2012. Gross margins were slightly lower, primarily as a result of proportionately higher laser scanner sales sold through the distribution channel, which yield lower margins but allow FARO to avoid incurring related selling expense, as well as some pricing pressure in certain metrology products. Gross margins have improved from 53.4% in the fourth quarter of 2012, largely as a result of manufacturing cost improvements and increased margins from warranty sales. The Company's operating margin for the first quarter of 2013 decreased to 8.7% from 12.9% in the first quarter of 2012, resulting from slightly lower gross margins and increased staffing and travel costs of approximately $1.6 million primarily in our sales and marketing, customer service and research and development organizations. The Company's cash balance increased by $11.3 million during the quarter. "Our results for the quarter reflect continuing sluggish European and Asian markets where order and sales levels remain somewhat weaker than expected. In the Americas, order volume in the quarter was particularly strong, up 25% year-over-year. As expected, competition has intensified in tight markets. Our overarching goals are to remain the industry leader and grow sales and earnings in all market conditions. As such, in the first quarter of 2013 we made additional investments in sales and marketing personnel to aggressively grow product and service revenue, and expanded our research & development teams to accelerate new product development," stated Jay Freeland, President and Chief Executive Officer. This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties, such as statements about demand and competition for its products, its position as industry leader and its future operating results and financial condition. Statements that are not historical facts or that describe the Company's plans, objectives, projections, expectations, assumptions, strategies, or goals are forward-looking statements. In addition, words such as "intend," "believe," "will," "expect" and similar expressions or discussions of FARO's plans or other intentions identify forward-looking statements. Forward-looking statements are not guarantees of future performance and are subject to various known and unknown risks, uncertainties, and other factors that may cause actual results, performances, or achievements to differ materially from future results, performances, or achievements expressed or implied by such forward-looking statements. Consequently, undue reliance should not be placed on these forward-looking statements. Factors that could cause actual results to differ materially from what is expressed or forecasted in such forward-looking statements include, but are not limited to: odevelopment by others of new or improved products, processes or technologies that make the Company's products obsolete or less competitive; othe cyclical nature of the industries of the Company's customers and material adverse changes in customers' access to liquidity and capital; odeclines or other adverse changes, or lack of improvement, in industries that the Company serves or the domestic and international economies in the regions of the world where the Company operates and other general economic, business, and financing conditions; orisks associated with international operations, such as fluctuations in currency exchange rates, difficulties in staffing and managing foreign operations, political and economic instability, compliance with import and export regulations, and the burdens and potential exposure of complying with a wide variety of U.S. and foreign laws and labor practices; oother risks detailed in Part I, Item 1A. Risk Factors in the Company's Annual Report on Form 10-K for the year ended December 31, 2012. Forward-looking statements in this release represent the Company's judgment as of the date of this release. The Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise. About FARO FARO is the world's most trusted source for 3D measurement technology. The Company develops and markets computer-aided measurement and imaging devices and software. Technology from FARO permits high-precision 3D measurement, imaging and comparison of parts and complex structures within production and quality assurance processes. The devices are used for inspecting components and assemblies, rapid prototyping, documenting large volume spaces or structures in 3D, surveying and construction, as well as for investigation and reconstruction of accident sites or crime scenes. Approximately 15,000 customers are operating more than 30,000 installations of FARO's systems, worldwide. The Company's global headquarters is located in Lake Mary, FL; its European regional headquarters in Stuttgart, Germany; and its Asia/Pacific regional headquarters in Singapore. FARO has offices in Brazil, Mexico, United Kingdom, France, Spain, Italy, Poland, Netherlands, India, China, Malaysia, Vietnam, Thailand and Japan. More information is available at http://www.faro.com. FARO TECHNOLOGIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended (in thousands, except share data) March 30, 2013 March 31, 2012 SALES Product $ 52,482 $ 54,424 Service 12,888 10,805 Total Sales 65,370 65,229 COST OF SALES Product 21,339 20,506 Service 7,206 7,537 Total Cost of Sales (exclusive of depreciation and amortization, 28,545 28,043 shown separately below) GROSS PROFIT 36,825 37,186 OPERATING EXPENSES: Selling 16,650 16,038 General and administrative 7,515 6,628 Depreciation and amortization 1,833 1,679 Research and development 5,125 4,408 Total operating expenses 31,123 28,753 INCOME FROM OPERATIONS 5,702 8,433 OTHER (INCOME) EXPENSE Interest income (16) (101) Other expense (income), net 115 (140) Interest expense 1 13 INCOME BEFORE INCOME TAX EXPENSE 5,602 8,661 INCOME TAX EXPENSE 1,028 1,911 NET INCOME $ 4,574 $ 6,750 NET INCOME PER SHARE - BASIC $ 0.27 $ 0.40 NET INCOME PER SHARE - DILUTED $ 0.27 $ 0.39 Weighted average shares - Basic 17,009,773 16,788,241 Weighted average shares - Diluted 17,176,876 17,162,959 FARO TECHNOLOGIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS March 30, December 31, 2013 2012 (in thousands, except share data) (unaudited) ASSETS Current Assets: Cash and cash equivalents $ 104,598 $ 93,233 Short-term investments 64,991 64,990 Accounts receivable, net 53,721 62,559 Inventories, net 50,024 48,894 Deferred income taxes, net 6,025 7,216 Prepaid expenses and other current assets 13,106 11,186 Total current assets 292,465 288,078 Property and Equipment: Machinery and equipment 32,196 32,236 Furniture and fixtures 6,366 6,516 Leasehold improvements 10,812 10,897 Property and equipment at cost 49,374 49,649 Less: accumulated depreciation and amortization (34,913) (34,305) Property and equipment, net 14,461 15,344 Goodwill 18,485 18,816 Intangible assets, net 7,186 7,048 Service inventory 18,316 19,125 Deferred income taxes, net 2,345 2,396 Total Assets $ 353,258 $ 350,807 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $ 9,460 $ 10,413 Accrued liabilities 18,260 18,216 Income taxes payable 2,379 4,886 Current portion of unearned service revenues 19,235 19,460 Customer deposits 2,692 2,662 Current portion of obligations under capital 28 45 leases Total current liabilities 52,054 55,682 Unearned service revenues - less current portion 11,312 11,221 Deferred tax liability, net 1,118 1,149 Obligations under capital leases - less current 17 19 portion Total Liabilities 64,501 68,071 Shareholders' Equity: Common stock - par value $.001, 50,000,000 shares authorized; 17,771,559 and 18 18 17,653,879 issued; 17,091,324 and 16,973,644 outstanding, respectively Additional paid-in capital 185,969 181,094 Retained earnings 108,933 104,358 Accumulated other comprehensive income 2,912 6,341 Common stock in treasury, at cost - 680,235 (9,075) (9,075) shares Total Shareholders' Equity 288,757 282,736 Total Liabilities and Shareholders' Equity $ 353,258 $ 350,807 FARO TECHNOLOGIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Three Months Ended (in thousands) March 30, 2013 March 31, 2012 CASH FLOWS FROM: OPERATING ACTIVITIES: Net income $ $ 4,574 6,750 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,833 1,679 Compensation for stock options and 1,018 773 restricted stock units Provision for bad debts 274 11 Deferred income tax (benefit) expense 1,162 (5) Change in operating assets and liabilities: Decrease (increase) in: Accounts receivable 7,541 9,254 Inventories, net (1,299) (6,432) Prepaid expenses and other current assets (2,069) (1,979) Income tax benefit from exercise of stock (808) (1,056) options Increase (decrease) in: Accounts payable and accrued liabilities (676) (4,290) Income taxes payable (1,658) (774) Customer deposits 5 (258) Unearned service revenues 376 661 Net cash provided by 10,273 4,334 operating activities INVESTING ACTIVITIES: Purchases of property and equipment (256) (703) Payments for intangible assets (494) (193) Net cash used in investing (750) (896) activities FINANCING ACTIVITIES: Payments on capital leases (63) (131) Income tax benefit from exercise of stock 808 1,056 options Proceeds from issuance of stock, net 3,049 5,288 Net cash provided by financing 3,794 6,213 activities EFFECT OF EXCHANGE RATE CHANGES ON CASH (1,952) (603) AND CASH EQUIVALENTS INCREASE IN CASH AND CASH EQUIVALENTS 11,365 9,048 CASH AND CASH EQUIVALENTS, BEGINNING OF 93,233 64,540 PERIOD CASH AND CASH EQUIVALENTS, END OF PERIOD $ 104,598 $ 73,588 FARO TECHNOLOGIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended (in thousands) March 30, 2013 March 31, 2012 Net income $ 4,574 $ 6,750 Currency translation adjustments (3,429) 1,334 Comprehensive income $ 1,145 $ 8,084 SOURCE FARO Technologies, Inc. Website: http://www.faro.com Contact: Keith Bair, Senior Vice President and CFO, keith.bair@FARO.com, 407-333-9911
FARO Reports First Quarter 2013 Results
Press spacebar to pause and continue. Press esc to stop.