AG Edwards Downgrades Faro Technologies
AG Edwards downgraded Faro Technologies (FARO).
Analyst Mark Jordan says the company is conducting an internal investigation to determine if the Foreign Corrupt Practices Act was violated. He says it recently learned of "suspicious" payments in connection with foreign sales activities in China. Faro will be delaying filing its 2005 10-K past the deadline of Mar. 15, and it also withdraws 2006 guidance. He's not changing his estimates at this time. Based on current information, he says it is not possible to predict when this will be resolved or what the outcome will be. He believes it prudent to stay on the sidelines for now.