Faro Technologies Inc (FARO) Q3 2024 Earnings Call Highlights: Navigating Challenges with ...

GuruFocus.com11-08

Revenue: $82.6 million, down 5% year-over-year. Non-GAAP Gross Margin: 56.1%, up 730 basis points year-over-year. Non-GAAP Operating Expenses: $40.1 million. Non-GAAP EPS: $0.21, above guidance range....

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nFaro Technologies Inc (FARO) Q3 2024 Earnings Call Highlights: Navigating Challenges with ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-08 05:01 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/faro-technologies-inc-faro-q3-210119967.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Revenue: $82.6 million, down 5% year-over-year.\nNon-GAAP Gross Margin: 56.1%, up 730 basis points year-over-year.\nNon-GAAP Operating Expenses: $40.1 million.\nNon-GAAP EPS: $0.21, above guidance range....</p>\n\n<a href=\"https://finance.yahoo.com/news/faro-technologies-inc-faro-q3-210119967.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"FARO","symbol_name":"法如科技","start_time":0,"source_url":"https://finance.yahoo.com/news/faro-technologies-inc-faro-q3-210119967.html","article_id":"2481419394","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/HU8A.XjytFApxpt7u7eV3Q--~B/aD0zMDA7dz0zMDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/86b84840db9ae5ce7acc9be40eb3028f"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2481419394","pubTimestamp":1731013279,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Non-GAAP Gross Margin: 56.1%, up 730 basis points year-over-year.Operating Cash Flow: Positive for the fourth consecutive quarter.Recurring Revenue: $17.4 million, 21% of sales, up 2% year-over-year.GAAP Net Loss: $300,000 or $0.02 per share.Share Repurchase: $10 million repurchased at an average price of $16.99.Fourth Quarter Revenue Guidance: $88 million to $96 million.Fourth Quarter Non-GAAP EPS Guidance: $0.32 to $0.52 per share.GuruFocus has detected 4 Warning Signs with FARO.For the complete transcript of the earnings call, please refer to the full earnings call transcript.Faro Technologies Inc  achieved a non-GAAP gross margin of 56.1%, marking a significant year-over-year increase of 730 basis points.Faro Technologies Inc  repurchased $10 million of its outstanding shares, reflecting a commitment to optimizing capital allocation and shareholder returns.Hardware revenue decreased by 10% year-over-year, indicating challenges in this segment.Q: What factors influenced the guidance","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"FARO":"法如科技"},"translate_title":"Faro Technologies Inc(FARO)2024年第三季度收益看涨期权亮点：应对挑战...","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"FARO":1},"content_text":"Revenue: $82.6 million, down 5% year-over-year.\nNon-GAAP Gross Margin: 56.1%, up 730 basis points year-over-year.\nNon-GAAP Operating Expenses: $40.1 million.\nNon-GAAP EPS: $0.21, above guidance range.\nAdjusted EBITDA: $8.9 million, 10.7% of sales.\nOperating Cash Flow: Positive for the fourth consecutive quarter.\nHardware Revenue: $50.3 million, down 10% year-over-year.\nSoftware Revenue: $11.2 million, approximately flat year-over-year.\nService Revenue: $21.1 million, up 6% year-over-year.\nRecurring Revenue: $17.4 million, 21% of sales, up 2% year-over-year.\nGAAP Net Loss: $300,000 or $0.02 per share.\nCash and Short-term Investments: $88.9 million.\nShare Repurchase: $10 million repurchased at an average price of $16.99.\nFourth Quarter Revenue Guidance: $88 million to $96 million.\nFourth Quarter Non-GAAP EPS Guidance: $0.32 to $0.52 per share.\n\n\nWarning! GuruFocus has detected 4 Warning Signs with FARO.\n\nRelease Date: November 06, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nFaro Technologies Inc (NASDAQ:FARO) achieved a non-GAAP gross margin of 56.1%, marking a significant year-over-year increase of 730 basis points.\nThe company reported its sixth consecutive quarter of exceeding non-GAAP EPS expectations, with $0.21 per share in Q3 2024.\nFaro Technologies Inc (NASDAQ:FARO) demonstrated operational efficiency improvements, achieving positive operating cash flow for the fourth consecutive quarter.\nThe company successfully launched new products, including the Quantum X arm and next-generation laser scanners, enhancing its 3D metrology portfolio.\nFaro Technologies Inc (NASDAQ:FARO) repurchased $10 million of its outstanding shares, reflecting a commitment to optimizing capital allocation and shareholder returns.\n\n Negative Points \n\nThird quarter revenue of $82.6 million was down 5% compared to the previous year, with significant declines in the Asia Pacific region, particularly China.\nHardware revenue decreased by 10% year-over-year, indicating challenges in this segment.\nThe company faces ongoing demand challenges in certain sectors, including commercial construction, particularly in China and Germany.\nFaro Technologies Inc (NASDAQ:FARO) announced a restructuring plan, incurring $6 million to $9 million in cash charges, which may impact short-term financial performance.\nThe macroeconomic environment remains uncertain, with continued demand challenges and global economic uncertainties affecting future outlook.\n\n Q & A Highlights \nQ: What factors influenced the guidance for Q4, given the current macroeconomic conditions? A: Peter Lau, President & CEO, explained that the guidance reflects the uncertain and choppy macroeconomic environment. The company aims to maintain its reputation for delivering on commitments, and the guidance is not based on October's performance but rather a cautious approach due to the macroeconomic uncertainty.\nQ: Are there any structural benefits or one-time factors affecting the current financial performance, and should we reconsider the company's earnings power and free cash flow at various revenue levels? A: Matthew Horwath, CFO, noted that the company is ahead of schedule on gross margin levels due to successful execution of supply chain localization. The company is operating in a cost-controlled environment and plans to reassess profit targets next year. Peter Lau added that the improvements are part of the baseline and not due to one-time factors.\nQ: Can you elaborate on the restructuring plan starting in Q4 and its impact on operating expenses? A: Matthew Horwath stated that the restructuring focuses on operational efficiency and reallocating resources from underperforming regions like China to higher growth areas. The plan aims to maintain operating expenses at current levels despite inflation and headcount investments, with expected cash charges from Q4 2024 through the first half of 2025.\nQ: What trends are you observing in the construction market across different regions and types of real estate? A: Peter Lau highlighted that construction trends vary by region, with China experiencing a drag on the global market. While commercial and industrial construction is down, healthcare and infrastructure construction are performing better. Interest rate cuts could provide a tailwind for the construction industry.\nQ: How is the Sphere XG software being received by customers, and what is the trend in software sales? A: Peter Lau reported that the Sphere XG offering has been a positive addition, with regular adoption by customers. It is being used both as a standalone software and in conjunction with hardware solutions, indicating a strong and growing demand for the company's cloud infrastructure and offerings.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2481419394"}