FARO Announces Fourth Quarter and Full Year Financial Results

<br /> FARO Announces Fourth Quarter and Full Year Financial Results<br />

PR Newswire


LAKE MARY, Fla.

,

Feb. 16, 2022

/PRNewswire/ — FARO

®

(Nasdaq: FARO), a leading global source for 3D measurement and imaging solutions for the 3D Metrology, AEC (Architecture, Engineering & Construction), and Public Safety Analytics applications, today announced its financial results for the fourth quarter and full year ended

December 31, 2021

.

“Fourth quarter revenue grew sequentially 27% to

$100.2 million

as a result of continued pandemic related market recovery, seasonal strength and a 43% sequential increase in arm shipments fueled by our recently released Quantum Max ScanArm, while a strong dollar exchange rate and supply chain challenges muted overall reported revenue levels,” stated

Michael Burger

, President and Chief Executive Officer. “Additionally, our Holobuilder SaaS revenue remains on track to double over the next year, with the addition of a mid-six figure annual recurring revenue deal signed in the quarter.”

Mr. Burger continued, “Looking ahead, we are encouraged by the pace of demand recovery and while the current supply chain environment creates uncertainty, we believe the combination of new product introductions and the launch of FARO Sphere will further strengthen demand as we move through 2022.”



Fourth Quarter 2021 Financial Summary

Total sales were

$100.2 million

for fourth quarter 2021 representing a 27% sequential quarterly increase when compared to

$79.2 million

in the third quarter 2021, and an 8% increase when compared with total sales of

$93.0 million

for fourth quarter 2020.  The sales increases were primarily driven by seasonal fourth quarter strength as well as increased demand for our Quantum Max product, and continued recovery from pandemic related softness in the prior year period.

Gross margin was 55.6% for the fourth quarter 2021, as compared to 54.6% for the same prior year period. Non-GAAP gross margin was 55.8% for the fourth quarter 2021 compared to 54.9% for the fourth quarter 2020. The annual increase in gross margin was primarily a result of higher volume compared to the prior year period.

Operating expenses were

$51.8 million

for the fourth quarter 2021, compared to

$48.1 million

for the same prior year period. Non-GAAP operating expenses were

$44.2 million

for the fourth quarter 2021 compared to

$42.9 million

for the fourth quarter 2020.

Net loss was

$31.7 million

, or

$1.74

per share, for the fourth quarter 2021, as compared to a net income of

$27.4 million

, or

$1.52

per share, for the fourth quarter 2020. Fourth quarter 2021 GAAP net loss included income tax expense of

$26.5 million

associated with the creation of a valuation allowance against primarily US deferred tax assets. Non-GAAP net income was

$8.7 million

, or

$0.48

per share, for the fourth quarter 2021 compared to non-GAAP net income of

$6.3 million

, or

$0.35

per share, for the fourth quarter 2020.

Adjusted EBITDA was

$14.2 million

, or 14.2% of non-GAAP total sales, for the fourth quarter of 2021 compared to

$11.0 million

, or 11.9% of non-GAAP net sales in the fourth quarter of 2020.

The Company’s cash and short-term investments decreased

$3.8 million

to

$122.0 million

as of the end of the fourth quarter of 2021 due primarily to timing of customer cash receipts.  Accounts receivable increased

$19.6 million

in the fourth quarter.  The Company remained debt-free.



Full Year 2021 Financial Summary

Total sales were

$337.8 million

for the full year 2021, as compared with

$303.8 million

for 2020.  New order bookings were

$351.5 million

for 2021, as compared to

$306.4 million

for 2020.

Net loss was

$40.0 million

, or

$2.20

per share, for 2021, as compared to net income of approximately

$0.6 million

, or

$0.04

per share, for 2020. Non-GAAP net income was

$10.2 million

, or

$0.56

per share, for 2021 compared to net loss of

$1.8 million

, or

$0.10

per share, for 2020.

* A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures is provided in the financial schedules portion at the end of this press release. An additional explanation of these measures is included below under the heading “Non-GAAP Financial Measures”.



Outlook for the First Quarter 2022

For the first quarter ending

March 31, 2022

, revenues are expected to be in the range of

$80

to

$88 million

with non-GAAP earnings per share in the range of

($0.08)

to

$0.12

. Note that included in our first quarter expectations are approximately 200 basis points of unfavorable material cost that are adversely affecting gross margins.



Conference Call

The Company will host a conference call to discuss these results on

Wednesday, February 16, 2022

at

5:00 p.m. ET

. Interested parties can access the conference call by dialing (866) 518-6930 (U.S.) or +1 (203) 518-9797 (International) and using the passcode FARO. A live webcast will be available in the Investor Relations section of FARO’s website at:


https://www.faro.com/en/About-Us/Investor-Relations/Financial-Events-and-Presentations

A replay webcast will be available in the Investor Relations section of the company’s web site approximately two hours after the conclusion of the call and will remain available for approximately 30 calendar days.



About FARO

For 40 years, FARO has provided industry-leading technology solutions that enable customers to quickly and easily measure their world, and then use that data to make smarter decisions faster. FARO continues to be a pioneer in bridging the digital and physical worlds through data-driven reliable accuracy, precision and immediacy. For more information, visit


http://www.faro.com



Non-GAAP Financial Measures

This press release contains information about our financial results that are not presented in accordance with U.S. generally accepted accounting principles (“GAAP”). These non-GAAP financial measures, including non-GAAP total sales, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income (loss) from operations, non-GAAP other expense, net, non-GAAP net income (loss) and non-GAAP net income (loss) per share, exclude the GSA sales adjustment (as defined in the tables below), the impact of purchase accounting intangible amortization expense, stock-based compensation, imputed interest expense recorded related to the GSA Matter, restructuring charges, and other tax adjustments, and are provided to enhance investors’ overall understanding of our historical operations and financial performance.

In addition, we present EBITDA, which is calculated as net (loss) income before interest expense (income), net, income tax expense (benefit) and depreciation and amortization, and Adjusted EBITDA, which is calculated as EBITDA, excluding other expense, net, the GSA sales adjustment, stock-based compensation, and restructuring charges, as measures of our operating profitability. The most directly comparable GAAP measure to EBITDA and Adjusted EBITDA is net (loss) income. We also present Adjusted EBITDA margin, which is calculated as Adjusted EBITDA as a percent of Non-GAAP total sales.

Management believes that these non-GAAP financial measures provide investors with relevant period-to-period comparisons of our core operations using the same methodology that management employs in its review of the Company’s operating results. These financial measures are not recognized terms under GAAP and should not be considered in isolation or as a substitute for a measure of financial performance prepared in accordance with GAAP. These non-GAAP financial measures have limitations that should be considered before using these measures to evaluate a company’s financial performance. These non-GAAP financial measures, as presented, may not be comparable to similarly titled measures of other companies due to varying methods of calculation. The financial statement tables that accompany this press release include a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures.



Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

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 for and customer acceptance of FARO’s products, FARO’s product development and product launches, FARO’s growth, strategic and restructuring plans and initiatives, including but not limited to the additional restructuring charges expected to be incurred in connection with our restructuring plan and the timing and amount of cost savings and other benefits expected to be realized from the restructuring plan and other strategic initiatives, and FARO’s growth potential and profitability. 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 “is,” “will” 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:

  • the Company’s ability to realize the intended benefits of its undertaking to transition to a company that is reorganized around functions to improve the efficiency of its sales organization and to improve operational effectiveness;
  • the Company’s inability to successfully execute its new strategic plan and restructuring plan, including but not limited to additional impairment charges and/or higher than expected severance costs and exit costs, and its inability to realize the expected benefits of such plans;
  • the outcome of the U.S. Government’s review of, or investigation into, the GSA Matter; any resulting penalties, damages, or sanctions imposed on the Company and the outcome of any resulting litigation to which the Company may become a party; loss of future government sales; and potential impacts on customer and supplier relationships and the Company’s reputation;
  • development by others of new or improved products, processes or technologies that make the Company’s products less competitive or obsolete;
  • the Company’s inability to maintain its technological advantage by developing new products and enhancing its existing products;
  • declines 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 financial conditions;
  • the effect of the COVID-19 pandemic, including on our business operations, as well as its impact on general economic and financial market conditions;
  • the impact of fluctuations in foreign exchange rates; and
  • other 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, 2020

    that will be filed with the SEC following this earnings release.

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, unless otherwise required by law.



FARO TECHNOLOGIES, INC. AND SUBSIDIARIES


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


(UNAUDITED)


Three Months Ended


Twelve Months Ended



(in thousands, except share and per share data)


December 31,

2021


December 31,

2020


December 31,

2021


December 31,

2020


Sales


Product


$         78,355


$         71,721


$       251,103


$       218,587


Service


21,849


21,232


86,711


85,181


Total sales


100,204


92,953


337,814


303,768


Cost of Sales


Product


33,115


32,052


109,024


98,864


Service


11,382


10,121


44,863


45,057


Total cost of sales


44,497


42,173


153,887


143,921


Gross Profit


55,707


50,780


183,927


159,847


Operating Expenses


Selling, general and administrative


35,859


35,304


136,234


131,827


Research and development


12,297


11,541


48,761


42,896


Restructuring costs


3,689


1,243


7,368


15,806


Total operating expenses


51,845


48,088


192,363


190,529


Income (loss) from operations


3,862


2,692


(8,436)


(30,682)


Other (income) expense


Interest income




(747)




(340)


Other expense, net


503


97


70


431


Interest expense


1




55




Income (loss) before income tax expense (benefit)


3,358


3,342


(8,561)


(30,773)


Income tax expense (benefit)


35,070


(24,066)


31,403


(31,402)


Net (loss) income


$        (31,712)


$         27,408


$        (39,964)


$               629


Net (loss) income per share – Basic


$            (1.74)


$              1.53


$            (2.20)


$              0.04


Net (loss) income per share – Diluted


$            (1.74)


$              1.52


$            (2.20)


$              0.04


Weighted average shares – Basic


18,204,386


17,872,307


18,187,946


17,769,958


Weighted average shares – Diluted


18,204,386


18,064,754


18,187,946


17,926,324



FARO TECHNOLOGIES, INC. AND SUBSIDIARIES


CONDENSED CONSOLIDATED BALANCE SHEETS


(UNAUDITED)



(in thousands, except share and per share data)


December 31,

2021


December 31,

2020



ASSETS


Current assets:


Cash and cash equivalents


$         121,989


$         185,633


Short-term investments




Accounts receivable, net


78,523


64,616


Inventories, net


53,145


47,391


Prepaid expenses and other current assets


19,793


26,295


Total current assets


273,450


323,935


Non-current assets:


Property, plant and equipment, net


22,194


23,091


Operating lease right-of-use asset


22,543


26,107


Goodwill


82,096


57,541


Intangible assets, net


25,616


13,301


Service and sales demonstration inventory, net


30,554


31,831


Deferred income tax assets, net


21,277


47,450


Other long-term assets


2,010


2,336


Total assets


$         479,740


$         525,592



LIABILITIES AND SHAREHOLDERS’ EQUITY


Current liabilities:


Accounts payable


$           14,199


$           14,121


Accrued liabilities


28,208


42,593


Income taxes payable


4,499


3,442


Current portion of unearned service revenues


40,838


39,149


Customer deposits


5,399


2,807


Lease liability


5,738


5,835


Total current liabilities


98,881


107,947


Unearned service revenues – less current portion


22,350


21,757


Lease liability – less current portion


18,648


22,131


Deferred income tax liabilities


1,058


787


Income taxes payable – less current portion


11,297


11,583


Other long-term liabilities


1,047


1,084


Total liabilities


153,281


165,289


Shareholders’ equity:


Common stock – par value $0.001, 50,000,000 shares authorized; 19,588,003 and

19,384,350 issued; 18,205,636 and 17,990,707 outstanding, respectively


20


19


Additional paid-in capital


301,061


287,979


Retained earnings


73,544


113,508


Accumulated other comprehensive loss


(17,374)


(10,160)


Common stock in treasury, at cost – 1,382,367 and 1,393,643 shares held, respectively


(30,792)


(31,043)


Total shareholders’ equity


326,459


360,303


Total liabilities and shareholders’ equity


$         479,740


$         525,592



FARO TECHNOLOGIES, INC. AND SUBSIDIARIES


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


(UNAUDITED)


Years Ended December 31,



(in thousands)


2021


2020


CASH FLOWS FROM:


OPERATING ACTIVITIES:


Net (loss) income


$          (39,964)


$                 629


Adjustments to reconcile net (loss) income to net cash used by operating activities:


Depreciation and amortization


13,396


14,239


Stock-based compensation


11,456


8,314


Provision for bad debts (net of recoveries)


176


440


Loss on disposal of assets


218


383


Provision for excess and obsolete inventory


2,297


1,349


Impairment of goodwill






Impairment of acquired intangibles






Impairment of loan to affiliate






Deferred income tax benefit


24,706


(28,444)


Change in operating assets and liabilities, net of acquisitions:


(Increase) decrease in:


Accounts receivable, net


(15,577)


12,346


Inventories


(6,706)


10,343


Prepaid expenses and other assets


5,996


3,862


(Decrease) increase in:


Accounts payable and accrued liabilities


(13,260)


2,390


Income taxes payable


847


(3,357)


Customer deposits


2,627


(374)


Unearned service revenues


312


(726)


Net cash (used in) provided by operating activities


(13,476)


21,394


INVESTING ACTIVITIES:


Purchases of investments






Proceeds from sale of investments




25,000


Purchases of property and equipment


(7,035)


(4,774)


Cash paid for technology development, patents and licenses


(4,905)


(1,298)


Acquisition of business, net of cash received


(33,800)


(6,036)


Other




1,015


Net cash provided by (used in) investing activities


(45,740)


13,907


FINANCING ACTIVITIES:


Payments on capital leases


(296)


(338)


Payments of contingent consideration for acquisitions




(733)


Payments for taxes related to net share settlement of equity awards


(4,002)


(2,602)


Proceeds from issuance of stock related to stock option exercises


5,880


14,731


Net cash provided by financing activities


1,582


11,058


EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS


(6,010)


5,640


INCREASE IN CASH AND CASH EQUIVALENTS


(63,644)


51,999


CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR


185,633


133,634


CASH AND CASH EQUIVALENTS, END OF YEAR


$         121,989


$         185,633



FARO TECHNOLOGIES, INC. AND SUBSIDIARIES


RECONCILIATION OF GAAP TO NON-GAAP


(UNAUDITED)


Three Months Ended December 31,


Twelve Months Ended December 31,



(dollars in thousands, except per share data)


2021


2020


2021


2020


Total sales, as reported


$    100,204


$      92,953


$    337,814


$    303,768


GSA sales adjustment

(1)








608


Non-GAAP total sales


$    100,204


$      92,953


$    337,814


$    304,376


Gross profit, as reported


$      55,707


$      50,780


$    183,927


$    159,847


GSA sales adjustment

(1)








608


Stock-based compensation

(2)


165


211


635


702


Non-GAAP adjustments to gross profit


165


211


635


1,310


Non-GAAP gross profit


$      55,872


$      50,991


$    184,562


$    161,157


Gross margin, as reported


55.6 %


54.6 %


54.4 %


52.6 %


Non-GAAP gross margin


55.8 %


54.9 %


54.6 %


52.9 %


Selling, general and administrative, as reported


$      35,859


$      35,304


$    136,234


$    131,827


Stock-based compensation

(2)


(2,196)


(1,661)


(8,985)


(6,327)


Purchase accounting intangible amortization


(259)


(193)


(908)


(564)


Non-GAAP selling, general and administrative


$      33,404


$      33,450


$    126,341


$    124,936


Research and development, as reported


$      12,297


$      11,541


$      48,761


$      42,896


Stock-based compensation

(2)


(438)


(14)


(1,836)


(1,285)


Purchase accounting intangible amortization


(1,072)


(411)


(2,133)


(1,505)


Non-GAAP research and development


$      10,787


$      11,116


$      44,792


$      40,106


Operating expenses, as reported


$      51,845


$      48,088


$    192,363


$    190,529


Stock-based compensation

(2)


(2,634)


(1,675)


(10,821)


(7,612)


Restructuring costs

(3)


(3,689)


(1,243)


(7,368)


(15,806)


Other product charge

(4)




(1,644)




(1,644)


Purchase accounting intangible amortization


(1,331)


(604)


(3,041)


(2,069)


Non-GAAP adjustments to operating expenses


(7,654)


(5,166)


(21,230)


(27,131)


Non-GAAP operating expenses


$      44,191


$      42,922


$    171,133


$    163,398


Income (loss) from operations, as reported


$        3,862


$        2,692


$       (8,436)


$     (30,682)


Non-GAAP adjustments to gross profit


165


211


635


1,310


Non-GAAP adjustments to operating expenses


7,654


5,166


21,230


27,131


Non-GAAP income (loss) from operations


$      11,681


$        8,069


$      13,429


$       (2,241)


Other expense (income), net, as reported


$            521


$          (650)


$            142


$              91


Interest adjustment due to GSA sales adjustment

(1)




727




168


Non-GAAP adjustments to other expense (income), net




727




168


Non-GAAP other expense, net


$            521


$              77


$            142


$            259


Net (loss) income, as reported


$     (31,712)


$      27,408


$     (39,964)


$            629


Non-GAAP adjustments to gross profit


165


211


635


1,310


Non-GAAP adjustments to operating expenses


7,654


5,166


21,230


27,131


Non-GAAP adjustments to other expense (income), net




(727)




(168)


Income tax effect of non-GAAP adjustments


(1,191)


(2,305)


(5,432)


(7,235)


Other tax adjustments

(5)


33,779


(23,501)


33,779


(23,501)


Non-GAAP net income (loss)


$        8,695


$        6,252


$      10,248


$       (1,834)


Net (loss) income per share – Diluted, as reported


$         (1.74)


$           1.52


$         (2.20)


$           0.04


GSA sales adjustment

(1)








0.03


Stock-based compensation

(2)


0.16


0.11


0.63


0.46


Restructuring costs

(3)


0.20


0.07


0.40


0.88


Other product charges

(4)




0.09




0.09


Purchase accounting intangible amortization


0.07


0.03


0.17


0.12


Interest expense increase due to GSA sales adjustment

(1)




(0.04)




(0.01)


Income tax effect of non-GAAP adjustments


(0.06)


(0.13)


(0.30)


(0.40)


Other tax adjustments

(5)


1.85


(1.30)


1.86


(1.31)


Non-GAAP net income (loss) per share – Diluted


$           0.48


$           0.35


$           0.56


$         (0.10)



(1)

Late in the fourth quarter of 2018, during an internal review we preliminarily determined that certain of our pricing practices may have resulted in the U.S. Government being overcharged under our General Services Administration (“GSA”) Federal Supply Schedule contracts (the “Contracts”) (the “GSA Matter”). During the twelve months ended December 31, 2020, we reduced our total sales by $0.6 million (the “GSA sales adjustment”). During the first nine months of 2020 we recorded an incremental $0.6 million of imputed interest related to the estimated cumulative sales adjustment and in the fourth quarter of 2020 we determined that an adjustment to reduce imputed interest by $0.7 million was required. Effective as of February 25, 2021, as a result of the review, we entered into a settlement agreement with the GSA and have paid in full and final satisfaction of any and all claims, causes of actions, appeals and the like, including damages, costs, attorney’s fees and interest arising under or related to the GSA Matter.



(2)

We exclude stock-based compensation, which is non-cash, from the non-GAAP financial measures because the Company believes that such exclusion provides a better comparison of results of ongoing operations for current and future periods with such results from past periods.



(3)

On February 14, 2020, our Board of Directors approved a global restructuring plan (the “Restructuring Plan”), which is intended to support our strategic plan in an effort to improve operating performance and ensure that we are appropriately structured and resourced to deliver increased and sustainable value to our shareholders and customers. In connection with the Restructuring Plan, during the twelve months ended December 31, 2021 and December 31, 2020 we recorded a pre-tax charge of approximately $7.4 million and $15.8 million, respectively, primarily consisting of severance and related benefits.



(4)

During the fourth quarter of 2020, we recognized a charge related to the replacement of a prior generation product that was exhibiting lower than desired reliability as part of our ongoing focus on customer satisfaction.



(5)

The 2021 tax adjustments were driven by an increase in our valuation allowance primarily related to domestic and foreign deferred tax assets that, in the judgment of management, were not more likely than not to be realized. The 2020 tax adjustments were driven primarily by the establishment of deferred tax assets in relation to intra-entity transfers of certain intellectual property rights in December 2020.



FARO TECHNOLOGIES, INC. AND SUBSIDIARIES


RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA


(UNAUDITED)


Three Months Ended December 31,


Twelve Months Ended December 31,



(in thousands)


2021


2020


2021


2020


Net (loss) income


$     (31,712)


$      27,408


$     (39,964)


$            629


Interest expense (income), net


1


(747)


55


(340)


Income tax expense (benefit)


35,070


(24,066)


31,403


(31,402)


Depreciation and amortization


3,836


3,608


13,396


14,239


EBITDA


7,195


6,203


4,890


(16,874)


Other expense, net


503


97


70


431


Stock-based compensation


2,799


1,886


11,456


8,314


GSA sales adjustment

(1)








608


Other product charges

(2)




1,644




1,644


Restructuring costs

(3)


3,689


1,243


7,368


15,806


Adjusted EBITDA


$      14,186


$      11,073


$      23,784


$         9,929


Adjusted EBITDA margin

(4)


14.2 %


11.9 %


7.0 %


3.3 %



(1)

Late in the fourth quarter of 2018, during an internal review we preliminarily determined that certain of our pricing practices may have resulted in the U.S. Government being overcharged under our General Services Administration (“GSA”) Federal Supply Schedule contracts (the “Contracts”) (the “GSA Matter”). During the twelve months ended December 31, 2020, we reduced our total sales by $0.6 million (the “GSA sales adjustment”). Effective as of February 25, 2021, as a result of the review, we entered into a settlement agreement with the GSA and have paid in full and final satisfaction of any and all claims, causes of actions, appeals and the like, including damages, costs, attorney’s fees and interest arising under or related to the GSA Matter.



(2)

During the fourth quarter of 2020, we recognized a charge related to the replacement of a prior generation product that was exhibiting lower than desired reliability as part of our ongoing focus on customer satisfaction.



(3)

On February 14, 2020, our Board of Directors approved a global restructuring plan (the “Restructuring Plan”), which is intended to support our strategic plan in an effort to improve operating performance and ensure that we are appropriately structured and resourced to deliver increased and sustainable value to our shareholders and customers. In connection with the Restructuring Plan, during the twelve months ended December 31, 2021 and December 31, 2020 we recorded a pre-tax charge of approximately $7.4 million and $15.8 million, respectively, primarily consisting of severance and related benefits.



(4)

Calculated as Adjusted EBITDA as a percentage of Non-GAAP total sales, which adjusts for the GSA sales adjustment.



FARO TECHNOLOGIES, INC. AND SUBSIDIARIES


KEY SALES MEASURES


(UNAUDITED)


Three Months Ended December 31,


Twelve Months Ended December 31,



(in thousands)


2021


2020


2021


2020



Total sales to external customers


Americas

(1)


$           40,438


$           36,592


$         140,633


$         128,826


EMEA

(1)


29,035


30,332


104,350


91,390


APAC

(1)


30,731


26,029


92,831


83,552


$         100,204


$           92,953


$         337,814


$         303,768



(1)

Regions represent North America and South America (Americas); Europe, the Middle East, and Africa (EMEA); and the Asia-Pacific (APAC).


Three Months Ended December 31,


Twelve Months Ended December 31,



(in thousands)


2021


2020


2021


2020


Product


$       64,661


$       59,677


$     206,024


$     180,246


Software


13,694


12,044


45,079


38,341


Service


21,849


21,232


86,711


85,181


Total Sales


$     100,204


$       92,953


$     337,814


$     303,768


Product as a percentage of total sales


64.5 %


64.2 %


61.0 %


59.3 %


Software as a percentage of total sales


13.7 %


13.0 %


13.3 %


12.6 %


Service as a percentage of total sales


21.8 %


22.8 %


25.7 %


28.0 %


Total Recurring Revenue

(2)


$       16,468


$       14,964


$       64,067


$       61,187


Recurring revenue as a percentage of total sales


16.4 %


16.1 %


19.0 %


20.1 %



(2)

Recurring revenue is comprised of hardware service contracts, software maintenance contracts, and subscription based software applications.



FARO TECHNOLOGIES, INC. AND SUBSIDIARIES


RECONCILIATION OF OUTLOOK – GAAP TO NON-GAAP



Fiscal quarter ending March 31, 2022


GAAP diluted earnings (loss) per share range


($0.41) – ($0.16)


Stock-based compensation


0.16


Purchase accounting intangible amortization


0.05


Restructuring and other costs


0.05


Non-GAAP tax adjustments


0.07 – 0.02


Non-GAAP diluted earnings (loss) per share


($0.08) – $0.12

Cision
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