Q2 2024 FARO Technologies Inc Earnings Call Transcript
Key Points
- Faro Technologies Inc (FARO) exceeded its targets on all controllable items, with a non-GAAP gross margin of 55%, marking a 300 basis point sequential increase.
- The company achieved its fifth consecutive quarter of exceeding expectations, generating $0.18 of non-GAAP EPS, above the high end of its guidance range.
- Adjusted EBITDA reached $8.4 million or 10.3% of sales, surpassing the full-year 2023 performance and improving by 1,100 basis points as a percent of revenue.
- Faro Technologies Inc (FARO) reported its third consecutive quarter of positive operating cash flow, a first since 2019.
- The company has made substantial progress in operational efficiency, with initiatives like supply chain localization and logistics optimization contributing to improved margins.
- Second quarter revenue of $82.1 million was down 7% compared to the previous year, with a significant decline in the Asia Pacific region.
- Hardware revenue decreased by 12% year-over-year, indicating challenges in this segment.
- The macroeconomic environment remains challenging, particularly in China, affecting demand in manufacturing and construction sectors.
- Despite improvements, the company still faces potential demand challenges in China and seasonal trends in Europe, impacting future revenue expectations.
- Faro Technologies Inc (FARO) anticipates a non-GAAP earnings per share range from negative $0.01 to positive $0.19 for the third quarter, reflecting ongoing uncertainties.
Good day, everyone, and welcome to the FARO Technologies second quarter 2024 earnings call. For opening remarks and introductions, I would now like to turn the call over to Michael Funari at Sapphire Investor Relations. Please go ahead.
Thank you, and good afternoon. With me today from FARO are Peter Lau, President and Chief Executive Officer; and Matt Horwath, Chief Financial Officer.
Today, after market close, the company released its financial results for the second quarter of 2024. The related press release and Form 10-Q is available on FARO's website at www.faro.com.
Please note certain statements in this conference call, which are not historical facts, may be considered forward-looking statements that involve risks and uncertainties, some of which are beyond our control and include statements regarding future business results, product and technology development, customer demand, inventory levels, our outlook and financial
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