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Mar 31, 2020
FARO Q1 2020 Earnings Report
FARO's financial performance declined due to market softness and COVID-19 impacts, but restructuring efforts progressed as planned.
Key Takeaways
FARO Technologies reported a decrease in total sales and new order bookings for Q1 2020 compared to Q1 2019. The company experienced a net loss, but restructuring plans are on track to achieve targeted savings.
Total sales decreased to $79.5 million from $93.6 million year-over-year due to market softness and COVID-19 uncertainty.
New order bookings declined by 23% to $77.9 million compared to $100.7 million in the prior year.
A net loss of $14.8 million, or $0.84 per share, was recorded, compared to a net income of $0.2 million, or $0.01 per share, in Q1 2019.
Restructuring plan implementation is progressing well, targeting $40 million in annualized savings by year-end.
Revenue by Segment
Forward Guidance
FARO is optimistic that its new strategy will enable it to emerge as a stronger, more efficient business with a highly scalable financial model when the business environment returns to normalized levels.
Positive Outlook
- Restructuring plan progressing well, on track to achieve targeted $40 million in annualized savings by the end of the year.
- Strong balance sheet positions FARO well for the current environment.
- Limited disruption to manufacturing supply chain to date.
- Sales team remains enthusiastic about the new go-to-market strategy.
- New strategy expected to enable FARO to emerge as a stronger, more efficient business with a highly scalable financial model.
Challenges Ahead
- Near-term demand visibility remains challenged due to the global pandemic.
- Total sales decreased due to market softness and order pushouts.
- New order bookings decreased compared to the previous year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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