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Mar 31, 2021
FARO Q1 2021 Earnings Report
FARO's first quarter demand reflected historical seasonality combined with an ongoing but improving pandemic demand impact.
Key Takeaways
FARO announced its Q1 2021 financial results with sales of $76.3 million, a slight decline compared to $79.5 million in Q1 2020, which the company attributes to the economic effects of the COVID-19 pandemic. New order bookings increased by 3% year-over-year to $80.6 million. The company reported a net loss of $3.2 million, or $0.18 per share, compared to a net loss of $14.8 million, or $0.84 per share, for the same period last year.
First quarter sales reached $76.3 million, compared to $79.5 million in the first quarter of 2020.
New order bookings in the first quarter were $80.6 million, up 3% over the preceding year.
Net loss was $3.2 million, or $0.18 per share, compared to a net loss of $14.8 million, or $0.84 per share, for the first quarter of 2020.
Adjusted EBITDA was $0.4 million, or 0.5% of total sales, compared to $3.1 million, or 3.9% of total sales, for the first quarter of 2020.
FARO
FARO
FARO Revenue by Geographic Location
Revenue by Geographic Location
Americas Revenue
CapyFin.comEMEA Revenue
CapyFin.comAPAC Revenue
CapyFin.com Forward Guidance
FARO anticipates continued improvement throughout 2021 as demand returns to normalized pre-pandemic levels, with the expectation that their new cost structure will enable the sustained achievement of 20% EBITDA margins.
Positive Outlook
- Demand expected to improve throughout 2021 as the pandemic's impact diminishes.
- New cost structure is anticipated to enable sustained achievement of 20% EBITDA margins once demand normalizes.
- Strategic initiatives focused on aligning hardware and software development activities.
- Efforts to add value to customer's workflows.
- Aims to create long-term product differentiation in target markets.
Challenges Ahead
- First quarter demand reflected historical seasonality combined with an ongoing pandemic demand impact.
- Sales declined compared to the first quarter of 2020 due to the economic effect of the Covid pandemic.
- Gross margin decreased due to changes in product mix and lower sales resulting from the COVID-19 pandemic.
- Adjusted EBITDA decreased compared to the first quarter of 2020.
- Cash and short-term investments decreased by $15.7 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income