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Jun 30, 2020
FARO Q2 2020 Earnings Report
FARO's financial performance declined due to the COVID-19 pandemic, but strategic initiatives and cost control measures helped to beat non-GAAP operating expense objectives ahead of schedule.
Key Takeaways
FARO reported a decrease in total sales and new order bookings for Q2 2020 compared to Q2 2019, primarily due to end market demand softness related to the COVID-19 pandemic. Despite the challenges, the company beat its non-GAAP operating expense objective six months earlier than expected.
Total sales were $60.6 million, compared to $93.5 million in Q2 2019.
New order bookings decreased to $61.4 million from $106.0 million in Q2 2019.
Gross margin was 47.7%, down from 54.3% in the same period last year.
Net loss was $8.9 million, or $0.50 per share, compared to a net loss of $6.4 million, or $0.37 per share, in Q2 2019.
FARO
FARO
FARO Revenue by Segment
Revenue by Segment
Product Sales Revenue
CapyFin.comService Sales Revenue
CapyFin.com Forward Guidance
FARO anticipates a meaningful increase in growth and profitability in the years ahead, though the timing of recovery is uncertain due to the discretionary capital nature of its markets.
Positive Outlook
- Revitalized sales organization has embraced the new reality of a virtual sales model.
- Virtual sales model is expected to continue to enable sales efficiencies when world conditions normalize.
- Actions being taken are expected to drive a meaningful increase in growth and profitability in the years ahead.
- Company beat non-GAAP operating expense objective a full six months earlier than expected.
- Company remained debt-free.
Challenges Ahead
- End market demand softness related to the COVID-19 pandemic.
- Discretionary capital nature of the markets limits visibility towards the timing of a recovery.
- Total sales decreased compared to the same quarter last year.
- New order bookings decreased compared to the same quarter last year.
- Gross margin decreased compared to the same period last year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income