The following is a summary of the FARO Technologies, Inc. (FARO) Q4 2023 Earnings Call Transcript:
Financial Performance:
FARO reported Q4 revenue of $98.8 million, marking a decrease of 5% compared to Q4 of 2022 due to market softness in China.
Gross margin improved sequentially, increasing to 52.5%.
GAAP operating income showed a positive turn with $1.4 million in Q4 2023, compared to a loss of $1.6 million in Q4 2022.
GAAP net income stood at $1.6 million, while non-GAAP net income was $6.8 million or $0.36 per share.
Adjusted EBITDA increased 12% YoY, reaching $13.2 million which is about 13.3% of sales.
The company experienced an increase in cash and short-term investment balance to $96.3 million, up $16.4 million from Q3.
FARO generated $14.7 million in free cash flow, indicating healthy liquidity.
Business Progress:
The company confirmed their largest historical public safety order - a $3 million order for the Romanian police force.
FARO launched a new mobile scanner, FARO Orbis, and FARO Zone 2024, both of which have received positive customer feedback.
FARO also expanded their leadership team with three new members, committed to operational excellence and innovation.
After observing improvements due to restructuring efforts, FARO continues to execute on operational priorities including refining product development, expanding gross margin, and enhancing customer experiences.
Despite caution given uncertain China demand and lengthier sales cycles, the company projects Q1 2024 revenue to be between $77 million and $85 million.
FARO intends to focus on efficiency and aims to be cash flow positive in 2024.
More details: Faro Technologies IR
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