Technology

FARO Announces Fourth Quarter and Full Year 2023 Financial Results

Published

2 years ago

February 27, 2024

Q4 revenue of $98.8 million, at the upper end of our guidance rangeQ4 earnings per share (“EPS”) of $0.08; Non-GAAP EPS of $0.36, above our guidance rangeSignificant improvement in cash flow, which results in positive Q4 and FY2023 cash flow from operations

LAKE MARY, Fla., Feb. 27, 2024 /PRNewswire/ — FARO® Technologies, Inc. (Nasdaq: FARO), a global leader in 4D digital reality solutions, today announced its financial results for the fourth quarter and full year ended December 31, 2023.

“We are pleased with our improved financial performance and remain excited about the long term prospects of our integrated hardware and software solutions strategy to create customer value in our core markets,” said Peter Lau, President & Chief Executive Officer. “GAAP EPS of $0.08 and non-GAAP EPS of $0.36 exceeded the high end of our guidance range. GAAP net income of $1.6 million and Adjusted EBITDA of $13.2 million, an increase of 12% year over year, attributed to higher than anticipated revenue and continued improvement in operational execution. We also expanded our cash position by generating $18.7 million of operating cash flow in the quarter, driven by profitability and efficiencies in working capital.”

Fourth Quarter 2023 Financial Summary

Total sales of $98.8 million, down 5% year over yearGross margin of 50.9%, compared to 49.1% in the prior year periodNon-GAAP gross margin of 52.5%, compared to 52.8% in the prior year periodOperating expenses of $48.9 million, compared to $52.7 million in the prior year periodNon-GAAP operating expenses of $41.3 million, compared to $45.8 million in the prior year periodNet income of $1.6 million, or $0.08 per share compared to net loss of $2.2 million, or $(0.12) per share in the prior year periodNon-GAAP net income of $6.8 million, or $0.36 per share compared to net income of $7.1 million, or $0.38 per share in the prior year periodAdjusted EBITDA of $13.2 million, or 13.3% of total sales compared to $11.7 million, or 11.3% of total sales in the prior year periodCash, cash equivalents & short-term investments of $96.3 million, compared to $79.9 million as of September 30, 2023.

* A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures is provided in the financial schedules portion at the end of this press release. An additional explanation of these measures is included below under the heading “Non-GAAP Financial Measures”.

Full Year 2023 Financial Summary

Total sales of $358.8 million, up 4% compared to the prior year periodNet loss of $56.6 million, or $(2.99) per share compared to net loss of $26.8 million, or $(1.46) per share in the prior year periodNon-GAAP net loss of $2.4 million, or $(0.13) per share compared to non-GAAP net income of $4.6 million, or $0.25 per share in the prior year period

Outlook for the First Quarter 2024
For the first quarter ending March 31, 2024, FARO currently expects:

Revenue in the range of $77 to $85 millionGross margin in the range of 49.0% – 50.5%. Non-GAAP gross margin in the range of 49.5% – 51.0% Operating expenses in the range of $47.5 – $49.5 million. Non-GAAP operating expenses in the range of $41 – $43 millionNet loss per share in the range of ($0.66) – ($0.46). Non-GAAP loss per share in the range of ($0.20) to $0.00

Conference Call
The Company will host a conference call to discuss these results on Wednesday, February 28, 2024, at 8:00 a.m. ET. Interested parties can access the conference call by dialing (800) 245-3047 (U.S.) or +1 (203) 518-9708 (International) and using the passcode FARO. A live webcast will be available in the Investor Relations section of FARO’s website at: https://www.faro.com/en/About-Us/Investor-Relations/Financial-Events-and-Presentations

A replay webcast will be available in the Investor Relations section of the company’s web site approximately two hours after the conclusion of the call and will remain available for approximately 30 calendar days.

About FARO
For 40 years, FARO has provided industry-leading technology solutions that enable customers to measure their world, and then use that data to make smarter decisions faster. FARO continues to be a pioneer in bridging the digital and physical worlds through data-driven reliable accuracy, precision, and immediacy. For more information, visit www.faro.com.

Non-GAAP Financial Measures
This press release contains information about our financial results that are not presented in accordance with U.S. generally accepted accounting principles (“GAAP”). These non-GAAP financial measures, including non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income from operations, non-GAAP net income and non-GAAP net income per share, exclude the impact of purchase accounting intangible amortization expense and fair value adjustments, stock-based compensation, restructuring and other charges, and other tax adjustments, and are provided to enhance investors’ overall understanding of our historical operations and financial performance.

In addition, we present EBITDA, which is calculated as net income (loss) before interest (income) expense, net, income tax benefit (expense) and depreciation and amortization and fair value adjustments, and Adjusted EBITDA, which is calculated as EBITDA, excluding other (income) expense, net, stock-based compensation, and restructuring and other charges, as measures of our operating profitability. The most directly comparable GAAP measure to EBITDA and Adjusted EBITDA is net income (loss). We also present Adjusted EBITDA margin, which is calculated as Adjusted EBITDA as a percent of total sales.

In our fourth quarter reporting, we have included non-GAAP total sales on a constant currency basis. The most directly comparable GAAP measure to total sales on a constant currency basis is total sales. We believe constant currency information is useful in analyzing underlying trends in our business and the commercial performance of our products by eliminating the impact of highly volatile fluctuations in foreign currency markets and allows for period-to-period comparisons of our performance. For simplicity, we may elect to omit this information in future periods if we determine a lack of material impact. To present this information, current period performance for entities reporting in currencies other than U.S. dollars are converted to U.S. dollars at the exchange rate in effect during the last day of the prior comparable period.

Management believes that these non-GAAP financial measures provide investors with relevant period-to-period comparisons of our core operations using the same methodology that management employs in its review of the Company’s operating results. These financial measures are not recognized terms under GAAP and should not be considered in isolation or as a substitute for a measure of financial performance prepared in accordance with GAAP.

These non-GAAP financial measures have limitations that should be considered before using these measures to evaluate a company’s financial performance. These non-GAAP financial measures, as presented, may not be comparable to similarly titled measures of other companies due to varying methods of calculation. The financial statement tables that accompany this press release include a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties, such as statements about the outlook for the first quarter of 2024, demand for and customer acceptance of FARO’s products, FARO’s product development and product launches, FARO’s growth, strategic and restructuring plans and initiatives, including but not limited to the additional restructuring charges expected to be incurred in connection with our restructuring and integration plans and the timing and amount of cost savings and other benefits expected to be realized from the restructuring and integration plans and other strategic initiatives, and FARO’s growth potential and profitability. Statements that are not historical facts or that describe the Company’s plans, objectives, projections, expectations, assumptions, strategies, or goals are forward-looking statements. In addition, words such as “is,” “will” and similar expressions or discussions of FARO’s plans or other intentions identify forward-looking statements. Forward-looking statements are not guarantees of future performance and are subject to various known and unknown risks, uncertainties, and other factors that may cause actual results, performances, or achievements to differ materially from future results, performances, or achievements expressed or implied by such forward-looking statements. Consequently, undue reliance should not be placed on these forward-looking statements.

Factors that could cause actual results to differ materially from what is expressed or forecasted in such forward-looking statements include, but are not limited to:

the Company’s ability to realize the intended benefits of its undertaking to transition to a company that is reorganized around functions to improve the efficiency of its sales organization and to improve operational effectiveness;the Company’s inability to successfully execute its strategic plan, restructuring plan and integration plan, including but not limited to additional impairment charges and/or higher than expected severance costs and exit costs, and its inability to realize the expected benefits of such plans;the changes in our executive management team in 2023 and 2024 and the loss of any of our executive officers or other key personnel, which may be impacted by factors such as our inability to competitively address inflationary pressures on employee compensation and flexibility in employee work arrangements;the outcome of any litigation to which the Company is or may become a party;loss of future government sales;potential impacts on customer and supplier relationships and the Company’s reputation;development by others of new or improved products, processes or technologies that make the Company’s products less competitive or obsolete;the Company’s inability to maintain its technological advantage by developing new products and enhancing its existing products;declines or other adverse changes, or lack of improvement, in industries that the Company serves or the domestic and international economies in the regions of the world where the Company operates and other general economic, business, and financial conditions;the effect of general economic and financial market conditions, including in response to public health concerns;assumptions regarding the Company’s financial condition or future financial performance may be incorrect;the impact of fluctuations in foreign exchange rates and inflation rates; andother risks and uncertainties discussed in Part I, Item 1A. Risk Factors in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 that will be filed with the SEC following this earnings release, and in other SEC filings.

Forward-looking statements in this release represent the Company’s judgment as of the date of this release. The Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise, unless otherwise required by law.

FARO TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended

Twelve Months Ended

(in thousands, except share and per share data)

December 31,
2023

December 31,
2022

December 31,
2023

December 31,
2022

Sales

Product

$ 78,818

$ 83,265

$ 278,572

$ 265,280

Service

20,022

20,594

80,259

80,485

Total sales

98,840

103,859

358,831

345,765

Cost of sales

Product

37,781

40,957

150,472

123,836

Service

10,773

11,867

43,360

46,166

Total cost of sales

48,554

52,824

193,832

170,002

Gross profit

50,286

51,035

164,999

175,763

Operating expenses

Selling, general and administrative

39,429

37,923

157,336

146,657

Research and development

9,238

12,659

41,806

49,415

Restructuring costs

263

2,102

15,393

4,614

Total operating expenses

48,930

52,684

214,535

200,686

Income (loss) from operations

1,356

(1,649)

(49,536)

(24,923)

Other (income) expense

Interest expense (income)

819

(8)

3,348

(36)

Other expense (income), net

1,303

(159)

1,178

(3,236)

Loss before income tax

(766)

(1,482)

(54,062)

(21,651)

Income tax (benefit) expense

(2,354)

753

2,515

5,105

Net income (loss)

$ 1,588

$ (2,235)

$ (56,577)

$ (26,756)

Net income (loss) per share – Basic

$ 0.08

$ (0.12)

$ (2.99)

$ (1.46)

Net income (loss) per share – Diluted

$ 0.08

$ (0.12)

$ (2.99)

$ (1.46)

Weighted average shares – Basic

18,961,632

18,780,081

18,917,778

18,318,191

Weighted average shares – Diluted

21,086,277

18,780,081

18,917,778

18,318,191

FARO TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

December 31,
2023

December 31,
2022

ASSETS

Current assets:

Cash and cash equivalents

$ 76,787

$ 37,812

Short-term investments

19,496

—

Accounts receivable, net

92,028

90,326

Inventories, net

34,529

50,026

Prepaid expenses and other current assets

38,768

41,201

Total current assets

261,608

219,365

Non-current assets:

Property, plant and equipment, net

21,181

19,720

Operating lease right-of-use asset

12,231

18,989

Goodwill

109,534

107,155

Intangible assets, net

47,891

48,978

Service and sales demonstration inventory, net

23,147

30,904

Deferred income tax assets, net

25,027

24,192

Other long-term assets

4,073

4,044

Total assets

$ 504,692

$ 473,347

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$ 27,404

$ 27,286

Accrued liabilities

29,930

23,345

Income taxes payable

5,699

6,767

Current portion of unearned service revenues

40,555

36,407

Customer deposits

4,251

6,725

Lease liability

5,434

5,709

Total current liabilities

113,273

106,239

Loan – 5.50% Convertible Senior Notes

72,760

—

Unearned service revenues – less current portion

20,256

20,947

Lease liability – less current portion

10,837

14,649

Deferred income tax liabilities

13,308

11,708

Income taxes payable – less current portion

5,629

8,706

Other long-term liabilities

Total liabilities

236,086

162,298

Commitments and contingencies

Shareholders’ equity:

Common stock – par value $0.001, 50,000,000 shares authorized; 20,343,359 and
20,156,233 issued; 18,968,798 and 18,780,013 outstanding, respectively

Additional paid-in capital

346,277

328,227

(Accumulated deficit) Retained earnings

(9,789)

46,788

Accumulated other comprehensive loss

(37,247)

(33,331)

Common stock in treasury, at cost – 1,376,220 and 1,376,220 shares held, respectively

(30,655)

Total shareholders’ equity

268,606

311,049

Total liabilities and shareholders’ equity

$ 504,692

$ 473,347

FARO TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS

Twelve Months Ended

December 31,

(in thousands)

2023

2022

Cash flows from:

Operating activities:

Net loss

$ (56,577)

$ (26,756)

Adjustments to reconcile net loss to net cash used by operating activities:

Depreciation and amortization

15,377

13,983

Stock-based compensation

17,833

13,317

Inventory write-downs

9,340

—

Asset impairment charges

5,707

507

Provision for bad debts, net of recoveries

1,030

163

Amortization of debt discount and issuance costs

450

—

Loss on disposal of assets

274

156

Provision for excess and obsolete inventory

2,361

(68)

Impairment of intangible assets

—

1,135

Deferred income tax expense (benefit)

(26)

2,412

Change in operating assets and liabilities, net of acquisitions:

(Increase) decrease in:

Accounts receivable, net

(50)

(11,198)

Inventories

736

3,379

Prepaid expenses and other assets

3,387

(21,239)

(Decrease) increase in:

Accounts payable and accrued liabilities

4,421

4,777

Income taxes payable

(3,808)

(1,904)

Customer deposits

(2,533)

1,343

Unearned service revenues

2,786

(4,863)

Other liabilities

367

—

Net cash provided by (used in) operating activities

1,075

(24,856)

INVESTING ACTIVITIES:

Purchases of property and equipment

(6,817)

(6,371)

Purchases of short-term investments

(19,496)

—

Cash paid for technology development, patents and licenses

(7,177)

(10,567)

Acquisitions of businesses and minority share investments, net of cash received

—

(32,959)

Net cash used in investing activities

(33,490)

(49,897)

Financing activities:

Payments on capital leases

(154)

(220)

Cash settlement of equity awards

217

(1,892)

Short term debt

—

1,115

Proceeds from issuance of 5.50% Convertible Senior Notes, due 2028, net of discount, issuance
cost and accrued interest

72,310

—

Payment of contingent consideration for business acquisition

(1,098)

—

Net cash provided by (used in) financing activities

71,275

(997)

Effect of exchange rate changes on cash and cash equivalents

115

(8,427)

Increase (Decrease) in cash and cash equivalents

38,975

(84,177)

Cash and cash equivalents, beginning of period

37,812

121,989

Cash and cash equivalents, end of period

$ 76,787

$ 37,812

FARO TECHNOLOGIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP
(UNAUDITED)

Three Months Ended December 31,

Twelve Months Ended December 31,

(dollars in thousands, except per share data)

2023

2022

2023

2022

Gross profit, as reported

$ 50,286

$ 51,035

$ 164,999

$ 175,763

Stock-based compensation (1)

364

294

1,335

1,050

Inventory reserve charge (3)

1,208

—

9,340

—

Restructuring and other costs(2)

—

1,377

—

Purchase accounting intangible amortization and fair value
adjustments

—

3,550

—

3,550

Non-GAAP adjustments to gross profit

1,623

3,844

12,052

4,600

Non-GAAP gross profit

$ 51,909

$ 54,879

$ 177,051

$ 180,363

Gross margin, as reported

50.9 %

49.1 %

46.0 %

50.8 %

Non-GAAP gross margin

52.5 %

52.8 %

49.3 %

52.2 %

Selling, general and administrative, as reported

$ 39,429

$ 37,923

$ 157,336

$ 146,657

Stock-based compensation (1)

(4,488)

(2,179)

(14,198)

(9,654)

Purchase accounting intangible amortization

(634)

(811)

(2,658)

(1,373)

Non-GAAP selling, general and administrative

$ 34,307

$ 34,933

$ 140,480

$ 135,630

Research and development, as reported

$ 9,238

$ 12,659

$ 41,806

$ 49,415

Stock-based compensation (1)

(705)

(818)

(2,300)

(2,611)

Purchase accounting intangible amortization

(475)

(488)

(2,016)

(2,010)

Non-GAAP research and development

$ 8,058

$ 11,353

$ 37,490

$ 44,794

Operating expenses, as reported

$ 48,930

$ 52,684

$ 214,535

$ 200,686

Stock-based compensation (1)

(5,194)

(2,997)

(16,498)

(12,265)

Restructuring and other costs (2)

(1,329)

(2,604)

(17,666)

(7,548)

Purchase accounting intangible amortization

(1,109)

(1,299)

(4,674)

(3,383)

Non-GAAP adjustments to operating expenses

(7,632)

(6,900)

(38,838)

(23,196)

Non-GAAP operating expenses

$ 41,298

$ 45,784

$ 175,697

$ 177,490

Income (loss) from operations, as reported

$ 1,356

$ (1,649)

$ (49,536)

$ (24,923)

Non-GAAP adjustments to gross profit

1,622

3,844

12,052

4,600

Non-GAAP adjustments to operating expenses

7,632

6,900

38,838

23,196

Non-GAAP income from operations

$ 10,610

$ 9,095

$ 1,354

$ 2,873

Net income (loss), as reported

$ 1,588

$ (2,235)

$ (56,577)

$ (26,756)

Non-GAAP adjustments to gross profit

1,622

3,844

12,052

4,600

Non-GAAP adjustments to operating expenses

7,632

6,900

38,838

23,196

Income tax effect of non-GAAP adjustments

(2,314)

(2,149)

(12,723)

(6,163)

Other tax adjustments (4)

(1,738)

772

15,962

9,675

Non-GAAP net income (loss)

$ 6,790

$ 7,132

$ (2,448)

$ 4,552

Net income (loss) per share – Diluted, as reported

$ 0.08

$ (0.12)

$ (2.99)

$ (1.46)

Stock-based compensation (1)

0.28

0.18

0.94

0.73

Restructuring and other costs (2)

0.07

0.14

1.01

0.41

Inventory reserve charge(3)

0.06

—

0.49

—

Purchase accounting intangible amortization and fair value
adjustments

0.06

0.25

0.37

Income tax effect of non-GAAP adjustments

(0.11)

(0.67)

(0.33)

Other tax adjustments (4)

(0.08)

0.04

0.84

0.53

Non-GAAP net income (loss) per share – Diluted

$ 0.36

$ 0.38

$ (0.13)

$ 0.25

(1)

We exclude stock-based compensation, which is non-cash, from the non-GAAP financial measures because the Company believes that such exclusion provides a better comparison of results of ongoing operations for current and future periods with such results from past periods.

(2)

On February 14, 2020, our Board of Directors approved a global restructuring plan (the “Restructuring Plan”), which is intended to support our strategic plan in an effort to improve operating performance and ensure that we are appropriately structured and resourced to deliver increased and sustainable value to our shareholders and customers. On February 7, 2023, our Board of Directors approved an integration plan (the “Integration Plan”), which is intended to streamline and simplify operations, particularly around our recent acquisitions and the resulting redundant operations and offerings. The Restructuring and other costs primarily consist of severance and related benefits.

(3)

During 2023, we recorded a charge of $9.3 million, increasing our reserve for excess and obsolete inventory, based on our analysis of our inventory reserves in connection with our strategy to simplify our product portfolio and cease selling certain products.

(4)

The other tax adjustments primarily relate to the impact of certain jurisdictions maintaining a full valuation allowance where benefit is not accrued on U.S. GAAP pre-tax book losses.

FARO TECHNOLOGIES, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA
(UNAUDITED)

Three Months Ended December 31,

Twelve Months Ended December 31,

(in thousands)

2023

2022

2023

2022

Net income (loss)

$ 1,588

$ (2,235)

$ (56,577)

$ (26,756)

Interest (income) expense, net

819

(8)

3,348

(36)

Income tax (benefit) expense

(2,354)

753

2,515

5,105

Depreciation and amortization and fair value adjustments

3,649

7,472

15,377

17,533

EBITDA

3,702

5,982

(35,337)

(4,154)

Other (income) expense, net

1,303

(159)

1,178

(3,236)

Stock-based compensation

5,557

3,291

17,833

13,315

Inventory reserve charge(3)

1,208

—

9,340

—

Restructuring and other costs (1)

1,380

2,604

19,043

7,548

Adjusted EBITDA

$ 13,150

$ 11,718

$ 12,057

$ 13,473

Adjusted EBITDA margin (2)

13.3 %

11.3 %

3.4 %

3.9 %

(1)

(2)

Calculated as Adjusted EBITDA as a percentage of total sales.

(3)

FARO TECHNOLOGIES, INC. AND SUBSIDIARIES
KEY SALES MEASURES
(UNAUDITED)

For the Three Months Ended
December 31,

For the Twelve Months Ended
December 31,

(in thousands)

2023

2022

2023

2022

Total sales to external customers as reported

Americas (1)

$ 42,535

$ 44,345

$ 167,269

$ 154,422

EMEA (1)

33,657

31,680

108,298

98,174

APAC (1)

22,648

27,834

83,264

93,169

$ 98,840

$ 103,859

$ 358,831

$ 345,765

For the Three Months Ended
December 31,

For the Twelve Months Ended
December 31,

(in thousands)

2023

2022

2023

2022

Total sales to external customers in constant currency (2)

Americas (1)

$ 42,044

$ 44,008

$ 165,715

$ 154,545

EMEA (1)

33,028

33,109

105,545

99,355

APAC (1)

23,873

28,392

85,948

92,268

$ 98,945

$ 105,509

$ 357,208

$ 346,168

(1)

Regions represent North America and South America (Americas); Europe, the Middle East, and Africa (EMEA); and the Asia-Pacific (APAC).

(2)

We compare the change in the sales from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying business performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rate in effect during the last day of the prior comparable period, rather than the actual exchange rates in effect during the respective periods.

For the Three Months Ended
December 31,

For the Twelve Months Ended
December 31,

(in thousands)

2023

2022

2023

2022

Hardware

$ 66,640

$ 70,322

$ 234,124

$ 220,919

Software

12,178

12,943

44,448

44,361

Service

20,022

20,594

80,259

80,485

Total Sales

$ 98,840

$ 103,859

$ 358,831

$ 345,765

Hardware as a percentage of total sales

67.4 %

67.7 %

65.2 %

63.9 %

Software as a percentage of total sales

12.3 %

12.5 %

12.4 %

12.8 %

Service as a percentage of total sales

20.3 %

19.8 %

22.4 %

23.3 %

Total Recurring Revenue (3)

$ 17,360

$ 18,088

$ 67,497

$ 68,272

Recurring revenue as a percentage of total sales

17.6 %

17.4 %

18.8 %

19.7 %

(3)

Recurring revenue is comprised of hardware service contracts, software maintenance contracts, and subscription based software applications.

FARO TECHNOLOGIES, INC. AND SUBSIDIARIES
FREE CASH FLOW RECONCILIATION
(UNAUDITED)

Three Months Ended December 31,

Twelve Months Ended December 31,

(in thousands)

2023

2022

2023

2022

Net cash provided by (used in) operating activities

$ 18,655

$ (6,700)

$ 1,075

$ (24,856)

Purchases of property and equipment

(1,801)

(1,393)

(6,817)

(6,371)

Cash paid for technology development, patents and licenses

(2,106)

(1,413)

(7,177)

(10,567)

Free Cash Flow

14,748

(9,506)

(12,919)

(41,794)

Restructuring and other cash payments (1)

2,665

454

14,380

6,364

Adjusted Free Cash Flow

$ 17,413

$ (9,052)

$ 1,461

$ (35,430)

(1)

On February 7, 2023, our Board of Directors approved an integration plan (the “Integration Plan”), which is intended to streamline and simplify operations, particularly around our recent acquisitions and the resulting redundant operations and offerings. The Restructuring and other cash payments primarily consist of severance and related benefits.

FARO TECHNOLOGIES, INC. AND SUBSIDIARIES
RECONCILIATION OF OUTLOOK – GAAP TO NON-GAAP

Fiscal quarter ending March 31, 2024

Low

High

GAAP gross margin

49.0 %

50.5 %

Stock-based compensation

0.5 %

Non-GAAP gross margin

49.5 %

51.0 %

Fiscal quarter ending March 31, 2024

(in thousands)

Low

High

GAAP operating expenses

$47,500

$49,500

Stock-based compensation

(3,300)

Purchase accounting intangible amortization

(1,200)

Restructuring and other costs

(2,000)

Non-GAAP operating expenses

$41,000

$43,000

Fiscal quarter ending March 31, 2024

Low

High

GAAP diluted loss per share range

$(0.66)

$(0.46)

Stock-based compensation

0.19

Purchase accounting intangible amortization

0.06

Restructuring and other costs

0.11

Non-GAAP tax adjustments

0.10

Non-GAAP diluted loss per share

$(0.20)

$0.00

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SOURCE FARO

Technology

Penetron Strengthens Global Research Collaboration at ICSHM 2026

Published

1 hour ago

July 19, 2026

PHILADELPHIA, July 19, 2026 /PRNewswire/ — Penetron participated in the 10th International Conference on Self-Healing Materials (ICSHM 2026), held July 8–10, 2026, at Drexel University in Philadelphia, Pennsylvania. The international event brought together leading researchers, engineers, and industry representatives to present and discuss the latest advances in self-healing materials and related technologies.

A global delegation of Penetron executives attended the conference, representing the United States, Greece, Italy, Brazil, India, Chile, the United Arab Emirates, Belgium, and Singapore.

“For over 50 years, Penetron has provided self-healing concrete solutions to the industry that optimize concrete durability by sealing cracks and reducing concrete permeability to limit maintenance requirements, extend structural service life, and help protect infrastructure exposed to groundwater, chemicals, chlorides, and other aggressive conditions,” says Christopher Chen, Director of The Penetron Group. “Our participation at the ICSHM reinforces Penetron’s long-standing commitment to international research collaboration and allows us to better understand emerging research and develop leading-edge solutions for real-world construction challenges.”

Hosted at Drexel University’s Bossone Research Enterprise Center, ICSHM 2026 welcomed specialists from more than 18 countries across six continents and featured over 70 technical presentations, including keynote addresses, plenary sessions, research presentations, and an interactive poster program. The conference opened with remarks from Drexel University President Antonio Merlo and ICSHM Chair Dr. Nele De Belie. Finally, the conference provided valuable opportunities for researchers and industry specialists to strengthen cooperation between academia and the construction sector to further develop self-healing technologies.

“Extending the service life of concrete infrastructure requires cooperation between universities, materials specialists, engineers, and industry,” said Jozef Van Beeck, Director of International Sales and Marketing for The Penetron Group. “ICSHM 2026 provided an important forum for connecting scientific research with the practical requirements of the global construction industry.”

The Penetron Group is a leading manufacturer of specialty construction products for concrete waterproofing, concrete repairs, and floor preparation systems. The Group operates through a global network, offering support to the design and construction community through its regional offices, representatives, and distribution channels.

For more information on Penetron waterproofing solutions, please visit penetron(dot)com or Facebook(dot)com/ThePenetronGroup, email CRDept(at)penetron(dot)com or contact the Corporate Relations Department at 631-941-9700.

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SOURCE The Penetron Group

Technology

Singtel Receives Four Frost & Sullivan 2026 Recognitions for Leadership in Enterprise Connectivity, Cybersecurity, and Digital Transformation

Published

3 hours ago

July 19, 2026

The recognitions highlight Singtel’s leadership in secure connectivity, network transformation, IoT innovation, and cybersecurity, delivering customer value through intelligent digital infrastructure and AI-enabled enterprise services.

SAN ANTONIO, July 19, 2026 /CNW/ — Frost & Sullivan is pleased to honor Singtel with the 2026 Southeast Asia IoT Connectivity Service Provider Company of the Year, 2026 Singapore Network Transformation Customer Value Leadership, 2026 Singapore Cybersecurity Services Company of the Year, and 2026 Singapore SD-WAN and SASE Service Provider Company of the Year recognitions. These acknowledgements reflect Singtel’s outstanding achievements in delivering secure, intelligent, and scalable digital infrastructure that enables enterprises to modernize operations, simplify complexity, and accelerate digital transformation across Singapore and Southeast Asia. They underscore the company’s consistent leadership in strategy execution, customer value creation, and innovation across enterprise connectivity, cybersecurity, software-defined networking, and IoT connectivity services.

Frost & Sullivan evaluates companies through a rigorous benchmarking process across two core dimensions: strategy effectiveness and strategy execution. Singtel excelled in both, demonstrating its ability to anticipate evolving enterprise requirements while consistently translating long-term vision into measurable customer outcomes. Through platforms such as Singtel CUBΣ (CUBE) and its multidomestic IoT connectivity architecture, the company continues to unify networking, cybersecurity, automation, and AI-driven intelligence into integrated solutions that address the growing complexity of hybrid, multicloud, and connected environments. “Singtel has established itself as a benchmark for enterprise digital infrastructure by converging connectivity, cybersecurity, network intelligence, and IoT orchestration into a unified, customer-centric ecosystem. Its disciplined execution, platform-led innovation, and commitment to simplifying complex enterprise environments continue to strengthen operational resilience and deliver sustained value for organizations across the region,” said Kenny Yeo, Director at Frost & Sullivan.

Guided by a long-term strategy focused on digital innovation, intelligent infrastructure, and customer-centric transformation, Singtel has moved well-beyond traditional telecommunications to a trusted technology partner for enterprises navigating increasingly connected and data-driven environments. Its strategic investments in AI-enabled operations, cloud-native platforms, secure connectivity, and ecosystem partnerships enable organizations to modernize critical infrastructure while maintaining the flexibility to support future business growth.

The company’s strategic agility and sustained investment in integrated digital platforms have enabled it to scale innovative services across local, regional, and global enterprise environments. Innovation remains central to Singtel’s approach through solutions including the CUBΣ connected intelligence platform, multidomestic IoT connectivity powered by eSIM orchestration, managed cybersecurity services, AI-driven network automation, and network-as-a-service capabilities. These solutions simplify network and security management, strengthen cyber resilience, improve operational visibility, and provide enterprises with scalable, secure, and high-performing connectivity across cloud, edge, IoT, and hybrid infrastructures.

By streamlining service delivery through intelligent automation, centralized orchestration, proactive monitoring, and flexible managed and co-managed service models, Singtel continues to help organizations reduce operational complexity while improving service reliability and business agility. Its ability to integrate best-of-breed technologies in a unified operational framework, combined with strong regional network ownership and localized expertise, enables customers to confidently scale digital initiatives while maintaining security, governance, and operational excellence.

Frost & Sullivan commends Singtel for setting a high standard in competitive strategy, execution, and customer value across multiple technology domains. By combining intelligent networking, secure digital infrastructure, AI-enabled operations, and cross-border IoT capabilities in an integrated platform strategy, the company is shaping the future of enterprise connectivity while helping organizations build resilient, future-ready digital ecosystems.

Each year, Frost & Sullivan presents its Company of the Year and Customer Value Leadership recognitions to organizations that demonstrate outstanding strategy development and implementation, resulting in measurable improvements in customer satisfaction, competitive positioning, and business performance. These recognitions honor forward-thinking companies that continuously raise industry standards through innovation, operational excellence, and long-term value creation.

Frost & Sullivan Best Practices Recognition
Frost & Sullivan’s Best Practices Recognitions honor companies across regional and global markets that exhibit exceptional achievement and consistent excellence in areas such as leadership, technological innovation, customer experience, and strategic product development. Each recognition is the result of a rigorous analytical process in which Frost & Sullivan industry experts benchmark performance through comprehensive interviews, deep-dive analysis, and extensive secondary research. The goal is to identify true best-in-class organizations that are driving transformative growth and setting new industry standards.
Contact us: Start the discussion.

Contact:
Tarini Singh
E: Tarini.Singh@frost.com

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SOURCE Frost & Sullivan

Technology

Emdoor Launches “Ailyn” AI Hub at WAIC 2026: Unifying Intelligence Across Every Device

Published

7 hours ago

July 19, 2026

SHANGHAI, July 18, 2026 /PRNewswire/ — Emdoor, a leading provider of intelligent computing devices, unveiled its latest innovation — Ailyn, an integrated software-hardware AI hub — at the World Artificial Intelligence Conference (WAIC) 2026. Under the theme “Intelligence in All Things, Boundless Edge Intelligence”, Emdoor’s Booth X1B-804 showcases four immersive scenarios spanning personal, home, enterprise, and industrial use cases, demonstrating how AI can flow seamlessly across devices.

With decades of experience across cloud, edge, device, and wearable form factors, Emdoor has established one of the industry’s most comprehensive intelligent hardware portfolios. Yet the company recognized a critical gap: while individual devices grow smarter, they often operate in isolation.

Ailyn is Emdoor’s answer to this challenge. Introduced on the WAIC Magic Box stage, Ailyn serves as a unified intelligence layer that orchestrates storage, computing power, AI models, and data across PCs, NAS systems, computing boxes, and IoT devices. The result is a scalable, centrally managed intelligence platform that delivers seamless cross-device collaboration, data privacy, and AI capabilities that improve with use.

At its core, Ailyn follows a device-first, multi-device connected philosophy. By prioritizing on-device model deployment, it reduces costs while preserving privacy, minimizing latency, and enabling offline functionality. Key capabilities include unified data access, uninterrupted task handoff between devices, intelligent multi-model routing, and dynamic compute scaling — plus built-in features for knowledge accumulation, skill expansion, persona customization, and automated task execution.

Four Scenarios, One Intelligent Ecosystem

The enterprise lineup features high-performance AI workstations, AI servers, AI NAS, Mini PCs, and motherboards. Workstations support up to 96-core processors and four double-width GPUs with integrated BMC remote management. AI servers run dual Intel Xeon scalable processors with up to eight mainstream AI accelerators. The single-GPU workstation series offers dual-platform compatibility with both Intel and AMD, featuring a PCIe 5.0 ×16 slot and up to 128GB DDR5 memory. Available in two form factors — a 23.9L tower chassis and a 15.3L compact chassis with tempered glass side panel — it delivers balanced performance for both creative workloads and local AI inference. The AI NAS unifies storage and AI computing power in one device, with192GB of octa-channel LPDDR5X memory to support local large model deployment. Ailyn unifies these resources into a private computing backbone, intelligently offloading heavy workloads so users get instant on-device responsiveness with datacenter-grade power on demand.

For individual users, the showcase includes Mini PCs, AI PCs, AI tablets, and multimodal wearables. The AP16, powered by Intel’s 3rd Generation Core™ Ultra processor, delivers 180 TOPS of AI performance with sustained 54W output — capable of running large models locally. Multimodal wearable solutions built on Qualcomm and BES chips offer faster time-to-market for brand partners. Within the Ailyn ecosystem, PCs handle heavy computing while wearables provide continuous environmental awareness, each device strengthening the whole.

Industrial visitors will find AI BOX units, rugged AI notebooks, handheld terminals, and industrial PCs. AI BOX devices come preloaded with industry-specific models for production line visual inspection. Rugged notebooks deliver reliable performance for mobile field operations. Industrial PCs feature industrial-grade architecture for 24/7 uptime. Through Ailyn, these connected devices break down traditional data silos, enabling intelligent resource orchestration and a closed-loop perception-decision-execution system that accelerates industrial digital transformation.

At the center of the home scenario are AI tablets and home NAS, connected to a full-house AIoT network. The NAS acts as the family’s private data and computing hub, while the tablet serves as the primary interface for senior health reminders and children’s learning support. Ailyn weaves these devices into a cohesive system covering family memories, health care, companionship, and home security — bringing intelligence into daily life without intruding on it.

The launch of Ailyn marks a significant evolution for Emdoor — shifting from a hardware manufacturer to a builder of intelligent infrastructure. It represents the convergence of the company’s deep hardware heritage and its AI innovation roadmap. Moving forward, Emdoor will continue investing in edge AI technology and expanding the Ailyn ecosystem alongside partners, bringing distributed intelligence from the showroom into everyday life.

Company: Emdoor Digital Technology Co.,Ltd.
Contact Person: Yao Zhou
Email: marketing.digi@emdoor.com
Website: http://www.emdoordigi.com/
City: Shenzhen, China

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SOURCE Emdoor Digital