Technology
FARO Announces Second Quarter Financial Results
Published
2 years agoon
By
Revenue of $82.1 millionGross margin of 54.6%; Non-GAAP gross margin 55.0%, above guidance rangeLoss per share of $(0.03); Non-GAAP earnings per share (“EPS”) of $0.18, above guidance rangeCash flow from operations of $4.2 million
LAKE MARY, Fla., Aug. 8, 2024 /PRNewswire/ — FARO® Technologies, Inc. (Nasdaq: FARO), a global leader in 4D digital reality solutions, today announced its financial results for the second quarter ended June 30, 2024.
“As I reflect on the completion of my first year at FARO, I am pleased with the execution of the first phase of our journey to drive operational excellence and we are pacing well ahead of our expectations,” said Peter Lau, President & Chief Executive Officer. “By continuing to build a strong base of financial performance, marked by consistent EBITDA and free cash flow generation, we are investing in several multi-year value creation activities. Against the backdrop of a difficult macroeconomic environment, FARO delivered GAAP net loss of $0.5 million and $8.4 million of adjusted EBITDA, or 10.3% of revenue, concluding a first half of 2024 adjusted EBITDA that exceeded full year fiscal 2023 adjusted EBITDA. Looking forward, we are excited about the next phase in our journey, as we communicated in March, to deliver on the key organic growth plans which our operational improvements has enabled.”
Second Quarter 2024 Financial Summary
Total sales of $82.1 million, down 7% year over yearGross margin of 54.6%, compared to 37.8% in the prior year periodNon-GAAP gross margin of 55.0%, compared to 38.7% in the prior year periodOperating expenses of $43.0 million, compared to $58.7 million in the prior year periodNon-GAAP operating expenses of $40.0 million, compared to $44.1 million in the prior year periodNet loss of $0.5 million, or $(0.03) per share compared to net loss of $28.2 million, or $(1.49) per share in the prior year periodNon-GAAP net income of $3.4 million, or $0.18 per share compared to non-GAAP net loss of $10.8 million, or $(0.57) per share in the prior year periodAdjusted EBITDA of $8.4 million, or 10.3% of total sales compared to $(7.2) million, or (1.0%) of total sales in the prior year periodCash, cash equivalents & short-term investments of $97.9 million compared to $96.3 million as of December 31, 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”.
Outlook for the Third Quarter 2024
For the third quarter ending September 30, 2024, FARO currently expects:
Revenue in the range of $76 to $84 millionGross margin in the range of 53.0% to 54.5%. Non-GAAP gross margin in the range of 53.5% to 55.0%Operating expenses in the range of $45 to $47 million. Non-GAAP operating expenses in the range of $40 to $42 millionNet loss per share in the range of ($0.32) to ($0.12). Non-GAAP net loss to net income per share in the range of $(0.01) to $0.19.
Conference Call
The Company will host a conference call to discuss these results on Thursday, August 8, 2024, at 4:30 p.m. ET. Interested parties can access the conference call by dialing (800) 267-6316 (U.S.) or +1 (203) 518-9783 (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 over 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 (loss) from operations, non-GAAP net income (loss) and non-GAAP net income (loss) per share, exclude the impact of purchase accounting intangible amortization expense, 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 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.
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 third 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, filed with the Securities and Exchange Commission on February 28, 2024, as supplemented by the Company’s Quarterly Reports on Form 10-Q, 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
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended
Six Months Ended
(in thousands, except share and per share data)
June 30, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Sales
Product
$ 61,312
$ 67,603
$ 124,848
$ 132,843
Service
20,773
20,608
41,481
40,335
Total sales
82,085
88,211
166,329
173,178
Cost of sales
Product
26,119
44,094
56,571
78,051
Service
11,177
10,794
21,662
22,088
Total cost of sales
37,296
54,888
78,233
100,139
Gross profit
44,789
33,323
88,096
73,039
Operating expenses
Selling, general and administrative
32,590
38,561
72,183
79,937
Research and development
9,833
11,662
18,857
24,380
Restructuring costs
616
8,450
616
12,688
Total operating expenses
43,039
58,673
91,656
117,005
Income (loss) from operations
1,750
(25,350)
(3,560)
(43,966)
Other (income) expense
Interest expense
761
1,003
1,592
1,838
Other income (expense), net
(43)
476
(18)
256
Income (loss) before income tax
1,032
(26,829)
(5,134)
(46,060)
Income tax expense
1,556
1,416
2,657
3,349
Net loss
$ (524)
$ (28,245)
$ (7,791)
$ (49,409)
Net loss per share – Basic
$ (0.03)
$ (1.49)
$ (0.41)
$ (2.62)
Net loss per share – Diluted
$ (0.03)
$ (1.49)
$ (0.41)
$ (2.62)
Weighted average shares – Basic
19,293,778
18,920,675
19,183,822
18,871,007
Weighted average shares – Diluted
19,293,778
18,920,675
19,183,822
18,871,007
FARO TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands, except share and per share data)
June 30,
2024
December 31,
2023
ASSETS
Current assets:
Cash and cash equivalents
$ 97,914
$ 76,787
Short-term investments
—
19,496
Accounts receivable, net
84,868
92,028
Inventories, net
34,409
34,529
Prepaid expenses and other current assets
30,468
38,768
Total current assets
247,659
261,608
Non-current assets:
Property, plant and equipment, net
18,412
21,181
Operating lease right-of-use assets
10,960
12,231
Goodwill
108,164
109,534
Intangible assets, net
46,135
47,891
Service and sales demonstration inventory, net
21,044
23,147
Deferred income tax assets, net
24,792
25,027
Other long-term assets
3,915
4,073
Total assets
$ 481,081
$ 504,692
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$ 27,867
$ 27,404
Accrued liabilities
25,373
29,930
Income taxes payable
3,227
5,699
Current portion of unearned service revenues
40,014
40,555
Customer deposits
5,208
4,251
Lease liabilities
4,645
5,434
Total current liabilities
106,334
113,273
Loan – 5.50% Convertible Senior Notes
69,983
72,760
Unearned service revenues – less current portion
19,984
20,256
Lease liabilities – less current portion
9,556
10,837
Deferred income tax liabilities
12,498
13,308
Income taxes payable – less current portion
6,114
5,629
Other long-term liabilities
16
23
Total liabilities
224,485
236,086
Commitments and contingencies
Shareholders’ equity:
Common stock – par value $0.001, 50,000,000 shares authorized;
20,779,711 and 20,343,359 issued, respectively; 19,406,669 and 18,968,798
outstanding, respectively
20
20
Additional paid-in capital
351,849
346,277
Retained earnings
(17,580)
(9,789)
Accumulated other comprehensive loss
(47,038)
(37,247)
Common stock in treasury, at cost – 1,373,042 and 1,374,561 shares held,
respectively
(30,655)
(30,655)
Total shareholders’ equity
256,596
268,606
Total liabilities and shareholders’ equity
$ 481,081
$ 504,692
FARO TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Six Months Ended June 30,
(in thousands)
2024
2023
Cash flows from:
Operating activities:
Net loss
$ (7,791)
$ (49,409)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization
7,788
7,925
Stock-based compensation
5,703
8,584
Inventory write-downs
—
8,132
Asset impairment charges
—
4,571
Deferred income tax (benefit) and other non-cash charges
(1,327)
(41)
Provision for excess and obsolete inventory
490
1,033
Amortization of debt discount and issuance costs
223
181
Loss on disposal of assets
994
130
Provisions for bad debts, net of recoveries
304
408
Change in operating assets and liabilities:
Decrease (Increase) in:
Accounts receivable
3,943
3,280
Inventories
(3,764)
1,587
Prepaid expenses and other current assets
7,771
3,105
(Decrease) Increase in:
Accounts payable and accrued liabilities
(3,087)
(277)
Income taxes payable
(1,853)
(263)
Customer deposits
1,126
(1,210)
Unearned service revenues
965
(750)
Other liabilities
(698)
(193)
Net cash provided by (used in) operating activities
10,787
(13,207)
Investing activities:
Purchases of property and equipment
(1,688)
(4,312)
Maturity of short-term investments
20,009
(20,024)
Cash paid for technology development, patents and licenses
(3,392)
(3,616)
Net cash provided by (used in) investing activities
14,929
(27,952)
Financing activities:
Payments on finance leases
(109)
(105)
Cash settlement of equity awards
—
(277)
Proceeds from issuance of 5.50% Convertible Senior Notes, due 2028, net of discount,
issuance cost and accrued interest
—
72,310
Repayment of 5.50% Convertible Senior Notes, due 2028
(2,685)
—
Net cash (used in) provided by financing activities
(2,794)
71,928
Effect of exchange rate changes on cash and cash equivalents
(1,795)
(353)
Increase in cash and cash equivalents
21,127
30,416
Cash and cash equivalents, beginning of period
76,787
37,812
Cash and cash equivalents, end of period
$ 97,914
$ 68,228
FARO TECHNOLOGIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP
(UNAUDITED)
Three Months Ended June 30,
Six Months Ended June 30,
(dollars in thousands, except per share data)
2024
2023
2024
2023
Gross profit, as reported
$ 44,789
$ 33,323
$ 88,096
$ 73,039
Stock-based compensation (1)
374
419
704
691
Restructuring and other costs (2)
—
435
3
870
Non-GAAP adjustments to gross profit
374
854
707
1,561
Non-GAAP gross profit
$ 45,163
$ 34,177
$ 88,803
$ 74,600
Gross margin, as reported
54.6 %
37.8 %
53.0 %
42.2 %
Non-GAAP gross margin
55.0 %
38.7 %
53.4 %
43.1 %
Selling, general and administrative, as reported
$ 32,590
$ 38,561
$ 72,183
$ 79,937
Stock-based compensation (1)
(196)
(3,554)
(4,138)
(6,122)
Restructuring and other costs (2)
(745)
(359)
(3,453)
(1,154)
Purchase accounting intangible amortization
(341)
(688)
(884)
(1,361)
Non-GAAP selling, general and administrative
$ 31,308
$ 33,960
$ 63,708
$ 71,300
Research and development, as reported
$ 9,833
$ 11,662
$ 18,857
$ 24,380
Stock-based compensation (1)
(594)
(977)
(861)
(1,771)
Purchase accounting intangible amortization
(515)
(541)
(1,004)
(1,040)
Non-GAAP research and development
$ 8,724
$ 10,144
$ 16,992
$ 21,569
Operating expenses, as reported
$ 43,039
$ 58,673
$ 91,656
$ 117,005
Stock-based compensation (1)
(790)
(4,531)
(4,999)
(7,893)
Restructuring and other costs (2)
(1,361)
(8,809)
(4,069)
(13,842)
Purchase accounting intangible amortization
(856)
(1,229)
(1,888)
(2,401)
Non-GAAP adjustments to operating expenses
(3,007)
(14,569)
(10,956)
(24,136)
Non-GAAP operating expenses
$ 40,032
$ 44,104
$ 80,700
$ 92,869
Income (loss) from operations, as reported
$ 1,750
$ (25,350)
$ (3,560)
$ (43,966)
Non-GAAP adjustments to gross profit
374
854
707
1,561
Non-GAAP adjustments to operating expenses
3,007
14,569
10,956
24,136
Non-GAAP income (loss) from operations
$ 5,131
$ (9,927)
$ 8,103
$ (18,269)
Net loss, as reported
$ (524)
$ (28,245)
$ (7,791)
$ (49,409)
Non-GAAP adjustments to gross profit
374
854
707
1,561
Non-GAAP adjustments to operating expenses
3,007
14,569
10,956
24,136
Income tax effect of non-GAAP adjustments (3)
(641)
(5,888)
(2,713)
(8,457)
Other tax adjustments (3)
1,146
7,959
3,894
14,342
Non-GAAP net income (loss)
$ 3,362
$ (10,751)
$ 5,053
$ (17,827)
Net loss per share – Diluted, as reported
$ (0.03)
$ (1.49)
$ (0.41)
$ (2.62)
Stock-based compensation (1)
0.06
0.26
0.30
0.46
Restructuring and other costs (2)
0.07
0.49
0.21
0.78
Purchase accounting intangible amortization
0.05
0.06
0.10
0.13
Income tax effect of non-GAAP adjustments (3)
(0.03)
(0.31)
(0.14)
(0.45)
Other tax adjustments (3)
0.06
0.42
0.20
0.76
Non-GAAP net income (loss) per share – Diluted
$ 0.18
$ (0.57)
$ 0.26
$ (0.94)
(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 associated with the Restructuring Plan, Integration Plan, and executive transitions.
(3) The Income tax effect of non-GAAP adjustments is calculated by applying a statutory tax rate to Non-GAAP adjustments, including Stock-based compensation, Restructuring and other costs, non-recurring Inventory reserve charges, and Purchase accounting intangible amortization and fair value adjustments. In addition, when estimating our Non-GAAP income tax rate, we exclude the impact of items that impact our reported income tax rate that we do not believe are representative of our ongoing operating results, including the impact of valuation allowances we are currently recording in certain jurisdictions and certain discrete items such as adjustments to uncertain tax position reserves, as these items are difficult to predict and can impact our effective income tax rate. Specifically, Other tax adjustments during the six months ended June 30, 2024 were comprised of $3.6 million related to the impact of valuation allowance adjustments and $0.3 million related to other discrete items. During the three months ended June 30, 2024, Other tax adjustments were comprised of $0.8 million related to the impact of valuation allowance adjustments and $0.3 million related to other discrete items. In 2023, Other tax adjustments during the six months ended June 30, 2023 were comprised of $9.2 million related to the impact of valuation allowance adjustments and $5.3 million related to other items, including equity based compensation book to tax differences, non-GAAP adjustments impact on Global intangible low-taxed income and Prepaid tax on intercompany profit. During the three months ended June 30, 2023, Other tax adjustments were comprised of $4.6 million related to the impact of valuation allowance adjustments and $3.4 million related to other items, including equity based compensation book to tax differences, non-GAAP adjustments impact on Global intangible low-taxed income and Prepaid tax on intercompany profit.
FARO TECHNOLOGIES, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA
(UNAUDITED)
Three Months Ended June 30,
Six Months Ended June 30,
(in thousands)
2024
2023
2024
2023
Net loss
$ (524)
$ (28,245)
$ (7,791)
$ (49,409)
Interest expense, net
761
1,003
1,592
1,838
Income tax expense
1,556
1,416
2,657
3,349
Depreciation and amortization
4,167
3,947
7,788
7,925
EBITDA
5,960
(21,879)
4,246
(36,297)
Other expense (income), net
(43)
476
(18)
256
Stock-based compensation
1,164
4,950
5,703
8,584
Restructuring and other costs (1)
1,361
9,244
4,072
14,712
Adjusted EBITDA
$ 8,442
$ (7,209)
$ 14,003
$ (12,745)
Adjusted EBITDA margin (2)
10.3 %
1.0 %
8.4 %
(2.7) %
(1) On February 14, 2020, our Board of Directors approved 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 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 associated with the Restructuring Plan, Integration Plan, and executive transitions.
(2) Calculated as Adjusted EBITDA as a percentage of total sales.
FARO TECHNOLOGIES, INC. AND SUBSIDIARIES
KEY SALES MEASURES
(UNAUDITED)
Three Months Ended June 30,
Six Months Ended June 30,
(in thousands)
2024
2023
2024
2023
Total sales to external customers as reported
Americas (1)
$ 40,167
$ 41,358
$ 77,395
$ 83,701
EMEA (1)
24,600
24,855
50,035
49,020
APAC (1)
17,318
21,998
38,899
40,457
$ 82,085
$ 88,211
$ 166,329
$ 173,178
Three Months Ended June 30,
Six Months Ended June 30,
(in thousands)
2024
2023
2024
2023
Total sales to external customers in constant currency (2)
Americas (1)
$ 40,425
$ 41,482
$ 77,714
$ 83,210
EMEA (1)
24,931
24,964
50,395
47,860
APAC (1)
17,783
21,446
39,552
38,544
$ 83,139
$ 87,892
$ 167,661
$ 169,614
(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.
Three Months Ended June 30,
Six Months Ended June 30,
(in thousands)
2024
2023
2024
2023
Hardware
$ 50,051
$ 56,816
$ 102,667
$ 111,778
Software
11,262
10,786
22,182
21,065
Service
20,772
20,609
41,480
40,335
Total Sales
$ 82,085
$ 88,211
$ 166,329
$ 173,178
Hardware as a percentage of total sales
61.0 %
64.4 %
61.7 %
64.5 %
Software as a percentage of total sales
13.7 %
12.2 %
13.3 %
12.2 %
Service as a percentage of total sales
25.3 %
23.4 %
24.9 %
23.3 %
Total Recurring Revenue (3)
$ 17,139
$ 16,396
$ 33,856
$ 33,081
Recurring revenue as a percentage of total sales
20.9 %
18.6 %
20.4 %
19.1 %
(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 June 30,
Six Months Ended June 30,
(in thousands)
2024
2023
2024
2023
Net cash provided by (used in) operating activities
$ 4,212
$ 5,137
$ 10,787
$ (13,207)
Purchases of property and equipment
(365)
(2,624)
(1,688)
(4,312)
Cash paid for technology development, patents and licenses
(1,950)
(1,796)
(3,392)
(3,616)
Free Cash Flow
1,897
717
5,707
(21,135)
Restructuring and other cash payments (1)
2,354
3,192
2,757
3,988
Adjusted Free Cash Flow
$ 4,251
$ 3,909
$ 8,464
$ (17,147)
(1) On February 7, 2023, our Board of Directors approved 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 associated with the Restructuring Plan, Integration Plan, and executive transitions.
FARO TECHNOLOGIES, INC. AND SUBSIDIARIES
RECONCILIATION OF OUTLOOK – GAAP TO NON-GAAP
Fiscal quarter ending September 30, 2024
Low
High
GAAP gross margin
53.0 %
54.5 %
Stock-based compensation
0.5 %
0.5 %
Non-GAAP gross margin
53.5 %
55.0 %
Fiscal quarter ending September 30, 2024
(in thousands)
Low
High
GAAP operating expenses
$45,000
$47,000
Stock-based compensation
(4,000)
(4,000)
Purchase accounting intangible amortization
(1,000)
(1,000)
Non-GAAP operating expenses
$40,000
$42,000
Fiscal quarter ending September 30, 2024
Low
High
GAAP diluted loss per share range
$(0.32)
$(0.12)
Stock-based compensation
0.19
0.19
Purchase accounting intangible amortization
0.05
0.05
Non-GAAP tax adjustments
0.07
0.07
Non-GAAP diluted loss per share
$(0.01)
$0.19
View original content to download multimedia:https://www.prnewswire.com/news-releases/faro-announces-second-quarter-financial-results-302218336.html
SOURCE FARO Technologies
You may like
Technology
BTQ Technologies’ QSSN Selected as Core Security Infrastructure for South Korea’s First Bank-Led KRW Stablecoin Proof-of-Concept
Published
6 hours agoon
May 6, 2026By
BTQ provides strategic advisory support and QSSN as core PQC security infrastructure for the iM Bank initiative on the Kaia mainnet, advancing post-quantum migration across global financial infrastructure
BTQ has been selected as the core post-quantum cryptography security technology provider for South Korea’s first bank-led KRW stablecoin proof-of-concept, delivering its Quantum Secure Stablecoin Settlement Network (“QSSN”) for the initiative.
BTQ is providing strategic advisory support and helping coordinate implementation across the partnership with iM Bank and Finger, supporting the integration of post-quantum protections into regulated digital money infrastructure.
Built on the Kaia mainnet, the proof-of-concept is connected to the blockchain ecosystems originally developed by Kakao and LINE, linking the initiative to two of the largest messaging and digital platform ecosystems in Korea and Japan.
VANCOUVER, BC, May 6, 2026 /PRNewswire/ – BTQ Technologies Corp. (“BTQ” or the “Company”) (Nasdaq: BTQ) (CBOE CA: BTQ), a global quantum technology company focused on securing mission-critical networks, today announced that it it has been selected as the core PQC security technology provider through its Quantum Secure Stablecoin Settlement Network (“QSSN”) in a proof-of-concept with its Korean strategic partner, Finger Inc. (“Finger”), and iM Bank, a leading Korean commercial bank, for South Korea’s first bank-led Korean won stablecoin infrastructure incorporating post-quantum cryptography (“PQC”).
The proof-of-concept represents more than a technical pilot. It marks an important step in bringing next-generation quantum security into banking infrastructure within Korea’s regulated financial system. In addition to providing QSSN as the core PQC security framework, BTQ is contributing consulting and strategic coordination across the three-way partnership, helping align the project’s security architecture, implementation approach, and long-term post-quantum migration objectives.
“Post-quantum migration requires more than a cryptographic upgrade. It requires coordination across infrastructure, implementation, and institutional stakeholders,” said Olivier Roussy Newton, Chief Executive Officer of BTQ Technologies. “In this initiative, BTQ is providing both strategic advisory support and QSSN as the post-quantum security architecture, while helping lead coordination across the three-way partnership. We believe this proof-of-concept demonstrates how financial institutions can begin integrating quantum-resilient protections into digital money systems in a practical and operationally viable way.”
South Korea’s First Bank-Led PQC Stablecoin Infrastructure Initiative
BTQ is working alongside iM Bank and Finger on a three-way initiative to validate the issuance and distribution infrastructure for a Korean won stablecoin. In addition to supplying QSSN as the PQC security layer, BTQ is providing consulting support and helping to guide coordination across the partnership as the parties evaluate how to integrate post-quantum protections into bank-led digital asset infrastructure.
The proof-of-concept will validate several key components, including real-time reconciliation between bank reserves and blockchain-issued supply, a global-standard smart contract architecture, connectivity to global infrastructure for overseas distribution, and the integration of a PQC-based dual-signature security structure. By applying BTQ’s PQC signature architecture alongside the existing ECDSA cryptographic framework, the system is designed to preserve operational continuity for financial institutions while proactively addressing future quantum computing threats.
Built on Kaia Mainnet
A notable feature of the proof-of-concept is that it will be implemented on the Kaia mainnet, one of Korea’s leading Layer 1 blockchain networks. Kaia was created through the merger of Klaytn, the blockchain originally developed by Kakao, and Finschia, the blockchain associated with LINE. Kakao and LINE sit at the center of two of the largest messaging and digital platform ecosystems in Korea and Japan, respectively, making Kaia a significant piece of regional digital infrastructure.
Klaytn previously participated in the Bank of Korea’s CBDC pilot ecosystem, and the Bank of Korea has continued to advance CBDC testing through initiatives such as Project Hangang.
By combining BTQ’s PQC technology with blockchain infrastructure tied to the Kakao and LINE ecosystems, the proof-of-concept is intended to establish a model that aligns institutional-grade security, blockchain scalability, and evolving regulatory requirements for digital money infrastructure.
QSSN as the Security Layer
The PQC security foundation for the initiative is BTQ’s Quantum Secure Stablecoin Settlement Network, or QSSN, a quantum-secure network architecture designed for stablecoin, tokenized deposit, payment, and digital asset infrastructure. QSSN is designed to protect critical issuer functions, including stablecoin issuance, burning, transfer authority, upgrade control, and administrative permissions, by integrating PQC-based signatures while maintaining existing user experience and operational workflows.
BTQ has previously announced that QSSN was highlighted in the U.S. Post-Quantum Financial Infrastructure Framework (“PQFIF”) as a model architecture for post-quantum digital money infrastructure. The Company has also positioned QSSN as a standards-oriented initiative advanced through QuINSA and aligned with emerging post-quantum financial infrastructure requirements.
Addressing the Harvest-Now, Decrypt-Later Risk
The timing of the proof-of-concept reflects the growing urgency surrounding the “Harvest-Now, Decrypt-Later” risk, in which attackers may collect encrypted financial data today and decrypt it later once sufficiently advanced quantum capabilities emerge. Global institutions are already accelerating post-quantum migration. The U.S. National Institute of Standards and Technology (“NIST”) has finalized its first set of post-quantum cryptography standards, including ML-DSA, ML-KEM, and SLH-DSA, while major technology companies and financial institutions continue to define their own post-quantum transition timelines.
BTQ’s QSSN addresses this challenge through a dual-signature design that allows existing ECDSA-based infrastructure to operate in parallel with NIST-aligned PQC signatures such as ML-DSA. This approach enables banks and payment infrastructure providers to begin a phased transition toward quantum-safe security without disrupting existing systems.
Expanding BTQ’s Korean Ecosystem
BTQ continues to expand its Korean ecosystem across digital assets, payments, banking infrastructure, and hardware-based security. In October 2025, BTQ announced that Finger had joined Danal as an early participant in BTQ’s QSSN pilot program, with the initiative expected to progress from proof-of-concept toward commercialization under QuINSA-aligned guidelines and broader industry frameworks such as PQFIF.
The commencement of the iM Bank proof-of-concept represents an important commercial signal for BTQ, indicating that demand for post-quantum migration among Korean financial institutions is beginning to move from policy discussion toward infrastructure-level implementation. As Korea advances both quantum technology policy and stablecoin-related regulatory discussions, BTQ believes QSSN is well positioned at the intersection of regulated finance, digital asset infrastructure, and post-quantum security.
About iM Bank
iM Bank is a South Korean commercial bank and a subsidiary of DGB Financial Group. Headquartered in Daegu, iM Bank presents itself as a financial companion for customers and traces its roots to Daegu Bank, which was established in 1967 as Korea’s first regional bank. For more information, please visit https://www.imbank.co.kr/
About Finger Inc. Group
Finger supplies and develops financial IT solutions to provide optimized money management strategies for employees and corporate customers. Providing “Smartphone Financial Services”, “Corporate Cash Management Services” for businesses, “Private Wealth Management Services” for private consumers.
Since the year 2000, Finger has accumulated a number of awards and patents regarding its businesses. Based on its Mobile Enterprise Application Platform(MEAP) Orchestra and its funds management system using screen-scrapping technologies, Finger was the first company in Korea to deliver a smartphone banking banking-service. For more information, please visit http://www.finger.co.kr/
About BTQ
BTQ Technologies Corp. (Nasdaq: BTQ | Cboe CA: BTQ) is a quantum technology company focused on accelerating the transition from classical networks to the quantum internet. Backed by a broad patent portfolio and deep technical expertise, BTQ is advancing a full-stack, neutral-atom quantum computing platform spanning hardware, middleware, and post-quantum security solutions for finance, telecommunications, logistics, life sciences, and defense.
Connect with BTQ: Website | LinkedIn | X/Twitter
ON BEHALF OF THE BOARD OF DIRECTORS
Olivier Roussy Newton
CEO, Chairman
Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Information
Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as “anticipate”, “intend”, “expect”, “plan” or “may” and the variations of these words are intended to identify forward-looking statements and information.
The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.
Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company’s research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
View original content to download multimedia:https://www.prnewswire.com/news-releases/btq-technologies-qssn-selected-as-core-security-infrastructure-for-south-koreas-first-bank-led-krw-stablecoin-proof-of-concept-302763840.html
SOURCE BTQ Technologies Corp.
Technology
Zimmer Biomet to Present at the BofA Securities 2026 Health Care Conference
Published
6 hours agoon
May 6, 2026By
WARSAW, Ind., May 6, 2026 /PRNewswire/ — Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH), a global medical technology leader, today announced that members of the Zimmer Biomet management team will participate in the Bank of America Securities Health Care Conference on Wednesday, May 13, 2026, with a fireside chat at 8:40 a.m. PT (11:40 a.m. ET).
A live audio webcast can be accessed via Zimmer Biomet’s Investor Relations website at https://investor.zimmerbiomet.com. It will be available for replay following the fireside chat.
About Zimmer Biomet
Zimmer Biomet is a global medical technology leader with a comprehensive portfolio designed to maximize mobility and improve health. We seamlessly transform the patient experience through our innovative products and suite of integrated digital and robotic technologies that leverage data, data analytics and artificial intelligence.
With 90+ years of trusted leadership and proven expertise, Zimmer Biomet is positioned to deliver the highest quality solutions to patients and providers. Our legacy continues to come to life today through our progressive culture of evolution and innovation.
For more information about our product portfolio, our operations in 25+ countries and sales in 100+ countries or about joining our team, visit www.zimmerbiomet.com or follow on LinkedIn at www.linkedin.com/company/zimmerbiomet or X at www.x.com/zimmerbiomet.
Contacts:
Media
Investors
Troy Kirkpatrick
David DeMartino
614-284-1926
646-531-6115
troy.kirkpatrick@zimmerbiomet.com
david.demartino@zimmerbiomet.com
Kirsten Fallon
Zach Weiner
781-779-5561
908-591-6955
View original content to download multimedia:https://www.prnewswire.com/news-releases/zimmer-biomet-to-present-at-the-bofa-securities-2026-health-care-conference-302763299.html
SOURCE Zimmer Biomet Holdings, Inc.
Technology
NextLadder Ventures Announces Co-Founder Leadership Team, Investment Focus Areas For Over $1 Billion Initiative Empowering Americans with Personalized, Tech-Enabled Support Tools
Published
6 hours agoon
May 6, 2026By
New senior hires from Google and The Collaborative Fund to lead product strategy and venture investing
Fund unveils first investment focus areas to catalyze new ‘Navigation Technology’ market, equipping Americans with cutting-edge tools to achieve economic security, opportunity and empowerment
ST. LOUIS, May 6, 2026 /PRNewswire/ — NextLadder Ventures, a new fund backed by more than $1 billion in capital, today announced its priority investment areas for building a new market for “Navigation Technology” (NavTech) — tools that provide Americans with personalized solutions to navigate life’s challenges and achieve greater economic mobility — and announced its co-founding team, including two new senior hires.
The fund’s active focus areas are based on extensive research identifying the key experiences and high-stakes decision points that have an outsized impact on American families’ economic mobility. Launched investment areas include financial health, career navigation, and benefits and social services access, with further exploration underway around housing, legal aid, justice and re-entry, and mental and physical health.
The organization is also today welcoming two senior leaders: Lauren Loktev is joining NextLadder as Managing Director of Investments and Brigitte Hoyer Gosselink as Managing Director of Product. Loktev was most recently a partner at the Collaborative Fund, where she backed several breakout companies in early child development, education, and sustainability. Gosselink comes to NextLadder from Google, where she led the company’s AI and social impact portfolio. They join a growing team which has deep expertise at the intersection of economic mobility, technology, public policy, and philanthropy.
NextLadder’s Focus Areas for Investment
Today, the fund is kicking off a plan to deploy $1 billion over the next seven years to accelerate the design, development, and deployment of accessible NavTech tools that aim to help families more successfully navigate the major life experiences that determine whether they get ahead or fall behind. As NextLadder’s inaugural frontier AI lab partner, Anthropic is supporting the build-out of the organization’s AI-native capabilities and is offering technical assistance to NextLadder’s portfolio organizations.
As an increasing proportion of Americans across income levels find themselves overextended and overwhelmed, NavTech tools are designed to help individuals and families understand their options, connect to information and resources, and take action to recover from a setback or take advantage of an opportunity and reclaim their economic futures.
“Life is getting harder, and too many Americans are stuck facing some of the most complex and consequential moments of their lives without much support,” said Ryan Rippel, CEO of NextLadder Ventures. “Every day, millions in this country face fork-in-the-road decisions that have major implications on whether they climb up the economic ladder or fall farther behind. AI has understandably intensified many Americans’ anxieties about their jobs and their security in the economy. But these technologies are now also making it possible to deliver highly personalized, affordable tools to meet the needs of tens of millions of Americans in a way that has never been practically achievable or financially viable before. With NavTech tools, built for the reality of families’ everyday experiences, we can empower Americans to overcome setbacks, navigate life’s toughest financial decisions, and build more secure futures.”
NavTech tools, built with the needs of individuals, families, and trusted community partners at the center of their design, have the potential to ease burdens most acutely faced by 90 million Americans who live in households that have difficulty in paying for usual home expenses, and turbocharge the capacity of the 1.6 million community workers in non-profit or local, state, and federal government roles who serve them. This growing category of digital technologies includes tools that help families access opportunities such as personalized financial advice and legal aid, get connected with available resources and programs, and manage unexpected hurdles like losing a job or facing an eviction – while freeing social workers and service providers to spend more time on people and less time on red tape and paperwork.
The fund’s active investment areas include:
Financial Health: Developing highly personalized, AI-powered financial health tools that can provide tailored, sustained counsel to help users build savings and protect and recover from financial shocks;
Career Navigation: Building tools to support career navigation, manage and support career transitions, and help workers, case managers, and employers identify pathways to living wage work — all designed to help people successfully find the right jobs for them.
Benefits & Social Services Access: Helping eligible Americans seamlessly identify and enroll in all the benefits and social services available to them, particularly those that support career navigation and transitions, help them navigate critical life moments, and achieve stability toward economic opportunity.
NextLadder is exploring additional focus areas, including housing, legal aid, justice and re-entry, caregiving, and mental and physical health. More on the organization’s vision of these focus areas is available HERE.
In addition to backing direct NavTech solutions, NextLadder is investing in the developers, partners, and standards required to build a durable, self-sustaining market. Across all focus areas, the fund is prioritizing efforts to ensure NavTech tools are reliable, protect users’ privacy, and are trusted by the families who depend on them.
NextLadder’s Co-Founder Leadership Team
NextLadder’s five co-founders will be CEO Ryan Rippel, Chief Strategy and Operations Officer Rhett Dornbach-Bender, Chief of Staff Callie Schwartz, and the two new senior hires: Managing Director of Investments Lauren Loktev and Managing Director of Product Brigitte Hoyer Gosselink, rounding out the fund’s expertise in investing, technology, and impact.
“We’re thrilled to welcome Lauren and Brigitte to the NextLadder team,” said Rippel. “Brigitte has spent her career proving that when applied purposefully, AI and technology can deliver meaningful benefits for communities, and she’ll set the bar for what NavTech tools can deliver for American families today and in the years to come. And with her deep experience backing mission-driven founders, Lauren is the perfect leader to build our venture practice from the ground up and accelerate the growth of the NavTech field. With this team in place, we’re positioned to make NavTech tools easier to build, fund, and access so they reach the people who need them most.”
Loktev brings 15 years of venture capital experience investing at the intersection of for-profit and for-good. Most recently at Collaborative Fund, she backed several companies to significant scale and launched Collab+Sesame, a first-of-its-kind thematic seed fund in partnership with Sesame Workshop focused on early childhood education. At NextLadder, she will build and lead the fund’s venture practice, sourcing and scaling investments in the founders building the next generation of NavTech tools.
“We have a once in a generation opportunity to help steer AI solutions toward those who need them most,” said Loktev. “Many amazing, accomplished founders see this too, and they are on a mission to build scalable, transformative businesses in the critical verticals that help people navigate life-changing moments. I couldn’t be more excited to join NextLadder and to support the most inspiring leaders building this market from the ground up. Thanks to our unique, long-term mandate, we can be creative and flexible in investing across stage and check size to partner with the entrepreneurs and leaders we believe will change the world.”
Prior to her role at NextLadder, Gosselink spent over a decade at Google in several roles including Director of AI and Social Impact, directing more than $500 million in funding for organizations applying AI to address challenges including crisis response, education, and economic opportunity. At NextLadder, she will lead AI and product strategy across the fund’s portfolio, backing solutions and setting market-wide standards for how NavTech tools are designed, evaluated, and improved over time.
“If we collectively harness the AI transformation strategically and purposefully, we can transform the way Americans are empowered to access greater economic mobility,” said Gosselink. “We believe that people-centered products, combined with shifts in the market and the services available to families, can fundamentally reshape how millions of Americans navigate critical moments and achieve prosperity on their own terms.”
To request interviews from the NextLadder Ventures leadership team, contact media@nextladder.com.
About NextLadder Ventures
NextLadder Ventures is a time-bound venture with one goal: empower millions of Americans to reach their potential by 2040. Backed by over $1 billion in capital, the organization invests in breakthrough technologies that remove barriers to economic success and put people in control of their futures. NextLadder Ventures is trailblazing a new market for tech-enabled Navigation Technology tools that help people access the resources they need to navigate pivotal moments — offering flexible, risk-tolerant capital to entrepreneurs building these transformative tools today, while creating a pipeline of tech, talent, and capital for the long run.
SOURCE NextLadder Ventures
Ether tests $2.4K as accumulators add 246K ETH: How high can price go?
Bitcoin price rejects at $83K as Trump calls Iran deal ‘big assumption’
Stablecoin industry opposes Bank of England’s unhosted wallet ban
Send Rakhi to UK swiftly with UK Gifts Portal
Whiteboard Series with NEAR | Ep: 45 Joel Thorstensson from ceramic.network
New Gooseneck Omni Antennas Offer Enhanced Signals in a Durable Package
Why You Should Build on #NEAR – Co-founder Illia Polosukhin at CV Labs
Whiteboard Series with NEAR | Ep: 45 Joel Thorstensson from ceramic.network
NEAR End of Year Town Hall 2021: The Open Web World, MetaBUILD 2 Hackathon and 2021 recap
Trending
-
Technology5 days agoRoyal Visit to Front Royal: Randolph-Macon Academy Shines at Block Party for King Charles III and Queen Camilla
-
Coin Market4 days ago
Bitcoin rally extends, yet BTC options price only 25% chance of $84K in May
-
Coin Market5 days ago
CLARITY Act stablecoin yield rules finalised: ‘Go time’ for crypto bill
-
Technology5 days agoProducts That Count Announces the Winners of the 2026 CPO Awards, Honoring the Product Leaders Redefining Their Craft in the AI Era
-
Technology4 days agoFirst Online Conversations Are Changing in 2026, According to New Secretmeet Research
-
Coin Market5 days agoThree Bitcoin data points suggest a rally to $80K is imminent
-
Technology5 days ago2026 Brockton High School Film Festival
-
Technology4 days agoPOVADDO AND PROLEGIS ANNOUNCE STRATEGIC PARTNERSHIP TO EXPAND ACCESS TO PUBLIC POLICY PROFESSIONALS FOR OPINION RESEARCH
