LAKE MARY, Fla., Feb. 28, 2012 /PRNewswire/ -- FARO Technologies,
Inc. (NASDAQ: FARO) today announced record results for the fourth
quarter and full year ended December 31,
2011. Sales in the fourth quarter of 2011 increased
31.7% to $77.1 million, from
$58.5 million in the fourth quarter
of 2010. The Company reported net income increased by 95.8%
to $9.5 million, or $0.56 per share, in the fourth quarter of 2011,
from $4.8 million, or $0.29 per share, in the fourth quarter of
2010.
(Logo: http://photos.prnewswire.com/prnh/20110415/MM84316LOGO
)
Fiscal 2011 sales were $254.2
million, an increase of 32.5% compared to fiscal 2010 sales
of $191.8 million. Net income
for fiscal 2011 was $23.4 million
compared to $11.1 million in fiscal
2010.
New order bookings for fiscal 2011 were $255.7 million, an increase of 29.2% from
$197.9 million in fiscal 2010.
New order bookings for the fourth quarter of 2011 were
$77.1 million, an increase of
$9.7 million, or 14.4%, compared to
$67.4 million in the fourth quarter
of 2010. A sluggish European economy resulted in lower than
expected orders in the fourth quarter. However, orders in the
other two regions met the Company's internal targets.
"We had another strong quarter, growing sales by almost 32% and
EPS by 93%," stated Jay Freeland,
FARO's President and CEO. "The Focus Laser Scanner continues
to do well and the new FARO Edge Arm has been well-received by our
customers. We also generated additional operating margin
leverage through the combination of increased sales and tight cost
controls."
Gross margin for the fourth quarter of 2011 was 56.5%, compared
to 59.0% in the fourth quarter of 2010 and in line with the 56.1%
gross margins of Q2 and Q3 2011, resulting from
proportionately higher laser scanner sales, which currently have a
lower gross margin relative to the Company's historical product
mix.
The Company's operating margin for the fourth quarter increased
to 16.7%, compared with 10.6% in the fourth quarter of 2010.
The increase was driven by a combination of continued cost
containment and substantial operating leverage on the Company's
cost structure.
"The Company is performing extremely well. Our new
products are creating strong demand, and we have more on the way in
2012. We're entering an exciting new era for the Company.
We plan to introduce even more disruptive products as we go
forward, and we will spend aggressively on R&D to drive our
technology lead. FARO's market opportunity remains substantial and
as a result, we believe that sales growth of 20 – 25% per year is
an achievable target for the Company," Freeland concluded.
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 FARO's plans and strategies, product releases, demand for its
products, spending on R&D, and its future operating results and
financial condition. 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 "intend," "believe," "will,"
"expect" and similar expressions or discussions of our 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:
- development by others of new or improved products, processes
or technologies that make the Company's products obsolete or less
competitive;
- delays in the introduction of new products by the
Company;
- production delays caused by shortages of raw materials
incorporated in the Company's products;
- the cyclical nature of the industries of the Company's
customers and material adverse changes in customers' access
to liquidity and capital;
- 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
financing conditions;
- fluctuations in the Company's annual and quarterly operating
results and the inability to achieve its financial operating
targets;
- risks associated with expanding international operations,
such as fluctuations in currency exchange rates, difficulties in
staffing and managing foreign operations, political and economic
instability, compliance with import and export regulations, and the
burdens and potential exposure of complying with a wide variety of
U.S. and foreign laws and labor practices;
- other risks detailed in Part I, Item 1A. Risk Factors
in the Company's Annual Report on Form 10-K for the year
ended December 31, 2010.
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.
About FARO
With over 26,000 installations and 13,000 customers globally, FARO
Technologies, Inc. designs, develops, and markets portable,
computerized measurement and imaging devices and software used to
create digital models -- or to perform evaluations against an
existing model -- for anything requiring highly detailed 3-D
measurements, including part and assembly inspection, factory
planning and asset documentation, as well as specialized
applications ranging from surveying, recreating accident sites and
crime scenes to digitally preserving historical sites.
FARO's technology increases productivity by dramatically
reducing the amount of on-site measuring time, and the various
industry-specific software packages enable users to process and
present their results quickly and more effectively.
Principal products include the world's best-selling portable
measurement arm -- the FaroArm; the world's best-selling laser
tracker -- the FARO Laser Tracker X and Xi; the FARO Laser ScanArm;
FARO Focus 3D Laser Scanner; the FARO Gage, Gage-PLUS and
PowerGAGE; and the CAM2 Q family of advanced CAD-based measurement
and reporting software. FARO Technologies is ISO-9001 certified and
ISO-17025 laboratory registered.
|
FARO
TECHNOLOGIES, INC. AND SUBSIDIARIES
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Twelve
Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except share and
per share data)
|
|
Dec 31,
2011
|
|
Dec 31,
2010
|
|
|
Dec 31,
2011
|
|
Dec 31,
2010
|
|
|
SALES
|
|
|
|
|
|
|
|
|
|
|
|
Product
|
|
$
65,953
|
|
$
49,456
|
|
|
$
212,635
|
|
$
157,331
|
|
|
Service
|
|
11,127
|
|
9,059
|
|
|
41,529
|
|
34,444
|
|
|
Total Sales
|
|
77,080
|
|
58,515
|
|
|
254,164
|
|
191,775
|
|
|
COST OF SALES
|
|
|
|
|
|
|
|
|
|
|
|
Product
|
|
25,881
|
|
17,775
|
|
|
82,408
|
|
54,571
|
|
|
Service
|
|
7,687
|
|
6,204
|
|
|
28,067
|
|
23,806
|
|
|
Total Cost of Sales
(exclusive of depreciation and amortization,
shown separately
below)
|
|
33,568
|
|
23,979
|
|
|
110,475
|
|
78,377
|
|
|
GROSS PROFIT
|
|
43,512
|
|
34,536
|
|
|
143,689
|
|
113,398
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
Selling
|
|
17,960
|
|
15,710
|
|
|
62,117
|
|
50,679
|
|
|
General and
administrative
|
|
6,875
|
|
7,300
|
|
|
26,806
|
|
26,776
|
|
|
Depreciation and
amortization
|
|
1,665
|
|
1,492
|
|
|
6,712
|
|
6,326
|
|
|
Research and
development
|
|
4,159
|
|
3,854
|
|
|
15,196
|
|
12,690
|
|
|
Total operating
expenses
|
|
30,659
|
|
28,356
|
|
|
110,831
|
|
96,471
|
|
|
INCOME FROM
OPERATIONS
|
|
12,853
|
|
6,180
|
|
|
32,858
|
|
16,927
|
|
|
OTHER (INCOME)
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
(17)
|
|
(22)
|
|
|
(101)
|
|
(105)
|
|
|
Other expense (income),
net
|
|
442
|
|
983
|
|
|
1,217
|
|
2,783
|
|
|
Interest
expense
|
|
4
|
|
3
|
|
|
37
|
|
34
|
|
|
INCOME BEFORE INCOME TAX
EXPENSE
|
|
12,424
|
|
5,216
|
|
|
31,705
|
|
14,215
|
|
|
INCOME TAX EXPENSE
|
|
2,952
|
|
377
|
|
|
8,328
|
|
3,147
|
|
|
NET INCOME
|
|
$
9,472
|
|
$
4,839
|
|
|
$
23,377
|
|
$
11,068
|
|
|
NET INCOME PER SHARE -
BASIC
|
|
$
0.57
|
|
$
0.30
|
|
|
$
1.42
|
|
$
0.69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME PER SHARE -
DILUTED
|
|
$
0.56
|
|
$
0.29
|
|
|
$
1.39
|
|
$
0.68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares -
Basic
|
|
16,668,567
|
|
16,179,531
|
|
|
16,503,773
|
|
16,153,831
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares -
Diluted
|
|
16,940,201
|
|
16,424,638
|
|
|
16,868,471
|
|
16,365,826
|
|
|
|
|
|
|
|
|
|
|
|
|
FARO
TECHNOLOGIES, INC. AND SUBSIDIARIES
|
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2011
|
|
2010
|
|
|
(in thousands, except share
data)
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
64,540
|
|
$
50,722
|
|
|
Short-term
investments
|
|
64,997
|
|
64,986
|
|
|
Accounts receivable,
net
|
|
57,512
|
|
51,862
|
|
|
Inventories,
net
|
|
49,934
|
|
28,242
|
|
|
Deferred income taxes,
net
|
|
5,297
|
|
4,455
|
|
|
Prepaid expenses and other
current assets
|
|
9,207
|
|
8,045
|
|
|
Total current
assets
|
|
251,487
|
|
208,312
|
|
|
Property and
Equipment:
|
|
|
|
|
|
|
Machinery and
equipment
|
|
29,171
|
|
24,840
|
|
|
Furniture and
fixtures
|
|
5,963
|
|
5,700
|
|
|
Leasehold
improvements
|
|
10,233
|
|
9,682
|
|
|
Property and
equipment at cost
|
|
45,367
|
|
40,222
|
|
|
Less: accumulated
depreciation and amortization
|
|
(29,134)
|
|
(24,982)
|
|
|
Property and
equipment, net
|
|
16,233
|
|
15,240
|
|
|
Goodwill
|
|
18,610
|
|
19,015
|
|
|
Intangible assets,
net
|
|
6,849
|
|
7,204
|
|
|
Service inventory
|
|
17,316
|
|
13,726
|
|
|
Deferred income taxes,
net
|
|
2,296
|
|
2,522
|
|
|
Total Assets
|
|
$
312,791
|
|
$
266,019
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
13,396
|
|
$
12,025
|
|
|
Accrued
liabilities
|
|
18,076
|
|
15,208
|
|
|
Income taxes
payable
|
|
2,682
|
|
1,138
|
|
|
Current portion of
unearned service revenues
|
|
15,638
|
|
13,357
|
|
|
Customer
deposits
|
|
4,072
|
|
3,679
|
|
|
Current portion of
obligations under capital leases
|
|
84
|
|
91
|
|
|
Total
current liabilities
|
|
53,948
|
|
45,498
|
|
|
Unearned service revenues - less
current portion
|
|
9,540
|
|
6,758
|
|
|
Deferred tax liability,
net
|
|
1,148
|
|
1,161
|
|
|
Obligations under capital leases
- less current portion
|
|
257
|
|
125
|
|
|
Total Liabilities
|
|
64,893
|
|
53,542
|
|
|
|
|
|
|
|
|
Shareholders' Equity:
|
|
|
|
|
|
|
Common stock - par value
$.001, 50,000,000 shares
authorized; 17,381,110 and
16,894,374 issued;
16,700,875 and 16,214,139
outstanding,
respectively
|
|
17
|
|
17
|
|
|
Additional paid-in
capital
|
|
169,780
|
|
156,310
|
|
|
Retained
earnings
|
|
81,360
|
|
57,983
|
|
|
Accumulated other
comprehensive income
|
|
5,816
|
|
7,242
|
|
|
Common stock in treasury,
at cost - 680,235 shares
|
|
(9,075)
|
|
(9,075)
|
|
|
Total Shareholders'
Equity
|
|
247,898
|
|
212,477
|
|
|
Total Liabilities and
Shareholders' Equity
|
|
$
312,791
|
|
$
266,019
|
|
|
|
|
|
|
|
FARO
TECHNOLOGIES, INC. AND SUBSIDIARIES
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
December 31,
|
|
|
|
|
|
|
|
|
|
|
(in thousands)
|
|
2011
|
|
2010
|
|
2009
|
|
|
CASH FLOWS FROM:
|
|
|
|
|
|
|
|
|
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
23,377
|
|
$
11,068
|
|
$
(10,582)
|
|
|
Adjustments to reconcile
net income (loss) to net cash provided by
|
|
|
|
|
|
|
|
|
operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
6,712
|
|
6,326
|
|
5,530
|
|
|
Compensation for stock
options and restricted stock units
|
|
2,727
|
|
2,392
|
|
2,449
|
|
|
Provision for bad
debts
|
|
2,169
|
|
2,408
|
|
1,852
|
|
|
Deferred income tax
expense (benefit)
|
|
(672)
|
|
(693)
|
|
1,986
|
|
|
Change in operating assets and
liabilities:
|
|
|
|
|
|
|
|
|
Decrease (increase)
in:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
(8,979)
|
|
(13,018)
|
|
5,769
|
|
|
Inventories,
net
|
|
(27,329)
|
|
(6,273)
|
|
8,301
|
|
|
Prepaid expenses and other
current assets
|
|
(1,417)
|
|
(2,172)
|
|
1,964
|
|
|
Income tax benefit from
exercise of stock options
|
|
(1,593)
|
|
(133)
|
|
(4)
|
|
|
Increase (decrease)
in:
|
|
|
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
4,644
|
|
10,435
|
|
(7,891)
|
|
|
Income taxes
payable
|
|
2,998
|
|
829
|
|
(1,749)
|
|
|
Customer
deposits
|
|
668
|
|
1,474
|
|
1,736
|
|
|
Unearned service
revenues
|
|
5,384
|
|
2,338
|
|
(396)
|
|
|
Net cash provided by operating activities
|
|
8,689
|
|
14,981
|
|
8,965
|
|
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Purchases of property and
equipment
|
|
(4,474)
|
|
(4,047)
|
|
(3,387)
|
|
|
Payments for intangible
assets
|
|
(890)
|
|
(979)
|
|
(670)
|
|
|
Purchases of short-term
investments
|
|
-
|
|
-
|
|
(64,986)
|
|
|
Proceeds from sales of
short-term investments
|
|
-
|
|
-
|
|
81,965
|
|
|
Net
cash (used in) provided by investing activities
|
|
(5,364)
|
|
(5,026)
|
|
12,922
|
|
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Proceeds from notes
payable
|
|
-
|
|
2,490
|
|
-
|
|
|
Payments on notes
payable
|
|
-
|
|
(2,490)
|
|
-
|
|
|
Payments on capital
leases
|
|
(163)
|
|
(84)
|
|
(88)
|
|
|
Income tax benefit from
exercise of stock options
|
|
1,593
|
|
133
|
|
4
|
|
|
Purchases of treasury
stock
|
|
-
|
|
-
|
|
(8,829)
|
|
|
Proceeds from issuance of
stock, net
|
|
9,150
|
|
1,405
|
|
83
|
|
|
Net
cash provided by (used in) financing activities
|
|
10,580
|
|
1,454
|
|
(8,830)
|
|
|
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE RATE CHANGES
ON CASH AND CASH EQUIVALENTS
|
|
(87)
|
|
4,235
|
|
(1,473)
|
|
|
|
|
|
|
|
|
|
|
INCREASE IN CASH AND CASH
EQUIVALENTS
|
|
13,818
|
|
15,644
|
|
11,584
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD
|
|
50,722
|
|
35,078
|
|
23,494
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS, END
OF PERIOD
|
|
$
64,540
|
|
$
50,722
|
|
$
35,078
|
|
|
|
|
|
|
|
|
SOURCE FARO Technologies, Inc.