LAKE MARY, Fla., June 7, 2021 /PRNewswire/
-- FARO® Technologies, Inc. (Nasdaq: FARO), a
global leader of 3D measurement, imaging, and realization solutions
for the 3D Metrology, AEC (Architecture, Engineering &
Construction), and Public Safety Analytics markets, today announced
the acquisition of HoloBuilder, Inc.
HoloBuilder brings to FARO its leading photogrammetry-based 3D
platform, which delivers hardware agnostic image capture,
registration and viewing to the fast-growing Digital Twin market.
With an initial focus on Construction Management, HoloBuilder's
technology platform provides general contractors a solution to
efficiently capture and virtually manage construction progress
using off-the-shelf 360° cameras.
HoloBuilder's SaaS platform will add fast and easy
reality-capture photo documentation and added remote access
capability to FARO's highly-accurate 3D point cloud-based laser
scanning to create the industry's first end-to-end Digital Twin
solution—all without leaving the FARO ecosystem. The combined
solution will provide comprehensive scanning and image management
capabilities for the Digital Twin market including robotic assembly
3D simulation, construction management, facilities operations and
management, and incident pre-planning.
"The high-value that digitalization brings to the AEC and
Operations & Maintenance (O&M) industries creates
significant market opportunity for FARO," stated Michael Burger, FARO President and
CEO. "The addition of HoloBuilder to our offering accelerates
the reality of a true end-to-end Digital Twin solution and
advances our strategic objective of increased recurring revenue
through market share gains in this large and growing segment."
"HoloBuilder and FARO together furthers our vision of digitizing
the physical world to enable process automation and workflow
optimization," added Mostafa
Akbari-Hochberg, HoloBuilder President & Founder. "The
powerful combination of high accuracy laser scanning with real-time
360° photo capture and collaboration will empower both Company's
customer bases with a comprehensive Digital Twin solution."
Under terms of the agreement, HoloBuilder shareholders received
a cash payment of $34 million. As of
April 30, 2021, HoloBuilder had
$4.0 million in annual recurring
revenue with a compounded annual growth rate of nearly 75% since
2019. The transaction closed on June
4 and was funded with available cash reserves. Alantra acted
as exclusive financial adviser to HoloBuilder.
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.
About HoloBuilder
As a pioneer in its space, HoloBuilder is a San Francisco-based technology firm that
designs, develops, and sells enterprise software, making use of
360° photos, machine vision, and artificial intelligence.
HoloBuilder has customers in over 35 countries and, to date, users
have documented more than 28,000 projects. For more
information, visit www.holobuilder.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 total sales, non-GAAP gross profit,
non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income
(loss) from operations, non-GAAP other expense, net, non-GAAP net
income (loss) and non-GAAP net income (loss) per share, exclude the
GSA sales adjustment (as defined in the tables below), the impact
of purchase accounting intangible amortization expense, stock-based
compensation, advisory fees incurred related to the GSA Matter (as
defined in the tables below), imputed interest expense recorded
related to the GSA Matter, costs incurred in connection with our
executive officer transitions, including severance costs, sign-on
bonuses and relocation costs, charges increasing our reserve for
excess and obsolete inventory, product recall charges,
restructuring charges, strategic impairment charges and write-offs,
the impairment charge related to our equity investment in present4D
GmbH, contingent consideration fair value adjustment, 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
(loss) income before interest (income) expense, net, income tax
expense (benefit) and depreciation and amortization, and Adjusted
EBITDA, which is calculated as EBITDA, excluding loss on foreign
currency transactions, the GSA sales adjustment, stock-based
compensation, advisory fees incurred related to the GSA Matter,
costs incurred in connection with our executive officer
transitions, including severance costs, sign-on bonuses and
relocation costs, charges increasing our reserve for excess and
obsolete inventory, product recall charges, restructuring charges,
strategic impairment charges and write-offs, the impairment charge
related to our equity investment in present4D GmbH, and contingent
consideration fair value adjustment, as measures of our operating
profitability. The most directly comparable GAAP measure to EBITDA
and Adjusted EBITDA is net (loss) income. We also present Adjusted
EBITDA margin, which is calculated as Adjusted EBITDA as a percent
of Non-GAAP total sales.
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 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 plan and the timing and amount of
cost savings and other benefits expected to be realized from the
restructuring plan 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.
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 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 plan and the timing and amount of
cost savings and other benefits expected to be realized from the
restructuring plan 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 new
strategic plan and restructuring 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;
- 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 the COVID-19 pandemic, including on our business
operations, as well as its impact on general economic and financial
market conditions;
- the impact of fluctuations in foreign exchange rates;
and
- 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, 2020 that was filed on
February 17, 2021.
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.
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SOURCE FARO