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28 February, 2024 17:13 IST
Faro Technologies swings to first-quarter loss on a YOY basis
Source: IRIS | 15 May, 2017, 02.54PM

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Faro Technologies (FARO) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $1.46 million, or $ 0.09 a share in the quarter, against a net profit of $3.08 million, or $0.19 a share in the last year period.      

Revenue during the quarter grew 7.68 percent to $81.56 million from $75.75 million in the previous year period. Gross margin for the quarter contracted 269 basis points over the previous year period to 53.64 percent. Operating margin for the quarter stood at negative 2.46 percent as compared to a positive 5.72 percent for the previous year period.

Operating loss for the quarter was $2.01 million, compared with an operating income of $4.33 million in the previous year period.

"In early 2016, FARO initiated a broad-reaching strategic reorganization and renewal initiative to return the company to growth company status with double-digit sales growth and operating margin," stated Dr. Simon Raab, president and chief executive officer. "We re-aligned our selling, marketing, and product development teams into five verticals: factory metrology, construction BIM-CIM, product design, public safety forensics, and 3D solutions. We re-organized our research and development activities to create a new product drumbeat delivering next generation, technically superior products in a more frequent cadence to drive a higher gross margin. We continued to aggressively expand our salesforce to accelerate growth in sales opportunities, especially in our emerging verticals with high growth potential, such as public safety forensics and product design and incurred the resulting increase to our selling and marketing expenses. We are reducing our aged demonstration and service inventory with the expected short-term impact on our gross margin. As previously discussed, we expect that by the end of second quarter we will have completed the harmonization of our primary global processes and systems to have a more efficient platform for growth and to reduce our operating costs as a percentage of sales, especially general and administrative costs."

Operating cash flow turns negative
Faro Technologies has spent $0.28 million cash to meet operating activities during the quarter as against cash inflow of $13.12 million in the last year period.

The company has spent $2.08 million cash to meet investing activities during the quarter as against cash outgo of $2.38 million in the last year period.

Cash flow from financing activities was $0.27 million for the quarter, down 48.35 percent or $0.25 million, when compared with the last year period.

Cash and cash equivalents stood at $105.86 million as on Mar. 31, 2017, down 11.99 percent or $14.42 million from $120.28 million on Mar. 31, 2016.

Working capital declines
Faro Technologies has witnessed a decline in the working capital over the last year. It stood at $214.23 million as at Mar. 31, 2017, down 11.06 percent or $26.63 million from $240.86 million on Mar. 31, 2016. Current ratio was at 4.27 as on Mar. 31, 2017, down from 5.12 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 107 days for the quarter from 178 days for the last year period. Days sales outstanding went down to 72 days for the quarter compared with 78 days for the same period last year.

Days inventory outstanding has decreased to 63 days for the quarter compared with 130 days for the previous year period. At the same time, days payable outstanding went down to 28 days for the quarter from 30 for the same period last year.

Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]



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