‘Sluggish’ EU, Asian markets weigh on Q1 financial results
FARO Technologies, Inc. Tuesday reported a 31 percent drop in first quarter net income to $4.6 million, or 27 cents per share, on sales of $65.4 million, up just slightly compared to the same period last year.
Lake Mary, Fla.-based Faro (Nasdaq: FARO) manufactures high-precision 3D measurement and imaging devices and software used for inspecting components and assemblies, rapid prototyping, documenting large volume spaces or structures in 3D, surveying and construction, as well as for investigation and reconstruction of accident sites or crime scenes.
FARO’s stock plummeted over 15 percent Wednesday before closing at $33.04. The company’s 52-week stock price ranges from $31.10-$57.93. The company has a market capitalization of $590 million and a P/E ratio of 25.83.
“We definitely feel continued pressure in the second quarter,” Freeland said during a call with analysts Wednesday, adding customers are more inclined to buy in the second half of the year.
The company said gross margins for the first quarter ended March 30 were slightly lower mainly due to proportionately higher laser scanner sales sold through the distribution channel, which yield lower margins but allow the company to avoid incurring related selling expense, as well as some pricing pressure in certain metrology products.
“Our results for the quarter reflect continuing sluggish European and Asian markets where order and sales levels remain somewhat weaker than expected,” said CEO Jay Freeland. “In the Americas, order volume in the quarter was particularly strong, up 25 percent year-over-year. As expected, competition has intensified in tight markets. Our overarching goals are to remain the industry leader and grow sales and earnings in all market conditions. As such, in the first quarter of 2013 we made additional investments in sales and marketing personnel to aggressively grow product and service revenue, and expanded our research and development teams to accelerate new product development.”