microhedge
02-13-2008, 11:48 PM
Amidst lawsuit settlements, a very impressive report exceeding expectations.
Trailing a 29th report by Forbes listing FARO as one of America's 25 Fastest Growing Tech Companies, this report serves to add FARO to my watch list and my portfolio (well my temporary portfolio ;) )... at the very least one to keep an eye on these last two trading days.
FARO Reports Sales Growth of 25.7% in 2007
Orders Increase 21.8% for 2007
February 13, 2008, 10:32p ET (PR NewsWire)
FARO Technologies, Inc. (Nasdaq: FARO) today announced results for the fourth quarter ended December 31, 2007. Net income for the fourth quarter was $8.4 million, or $0.50 per diluted share, an increase of $4.7 million, compared to $3.7 million, or $0.25 per diluted share, in the fourth quarter of 2006. Net income for fiscal 2007 was $18.1 million, or $1.15 per diluted share, compared to $8.2 million, or $0.56 per diluted share for fiscal 2006. Fiscal 2007 results include a charge of $2.65 million, or $0.21 per diluted share, for the estimated fines and penalties that the Company anticipates could be necessary to resolve the previously announced Foreign Corrupt Practices Act ("FCPA") matter with the U.S. Department of Justice ("DOJ") and U.S. Securities and Exchange Commission ("SEC").(1)
Sales for the fourth quarter of 2007 were $59.2 million, an increase of $15.3 million, or 34.9%, from $43.9 million in the fourth quarter of 2006. New order bookings for the fourth quarter of 2007 were $65.4 million, an increase of $15.6 million, or 31.3%, compared to $49.8 million in the year-ago quarter. Fiscal 2007 sales were $191.6 million, an increase of 25.7% compared to fiscal 2006 sales of $152.4 million, slightly above the Company's full-year guidance of 20-25% sales growth. New order bookings for fiscal 2007 were $197.8 million, a 21.8% increase from $162.4 million in fiscal 2006.
"Once again, the FARO team around the world demonstrated its ability to perform," stated Jay Freeland, FARO's President and CEO. "Sales growth for 2007 was above the target range of 20-25% that we have been communicating all year. As always, fourth quarter sales were particularly strong with all three regions growing more than 20%."
Gross margin for the fourth quarter of 2007 was 60.0%, compared to 58.8% in the fourth quarter of 2006. Gross margin increased primarily as the result of an increase in unit sales in product lines with lower unit costs due to continuing productivity improvements. The gross margin for fiscal 2007 was 60.0% compared to 58.7% in fiscal 2006 and within the Company's previously issued guidance of 58% to 60%.
Selling expenses as a percentage of sales decreased to 27.3% in the fourth quarter of 2007 compared to 29.2% in the fourth quarter of 2006. Selling expenses as a percentage of sales for fiscal 2007 were 29.3% compared to 29.7% for fiscal 2006.
General and administrative expenses were 11.8% of sales for the fourth quarter of 2007 compared to 14.2% of sales in the fourth quarter of 2006. General and administrative expenses in the fourth quarter of 2006 included $1.5 million of professional fees related to the Company's Foreign Corrupt Practices Act ("FCPA") matter and its patent litigation. General and administrative expenses were 13.3% of sales in 2007 and included the accrual of $2.65 million for the estimated fines and penalties that could be necessary to resolve the FCPA matter and $1.1 million of professional fees related to the Company's FCPA matter and resolution of the patent litigation. General and administrative expenses were 16.1% of sales in fiscal 2006 and included $6.8 million of professional fees related to the FCPA matter and patent litigation.
Research and development ("R&D") expenses were $3.1 million for the fourth quarter of 2007, up from $1.8 million in the fourth quarter of 2006. R&D expenses for fiscal 2007 were $10.3 million, or 5.4% of sales, an increase of $3.1 million from $7.2 million in fiscal 2006, or 4.7% of sales. The increase was driven primarily by costs associated with the recent launches of the new Quantum FAROArm and Fusion FAROArm product lines.
Operating margin for the fourth quarter of 2007 was 13.8%, compared to 8.8% in the year ago quarter.
Income tax expense was $1.1 million for the fourth quarter of 2007 compared to $0.8 million in the fourth quarter of 2006. The Company's effective tax rate for 2007 increased to 21.5% compared to 16.2% for fiscal 2006 primarily as a result of the increase in non-deductible expenses for U.S. income tax purposes associated with the FCPA matter. The Company's effective income tax rate, excluding the effects of the $2.65 million charge for the estimated fines and penalties associated with the FCPA matter, would have been 17.0%.(2)
Full Year 2008 Sales and Gross Margin Guidance
"2007 was a tremendous year for FARO combining significant growth with great productivity, several new products and fantastic execution. Although there is clearly increased economic pressure globally, particularly in the U.S., we continue to see strong demand for our products. As such, in 2008 we are maintaining our guidance ranges of approximately 20% - 25% top line growth and gross margin of 58% to 60%," Freeland concluded.
Trailing a 29th report by Forbes listing FARO as one of America's 25 Fastest Growing Tech Companies, this report serves to add FARO to my watch list and my portfolio (well my temporary portfolio ;) )... at the very least one to keep an eye on these last two trading days.
FARO Reports Sales Growth of 25.7% in 2007
Orders Increase 21.8% for 2007
February 13, 2008, 10:32p ET (PR NewsWire)
FARO Technologies, Inc. (Nasdaq: FARO) today announced results for the fourth quarter ended December 31, 2007. Net income for the fourth quarter was $8.4 million, or $0.50 per diluted share, an increase of $4.7 million, compared to $3.7 million, or $0.25 per diluted share, in the fourth quarter of 2006. Net income for fiscal 2007 was $18.1 million, or $1.15 per diluted share, compared to $8.2 million, or $0.56 per diluted share for fiscal 2006. Fiscal 2007 results include a charge of $2.65 million, or $0.21 per diluted share, for the estimated fines and penalties that the Company anticipates could be necessary to resolve the previously announced Foreign Corrupt Practices Act ("FCPA") matter with the U.S. Department of Justice ("DOJ") and U.S. Securities and Exchange Commission ("SEC").(1)
Sales for the fourth quarter of 2007 were $59.2 million, an increase of $15.3 million, or 34.9%, from $43.9 million in the fourth quarter of 2006. New order bookings for the fourth quarter of 2007 were $65.4 million, an increase of $15.6 million, or 31.3%, compared to $49.8 million in the year-ago quarter. Fiscal 2007 sales were $191.6 million, an increase of 25.7% compared to fiscal 2006 sales of $152.4 million, slightly above the Company's full-year guidance of 20-25% sales growth. New order bookings for fiscal 2007 were $197.8 million, a 21.8% increase from $162.4 million in fiscal 2006.
"Once again, the FARO team around the world demonstrated its ability to perform," stated Jay Freeland, FARO's President and CEO. "Sales growth for 2007 was above the target range of 20-25% that we have been communicating all year. As always, fourth quarter sales were particularly strong with all three regions growing more than 20%."
Gross margin for the fourth quarter of 2007 was 60.0%, compared to 58.8% in the fourth quarter of 2006. Gross margin increased primarily as the result of an increase in unit sales in product lines with lower unit costs due to continuing productivity improvements. The gross margin for fiscal 2007 was 60.0% compared to 58.7% in fiscal 2006 and within the Company's previously issued guidance of 58% to 60%.
Selling expenses as a percentage of sales decreased to 27.3% in the fourth quarter of 2007 compared to 29.2% in the fourth quarter of 2006. Selling expenses as a percentage of sales for fiscal 2007 were 29.3% compared to 29.7% for fiscal 2006.
General and administrative expenses were 11.8% of sales for the fourth quarter of 2007 compared to 14.2% of sales in the fourth quarter of 2006. General and administrative expenses in the fourth quarter of 2006 included $1.5 million of professional fees related to the Company's Foreign Corrupt Practices Act ("FCPA") matter and its patent litigation. General and administrative expenses were 13.3% of sales in 2007 and included the accrual of $2.65 million for the estimated fines and penalties that could be necessary to resolve the FCPA matter and $1.1 million of professional fees related to the Company's FCPA matter and resolution of the patent litigation. General and administrative expenses were 16.1% of sales in fiscal 2006 and included $6.8 million of professional fees related to the FCPA matter and patent litigation.
Research and development ("R&D") expenses were $3.1 million for the fourth quarter of 2007, up from $1.8 million in the fourth quarter of 2006. R&D expenses for fiscal 2007 were $10.3 million, or 5.4% of sales, an increase of $3.1 million from $7.2 million in fiscal 2006, or 4.7% of sales. The increase was driven primarily by costs associated with the recent launches of the new Quantum FAROArm and Fusion FAROArm product lines.
Operating margin for the fourth quarter of 2007 was 13.8%, compared to 8.8% in the year ago quarter.
Income tax expense was $1.1 million for the fourth quarter of 2007 compared to $0.8 million in the fourth quarter of 2006. The Company's effective tax rate for 2007 increased to 21.5% compared to 16.2% for fiscal 2006 primarily as a result of the increase in non-deductible expenses for U.S. income tax purposes associated with the FCPA matter. The Company's effective income tax rate, excluding the effects of the $2.65 million charge for the estimated fines and penalties associated with the FCPA matter, would have been 17.0%.(2)
Full Year 2008 Sales and Gross Margin Guidance
"2007 was a tremendous year for FARO combining significant growth with great productivity, several new products and fantastic execution. Although there is clearly increased economic pressure globally, particularly in the U.S., we continue to see strong demand for our products. As such, in 2008 we are maintaining our guidance ranges of approximately 20% - 25% top line growth and gross margin of 58% to 60%," Freeland concluded.