FARO Down, But By No Means Out
Further Downside Ahead For FARO Technologies
Joshua S. Hall
Joshua S. Hall
Wed, May 4, 12:50 PM
Tue, May 3, 4:19 PM
Mon, May 2, 5:35 PM
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Tue, Apr. 26, 2:43 PM
- Kathleen J. Hall, formerly FARO Technologies' (FARO +0.6%) managing director for the Americas region, has been appointed to the newly-created position of COO. She'll be in charge of operations, and tasked with "transforming the Company's regional operating teams into a single, global operating platform in order to leverage operating efficiencies in line with the Company's long-term growth objectives."
- FARO also states (as previously announced) EMEA/Asia-Pac managing director Joe Arezone is being promoted to the role of chief commercial officer. The company saw CFO Katherine Murphy-Wolf depart in March, and CEO Jay Freeland depart last November. Chairman Simon Raab has been serving as interim CEO.
Fri, Mar. 11, 9:09 AM
- FARO Technologies and CFO Laura Murphy-Wolf "have mutually agreed" Wolf will resign. The company insists her departure "was not related to any disagreement between Ms. Murphy-Wolf and the Company relating to the Company's financial reporting or condition, policies or practices."
- FARO will hold off on naming a new CFO until a permanent CEO is named - chairman/co-founder Simon Raab has been serving as interim CEO since December, following the departure of Jay Freeland. Until then, the finance team will be led by Robert Seidel, FARO's newly-appointed VP of finance and IR, and Janet D'Anjou, the company's controller.
Thu, Feb. 25, 10:52 AM
- With shares trading far below their early-2015 highs going into earnings, FARO Technologies (FARO +14.1%) has taken off after beating Q4 estimates (strongly on EPS).
- The 3D measurement/scanning hardware firm's recent job cuts boosted Q4 EPS: GAAP operating expenses fell by $2.4M Y/Y to $41.9M. Also helping: $22.8M was spent to buy back 809K shares. A 12% Y/Y revenue drop led gross margin to fall 170 bps Y/Y to 53.3%.
- On the earnings call (transcript), chairman/interim CEO Simon Raab declared FARO will "focus on six verticals and will restructure the organization all the way from product development to sales to ensure that those verticals are effectively served." The verticals: Metrology, factory automation, product design, BIM-CIM, public safety, and 3D consulting & solution development.
- As part of the effort, Joe Arezone, previously FARO's European/Asian sales chief, has been promoted to the newly-created role of chief commercial officer.
- FARO's Q4 results, earnings release
Wed, Feb. 24, 4:05 PM
Tue, Feb. 23, 5:35 PM
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Thu, Jan. 7, 2:56 PM
- The Nasdaq is down 2.4%, and the S&P down 2%, as investors continue fleeing to safety amid ongoing Chinese worries. Not surprisingly, many high-beta tech names are seeing much steeper losses.
- 5%+ decliners include action camera leader GoPro (GPRO -7.9%), fitness band leader Fitbit (FIT -7.6%), threat-protection hardware/software provider FireEye (FEYE -7.2%), video processor developer/GoPro supplier Ambarella (AMBA -8.6%), flash storage array vendor Violin Memory (VMEM -12.7%), capacitor maker Kemet (KEM -14.6%), and cloud healthcare software firms Castlight (CSLT -8.3%) and Veeva (VEEV -6.4%).
- Others include Russian search leader Yandex (YNDX -5.9%), 3D measurement/scanning hardware firm FARO Technologies (FARO -7.5%), ultracapacitor maker Maxwell (MXWL -9.1%), car-buying site TrueCar (TRUE -8.8%), analog/mixed-signal chipmaker ON Semi (ON -5.4%), online ad platform Rocket Fuel (FUEL -6.3%), and LED/chip equipment maker Aixtron (AIXG -6.8%).
- Previously covered: Chinese tech stocks, solar stocks, Everyday Health, SunEdison, Atmel
Dec. 21, 2015, 2:52 PM
- Noting shares are down over 50% YTD and over 20% since the company posted a Q3 miss and announced CEO Jay Freeland is stepping down, Needham's James Ricchiuti has upgraded FARO Technologies to Buy. His target is $37.
- Ricchiuti: "We upgrade the stock for 2 main reasons. First, we believe cost-reduction actions FARO announced after Q3 have provided upside to our 2016 estimates, even if revs don’t show a meaningful recovery. Second, while FARO shares are up 18% from their lows in early Nov., the shares are near historical trough valuations going back 5 yrs. While we see no clear evidence yet of meaningful improvement in FARO’s fundamentals, we view the risk-reward opportunity as attractive, with FARO trading at less than 0.9x [estimated 2016 EV/sales]"
- Two weeks ago: FARO names chairman its interim CEO
Dec. 7, 2015, 1:50 PM
- FARO Technologies (FARO -1.5%) chairman/co-founder Simon Raab has been named the 3D measurement/scanning hardware firm's interim CEO.
- FARO announced in early November (along with a big Q3 miss) long-tenured CEO Jay Freeland is stepping down. Search firm Heidrick & Struggles has been hired to find a permanent successor.
Nov. 18, 2015, 12:13 PM
Nov. 10, 2015, 4:43 PM
- Marvin Sambur discloses he bought 2,200 FARO Technologies shares last Friday at $24.96, bringing his total stake to 21,273.
- The purchase occurred after FARO crashed earlier in the week due to a big Q3 miss. Along with the numbers, the 3D measurement/imaging hardware maker announced CEO Jay Freeland is stepping down, and that it's cutting 8% of its workforce.
- Shares rose 1.1% in regular trading today.
Nov. 4, 2015, 12:44 PM
Nov. 3, 2015, 5:08 PM
- Along with its Q3 results, FARO Technologies states long-time CEO Jay Freeland is stepping down from his position and from the board once a successor is found.
- Freeland on FARO's Q3: "Third quarter sales primarily reflect continued unfavorable foreign currency translation, slow-down of capital spending around the world, particularly in China and Japan, and macro-economic turmoil in Brazil. A number of our vertical markets experienced a slow-down late in the third quarter, especially the Architecture, Engineering and Construction vertical challenging our closure rate of Focus Laser Scanner sales." Industrial machine vision hardware firm Cognex offered similar demand commentary yesterday.
- In response to weak demand, Faro is cutting 8% of its workforce and "implementing further cost reduction initiatives." The buyback authorization has been hiked by $20M to $50M.
- Gross margin fell to 48.1% from 56% a year ago; it was 59% if one excludes a $7.9M inventory reserve created due to product timings and weaker-than-expected sales. Product revenue fell 14% Y/Y to $57.8M; service revenue rose less than 1% to $14.7M.
- Shares have plunged to $27.85 after hours, making new 52-week lows along the way.
- Q3 results, PR
Nov. 3, 2015, 4:13 PM
- FARO Technologies (NASDAQ:FARO): Q3 EPS of -$0.05 may not be comparable to consensus of $0.29.
- Revenue of $72.5M (-11.8% Y/Y) misses by $11.6M.
FARO Technologies, Inc. operates as a 3D measurement, imaging and realization technology company. It design, develop, manufacture, market and support software driven, three-dimensional measurement, imaging and realization systems. The company operates through following geographical segments:... More
Industry: Scientific & Technical Instruments
Country: United States
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