Faro Technologies (FARO) has reported 60.10 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $3.54 million, or $0.21 a share in the quarter, compared with $8.88 million, or $0.52 a share for the same period last year.
Revenue during the quarter went up marginally by 0.41 percent to $91.70 million from $91.33 million in the previous year period. Gross margin for the quarter contracted 5 basis points over the previous year period to 53.08 percent. Total expenses were 96.06 percent of quarterly revenues, up from 92.59 percent for the same period last year. That has resulted in a contraction of 346 basis points in operating margin to 3.94 percent.
Operating income for the quarter was $3.62 million, compared with $6.76 million in the previous year period.
"2016 was a transformative year for FARO. We undertook a major reorganization that aligned and harmonized our resources by global vertical market segments, and modernized the efficiency of our sales processes and other functional areas. We accelerated and streamlined R&D to attain a sustained drumbeat of new and enhanced product introductions, and increased acquisition activity to further build out our product lines and technological capabilities. We expect to complete the remaining primary reorganization initiatives by mid-2017," stated Dr. Simon Raab, president and chief executive officer. "In light of the substantial reorganizational disruption, FARO was able to increase sales, gross margin, and operating income, as well as generate cash flow from operations sufficient to self-fund $27.7 million of acquisitions."
Operating cash flow improves significantlyFaro Technologies has generated cash of $37.58 million from operating activities during the year, up 34.07 percent or $9.55 million, when compared with the last year. The company has spent $37.08 million cash to meet investing activities during the year as against cash outgo of $6.37 million in the last year.
Cash flow from financing activities was $0.25 million for the year as against cash outgo of $20.17 million in the last year period.
Cash and cash equivalents stood at $106.17 million as on Dec. 31, 2016, down 1.11 percent or $1.19 million from $107.36 million on Dec. 31, 2015.
Working capital decreases marginally
Faro Technologies has witnessed a decline in the working capital over the last year. It stood at $219.62 million as at Dec. 31, 2016, down 4.15 percent or $9.51 million from $229.13 million on Dec. 31, 2015. Current ratio was at 4.30 as on Dec. 31, 2016, down from 4.64 on Dec. 31, 2015.
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