Faro Technologies (FARO) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $1.09 million, or $ 0.07 a share in the quarter, against a net loss of $0.88 million, or $0.05 a share in the last year period. Revenue during the quarter grew 9.78 percent to $79.60 million from $72.51 million in the previous year period. Gross margin for the quarter expanded 552 basis points over the previous year period to 53.62 percent. Operating margin for the quarter period stood at positive 1.06 percent as compared to a negative 1.27 percent for the previous year period.
Operating income for the quarter was $0.84 million, compared with an operating loss of $0.92 million in the previous year period.
"FARO continued to execute on its renewal and reorganization initiatives," stated Dr. Simon Raab, president and chief executive officer. "Our new product drumbeat included the launch of the next-generation FARO FocusS 150 350 Laser Scanners. Strategically, we completed two important acquisitions: Laser Projection Technologies, Inc. and BuildIT Software & Solutions Ltd. These acquisitions broadened our product lines and added new technologies and capabilities that will enhance our competitive position in certain key vertical markets. Our third quarter financial performance was highlighted by a 9.8% increase in sales. We have made excellent progress on all our renewal initiatives. While year-to-date net income increased by 92.5%, it may continue to be negatively impacted by our reorganization initiatives which we expect to complete by mid-2017."
Operating cash flow improves significantlyFaro Technologies has generated cash of $28.45 million from operating activities during the nine month period, up 260.55 percent or $20.56 million, when compared with the last year period. The company has spent $16.62 million cash to meet investing activities during the nine month period as against cash outgo of $22.28 million in the last year period.
Cash flow from financing activities was $0.43 million for the nine month period, down 83.16 percent or $2.14 million, when compared with the last year period.
Cash and cash equivalents stood at $121.35 million as on Sep. 30, 2016, up 26.44 percent or $25.37 million from $95.98 million on Sep. 30, 2015.
Working capital declines
Faro Technologies has witnessed a decline in the working capital over the last year. It stood at $229.18 million as at Sep. 30, 2016, down 7.73 percent or $19.21 million from $248.39 million on Sep. 30, 2015. Current ratio was at 4.48 as on Sep. 30, 2016, down from 5.21 on Sep. 30, 2015.
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