FARO Reports Third Quarter 2019 Financial Results

 

(1)

Late in the fourth quarter of 2018, during an internal review we preliminarily determined that certain of our pricing practices may have resulted in the U.S. Government being overcharged under our General Services Administration ("GSA") Federal Supply Schedule contracts (the "Contracts") (the "GSA Matter"). In fourth quarter 2018, we reduced our total sales by an estimated cumulative adjustment of $4.8 million and recorded imputed interest expense of $0.5 million related to the GSA Matter.



(2)

During the third quarter of 2018, we performed an analysis of our inventory reserves in connection with our recent new product introductions and acquisitions and recorded a charge of $4.7 million, or approximately 5% of total inventory, increasing our reserve for excess and obsolete inventory based on the determination that quantities on-hand for certain legacy products exceeded our revised sales projections.

 


Three months ended

(in thousands)

March 31,
2019


June 30,
2019


September 30,
2019

Net income (loss)

$

152


$

(6,405)


$

(6,199)

Interest (income) expense, net

(144)


240


(24)

Income tax expense (benefit)

155


(417)


(182)

Depreciation and amortization

4,749


4,573


4,798

EBITDA

4,912


(2,009)


(1,607)

Loss on foreign currency transactions

195


154


514

Stock-based compensation

2,564


2,752


3,387

GSA sales adjustment (1)

35


5,805


Advisory fees for GSA Matter (2)

591


653


Executive severance costs



1,217

Executive sign-on bonuses & relocation costs


575


270

Present4D impairment (3)


1,535


Adjusted EBITDA

$

8,297


$

9,465


$

3,781

 

(1)

Late in the fourth quarter of 2018, during an internal review we preliminarily determined that certain of our pricing practices may have resulted in the U.S. Government being overcharged under our General Services Administration ("GSA") Federal Supply Schedule contracts (the "Contracts") (the "GSA Matter"). In fourth quarter 2018, we reduced our total sales by an estimated cumulative adjustment of $4.8 million. We also retained outside legal counsel and forensic accountants to conduct a comprehensive review of our pricing and other practices under the Contracts (the "Review"). On July 15, 2019, we submitted a report to the GSA and its Office of Inspector General setting forth the findings of the Review. Based on the results of the Review, in second quarter 2019 we reduced our total sales by an incremental $5.8 million (the "GSA sales adjustment").



(2)

In connection with the GSA Matter, we retained outside legal counsel and forensic accountants to conduct the Review, which resulted in $1.2 million in advisory fees incurred during the first nine months of 2019.



(3)

On April 27, 2018, we invested $1.8 million in present4D GmbH ("present4D"), a software solutions provider for professional virtual reality presentations and training environments, in the form of an equity capital contribution. During the second quarter of 2019, we determined it is more likely than not that we will not recover our cost basis in present4D and recorded an impairment charge of $1.5 million, which is included in Other expense, net.


« Previous Page 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13  Next Page »



Review Article Be the first to review this article
Featured Video
Latest Blog Posts
Alex Carrick, Chief Economist at ConstructConnectThe AEC Lens
by Alex Carrick, Chief Economist at ConstructConnect
Total U.S. Put-in-place Construction to be -4.5% in 2020 versus 2019
Sanjay GangalNemetschek Group
by Sanjay Gangal
How BIM is Changing Bridge Engineering
Jobs
Geographical Information Systems Analyst for Saalex Solutions at Fallon, Nevada
Applications Programmer Analyst I for Southern Nevada Health District at Las Vegas, Nevada
Upcoming Events
AEC Next Technology Expo + Conference (NEW DATE), at McCormick Place Chicago IL - Jul 27 - 29, 2020
ICBEST 2020 at The Westin Bayshore Vancouver Canada - Aug 31 - 2, 2020
Urban Regeneration and Sustainability 2nd Edition conference at University of East London, London, UK University Way London E16 2RD London United Kingdom - Sep 8 - 10, 2020
Digital Construction Week 2020 at Excel London United Kingdom - Oct 21 - 22, 2020
Bentley: Livestream On Demand
CADalog.com - Countless CAD add-ons, plug-ins and more.



© 2020 Internet Business Systems, Inc.
25 North 14th Steet, Suite 710, San Jose, CA 95112
+1 (408) 882-6554 — Contact Us, or visit our other sites:
TechJobsCafe - Technical Jobs and Resumes EDACafe - Electronic Design Automation GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise