FARO (FARO) 10-Q 6 Nov 24 2024 Q3 Quarterly report Financial data

Cover page

Cover page - shares	9 Months Ended
	Sep. 30, 2024	Nov. 04, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	0-23081
Entity Registrant Name	FARO TECHNOLOGIES, INC
Entity Incorporation, State or Country Code	FL
Entity Tax Identification Number	59-3157093
Entity Address, Address Line One	125 Technology Park,
Entity Address, City or Town	Lake Mary
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	32746
City Area Code	407
Local Phone Number	333-9911
Title of 12(b) Security	Common Stock, par value $.001
Trading Symbol	FARO
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		18,917,323
Entity Central Index Key	0000917491
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 88,913	$ 76,787
Short-term investments	0	19,496
Accounts receivable, net	83,208	92,028
Inventories, net	39,055	34,529
Prepaid expenses and other current assets	34,252	38,768
Total current assets	245,428	261,608
Non-current assets:
Property, plant and equipment, net	19,544	21,181
Operating lease right-of-use assets	17,208	12,231
Goodwill	110,972	109,534
Intangible assets, net	46,325	47,891
Service and sales demonstration inventory, net	21,436	23,147
Deferred income tax assets, net	24,826	25,027
Other long-term assets	3,891	4,073
Total assets	489,630	504,692
Current liabilities:
Accounts payable	30,438	27,404
Accrued liabilities	25,208	29,930
Income taxes payable	6,881	5,699
Current portion of unearned service revenues	41,495	40,555
Customer deposits	4,282	4,251
Lease liabilities	4,645	5,434
Total current liabilities	112,949	113,273
Loan - 5.50% Convertible Senior Notes	70,096	72,760
Unearned service revenues - less current portion	20,051	20,256
Lease liabilities - less current portion	15,412	10,837
Deferred income tax liabilities	13,048	13,308
Income taxes payable - less current portion	2,510	5,629
Other long-term liabilities	46	23
Total liabilities	234,112	236,086
Commitments and contingencies - See Note 13
Shareholders’ equity:
Common stock - par value $0.001, 50,000,000 shares authorized; 20,869,974 and 20,343,359 issued, respectively; 18,908,076 and 18,968,798 outstanding, respectively	20	20
Additional paid-in capital	354,765	346,277
Retained earnings	(17,869)	(9,789)
Accumulated other comprehensive loss	(40,729)	(37,247)
Common stock in treasury, at cost - 1,961,898 and 1,374,561 shares held, respectively	(40,669)	(30,655)
Total shareholders’ equity	255,518	268,606
Total liabilities and shareholders’ equity	$ 489,630	$ 504,692

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2024	Dec. 31, 2023
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, shares issued (in shares)	20,869,974	20,343,359
Common stock, shares outstanding (in shares)	18,908,076	18,968,798
Treasury stock, shares (in shares)	1,961,898	1,374,561
5.50% Convertible Senior Notes Due 2028 | Convertible Debt
Stated interest rate (as a percent)	5.50%

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Sales	$ 82,563	$ 86,813	$ 248,892	$ 259,991
Cost of sales	36,587	45,139	114,820	145,278
Gross profit	45,976	41,674	134,072	114,713
Operating expenses
Selling, general and administrative	34,041	37,970	106,224	117,907
Research and development	9,771	8,188	28,628	32,568
Restructuring costs	0	2,442	616	15,130
Total operating expenses	43,812	48,600	135,468	165,605
Income (loss) from operations	2,164	(6,926)	(1,396)	(50,892)
Other (income) expense
Interest expense	1,023	691	2,615	2,529
Other (income) expense, net	175	(381)	157	(125)
Income (loss) before income tax	966	(7,236)	(4,168)	(53,296)
Income tax expense	1,255	1,520	3,912	4,869
Net loss	$ (289)	$ (8,756)	$ (8,080)	$ (58,165)
Net loss per share - Basic (in dollars per share)	$ (0.02)	$ (0.46)	$ (0.42)	$ (3.08)
Net loss per share - Diluted (in dollars per share)	$ (0.02)	$ (0.46)	$ (0.42)	$ (3.08)
Weighted average shares - Basic (in shares)	19,266,217	18,953,251	19,218,004	18,899,954
Weighted average shares - Diluted (in shares)	19,266,217	18,953,251	19,218,004	18,899,954
Product
Sales	$ 61,461	$ 66,911	$ 186,309	$ 199,754
Cost of sales	26,246	34,640	82,817	112,691
Service
Sales	21,102	19,902	62,583	60,237
Cost of sales	$ 10,341	$ 10,499	$ 32,003	$ 32,587

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Net loss	$ (289)	$ (8,756)	$ (8,080)	$ (58,165)
Currency translation adjustments, net of income taxes	6,309	(7,080)	(3,482)	(5,979)
Net unrealized loss on short-term investments	0	(238)	0	0
Comprehensive loss	$ 6,020	$ (16,074)	$ (11,562)	$ (64,144)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Operating activities:
Net loss	$ (8,080)	$ (58,165)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	11,709	11,728
Stock-based compensation	8,471	12,276
Inventory write-downs	0	8,132
Asset impairment charges	0	5,333
Deferred income tax (benefit) and other non-cash charges	(1,230)	(82)
Provision for excess and obsolete inventory	861	1,754
Amortization of debt discount and issuance costs	336	294
Loss on disposal of assets	974	(155)
Provisions for bad debts, net of recoveries	966	834
Decrease (Increase) in:
Accounts receivable	6,864	1,282
Inventories	(8,097)	(544)
Prepaid expenses and other current assets	4,298	4,047
(Decrease) Increase in:
Accounts payable and accrued liabilities	(1,722)	(2,802)
Income taxes payable	(1,884)	653
Customer deposits	144	(1,534)
Unearned service revenues	778	(1,198)
Other liabilities	(1,033)	567
Net cash provided by (used in) operating activities	13,355	(17,580)
Investing activities:
Purchases of property and equipment	(3,559)	(5,016)
Maturity of short-term investments	20,009	0
Cash paid for technology development, patents and licenses	(4,822)	(5,071)
Net cash provided by (used in) investing activities	11,628	(10,087)
Financing activities:
Payments on finance leases	(135)	(154)
Cash settlement of equity awards	0	(89)
Repurchases of common stock	(10,014)	0
Proceeds from issuance of 5.50% Convertible Senior Notes, due 2028, net of discount, issuance cost and accrued interest	0	72,310
Repayment of 5.50% Convertible Senior Notes, due 2028	(2,685)	0
Payment of contingent consideration for business acquisition	0	(1,098)
Net cash (used in) provided by financing activities	(12,834)	70,969
Effect of exchange rate changes on cash and cash equivalents	(23)	(1,195)
Increase in cash and cash equivalents	12,126	42,107
Cash and cash equivalents, beginning of period	76,787	37,812
Cash and cash equivalents, end of period	$ 88,913	$ 79,919

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Parenthetical)	Sep. 30, 2024	Jan. 24, 2023
5.50% Convertible Senior Notes Due 2028 | Convertible Debt
Stated interest rate (as a percent)	5.50%	5.50%

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Common Stock in Treasury
Beginning balance (in shares) at Dec. 31, 2022		18,780,013
Beginning balance at Dec. 31, 2022	$ 311,049	$ 20	$ 328,227	$ 46,788	$ (33,331)	$ (30,655)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(21,164)			(21,164)
Currency translation adjustment	2,780				2,780
Stock-based compensation	3,634		3,634
Common stock issued, net of shares withheld for employee taxes (in shares)		122,108
Common stock issued, net of shares withheld for employee taxes	14		14
Ending balance (in shares) at Mar. 31, 2023		18,902,121
Ending balance at Mar. 31, 2023	296,313	$ 20	331,875	25,624	(30,551)	(30,655)
Beginning balance (in shares) at Dec. 31, 2022		18,780,013
Beginning balance at Dec. 31, 2022	311,049	$ 20	328,227	46,788	(33,331)	(30,655)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(58,165)
Currency translation adjustment	(5,979)
Ending balance (in shares) at Sep. 30, 2023		18,953,725
Ending balance at Sep. 30, 2023	259,092	$ 20	340,414	(11,377)	(39,310)	(30,655)
Beginning balance (in shares) at Mar. 31, 2023		18,902,121
Beginning balance at Mar. 31, 2023	296,313	$ 20	331,875	25,624	(30,551)	(30,655)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(28,245)			(28,245)
Currency translation adjustment	(1,679)				(1,679)
Unrealized gain (loss) on short-term investment	238				238
Stock-based compensation	4,950		4,950
Common stock issued, net of shares withheld for employee taxes (in shares)		44,677
Common stock issued, net of shares withheld for employee taxes	(291)		(291)
Ending balance (in shares) at Jun. 30, 2023		18,946,798
Ending balance at Jun. 30, 2023	271,286	$ 20	336,534	(2,621)	(31,992)	(30,655)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(8,756)			(8,756)
Currency translation adjustment	(7,080)				(7,080)
Unrealized gain (loss) on short-term investment	(238)				(238)
Stock-based compensation	3,692		3,692
Common stock issued, net of shares withheld for employee taxes (in shares)		6,927
Common stock issued, net of shares withheld for employee taxes	188		188
Ending balance (in shares) at Sep. 30, 2023		18,953,725
Ending balance at Sep. 30, 2023	$ 259,092	$ 20	340,414	(11,377)	(39,310)	(30,655)
Beginning balance (in shares) at Dec. 31, 2023	18,968,798	18,968,798
Beginning balance at Dec. 31, 2023	$ 268,606	$ 20	346,277	(9,789)	(37,247)	(30,655)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(7,267)			(7,267)
Currency translation adjustment	(3,898)				(3,898)
Stock-based compensation	4,539		4,539
Common stock issued, net of shares withheld for employee taxes (in shares)		236,563
Ending balance (in shares) at Mar. 31, 2024		19,205,361
Ending balance at Mar. 31, 2024	$ 261,980	$ 20	350,816	(17,056)	(41,145)	(30,655)
Beginning balance (in shares) at Dec. 31, 2023	18,968,798	18,968,798
Beginning balance at Dec. 31, 2023	$ 268,606	$ 20	346,277	(9,789)	(37,247)	(30,655)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(8,080)
Currency translation adjustment	$ (3,482)
Ending balance (in shares) at Sep. 30, 2024	18,908,076	18,908,076
Ending balance at Sep. 30, 2024	$ 255,518	$ 20	354,765	(17,869)	(40,729)	(40,669)
Beginning balance (in shares) at Mar. 31, 2024		19,205,361
Beginning balance at Mar. 31, 2024	261,980	$ 20	350,816	(17,056)	(41,145)	(30,655)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(524)			(524)
Currency translation adjustment	(5,893)				(5,893)
Stock-based compensation	1,164		1,164
Common stock issued, net of shares withheld for employee taxes (in shares)		201,308
Common stock issued, net of shares withheld for employee taxes	(131)		(131)
Ending balance (in shares) at Jun. 30, 2024		19,406,669
Ending balance at Jun. 30, 2024	256,596	$ 20	351,849	(17,580)	(47,038)	(30,655)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(289)			(289)
Currency translation adjustment	6,309				6,309
Stock-based compensation	2,768		2,768
Common stock repurchased (in shares)		(588,856)
Common stock repurchased	(10,014)					(10,014)
Common stock issued, net of shares withheld for employee taxes (in shares)		90,263
Common stock issued, net of shares withheld for employee taxes	$ 148		148
Ending balance (in shares) at Sep. 30, 2024	18,908,076	18,908,076
Ending balance at Sep. 30, 2024	$ 255,518	$ 20	$ 354,765	$ (17,869)	$ (40,729)	$ (40,669)

Description of Business

Description of Business	9 Months Ended
	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	DESCRIPTION OF BUSINESS FARO Technologies, Inc. and its subsidiaries (collectively “FARO,” the “Company,” “us,” “we” or “our”) design, develop, manufacture, market and support software driven, three-dimensional (“3D”) measurement, imaging, and realization solutions for the manufacturing, architecture, engineering and construction (“AEC”), Operations and Maintenance (“O&M”) and public safety analytics markets. We enable our customers to capture, measure, manipulate, interact with and share 4D, 3D and 2D data from the physical world in a virtual environment and then translate this information back into the physical domain. Our broad technology set equips our customers with a wide range of 3D capture technologies that range from ultra-high accuracy laser-scanner-based technology to lower accuracy, photogrammetry-based technology. Our FARO suite of 3D products and software solutions are used for inspection of components and assemblies, rapid prototyping, reverse engineering, documenting large volume or structures in 3D, surveying and construction, construction management, assembly layout, machine guidance as well as in investigation and reconstructions of crash and crime scenes. We sell the majority of our solutions through a direct sales force, with an increasing volume being sold through an indirect channel across a range of industries including automotive, aerospace, metal and machine fabrication, surveying, architecture, engineering and construction, public safety forensics and other industries.

Principles of Consolidation

Principles of Consolidation	9 Months Ended
	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Principles of Consolidation	PRINCIPLES OF CONSOLIDATIONOur condensed consolidated financial statements include the accounts of FARO Technologies, Inc. and its subsidiaries, all of which are wholly-owned. All intercompany transactions and balances have been eliminated. The financial statements of our foreign subsidiaries are translated into U.S. dollars using exchange rates in effect at period-end for assets and liabilities and average exchange rates during each reporting period for results of operations. Adjustments resulting from financial statement translations are reflected as a separate component of accumulated other comprehensive loss. Foreign currency transaction gains and losses are included in net income (loss)

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements and notes thereto have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These condensed consolidated financial statements include all normal recurring accruals and adjustments considered necessary by management for a fair presentation in conformity with U.S. GAAP. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. The condensed consolidated results of operations for the nine months ended September 30, 2024 are not necessarily indicative of results that may be expected for the year ending December 31, 2024, or any future period. The information included in this Quarterly Report on Form 10-Q, including the interim condensed consolidated financial statements and the accompanying notes, should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023. The accompanying December 31, 2023 condensed consolidated balance sheet has been derived from those audited consolidated financial statements. Stock-based compensation expense is allocated to the applicable departmental cost in our condensed consolidated financial statements. The following table summarizes total stock-based compensation expense for each of the line items on our condensed consolidated statements of operations: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Cost of sales Product $ 298 $ 229 $ 872 $ 833 Service 83 51 213 139 Total cost of sales 381 280 1,085 972 Operating expenses Selling, general and administrative 1,858 3,588 5,996 9,710 Research and development 529 (176) 1,390 1,594 Total operating expenses 2,387 3,412 7,386 11,304 Total stock-based compensation $ 2,768 $ 3,692 $ 8,471 $ 12,276

Impact of Recently Issued Accou

Impact of Recently Issued Accounting Pronouncements	9 Months Ended
	Sep. 30, 2024
Accounting Changes and Error Corrections [Abstract]
Impact of Recently Issued Accounting Pronouncements	IMPACT OF RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS Recently Issued Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which requires disclosure of significant segment expenses and other segment items on an annual and interim basis under Accounting Standards Codification 280. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods beginning after December 15, 2024. Early adoption is permitted and the amendments in ASU 2023-07 should be applied on a retrospective basis to all periods presented. The Company is currently evaluating the impact of ASU 2023-07 on its disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"), which improves income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. ASU 2023-09 indicates that all entities will apply its guidance prospectively with an option for retroactive application to each period in the financial statements. The Company is currently evaluating the impact of ASU 2023-09 on its disclosures.

Revenues

Revenues	9 Months Ended
	Sep. 30, 2024
Revenue from Contract with Customer [Abstract]
Revenues	REVENUES The following tables present our revenues by sales type as presented in our condensed consolidated statements of operations disaggregated by the timing of transfer of goods or services: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Product sales Product transferred to customers at a point in time $ 55,039 $ 60,882 $ 167,732 $ 183,511 Product transferred to customers over time 6,422 6,029 18,577 16,243 Total product sales $ 61,461 $ 66,911 $ 186,309 $ 199,754 Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Service sales Service transferred to customers at a point in time $ 10,093 $ 8,875 $ 29,873 $ 26,343 Service transferred to customers over time 11,009 11,027 32,710 33,894 Total service sales $ 21,102 $ 19,902 $ 62,583 $ 60,237 The following table presents our revenues disaggregated by geography, based on the billing addresses of our customers: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Total sales to external customers Americas (1) $ 40,353 $ 41,033 $ 117,748 $ 124,734 EMEA (1) 25,461 25,621 75,496 74,641 APAC (1) 16,749 20,159 55,648 60,616 $ 82,563 $ 86,813 $ 248,892 $ 259,991 (1) Regions represent North America and South America (the “Americas”); Europe, the Middle East, and Africa (“EMEA”); and Asia-Pacific (“APAC”). For revenue related to our measurement and imaging equipment and related software, we allocate the contract price to performance obligations based on our best estimate of the standalone selling price. We make this allocation estimate utilizing data from the sale of our applicable products and services to customers separately in similar circumstances. Revenue related to our measurement and imaging equipment and related software is generally recognized upon shipment from our facilities or when delivered to the customer location, as determined by the agreed upon shipping terms, at which time we are entitled to payment and title and control has passed to the customer. Software arrangements generally include short-term maintenance that is considered post-contract support (“PCS”), which is considered to be product transferred to the customer over time and a separate performance obligation. We generally establish a standalone sales price for this PCS component based on our maintenance renewal rate. Maintenance renewals are recognized on a straight-line basis over the term of the maintenance agreement. Payments for products and services are collected within a short period of time following transfer of control or commencement of delivery of services, as applicable. Further, customers frequently purchase extended hardware service contracts with the purchase of measurement equipment and related software. Hardware service contracts are considered a performance obligation when services are transferred to a customer over time, and, as such, we recognize revenue on a straight-line basis over the contractual term. Hardware service contracts include contract periods that extend between one month to three years. We capitalize commission expenses related to deliverables transferred to a customer over time and amortize such costs ratably over the term of the contract. As of September 30, 2024, the deferred cost asset related to deferred commissions was approximately $4.0 million. For classification purposes, $3.1 million and $0.9 million are comprised within the Prepaid expenses and other current assets and Other long-term assets, respectively, on our condensed consolidated balance sheet as of September 30, 2024 . As of December 31, 2023, the deferred cost asset related to deferred commissions was approximately $4.6 million. For classification purposes, $3.5 million and $1.1 million were comprised within the Prepaid expenses and other current assets and Other long-term assets, respectively, on our condensed consolidated balance sheet as of December 31, 2023. The unearned service revenue liabilities reported on our condensed consolidated balance sheets reflect the contract liabilities to satisfy the remaining performance obligations for extended warranties, subscription-based software and software maintenance. The current portion of unearned service revenues on our condensed consolidated balance sheets is what we expect to recognize as revenue within twelve months after the applicable balance sheet date relating to extended warranties, subscription-based software and software maintenance contract liabilities. The unearned service revenues less the current portion on our condensed consolidated balance sheets is what we expect to recognize as revenue extending beyond twelve months after the applicable balance sheet date relating to extended warranties, subscription-based software and software maintenance contract liabilities. Customer deposits on our condensed consolidated balance sheets represent customer prepayments on contracts for performance obligations that we must satisfy in the future to recognize the related contract revenue. These amounts are generally related to performance obligations which are delivered in less than 12 months. During the three and nine months ended September 30, 2024, we recognized $16.2 million and $34.7 million of revenue that was deferred on our condensed consolidated balance sheet as of June 30, 2024 and December 31, 2023. During the three and nine months ended September 30, 2023, we recognized $13.8 million and $30.8 million of revenue that was deferred on our condensed consolidated balance sheet as of June 30, 2023 and December 31, 2022. The nature of certain of our contracts gives rise to variable consideration, primarily related to an allowance for sales returns. We are required to estimate the contract asset related to sales returns and record a corresponding adjustment to Cost of sales. Our allowance for sales returns for each of September 30, 2024 and December 31, 2023 was less than $0.1 million. Shipping and handling fees billed to customers in a sales transaction are recorded in Product Sales and shipping and handling costs incurred are recorded in Cost of sales. We exclude from Sales any value-added sales and other taxes that we collect concurrently with revenue-producing activities.

Accounts Receivable

Accounts Receivable	9 Months Ended
	Sep. 30, 2024
Receivables [Abstract]
Accounts Receivable	ACCOUNTS RECEIVABLE Accounts receivable consist of the following: As of September 30, 2024 As of December 31, 2023 Accounts receivable $ 87,182 $ 95,195 Allowance for credit losses (3,974) (3,167) Total $ 83,208 $ 92,028 Activity related to the allowance for credit losses was as follows: Nine Months Ended September 30, 2024 2023 Beginning balance of the allowance for credit losses $ 3,167 $ 2,285 Current period provision for expected credit losses, net of recoveries 966 834 Charge-offs of amounts previously expensed (159) (81) Ending balance of the allowance for credit losses $ 3,974 $ 3,038

Inventories

Inventories	9 Months Ended
	Sep. 30, 2024
Inventory Disclosure [Abstract]
Inventories	INVENTORIES Inventories are stated at the lower of cost or net realizable value using the first-in first-out (FIFO) method. We have three principal categories of inventory: 1) manufactured product to be sold; 2) sales demonstration inventory - completed product used to support our sales force for demonstrations and held for sale; and 3) service inventory - completed product and parts used to support our service department and held for sale. Shipping and handling costs are classified as a component of Cost of sales in our condensed consolidated statements of operations. Sales demonstration inventory is held by our sales representatives for up to three years, at which time it would be refurbished and transferred to finished goods as used equipment, stated at the lower of cost or net realizable value. We expect these refurbished units to remain in finished goods inventory and sold within 12 months at prices that produce reduced gross margins. Service inventory is used to provide a temporary replacement product to a customer covered by a premium warranty when the customer’s unit requires service or repair and as training equipment. Service inventory is available for sale; however, management does not expect service inventory to be sold within 12 months and, as such, classifies this inventory as a long-term asset. Service inventory that we utilize for training or repairs and which we deem as no longer available for sale is transferred to fixed assets at the lower of cost or net realizable value and depreciated over the remaining life, typically three years. Inventories consist of the following: As of September 30, 2024 As of December 31, 2023 Raw materials $ 18,720 $ 18,460 Finished goods 20,335 16,069 Inventories, net 39,055 34,529 Service and sales demonstration inventory, net $ 21,436 $ 23,147

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	INTANGIBLE ASSETS Intangible assets consist of the following: As of September 30, 2024 Carrying Value Accumulated Net Intangible Amortizable intangible assets: Product technology $ 24,373 $ 17,933 $ 6,440 Patents and trademarks 17,630 10,296 7,334 Customer relationships 25,944 8,539 17,405 Other 27,919 12,773 15,146 Total $ 95,866 $ 49,541 $ 46,325 As of December 31, 2023 Carrying Value Accumulated Net Intangible Amortizable intangible assets: Product technology $ 24,127 $ 15,742 $ 8,385 Patents and trademarks 19,687 11,509 8,178 Customer relationships 25,164 7,279 17,885 Other 22,062 8,619 13,443 Total $ 91,040 $ 43,149 $ 47,891 Amortization expense, was $2.2 million and $6.4 million for the three and nine months ended September 30, 2024, respectively. Amortization expense was $1.9 million and $5.8 million for the three and nine months ended September 30, 2023, respectively. The estimated amortization expense for each of the years 2024 through 2028 and thereafter is as follows: Years ending December 31, Amount 2024 (excluding the first 9 months) $ 2,256 2025 8,649 2026 7,303 2027 4,608 2028 2,136 Thereafter 21,373 Total $ 46,325

Loss Per Share

Loss Per Share	9 Months Ended
	Sep. 30, 2024
Earnings Per Share [Abstract]
Loss Per Share	LOSS PER SHARE Basic net loss per share is computed by dividing net loss by the weighted average number of shares outstanding. Diluted net loss per share is computed by also considering the impact of potential common stock on both net loss and the weighted average number of shares outstanding. Our potential common stock consists of employee stock options, time-based restricted stock units, market-based restricted stock unit awards, and common stock issued for settlement of the Notes (as defined in Note 16 to the condensed consolidated financial statements). Our potential common stock is included in the diluted earnings per share calculation when adding such potential common stock would not be anti-dilutive. Market-based awards are included in the computation of diluted earnings per share only to the extent that the underlying conditions (and any applicable market condition) (i) are satisfied as of the end of the reporting period or (ii) would be considered satisfied if the end of the reporting period were the end of the related contingency period and the result would be dilutive under the treasury stock method. When we report a net loss for the period presented, the calculation of diluted net loss per share excludes our potential common stock, as the effect would be anti-dilutive. For the three months ended September 30, 2024, there were approximately 1,350,436 shares issuable upon the exercise of options, the vesting of time-based restricted stock and the contingent vesting of market-based restricted stock units that were excluded from the dilutive calculations, as they were anti-dilutive. For the three months ended September 30, 2023, there were approximately 1,439,944 issuable upon the exercise of options that were excluded from the dilutive calculations, as they were anti-dilutive. In addition, the Company had $72.0 million aggregate principal amount of the Notes outstanding on September 30, 2024, which, if converted, would result in the issuance of a maximum of 2,039,659 shares of common stock. These shares were excluded from the dilutive calculations, as their effect would have been anti-dilutive. A reconciliation of the number of common shares used in the calculation of basic and diluted net loss per share is presented below: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Numerator: Net loss $ (289) $ (8,756) $ (8,080) $ (58,165) Denominator: Weighted average shares - Basic 19,266,217 18,953,251 19,218,004 18,899,954 Weighted average shares - Diluted 19,266,217 18,953,251 19,218,004 18,899,954 Net loss per share - Basic $ (0.02) $ (0.46) $ (0.42) $ (3.08) Net loss per share - Diluted $ (0.02) $ (0.46) $ (0.42) $ (3.08)

Accrued Liabilities

Accrued Liabilities	9 Months Ended
	Sep. 30, 2024
Payables and Accruals [Abstract]
Accrued Liabilities	ACCRUED LIABILITIES Accrued liabilities consist of the following: As of September 30, 2024 As of December 31, 2023 Accrued compensation and benefits $ 14,494 $ 15,347 Accrued restructuring costs 865 1,609 Accrued warranties 2,351 2,831 Professional and legal fees 1,766 2,851 Accrued interest 763 1,712 Taxes other than income 2,803 3,313 Other accrued liabilities 2,166 2,267 Total accrued liabilities $ 25,208 $ 29,930 Activity related to accrued warranties was as follows: Nine Months Ended September 30, 2024 2023 Balance, beginning of period $ 2,831 $ 2,610 Provision for warranty expense 2,424 2,731 Fulfillment of warranty obligations (2,904) (2,623) Balance, end of period $ 2,351 $ 2,718

Fair Value Measurements and Inv

Fair Value Measurements and Investments	9 Months Ended
	Sep. 30, 2024
Fair Value Disclosures [Abstract]
Fair Value Measurements and Investments	FAIR VALUE MEASUREMENTS AND INVESTMENTS Fair Value Measurements The guidance on fair value measurements and disclosures defines fair value, establishes a framework for measuring fair value, and requires enhanced disclosures about assets and liabilities measured at fair value. Fair value is defined as the price at which an asset could be exchanged in a current transaction between knowledgeable, willing parties. A liability’s fair value is defined as the amount that would be paid to transfer the liability to a new obligor, not the amount that would be paid to settle the liability with the creditor. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are used to determine fair value. These models employ valuation techniques that involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments’ complexity. Assets and liabilities recorded at fair value on a recurring basis in our condensed consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels, defined by the guidance on fair value measurements, are directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities and are as follows: Level 1 - Valuation is based upon quoted market prices for identical instruments traded in active markets. Level 2 - Valuation is based on quoted market prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 - Valuation is generated from model-based techniques that use significant assumptions not observable in the market. Valuation techniques include use of discounted cash flow models and similar techniques. The fair values of our cash and cash equivalents, accounts receivable, and accounts payable, approximate their carrying amounts due to their short duration. Financial assets subject to the fair value disclosure requirements are included in the table below. All of our financial assets are classified as Level 1. At September 30, 2024 and December 31, 2023, the fair value of these investments approximated its carrying amount. As of September 30, 2024 Assets Level 1 Level 2 Level 3 Cash equivalents: U.S. Treasury securities $ 30,008 $ — $ — Total $ 30,008 $ — $ — As of December 31, 2023 Assets Level 1 Level 2 Level 3 Cash equivalents: U.S. Treasury securities $ 9,871 $ — $ — Short-term investments: U.S. Treasury securities 19,496 — — Total $ 29,367 $ — $ — The fair value of the Notes (as defined in Note 16 to the condensed consolidated financial statements) was approximately $66.6 million and $65.3 million as of September 30, 2024 and December 31, 2023, respectively. Fair value was determined based on the closing trading price of the Notes as of the last trading day of the quarter and was primarily affected by the trading price of the Company's common stock and market interest rates. The fair value of the Notes is considered a Level 2 measurement as they are not actively traded.

Restructuring

Restructuring	9 Months Ended
	Sep. 30, 2024
Restructuring and Related Activities [Abstract]
Restructuring	RESTRUCTURING On February 14, 2020, our Board of Directors approved a global restructuring plan (the “Restructuring Plan”) to improve operating performance and help ensure that we are appropriately structured and resourced to deliver sustainable value to our shareholders and customers. We believe we have successfully redefined our go-to-market strategy to place an increased focus on our customers and to help enable our sales employees, supported by our talented pool of field application engineers, to sell all product lines globally. In conjunction with the Restructuring Plan, on July 15, 2021, we entered into a manufacturing services agreement (the “Agreement”) with Sanmina Corporation (“Sanmina”), in connection with the Restructuring Plan. Under the Agreement, Sanmina provides manufacturing services for the Company’s measurement device products previously manufactured by the Company at the Company’s Lake Mary, Florida, Exton, Pennsylvania, Stuttgart, Germany and Portugal manufacturing sites. This phased transition to a Sanmina production facility was completed at the beginning of the third quarter of 2022 as part of our cost reduction initiative. As a result of an evaluation on the usage of our manufacturing spaces, we decided to abandon 17,000 square feet of unused space at our Exton, Pennsylvania facility in the third quarter of 2022. Since the approval of the Restructuring Plan, we paid $24.8 million, primarily consisting of severance and related benefits. All actions under this plan were completed as of March 31, 2023, and the remaining amounts payable of $0.5 million were rolled forward to the Integration Plan discussed below. On February 7, 2023, our Board of Directors approved an integration plan (the "Integration Plan") to streamline and simplify operations, particularly around our recent acquisitions and the resulting redundant operations and offerings. The Integration Plan was amended on May 3, 2023, and the Board approved increases to both the expected pre-tax charges and the annualized cost savings. Key activities under the Integration Plan include a decrease in headcount, consolidation of our cloud-based offerings from 3 platforms (2 acquired, 1 organic) into a single customer offering, and the optimization of our facility assets to align with current and expected future utilization. As of September 30, 2024, in relation with the Integration Plan, we have incurred total restructuring charges of $26.7 million, and have made cash payments of $10.1 million. In the third quarter of 2024, we did not incur any costs associated with the Integration and Restructuring plans. In the same period in 2023, we recognized $1.6 million in employee severance and other professional costs associated with the Integration and Restructuring plans, and paid $3.1 million primarily consisting of severance and related benefits. Activity related to the accrued restructuring charges for the Integration Plan and cash payments during the nine months ended September 30, 2024 and 2023 is as follows: Severance and other benefits Professional fees and other related charges Total Balance at December 31, 2023 $ 1,489 $ 120 $ 1,609 Additions charged to expense 325 291 616 Cash payments (1,360) — (1,360) Balance at September 30, 2024 $ 454 $ 411 $ 865 Severance and other benefits Professional fees and other related charges Total Balance at December 31, 2022 $ 318 $ 210 $ 528 Additions charged to expense 8,836 220 9,056 Cash payments (7,102) — (7,102) Balance at September 30, 2023 $ 2,052 $ 430 $ 2,482 Substantially all of our planned activities under the Restructuring Plan and the Integration Plan are complete.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES Purchase Commitments — We enter into purchase commitments for products and services in the ordinary course of business. These purchases generally cover production requirements for 60 to 120 days as well as materials necessary to service customer units through the product lifecycle and for warranty commitments. As of September 30, 2024, we had approximately $25.1 million in purchase commitments that are expected to be delivered within the next 12 months. The Company’s long-term purchase commitments were immaterial as a result of the ongoing transition towards direct sourcing with Sanmina. Legal Proceedings — We are involved in disputes, claims and other legal actions arising in the normal course of our business. Although it is not possible to predict the outcome of these matters, we believe that the results of these proceedings will not have a material adverse effect on our business, financial condition or results of operations. However, any litigation, regardless of its outcome, may be costly and may require significant time and attention of our management and technical personnel.

Leases

Leases	9 Months Ended
	Sep. 30, 2024
Leases [Abstract]
Leases	LEASES We have operating and finance leases for manufacturing facilities, corporate offices, research and development facilities, sales and training facilities, vehicles, and certain equipment under which we assume the role of lessee. We do not lease assets as a lessor. Our leases have remaining lease terms of less than one year to approximately eight years, some of which include options to extend the leases for up to fifteen years, and some of which include options to terminate the leases within three months. We do not participate in any material subleasing. We determine if an arrangement is a lease at inception. Operating leases are included in Operating lease right-of-use (“ROU”) asset, Lease liability, and Lease liability - less current portion in our condensed consolidated balance sheets. Finance leases are included in Property and equipment, net, Lease liability, and Lease liability - less current portion in our condensed consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized on the commencement date of the lease based on the present value of lease payments over the lease term. Variable lease payments that depend on an index or rate include the variable portion when calculating ROU assets and lease liabilities. Variable lease payments that do not depend on an index or rate are expensed as incurred. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available on the commencement date of the lease to determine the present value of lease payments. We use the implicit rate when readily determinable. The operating lease ROU assets also include any lease payments made and lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option at the time the lease is commenced. Lease expense for lease payments is recognized on a straight-line basis over the lease term. While we have lease agreements with lease and non-lease components, we account for the lease and non-lease components as a single lease component. The components of lease expense were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Operating lease cost $ 1,677 $ 1,598 $ 4,481 $ 5,169 Finance lease cost: Amortization of ROU assets 27 21 103 70 Interest on lease liabilities 2 3 8 12 Total finance lease cost $ 29 $ 24 $ 111 $ 82 We recognize lease payments made for short-term leases where terms are 12 months or less as the payments are incurred. Our short-term lease costs for each of the three and nine months ended September 30, 2024 and 2023 were less than $0.1 million. Supplemental balance sheet information related to leases was as follows: As of As of September 30, 2024 December 31, 2023 Operating leases: Operating lease right-of-use assets $ 17,208 $ 12,231 Current operating lease liabilities 4,645 5,434 Operating lease liabilities - less current portion 15,412 10,837 Total operating lease liabilities 20,057 16,271 Finance leases: Property and equipment, at cost 1,122 1,722 Accumulated amortization (1,046) (1,547) Property and equipment, net 76 175 Current finance lease liabilities 75 108 Finance lease liabilities - less current portion 112 112 Total finance lease liabilities $ 187 $ 220 Weighted Average Remaining Lease Term (in years): Operating leases 5.30 4.57 Finance leases 2.93 2.40 Weighted Average Discount Rate: Operating leases 5.68 % 5.71 % Finance leases 5.02 % 5.02 % Supplemental cash flow information related to leases was as follows: Nine Months Ended September 30, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5,420 $ 5,535 Operating cash flows from finance leases 8 12 Financing cash flows from finance leases 135 154 ROU assets obtained in exchange for lease obligations: Operating leases $ 7,742 $ 721 Maturities of lease liabilities are as follows: Year Ending December 31, Operating leases Finance leases 2024 (excluding the first 9 months) $ 1,474 $ 24 2025 5,445 78 2026 4,343 53 2027 3,420 27 2028 3,106 15 Thereafter 5,567 4 Total lease payments 23,355 201 Less imputed interest (3,298) (14) Total $ 20,057 $ 187
Leases	LEASES We have operating and finance leases for manufacturing facilities, corporate offices, research and development facilities, sales and training facilities, vehicles, and certain equipment under which we assume the role of lessee. We do not lease assets as a lessor. Our leases have remaining lease terms of less than one year to approximately eight years, some of which include options to extend the leases for up to fifteen years, and some of which include options to terminate the leases within three months. We do not participate in any material subleasing. We determine if an arrangement is a lease at inception. Operating leases are included in Operating lease right-of-use (“ROU”) asset, Lease liability, and Lease liability - less current portion in our condensed consolidated balance sheets. Finance leases are included in Property and equipment, net, Lease liability, and Lease liability - less current portion in our condensed consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized on the commencement date of the lease based on the present value of lease payments over the lease term. Variable lease payments that depend on an index or rate include the variable portion when calculating ROU assets and lease liabilities. Variable lease payments that do not depend on an index or rate are expensed as incurred. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available on the commencement date of the lease to determine the present value of lease payments. We use the implicit rate when readily determinable. The operating lease ROU assets also include any lease payments made and lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option at the time the lease is commenced. Lease expense for lease payments is recognized on a straight-line basis over the lease term. While we have lease agreements with lease and non-lease components, we account for the lease and non-lease components as a single lease component. The components of lease expense were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Operating lease cost $ 1,677 $ 1,598 $ 4,481 $ 5,169 Finance lease cost: Amortization of ROU assets 27 21 103 70 Interest on lease liabilities 2 3 8 12 Total finance lease cost $ 29 $ 24 $ 111 $ 82 We recognize lease payments made for short-term leases where terms are 12 months or less as the payments are incurred. Our short-term lease costs for each of the three and nine months ended September 30, 2024 and 2023 were less than $0.1 million. Supplemental balance sheet information related to leases was as follows: As of As of September 30, 2024 December 31, 2023 Operating leases: Operating lease right-of-use assets $ 17,208 $ 12,231 Current operating lease liabilities 4,645 5,434 Operating lease liabilities - less current portion 15,412 10,837 Total operating lease liabilities 20,057 16,271 Finance leases: Property and equipment, at cost 1,122 1,722 Accumulated amortization (1,046) (1,547) Property and equipment, net 76 175 Current finance lease liabilities 75 108 Finance lease liabilities - less current portion 112 112 Total finance lease liabilities $ 187 $ 220 Weighted Average Remaining Lease Term (in years): Operating leases 5.30 4.57 Finance leases 2.93 2.40 Weighted Average Discount Rate: Operating leases 5.68 % 5.71 % Finance leases 5.02 % 5.02 % Supplemental cash flow information related to leases was as follows: Nine Months Ended September 30, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5,420 $ 5,535 Operating cash flows from finance leases 8 12 Financing cash flows from finance leases 135 154 ROU assets obtained in exchange for lease obligations: Operating leases $ 7,742 $ 721 Maturities of lease liabilities are as follows: Year Ending December 31, Operating leases Finance leases 2024 (excluding the first 9 months) $ 1,474 $ 24 2025 5,445 78 2026 4,343 53 2027 3,420 27 2028 3,106 15 Thereafter 5,567 4 Total lease payments 23,355 201 Less imputed interest (3,298) (14) Total $ 20,057 $ 187

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES For the three months ended September 30, 2024, we recorded an income tax expense of $1.3 million compared with $1.5 million for the three months ended September 30, 2023. Our effective tax rate was 129.9% for the three months ended September 30, 2024, compared with 21.0% in the prior year period. The change in our income tax expense was primarily due to pre-tax income during the three months ended September 30, 2024 compared to a pre-tax loss during the three months ended September 30, 2023. Our United States and Singapore entities remain in a full valuation allowance, therefore, we are not able to recognize the tax benefits associated with pre-tax losses generated in those jurisdictions. Our quarterly estimate of our annual effective tax rate, and our quarterly provision for income tax (benefit) expense, are subject to significant variation due to numerous factors, including variability in accurately predicting our pre-tax and taxable income or loss and the mix of jurisdictions to which they relate, as well as the amount of pre-tax income or loss recognized during the quarter.

Debt

Debt	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
Debt	DEBT On January 24, 2023, the Company issued $75 million aggregate principal amount of 5.50% Convertible Senior Notes due 2028 (the “Notes”). The Notes are general senior unsecured obligations of the Company and will mature on February 1, 2028, unless earlier redeemed, repurchased or converted. The Notes bear interest from January 24, 2023, at a rate of 5.50% per annum payable semiannually in arrears on February 1 and August 1 of each year, beginning August 1, 2023. The annual effective interest rate of the Notes is 6.27% when including discounts and offering expenses incurred by the Company. The Notes will be convertible at the option of the holders of the Notes at any time prior to November 1, 2027 only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on March 31, 2023 (and only during such fiscal quarter), if the last reported sale price of the Company’s common stock, par value $0.001 per share (hereinafter referred to as “common stock”), for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on and including, the last trading day of the immediately preceding calendar quarter exceeds 130% of the conversion price on each applicable trading day; (2) during the five-business day period after any ten consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of the Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate for the Notes on each such trading day; (3) upon the occurrence of certain corporate events or distributions on the Company’s common stock; (4) if the Company calls such Notes for redemption; or (5) upon the occurrence of specified corporate events. On or after November 1, 2027, holders may convert all or any portion of their Notes at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date regardless of the foregoing conditions. Upon conversion, the Company will satisfy its conversion obligation by paying or delivering, as the case may be, cash, shares of common stock or a combination of cash and shares of common stock, at the Company’s election. The conversion rate for the Notes will initially be 23.6072 shares of the common stock per $1,000 principal amount of the Notes, which is equivalent to an initial conversion price of approximately $42.36 per share of the common stock. The initial conversion price of the Notes represents a premium of approximately 20% to the $35.30 per share last reported sale price of the common stock on January 19, 2023. The conversion rate is subject to adjustment under certain circumstances in accordance with the terms of the Indenture. During the three months ended September 30, 2024, the conditions allowing holders of the Notes to convert have not been met. The Notes are therefore not convertible as of September 30, 2024 and are classified in long term liabilities in the condensed consolidated balance sheet. The Company may not redeem the Notes prior to February 5, 2026. The Company may redeem for cash all or any portion of the Notes, at its option, on or after February 5, 2026 and on or before the 50th scheduled trading day immediately before the maturity date, if the last reported sale price of the common stock exceeds 130% of the conversion price on (i) each of at least 20 trading days (whether or not consecutive) during the 30 consecutive trading days ending on and including the last trading day immediately before the date on which the Company provides notice of redemption and (ii) the trading day immediately before the date the Company provides such notice. The redemption price will be equal to 100% of the principal amount of the Notes to be redeemed, plus any accrued and unpaid interest to, but excluding, the redemption date. No sinking fund is provided for the Notes, which means that the Company is not required to redeem or retire the Notes periodically. Upon the occurrence of a fundamental change (as defined in the indenture governing the Notes) prior to the maturity date, subject to certain conditions, holders of the Notes may require the Company to repurchase all or a portion of the Notes for cash at a repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date. The proceeds from the issuance of the Notes are presented under the long term liabilities of our condensed consolidated balance sheet. The net proceeds from the issuance of the Notes were approximately $72.3 million, after deducting underwriting discounts of $2.3 million and other offering expenses of $0.4 million. In June 2024, the Company entered into separate, privately negotiated transactions with certain holders of the Notes to repurchase $3.0 million aggregate principal amount of the Notes for an aggregated cash repurchase price of $2.7 million and a gain on debt extinguishment of $0.3 million, which was recorded in Other income (expense), net, on the condensed consolidated statements of operations. After the repurchase, $72.0 million aggregate principal amount of the Notes remained outstanding on September 30, 2024. The Company is in compliance with all covenants under the indenture governing the Notes as of September 30, 2024. The net carrying amount of the Notes was as follows: As of September 30, 2024 As of December 31, 2023 Principal $ 72,000 $ 75,000 Unamortized discount and issuance costs (1,904) (2,240) Net carrying amount $ 70,096 $ 72,760 The following table sets forth the interest expense recognized related to the Notes: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Contractual interest expense $ 1,112 $ 1,161 $ 3,420 $ 3,152 Amortization of discount and issuance costs 113 130 336 301 Total interest expense related to the Notes $ 1,225 $ 1,291 $ 3,756 $ 3,453

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2024
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS On November 1, 2024, our Board of Directors approved a restructuring plan (the “2024 Restructuring Plan”), which is intended to support its strategic plan in an effort to improve operating performance and streamline and simplify operations, particularly around our redundant operations and underperforming countries primarily driven by economic and demand challenges in the manufacturing and construction sectors. Key activities under the 2024 Restructuring Plan include a planned decrease in headcount, consolidation of our manufacturing operations from recent acquisitions to our global manufacturing partner, Sanmina Corporation, and the continued optimization of our facilities assets to align with current and expected future utilization. As a result, we expect to incur potentially $6 million to $9 million in pre-tax charges, primarily in the fourth quarter of 2024 and first quarter of 2025, comprised primarily of $5 million to $8 million of one-time severance and other employee-related termination benefits.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net loss	$ (289)	$ (524)	$ (7,267)	$ (8,756)	$ (28,245)	$ (21,164)	$ (8,080)	$ (58,165)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Principles of Consolidation (Po

Principles of Consolidation (Policies)	9 Months Ended
	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Consolidation	Our condensed consolidated financial statements include the accounts of FARO Technologies, Inc. and its subsidiaries, all of which are wholly-owned.
Foreign Currency Translation	All intercompany transactions and balances have been eliminated. The financial statements of our foreign subsidiaries are translated into U.S. dollars using exchange rates in effect at period-end for assets and liabilities and average exchange rates during each reporting period for results of operations. Adjustments resulting from financial statement translations are reflected as a separate component of accumulated other comprehensive loss. Foreign currency transaction gains and losses are included in net income (loss)
Basis of Presentation	The accompanying unaudited condensed consolidated financial statements and notes thereto have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These condensed consolidated financial statements include all normal recurring accruals and adjustments considered necessary by management for a fair presentation in conformity with U.S. GAAP.
Use of Estimates	Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates.
Recently Issued Accounting Pronouncements Not Yet Adopted	Recently Issued Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which requires disclosure of significant segment expenses and other segment items on an annual and interim basis under Accounting Standards Codification 280. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods beginning after December 15, 2024. Early adoption is permitted and the amendments in ASU 2023-07 should be applied on a retrospective basis to all periods presented. The Company is currently evaluating the impact of ASU 2023-07 on its disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"), which improves income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. ASU 2023-09 indicates that all entities will apply its guidance prospectively with an option for retroactive application to each period in the financial statements. The Company is currently evaluating the impact of ASU 2023-09 on its disclosures.
Inventories	Inventories are stated at the lower of cost or net realizable value using the first-in first-out (FIFO) method. We have three principal categories of inventory: 1) manufactured product to be sold; 2) sales demonstration inventory - completed product used to support our sales force for demonstrations and held for sale; and 3) service inventory - completed product and parts used to support our service department and held for sale. Shipping and handling costs are classified as a component of Cost of sales in our condensed consolidated statements of operations. Sales demonstration inventory is held by our sales representatives for up to three years, at which time it would be refurbished and transferred to finished goods as used equipment, stated at the lower of cost or net realizable value. We expect these refurbished units to remain in finished goods inventory and sold within 12 months at prices that produce reduced gross margins. Service inventory is used to provide a temporary replacement product to a customer covered by a premium warranty when the customer’s unit requires service or repair and as training equipment. Service inventory is available for sale; however, management does not expect service inventory to be sold within 12 months and, as such, classifies this inventory as a long-term asset. Service inventory that we utilize for training or repairs and which we deem as no longer available for sale is transferred to fixed assets at the lower of cost or net realizable value and depreciated over the remaining life, typically three years.

Basis of Presentation (Tables)

Basis of Presentation (Tables)	9 Months Ended
	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Share-Based Payment Arrangement, Expensed and Capitalized, Amount	Stock-based compensation expense is allocated to the applicable departmental cost in our condensed consolidated financial statements. The following table summarizes total stock-based compensation expense for each of the line items on our condensed consolidated statements of operations: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Cost of sales Product $ 298 $ 229 $ 872 $ 833 Service 83 51 213 139 Total cost of sales 381 280 1,085 972 Operating expenses Selling, general and administrative 1,858 3,588 5,996 9,710 Research and development 529 (176) 1,390 1,594 Total operating expenses 2,387 3,412 7,386 11,304 Total stock-based compensation $ 2,768 $ 3,692 $ 8,471 $ 12,276

Revenues (Tables)

Revenues (Tables)	9 Months Ended
	Sep. 30, 2024
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Revenue	The following tables present our revenues by sales type as presented in our condensed consolidated statements of operations disaggregated by the timing of transfer of goods or services: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Product sales Product transferred to customers at a point in time $ 55,039 $ 60,882 $ 167,732 $ 183,511 Product transferred to customers over time 6,422 6,029 18,577 16,243 Total product sales $ 61,461 $ 66,911 $ 186,309 $ 199,754 Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Service sales Service transferred to customers at a point in time $ 10,093 $ 8,875 $ 29,873 $ 26,343 Service transferred to customers over time 11,009 11,027 32,710 33,894 Total service sales $ 21,102 $ 19,902 $ 62,583 $ 60,237 The following table presents our revenues disaggregated by geography, based on the billing addresses of our customers: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Total sales to external customers Americas (1) $ 40,353 $ 41,033 $ 117,748 $ 124,734 EMEA (1) 25,461 25,621 75,496 74,641 APAC (1) 16,749 20,159 55,648 60,616 $ 82,563 $ 86,813 $ 248,892 $ 259,991 (1) Regions represent North America and South America (the “Americas”); Europe, the Middle East, and Africa (“EMEA”); and Asia-Pacific (“APAC”).

Accounts Receivable (Tables)

Accounts Receivable (Tables)	9 Months Ended
	Sep. 30, 2024
Receivables [Abstract]
Schedule of Accounts Receivable	Accounts receivable consist of the following: As of September 30, 2024 As of December 31, 2023 Accounts receivable $ 87,182 $ 95,195 Allowance for credit losses (3,974) (3,167) Total $ 83,208 $ 92,028
Schedule of Financing Receivable, Allowance for Credit Loss	Activity related to the allowance for credit losses was as follows: Nine Months Ended September 30, 2024 2023 Beginning balance of the allowance for credit losses $ 3,167 $ 2,285 Current period provision for expected credit losses, net of recoveries 966 834 Charge-offs of amounts previously expensed (159) (81) Ending balance of the allowance for credit losses $ 3,974 $ 3,038

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2024
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventories consist of the following: As of September 30, 2024 As of December 31, 2023 Raw materials $ 18,720 $ 18,460 Finished goods 20,335 16,069 Inventories, net 39,055 34,529 Service and sales demonstration inventory, net $ 21,436 $ 23,147

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	Intangible assets consist of the following: As of September 30, 2024 Carrying Value Accumulated Net Intangible Amortizable intangible assets: Product technology $ 24,373 $ 17,933 $ 6,440 Patents and trademarks 17,630 10,296 7,334 Customer relationships 25,944 8,539 17,405 Other 27,919 12,773 15,146 Total $ 95,866 $ 49,541 $ 46,325 As of December 31, 2023 Carrying Value Accumulated Net Intangible Amortizable intangible assets: Product technology $ 24,127 $ 15,742 $ 8,385 Patents and trademarks 19,687 11,509 8,178 Customer relationships 25,164 7,279 17,885 Other 22,062 8,619 13,443 Total $ 91,040 $ 43,149 $ 47,891
Schedule of Estimated Amortization Expense	The estimated amortization expense for each of the years 2024 through 2028 and thereafter is as follows: Years ending December 31, Amount 2024 (excluding the first 9 months) $ 2,256 2025 8,649 2026 7,303 2027 4,608 2028 2,136 Thereafter 21,373 Total $ 46,325

Loss Per Share (Tables)

Loss Per Share (Tables)	9 Months Ended
	Sep. 30, 2024
Earnings Per Share [Abstract]
Schedule of Reconciliation of Number of Common Shares Used in Calculation of Basic and Diluted Earnings Per Share (EPS)	A reconciliation of the number of common shares used in the calculation of basic and diluted net loss per share is presented below: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Numerator: Net loss $ (289) $ (8,756) $ (8,080) $ (58,165) Denominator: Weighted average shares - Basic 19,266,217 18,953,251 19,218,004 18,899,954 Weighted average shares - Diluted 19,266,217 18,953,251 19,218,004 18,899,954 Net loss per share - Basic $ (0.02) $ (0.46) $ (0.42) $ (3.08) Net loss per share - Diluted $ (0.02) $ (0.46) $ (0.42) $ (3.08)

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	9 Months Ended
	Sep. 30, 2024
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities	Accrued liabilities consist of the following: As of September 30, 2024 As of December 31, 2023 Accrued compensation and benefits $ 14,494 $ 15,347 Accrued restructuring costs 865 1,609 Accrued warranties 2,351 2,831 Professional and legal fees 1,766 2,851 Accrued interest 763 1,712 Taxes other than income 2,803 3,313 Other accrued liabilities 2,166 2,267 Total accrued liabilities $ 25,208 $ 29,930
Schedule of Activity Related to Accrued Warranties	Activity related to accrued warranties was as follows: Nine Months Ended September 30, 2024 2023 Balance, beginning of period $ 2,831 $ 2,610 Provision for warranty expense 2,424 2,731 Fulfillment of warranty obligations (2,904) (2,623) Balance, end of period $ 2,351 $ 2,718

Fair Value Measurements and I_2

Fair Value Measurements and Investments (Tables)	9 Months Ended
	Sep. 30, 2024
Fair Value Disclosures [Abstract]
Schedule of Assets Measured at Fair Value on a Recurring Basis	Financial assets subject to the fair value disclosure requirements are included in the table below. All of our financial assets are classified as Level 1. At September 30, 2024 and December 31, 2023, the fair value of these investments approximated its carrying amount. As of September 30, 2024 Assets Level 1 Level 2 Level 3 Cash equivalents: U.S. Treasury securities $ 30,008 $ — $ — Total $ 30,008 $ — $ — As of December 31, 2023 Assets Level 1 Level 2 Level 3 Cash equivalents: U.S. Treasury securities $ 9,871 $ — $ — Short-term investments: U.S. Treasury securities 19,496 — — Total $ 29,367 $ — $ —

Restructuring (Tables)

Restructuring (Tables)	9 Months Ended
	Sep. 30, 2024
Restructuring and Related Activities [Abstract]
Schedule of Restructuring and Related Costs	Activity related to the accrued restructuring charges for the Integration Plan and cash payments during the nine months ended September 30, 2024 and 2023 is as follows: Severance and other benefits Professional fees and other related charges Total Balance at December 31, 2023 $ 1,489 $ 120 $ 1,609 Additions charged to expense 325 291 616 Cash payments (1,360) — (1,360) Balance at September 30, 2024 $ 454 $ 411 $ 865 Severance and other benefits Professional fees and other related charges Total Balance at December 31, 2022 $ 318 $ 210 $ 528 Additions charged to expense 8,836 220 9,056 Cash payments (7,102) — (7,102) Balance at September 30, 2023 $ 2,052 $ 430 $ 2,482

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2024
Leases [Abstract]
Schedule of Lease Cost and Supplemental Cash Flow Information Related to Leases	The components of lease expense were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Operating lease cost $ 1,677 $ 1,598 $ 4,481 $ 5,169 Finance lease cost: Amortization of ROU assets 27 21 103 70 Interest on lease liabilities 2 3 8 12 Total finance lease cost $ 29 $ 24 $ 111 $ 82 Supplemental cash flow information related to leases was as follows: Nine Months Ended September 30, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5,420 $ 5,535 Operating cash flows from finance leases 8 12 Financing cash flows from finance leases 135 154 ROU assets obtained in exchange for lease obligations: Operating leases $ 7,742 $ 721
Schedule of Supplemental Balance Sheet Information Related to Leases	Supplemental balance sheet information related to leases was as follows: As of As of September 30, 2024 December 31, 2023 Operating leases: Operating lease right-of-use assets $ 17,208 $ 12,231 Current operating lease liabilities 4,645 5,434 Operating lease liabilities - less current portion 15,412 10,837 Total operating lease liabilities 20,057 16,271 Finance leases: Property and equipment, at cost 1,122 1,722 Accumulated amortization (1,046) (1,547) Property and equipment, net 76 175 Current finance lease liabilities 75 108 Finance lease liabilities - less current portion 112 112 Total finance lease liabilities $ 187 $ 220 Weighted Average Remaining Lease Term (in years): Operating leases 5.30 4.57 Finance leases 2.93 2.40 Weighted Average Discount Rate: Operating leases 5.68 % 5.71 % Finance leases 5.02 % 5.02 %
Schedule of Operating Lease, Liability, Maturity	Maturities of lease liabilities are as follows: Year Ending December 31, Operating leases Finance leases 2024 (excluding the first 9 months) $ 1,474 $ 24 2025 5,445 78 2026 4,343 53 2027 3,420 27 2028 3,106 15 Thereafter 5,567 4 Total lease payments 23,355 201 Less imputed interest (3,298) (14) Total $ 20,057 $ 187
Schedule of Finance Lease, Liability, Maturity	Maturities of lease liabilities are as follows: Year Ending December 31, Operating leases Finance leases 2024 (excluding the first 9 months) $ 1,474 $ 24 2025 5,445 78 2026 4,343 53 2027 3,420 27 2028 3,106 15 Thereafter 5,567 4 Total lease payments 23,355 201 Less imputed interest (3,298) (14) Total $ 20,057 $ 187

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
Schedule of Net Carrying Amount	The net carrying amount of the Notes was as follows: As of September 30, 2024 As of December 31, 2023 Principal $ 72,000 $ 75,000 Unamortized discount and issuance costs (1,904) (2,240) Net carrying amount $ 70,096 $ 72,760
Schedule of Interest Expense	The following table sets forth the interest expense recognized related to the Notes: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Contractual interest expense $ 1,112 $ 1,161 $ 3,420 $ 3,152 Amortization of discount and issuance costs 113 130 336 301 Total interest expense related to the Notes $ 1,225 $ 1,291 $ 3,756 $ 3,453

Basis of Presentation (Details)

Basis of Presentation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 2,768	$ 3,692	$ 8,471	$ 12,276
Total cost of sales
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	381	280	1,085	972
Total operating expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	2,387	3,412	7,386	11,304
Selling, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	1,858	3,588	5,996	9,710
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	529	(176)	1,390	1,594
Product
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	298	229	872	833
Service
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 83	$ 51	$ 213	$ 139

Revenues - Disaggregation of Re

Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Sales	$ 82,563	$ 86,813	$ 248,892	$ 259,991
Americas
Disaggregation of Revenue [Line Items]
Sales	40,353	41,033	117,748	124,734
EMEA
Disaggregation of Revenue [Line Items]
Sales	25,461	25,621	75,496	74,641
APAC
Disaggregation of Revenue [Line Items]
Sales	16,749	20,159	55,648	60,616
Product sales
Disaggregation of Revenue [Line Items]
Sales	61,461	66,911	186,309	199,754
Product sales | Product transferred to customers at a point in time
Disaggregation of Revenue [Line Items]
Sales	55,039	60,882	167,732	183,511
Product sales | Product transferred to customers over time
Disaggregation of Revenue [Line Items]
Sales	6,422	6,029	18,577	16,243
Service sales
Disaggregation of Revenue [Line Items]
Sales	21,102	19,902	62,583	60,237
Service sales | Product transferred to customers at a point in time
Disaggregation of Revenue [Line Items]
Sales	10,093	8,875	29,873	26,343
Service sales | Product transferred to customers over time
Disaggregation of Revenue [Line Items]
Sales	$ 11,009	$ 11,027	$ 32,710	$ 33,894

Revenues - Additional Informati

Revenues - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Disaggregation of Revenue [Line Items]
Capitalized contract cost, net	$ 4		$ 4		$ 4.6
Recognized service revenue	16.2	$ 13.8	34.7	$ 30.8
Refund liability	0.1		0.1		0.1
Prepaid Expenses and Other Current Assets
Disaggregation of Revenue [Line Items]
Capitalized contract cost, net	3.1		3.1		3.5
Other Long-term Assets
Disaggregation of Revenue [Line Items]
Capitalized contract cost, net	$ 0.9		$ 0.9		$ 1.1
Minimum
Disaggregation of Revenue [Line Items]
Extended product warranty term (in years)			1 month
Maximum
Disaggregation of Revenue [Line Items]
Extended product warranty term (in years)			3 years

Accounts Receivable - Schedule

Accounts Receivable - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2022
Receivables [Abstract]
Accounts receivable	$ 87,182	$ 95,195
Allowance for credit losses	(3,974)	(3,167)	$ (3,038)	$ (2,285)
Total	$ 83,208	$ 92,028

Accounts Receivable - Allowance

Accounts Receivable - Allowance For Credit Loss (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance of the allowance for credit losses	$ 3,167	$ 2,285
Current period provision for expected credit losses, net of recoveries	966	834
Charge-offs of amounts previously expensed	(159)	(81)
Ending balance of the allowance for credit losses	$ 3,974	$ 3,038

Inventories - Additional Inform

Inventories - Additional Information (Details)	9 Months Ended
	Sep. 30, 2024 category
Property, Plant and Equipment [Line Items]
Inventory categories	3
Refurbished demonstration inventory selling period (in months)	12 months
Sales Inventory
Property, Plant and Equipment [Line Items]
Demonstration inventory shelf life (in years)	3 years
Service Inventory
Property, Plant and Equipment [Line Items]
Service inventory selling period (in months)	12 months
Inventory, remaining useful life (in years)	3 years

Inventories - Schedule of Inven

Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Raw materials	$ 18,720	$ 18,460
Finished goods	20,335	16,069
Inventories, net	39,055	34,529
Service and sales demonstration inventory, net	$ 21,436	$ 23,147

Intangible Assets - Schedule (D

Intangible Assets - Schedule (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Carrying Value	$ 95,866	$ 91,040
Accumulated  Amortization	49,541	43,149
Net Intangible	46,325	47,891
Product technology
Finite-Lived Intangible Assets [Line Items]
Carrying Value	24,373	24,127
Accumulated  Amortization	17,933	15,742
Net Intangible	6,440	8,385
Patents and trademarks
Finite-Lived Intangible Assets [Line Items]
Carrying Value	17,630	19,687
Accumulated  Amortization	10,296	11,509
Net Intangible	7,334	8,178
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Carrying Value	25,944	25,164
Accumulated  Amortization	8,539	7,279
Net Intangible	17,405	17,885
Other
Finite-Lived Intangible Assets [Line Items]
Carrying Value	27,919	22,062
Accumulated  Amortization	12,773	8,619
Net Intangible	$ 15,146	$ 13,443

Intangible Assets - Additional

Intangible Assets - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense of intangible assets	$ 2.2	$ 1.9	$ 6.4	$ 5.8

Intangible Assets - Estimated A

Intangible Assets - Estimated Amortization Expense Schedule (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
2024 (excluding the first 9 months)	$ 2,256
2025	8,649
2026	7,303
2027	4,608
2028	2,136
Thereafter	21,373
Net Intangible	$ 46,325	$ 47,891

Loss Per Share - Additional Inf

Loss Per Share - Additional Information (Details) - USD ($) $ in Thousands		3 Months Ended
	Sep. 30, 2024	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023	Jan. 24, 2023
Debt Instrument [Line Items]
Antidilutive securities (in shares)		1,350,436	1,439,944
Aggregate principal amount	$ 72,000	$ 72,000		$ 75,000
5.50% Convertible Senior Notes Due 2028 | Convertible Debt
Debt Instrument [Line Items]
Aggregate principal amount	$ 72,000	$ 72,000			$ 75,000
Incremental common shares (in shares)	2,039,659

Loss Per Share - Reconciliation

Loss Per Share - Reconciliation of Number of Common Shares Used in Calculation of Basic and Diluted Earnings Per Share (EPS) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Earnings Per Share [Abstract]
Net loss	$ (289)	$ (524)	$ (7,267)	$ (8,756)	$ (28,245)	$ (21,164)	$ (8,080)	$ (58,165)
Weighted average shares - Basic (in shares)	19,266,217			18,953,251			19,218,004	18,899,954
Weighted average shares - Diluted (in shares)	19,266,217			18,953,251			19,218,004	18,899,954
Net loss per share - Basic (in dollars per share)	$ (0.02)			$ (0.46)			$ (0.42)	$ (3.08)
Net loss per share - Diluted (in dollars per share)	$ (0.02)			$ (0.46)			$ (0.42)	$ (3.08)

Accrued Liabilities - Schedule

Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Accrued compensation and benefits	$ 14,494	$ 15,347
Accrued restructuring costs	865	1,609
Accrued warranties	2,351	2,831	$ 2,718	$ 2,610
Professional and legal fees	1,766	2,851
Accrued interest	763	1,712
Taxes other than income	2,803	3,313
Other accrued liabilities	2,166	2,267
Total accrued liabilities	$ 25,208	$ 29,930

Accrued Liabilities - Activity

Accrued Liabilities - Activity Related to Accrued Warranties (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]
Balance, beginning of period	$ 2,831	$ 2,610
Provision for warranty expense	2,424	2,731
Fulfillment of warranty obligations	(2,904)	(2,623)
Balance, end of period	$ 2,351	$ 2,718

Fair Value Measurements and I_3

Fair Value Measurements and Investments - Schedule of Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Assets
Short-term investments	$ 0	$ 19,496
Fair Value, Measurements, Recurring | Level 1
Assets
Total	30,008	29,367
Fair Value, Measurements, Recurring | Level 1 | US Treasury Securities
Assets
Cash equivalents	30,008	9,871
Short-term investments		19,496
Fair Value, Measurements, Recurring | Level 2
Assets
Total	0	0
Fair Value, Measurements, Recurring | Level 2 | US Treasury Securities
Assets
Cash equivalents	0	0
Short-term investments		0
Fair Value, Measurements, Recurring | Level 3
Assets
Total	0	0
Fair Value, Measurements, Recurring | Level 3 | US Treasury Securities
Assets
Cash equivalents	$ 0	0
Short-term investments		$ 0

Fair Value Measurements and I_4

Fair Value Measurements and Investments - Additional Information (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of the notes	$ 66.6	$ 65.3

Restructuring - Additional Info

Restructuring - Additional Information (Details) ft² in Thousands, $ in Thousands	3 Months Ended		9 Months Ended		55 Months Ended
	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Jul. 15, 2021 ft²
Restructuring Cost and Reserve [Line Items]
Restructuring costs	$ 0	$ 2,442	$ 616	$ 15,130
Accrued restructuring costs	865		865		$ 865	$ 1,609
Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Cash payments			10,100
Restructuring Plan | Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring costs					24,800
Restructuring reserve	26,700		26,700		26,700
Restructuring Plan | Exton, Pennsylvania Manufacturing Site
Restructuring Cost and Reserve [Line Items]
Area of land (in sq ft) | ft²								17
Integration Plan
Restructuring Cost and Reserve [Line Items]
Restructuring costs	0	1,600	616	9,056
Accrued restructuring costs	500		500		500
Restructuring reserve	865	2,482	865	2,482	865	1,609	$ 528
Cash payments			1,360	7,102
Integration Plan | Severance and other benefits
Restructuring Cost and Reserve [Line Items]
Restructuring costs			325	8,836
Restructuring reserve	$ 454	2,052	454	2,052	$ 454	$ 1,489	$ 318
Cash payments		$ 3,100	$ 1,360	$ 7,102

Restructuring - Activity Relate

Restructuring - Activity Related to Restructuring and Related Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Restructuring Reserve [Roll Forward]
Additions charged to expense	$ 0	$ 2,442	$ 616	$ 15,130
Integration Plan
Restructuring Reserve [Roll Forward]
Beginning balance			1,609	528
Additions charged to expense	0	1,600	616	9,056
Cash payments			(1,360)	(7,102)
Ending balance	865	2,482	865	2,482
Severance and other benefits | Integration Plan
Restructuring Reserve [Roll Forward]
Beginning balance			1,489	318
Additions charged to expense			325	8,836
Cash payments		(3,100)	(1,360)	(7,102)
Ending balance	454	2,052	454	2,052
Professional fees and other related charges | Integration Plan
Restructuring Reserve [Roll Forward]
Beginning balance			120	210
Additions charged to expense			291	220
Cash payments			0	0
Ending balance	$ 411	$ 430	$ 411	$ 430

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	9 Months Ended
	Sep. 30, 2024 USD ($)
Commitments and Contingencies [Line Items]
Purchase commitment, due in next twelve months	$ 25.1
Minimum
Commitments and Contingencies [Line Items]
Length of purchase commitments (in days)	60 days
Maximum
Commitments and Contingencies [Line Items]
Length of purchase commitments (in days)	120 days

Leases - Additional Information

Leases - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Lessee, Lease, Description [Line Items]
Renewal term (in years)			15 years
Termination window (in months)			3 months
Short term lease cost (less than)	$ 0.1	$ 0.1	$ 0.1	$ 0.1
Minimum
Lessee, Lease, Description [Line Items]
Term of contract (in years)			1 year
Maximum
Lessee, Lease, Description [Line Items]
Term of contract (in years)			8 years

Leases - Lease Cost (Details)

Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Leases [Abstract]
Operating lease cost	$ 1,677	$ 1,598	$ 4,481	$ 5,169
Finance lease cost:
Amortization of ROU assets	27	21	103	70
Interest on lease liabilities	2	3	8	12
Total finance lease cost	$ 29	$ 24	$ 111	$ 82

Leases - Supplemental Balance S

Leases - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Operating leases:
Operating lease right-of-use assets	$ 17,208	$ 12,231
Current operating lease liabilities	4,645	5,434
Operating lease liabilities - less current portion	15,412	10,837
Total operating lease liabilities	20,057	16,271
Finance leases:
Property and equipment, at cost	1,122	1,722
Accumulated amortization	(1,046)	(1,547)
Property and equipment, net	76	175
Current finance lease liabilities	75	108
Finance lease liabilities - less current portion	112	112
Total finance lease liabilities	$ 187	$ 220
Weighted Average Remaining Lease Term (in years):
Operating leases	5 years 3 months 18 days	4 years 6 months 25 days
Finance leases	2 years 11 months 4 days	2 years 4 months 24 days
Weighted Average Discount Rate:
Operating leases	5.68%	5.71%
Finance leases	5.02%	5.02%
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Lease liabilities	Lease liabilities
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Lease liabilities - less current portion	Lease liabilities - less current portion
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Liabilities	Liabilities
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Property, plant and equipment, net	Property, plant and equipment, net
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Lease liabilities	Lease liabilities
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Lease liabilities - less current portion	Lease liabilities - less current portion
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Liabilities	Liabilities

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flows (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 5,420	$ 5,535
Operating cash flows from finance leases	8	12
Financing cash flows from finance leases	135	154
ROU assets obtained in exchange for lease obligations:
Operating leases	$ 7,742	$ 721

Leases - Maturities of lease li

Leases - Maturities of lease liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Operating leases
2024 (excluding the first 9 months)	$ 1,474
2025	5,445
2026	4,343
2027	3,420
2028	3,106
Thereafter	5,567
Total lease payments	23,355
Less imputed interest	(3,298)
Total	20,057	$ 16,271
Finance leases
2024 (excluding the first 9 months)	24
2025	78
2026	53
2027	27
2028	15
Thereafter	4
Total lease payments	201
Less imputed interest	(14)
Total	$ 187	$ 220

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Income tax expense	$ 1,255	$ 1,520	$ 3,912	$ 4,869
Effective tax rate expense (benefit) (as a percent)	129.90%	(21.00%)

Debt - Additional Information (

Debt - Additional Information (Details) $ / shares in Units, $ in Thousands		1 Months Ended
	Jan. 24, 2023 USD ($) day $ / shares	Jun. 30, 2024 USD ($)	Sep. 30, 2024 USD ($) $ / shares	Dec. 31, 2023 USD ($) $ / shares
Debt Instrument [Line Items]
Aggregate principal amount			$ 72,000	$ 75,000
Common stock, par value (in dollars per share) | $ / shares			$ 0.001	$ 0.001
5.50% Convertible Senior Notes Due 2028 | Convertible Debt
Debt Instrument [Line Items]
Aggregate principal amount	$ 75,000		$ 72,000
Stated interest rate (as a percent)	5.50%		5.50%
Effective interest rate (as a percent)	6.27%
Debt instrument, convertible, threshold trading days (in days) | day	20
Debt instrument, convertible, threshold consecutive trading days (in days) | day	30
Debt instrument, convertible, threshold percentage of stock price trigger (as a percent)	130%
Convertible conversion ratio	0.0236072
Initial conversion price premium (as a percent)	20%
Debt instrument redemption price (as a percent)	100%
Net proceeds from issuance of notes	$ 72,300
Underwriting discount	2,300
Other offering expenses	$ 400
Aggregate principal amount repurchased		$ 3,000
Aggregate repurchase price paid in cash		2,700
Gain on debt extinguishment		$ 300
5.50% Convertible Senior Notes Due 2028 | Convertible Debt | Maximum
Debt Instrument [Line Items]
Initial conversion price (in dollars per share) | $ / shares	$ 42.36
5.50% Convertible Senior Notes Due 2028 | Convertible Debt | Minimum
Debt Instrument [Line Items]
Share price (in dollars per share) | $ / shares	35.30
5.50% Convertible Senior Notes Due 2028 | Convertible Debt | Debt Conversion Terms One
Debt Instrument [Line Items]
Common stock, par value (in dollars per share) | $ / shares	$ 0.001
Debt instrument, convertible, threshold trading days (in days) | day	20
Debt instrument, convertible, threshold consecutive trading days (in days) | day	30
Debt instrument, convertible, threshold percentage of stock price trigger (as a percent)	130%
5.50% Convertible Senior Notes Due 2028 | Convertible Debt | Debt Conversion Terms Two
Debt Instrument [Line Items]
Debt instrument, convertible, threshold trading days (in days) | day	5
Debt instrument, convertible, threshold consecutive trading days (in days) | day	10
Debt instrument, convertible, threshold percentage of stock price trigger (as a percent)	98%

Debt - Schedule of Net Carrying

Debt - Schedule of Net Carrying Amount (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Debt Disclosure [Abstract]
Principal	$ 72,000	$ 75,000
Unamortized discount and issuance costs	(1,904)	(2,240)
Net carrying amount	$ 70,096	$ 72,760

Debt - Schedule of Interest Exp

Debt - Schedule of Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Debt Disclosure [Abstract]
Contractual interest expense	$ 1,112	$ 1,161	$ 3,420	$ 3,152
Amortization of discount and issuance costs	113	130	336	301
Total interest expense related to the Notes	$ 1,225	$ 1,291	$ 3,756	$ 3,453

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event $ in Millions	Nov. 01, 2024 USD ($)
Minimum | Restructuring Plan
Subsequent Event [Line Items]
Expected cost	$ 6
Minimum | One-Time Severance and Other Employee-Related Termination Benefits
Subsequent Event [Line Items]
Expected cost	5
Maximum | Restructuring Plan
Subsequent Event [Line Items]
Expected cost	9
Maximum | One-Time Severance and Other Employee-Related Termination Benefits
Subsequent Event [Line Items]
Expected cost	$ 8