FARO - Earnings call transcript Q1 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, everyone, and welcome to the FARO Technologies' conference call in conjunction with its Quarter One 2018 Earnings Release.

For opening remarks and introductions, I will now turn the call over to Chief Financial Officer, Bob Seidel. Please go ahead.

Bob Seidel

Thank you and good morning, everyone. Yesterday after the market closed, we released our financial results for the first quarter of 2018. and available for www.faro.com. on release of first press is XXXX FARO's related Form the XX-Q quarter The website at would and you you remind during the make like order this statements I help call. of to some that forward-looking understand results, its in company course management may the to identified such continue, can as intent, objective, These goal, believe, and will, be may statements words. expect, by words, similar potential, anticipate, plan, forward-looking the that those company's actual differ may from these possible results projected materially in is statements. It that press the factors year in XX-K differ March and actual materially are to XXXX. ended Important quarter XXXX the XX, may results release Form cause set for the XX-Q ended XX, forth company's yesterday's December in for and Form Simon I financial and to provide I now will his will of our with to afterwards, a results. discussion turn the over return remarks call the After for at a.m. our call of your questions will remarks, trading we the start X:XX prepared open through Eastern. US

Simon Raab

and good morning, Thanks, Bob, everyone.

financial continues second first Our from driving last objectives. year the of half performance our financial of quarter towards long-term our trend

increased $X.X verticals and for increase in our quarter with emerging to XX.X% expand year-over-year our in release, year the operating points; quarterly are growth points up increased delivered sales we force year. additional up grow some quarter compared highlights continued margin to X.X the the We $XX.X in of last versus G&A million, sales decreased margin with for income XX.X% to X.X quarterly in activities, growth, percentage year-over-year; expenses year-over-year. sales press increase R&D indicated $XX.X operating consecutive up of increased sales, margin gross expense of double-digit an Construction gross sales. prior down BIM XX.X% also our sales investment million to of segment of XX.X% the As our percentage year-over-year; a quarter, third million, in XX.X% Even and delivered our and

starting that accurately and Metrology directly the customized rationale the with base the our information building and the in first of the verticals customer synergy earnings for renamed BIM/CIM to management and two reporting. Factory XD our XD natural our for verticals under a hardware the call, fourth on the Machine groups construction Factory the As to provides is we we we one quarter Vision group mentioned financial Also name operating reflects solutions vertical XD based shared to focus bring Machine sales with quarter during Factory combined team of move of in solutions as Vision be these our this two new it Construction working more Metrology applications. innovator innovative believe BIM marketplace. to software construction The

Verticals also included of entire execute Vision product develop forensics pivot to the technology Emerging and that to leading In renamed growth verticals measurement Machine XXXX, the our reflect XXXX company public the and better world segment. enterprise. into We design to to strategic worked high the company around XD XD a and diligently initiatives and other safety first of the half nature the segment in

initiatives in new three drumbeat. our positive a product provides focus performance strategic last the market shift for a financial drive our Our vertical quarters and to to support organization

lean process operating an FARO began in to FARO our efficiency we demos the ingredient with key growth, and first how were drive of double-digit operating margin drive an the evaluate quarter, out long-term process, of the start in sales unproductive the to We propel activities its the our business drive our consistent be quarters. increased the product value improve the margin. out and bottlenecks team feet to to a expansion translated between coming towards because process owners to improvement continuous for plus improve partnered culture In Best. mid-teen measurement XD aggressive sales XX% be our business of horizontal us different the shareholder for every These out XXXX. across of XXXX, financial driving of our Best an instill No the workflows, direct manufacturing products force to business investors. At entrepreneurial than our waste margin named to actions and off critical have vertical, street, kicked end enhancing sales Our initiative region, and of correlation the identify execute objectives of industrial and business. to lean waste The we our growth. pushing gross FARO and processes on include changes to keep efficiencies company will

We demo sales efficiencies. in capabilities pre-investment This first selling improve order half also XXXX. our to expense involved continued initiative in to expand of growth the our in web

sales productive or headcount XX of team New generally mature with was XXXX. XXX the increase of period a fully an members. of at team of the sales ending the period first XXX, XX% before our the members quarter over At a quarter year of XXXX, of end compared becoming first end

increased is reporting analysts the or start FTE The XX-month for headcount or investors per represents XXX the trailing earnings our start XXXX verticals trailing by million corporate headcount on ourselves quarterly end leaders the our XXXX. The share difference sales our and of expense period FTE all headcount force of end calls. $X sales global XX-month effectiveness of approximately at in to the selling sales the up hold XXXX, sales metric, sales first at to metric. experienced FTE first XX to by ending orders this our with compared first the an of full-time XX%. of closely and of our between tracked We $X.XX XXX of of accountable of up increase quarter and Our quarter quarter

of the FTE XXX XXX XXX first of an of was quarter with Our headcount trailing XXXX. of the at sales XXXX, the XX% increase XX-month end compared or in first quarter

decrease total The ratio XX-month XXX,XXX, quarter for headcount was trailing of to trailing our first the prior a bookings of order XX-month contributing million. of XX,XXX million new difficulty] order $XX.X new from FTE sales the $XXX.X XXXX was quarter. of bookings [technical Our order approximately a

bookings Our the double-digit our three of of sales success a and initiative. new provide quarters strategic trailing growth sales the over force positive orders indication

As will XXXX. XX-month metric orders emerging will first our with investment expense significantly higher communicated in particularly sales period hiring line intend to through sales end increase the because headcount our by quarter per quarter we XX% projection rate This call, with we the fourth XX% by compared accompanied XX fourth headcount earnings by and our our on decrease were in by the to by we ending increments equal XXXX XXXX, XXXX, quarter. increasing trailing during ending In XX% in and FTE new quarter this be geographies. of a up force selling and hiring of sales verticals to are start XX%

and building pillars sales investing growth sales our now expanding on the focused long-term capabilities. by for are We future

$X.X Dynamic cultural the our with activities In small quarter, to and innovative maintain go to analyst light complementary two above United by in willing first We Control share acquiring We platforms. acquisitions products by our We steering. spending galvanometer the clear space technology in DMVS, provides accelerating and our be new increasing Vision discipline million. R&D year-over-year made in totaling we reinvestment technology R&D the spend priority Laser continued our Systems generation leader companies. a R&D offerings to Kingdom, Motion top purchased moving our of based the strengthen market. invest continued to as fast technology We our of expectations Vector $X.XX Sensor, every account, development $X to increased next development of in the make dollar quarterly per million but to in we which in accelerate hardware are or capabilities

images. which XD the The photogrammetry is quality, high and the in investment a potential Photokore, improved strategic extraction software. digital proliferation data resolution for purchased also of photography has speed from We

to sales new engineering While quarters, product these numerous the the product add coming forward the professionals. are not FARO our and drumbeat acquisitions requirements product and February, X.X bolt-on to and hardware the not first acquisitions did challenges Even designed product in introduced the demanding software hardware by take portfolio. quarter material from our we Design key address new in after technology ScanArm introductions represent R&D to XXXX, software anticipated teams in and XXXX. existing of they a break design In faced driving most in

new as and see in and remain Our innovations move. new push we The future our XXXX. adopter on product the that accuracy will Machine excited about be product the teams technology Vision Sensor, resolution Dynamic continue can an early high to very pipeline for while DMVS, introduced

time. performing distances imaging multiple to RI capable In the out operations at addition, high-speed be which we roll large Radar, the multiple XD will locations at same Laser continue and of measurements and XD will over Vector

for and major quarters arms, introduce technologies projectors, platforms of trackers, next scanners. laser to teams. three and The intend line laser also We accessory customers be primary our all our probes around exciting of new sales will

Our important released documentation, software professionals security evidence introduced the enhance well. XXXX quality software reconstruction Zone engineering teams of and upgrades site We in investigators FARO FARO and four to as and fully quarter applications. to for surveying XD we Laser tracer and designed enable several XD the captured security with FARO projection for Construction and featured analysis quality software Focus crime construction Scanners introduced crash, systems. CAD-based our control and use the BuildIT and called our In first-ever fire March,

and to reduce inefficiencies realize in the CAMX highest XXXX products. platform help and to ago. an new with Our force that April, our the driving share products FARO $X.XX rework development XXXX to designed software to [technical value objectives, value the enable proposition benefits In this brought metrology manufacturing of our industry with our to users in additional costly the expansion and quarter. similar released difficulty] product performance construction we invested is we level per towards years customers industrial FARO process Consistent sales all our

margin and operating on as technical plus leadership mid-teen product all XXXX gross well categories. to growth, We increasing are by XX% in margin as focused delivering sales double-digit

shown We initiatives around appreciate and over shareholder inherent has our progress work quarters. will our be believe presenting rewarded the price shareholders that the performance past we forward in value. of our the and employees increased cost these our and looking executing As I'm to risk proud Bob? coming the firmly sustainable world. short-term our the I past in of two accomplishments of the patience am hard three years over the with stock deeply quarters,

Bob Seidel

XX.X% Total $XX.X or of $XX.X Thank the increased million quarter million for XXXX of you, first Simon. the $XX.X million XXXX. quarter first sales from for to by

continued unit mainly and revenue was product Our and sales sales higher segments, increase by Construction BIM selling prices increase growth. service within our average in Verticals an driven Emerging

quarter quarter from With XXXX. of and $XX.X new million New of order increased year sales by million first bookings Total million to first for the or our same $XX.X $XX.X of million $XX.X book-to-bill for increased XXXX. product first million ratio bookings first or XX.X% by order million $XX.X XX.X% from was quarter $XX.X X.XX the quarter for for $X.X prior the million to million, sales XXXX $X.X XXXX of period. the of for of the

million increase and Emerging Our with products. our sales prices $XX.X sales new increase revenue introduction Total XXXX the XD period. to total or in product Verticals was XX.X% for our recent average year as same million segments of the prior related million within for $X.X quarter of from BIM product in higher $XX.X to selling the unit service increased first Construction Factory by well mostly our segment an as

of the and $XX.X our growing driven was revenue Our and segment, was by XXXX prices reduction increase for for of our our aftermarket offset Construction $XX.X expand XXXX. were customer $XX.X increase mostly growth the our product of increase base. million warranty million, higher service initiatives an prior the hardware of compared X.X% continued and the laser quarter were unit was strong for segment, first increase sales XX.X% XD revenue increase sales first due compared to related million, average of for with from period. to sales service as sales. product portfolio market partially In in revenue, In with million BIM to $XX.X quarter a our year demand XXXX an mainly in of unit reflecting first Factory selling software. sales installed we This executed by same broad the an higher in This quarter increase for scanner service

XX.X% expense verticals. quarter increase BIM mid-teens marketing for for were leveraging of our to the public compensation expense of million, margin administrative $X.X for compared of of product increase safety with segment, General with strong Construction our Gross for activity. compared average forensics design $XX.X of the quarter million from production first to sales other expenses Verticals Verticals higher of of sales related our Emerging of these quarter Factory XX.X% points quarter and sales the of first segment, an year Total driven mainly Emerging million of due of million Selling million period. was compared of of XX.X%, emerging million sales commission as the in verticals. comprised percentage efficiencies the called sales mostly increase XXXX by $X.X quarter or increase as increase same business unit from million first forensics $XX.X period. additions for acquisition were increased was for and our Our growth. selling public XXXX for product expenses headcount manufacturing sales increase relating segment headcount prior formerly XXXX, segment, was increase and to and our same is was higher $XX.X the with XX.X% driven sales initiative improved reflecting the gross to XXXX by first for well in XX.X% an first quarter and higher XD strategic of expenses increase an $X.X This volume our XXXX. primarily X.X% by for quarter year prior first the the to safety the higher quarter product This our in Selling first verticals. first our XXXX. This higher in of were for from marketing compared the XX.X% with XXXX growth margin a X.X $XX.X prices XXXX

XX.X% of and quarter of an of and activities. development percentage XX.X% to and for quarter million first period. the with general XXXX, of were across headcount our for year for prior first the operating recent decreased for development As quarter expenses development departments to expenses for accelerate XX.X% expect mostly XXXX. to This support compared XX.X% acquisitions with margin. XXXX same additional million of initiatives Research engineering $X.X of a coming sales expenses sales, quarter to FARO the efficiencies of with XXXX of the administrative XX.X% In our product all decreased quarters, sales we XXXX. the compared $X.X increase was first first increase Research to and drive of improve Best first new quarter to the related the compared for process

share first Our million net $X.XX quarter XXXX million XXXX. net share income or per with of was of the a for of compared the $X.X loss for quarter $X.X or $X.XX per first

the of first of short-term million, to sheet. end Turning cash At held million balance by of subsidiaries. $XX.X which was the XXXX, investments totaled foreign quarter $XXX.X the and

two $X.X investments $X.X XXXX Our [ph] end of reflecting decreased cash short-term by and our on totaling spending from million. million growth mostly acquisitions business the

your the sales presentation discussion We quarter million XXXX today's world Our call. from results XXXX, $XX.X and in attendance of end fiscal quarter of inventories complete around with prior our finished local and XXXX. increase strengthening the the quarter XX-Q XXXX, driven available new balance was million $XX.X to demonstration support sales the sales on was of more in quarter first March inventory to the given of strong currencies year sheet our the A were XX year XX, is to debt. mostly end first days dollar. equip Accounts end at XXXX of higher compared ended Total remained days on relative no goods same of an hires, receivables Day growth the year-over-year sales our sales Europe. outstanding two million US our XXXX. for at at strong first period $XXX.X with growth our first Form end of the quarter of the the by up at of appreciate

for We will market questions now trading. call the of the through start open

Operator

[Operator from with Capital. Instructions] Palm comes first Greg Your question Craig-Hallum

Greg Palm

QX of from heard Curious kind mind of So, I comes ago. all you see I couple to it saw Brexit that given out got this quarter the to if deals be tariff year, years know volatility, you historically mean similarities market a noise? any you've any sales news stock of if events, whether in end pushed impacts tended etcetera. some related

Simon Raab

I seeing there's that could but be nothing that. not and deals haven't. any mean to really pushing, moving anything We're always we like macroeconomics. around correlated No,

Bob Seidel

that the that's I highlighted really think And of strength that.

one and As XX-K, by you our been up that most see likely sales region regions of XX.X% we been see in the impacted we by the disclosing have this. started Americas and that our in would have you were about would

Greg Palm

growth noticed to the I - anything And read a was bit, it. into? Got little rate moderated there APAC

Bob Seidel

really. No, not

quarter first business strength perspective there our New a but think of products very strong in see that bigger in APAC bit mature. we become and to it which in of the little BIM Chinese Construction piece has interest a still from Year, bigger region I always the continues as remains actually volatile is a and overall, growing our

Greg Palm

initiative it. just And about this terms and cost guess this talk maybe in improvements are kicking yield global mean specifically, areas that to lean targeting you now I program? I expected it got what is officially. of guess off I what you're with then more Okay,

Simon Raab

every the line of drilled I area is P&L into. Every of statement being the actually, company mean

all broadly And all it's and regions would the I it's P&L. lines say so, of

Greg Palm

or of items of are sort you But Okay. kind the I I asking I kind talking I'm what guess for sort anything some G&A recently? guess to headcount implement? reductions, stuff stuff specific focusing any you've you're looking about on of just incremental from been mean of of

Simon Raab

deal we're company time, the slow support functions sales same the the and increase of the throughput then the to the I growth. as functions actual increase in of At have efficiency to meantime what trying question, products headcount believe an the increase the all that move is But effort do queue. trying the in the to this down the answer and cost to I'll margin. support reduce to the to with Well, we're we'll gross in all

we're bottom So, planning line. to also relating our issues jurisdictional tax maximizing around doing

is So, no headcount. have growth there probably of in some really the with rate impact will on do line it of and single cases to headcount, more

Greg Palm

Perfect.

Okay. you. Thank

Bob Seidel

just in, trading. two first start in questions X:XX and of for you round till then the could back jump here and calling limit the queue stay you just if to of we'll analysts So the your

Operator

Thank you.

with Bobby Your next comes Burleson question from Canaccord.

Your line is open.

Bobby Burleson

So does third-party that CAMX buy process, accuracy you stitching high with there, little since we're the it change kind and game just not very bit a XXXX you've the multiple etcetera. the making together curious, sounds you've software of Geomagic, of terms what's compared and I'm maybe like in customers and a kind of have released wondering launch? feedback recently scans to in the having gotten decision And

Simon Raab

It's probably a early little to bit say.

accuracy are software respect the with great like issues with trying while deal around focused and in our We to we're usually reverse products of very more happy engineering to products are to terms which metrology sell are applications. CAMX Geomagic which

products strong very on that say of partnerships with them. should make we specificity have the reasonably third-party So, differentiates I We margins it. But the all suppliers. strong our

software of - would know core all so very say to what CAMX continue you adaptive to of the we the our point improve I being is adaptive to since make is a installations, our about. as Software of But aspects own that's metrology softwares. third-party we in products sticky

Bobby Burleson

been kind been any some Germany kind demand? understand Great. ramping and those follow-up the of making ramping impact give in build-out in Mexico in your us Visual of different of Inspect. it right you've up you then is Curious Can for what and automotive investments in up your on where what of And the I of regions. overall maybe then now, has aerospace sense terms are operations and state just my

Simon Raab

and Well, or politics the automotive on Mexico [ph] to with back it. respect depending aerospace forth around issues are them of expansion and moving the

introducing product had. ER and to a and going enterprise NAFTA that the products and with in solidifies. those we in expand and as impact for talking category working Visual Inspect, We that's us, those them the and of With effect - and like very I we all that the do about intend or sales and is. and we It don't interest pursue reality region of metrology big to manner to not VR a with of force area rolls minus some companies seeing to the where enterprises. in out. and regards are being see. to leader a just pull more markets. why in two immediate good see believe in expect number Inspect plus just a But BMW it penetrate large may any with that a have impact. Visual of discussions remain Inspect segments but we're - control that like which mean as all lot other - is more to major manufacturing continue acquisition, area and wait or large Mexico that We There's the been we has acquisitions we're that - clients those player and and the we're a wait enhanced have We're the to in Visual in have made and how starts to a particular case, to we quality have different products real particular enhanced

Bobby Burleson

Thank Great. you.

Operator

Jim question from And Company. comes with & Ricchiuti your next Needham

open. is Your line

Jim Ricchiuti

back Bob, just make sure wanted want I that you it just I heard comment to made, to a to go correctly.

number of you business, the one, - higher I did XD that ASPs, sound said you Did unit the correctly? side were lower. I On you sales from I thought hear hear but benefited that Factory like

Bob Seidel

That is correct.

sales they've attached and but last higher seen as year unit well in lower in received with we M products. Metrology basis. as XXXX, launched in the our ASPs products Quantum the we and market Factory products, for Factory other the Arm well So, slightly been Metrology very Quantum a launched August us S on We've year-over-year

Simon Raab

These to occupies lower in is with noted significant deal price major that. ASP. end ranges. products and to Quantum be What needed line improvements the on certain the all to and Quantum unit going accuracy are to expansion just had lines product introduced are is numbers. we we think introducing M, we continued very on so further which We comment top where end be impact I that with, and S which

line Our the certain level used this of product also be but performance product lower new at for and types quarter. continued, sales we users need a that'll corrected

Bob Seidel

One Metrology thing, Jim, too, look in overall high-single that be for digits. on for that performing. Factory really recorded us business sales vertical's so the edge to we growth We that X.X%

Jim Ricchiuti

Okay. And just with magnitude you saw? that respect to the Construction some BIM market, unit about sense can growth the you give the us of

Bob Seidel

We at percentage don't platform really discuss on level. unit a sales basis the

Jim Ricchiuti

Okay.

rate I Just out assuming, rate. question if we the could Bob, - on slip should we tax are year? this balance the of what over on tax the be What looking

Bob Seidel

mean historically rate. tax guided I on not we've

was XX%. This quarter

us. you QX. historically guide kind of US get reform can the look We went tax think for I to through a process in

this impact We guilty [ph] also at see point. really we material disclosed don't XX-Q a in our off that

to history So, off have what is you I of. think work

Jim Ricchiuti

Thanks.

Operator

NOBLE And Capital your with next question comes Ben Market. from Klieve

is line Your open.

Ben Klieve

questions. of Couple

First see selling you're the expense you're escalation you revenue going offset to is 'XX levels lean think as of relative force. balance elevated this a kind that I'm by percentage this we on of the expenditures for implementing the that do think look going to do level to the year? to out initiatives of in ramping these or be line for year, sales And rest I of the you certainly related elevated curious understand as of here.

Simon Raab

per to force forces play. will so, expenditure two the achieve lower dollars the be One, at to increasing in expecting same try dollars the lean the headcount. increase we per noted a efforts headcount the as there's XX% At see drop to time, we're evenly over to sales quarters headcount. We're

the was over remedied well. In in quarters headcount an order dollars short the last as increase going expenses per couple of that's of be to there and fact in around

expect we selling to - we'd from expenses like now. be to to the XX% to right back where the get XX% is those So, XX%

Ben Klieve

this looking seasonality Okay. and that the health at of And market a of kind you're about year. the overall question

worse If say you the force, on the the you this years sales seasonally relative quarter overall Do little think of this couple health overall out in you the past the did prior ASPs was setting past? is first and be higher weak of saw terms magnitude side or strip than to the same do a in away in that a years years from quarter little quarter to look this metrology growth market? think just you expanded year how of as that the the better,

Simon Raab

level higher order we that's a projected was Our so than had bit thing. little positive a

to I and see year think change QX that our or that that. continue XX% or about we reason the same seasonality. of full X.XX% would is any substantively the we don't Typically macroeconomically see from actions

Ben Klieve

queue. you Okay, Thank both. in perfect. I'll get back

Operator

And Hendi Company. Susanto your next & from question comes from Gabelli

open. is line Your

Hendi Susanto

your goal double-digit by Simon, your the should operating for and see some investment, outcome. of produce the and may see higher effort Bob operating margin mean to timing that take there's to you're drive how we expenses operating efficiency time that XXXX? initiatives the also rest of I year as leaning we

Simon Raab

operating to see all sales. of would percentage like as the We expenses of the a elements drop

did a noted it as and amortization in as dropped where we'd absolute of we clearly as some percentage in a numbers, G&A example for sales. flatten As mean would are to related depreciation like I less percentage little a we're bit R&D to to of there, affected do but to easy as may what and control by it acquisitions sales. flatten is acquisitions, also trying even be

selling our the efforts are out. to those level around try So, and marketing biggest to expenses

in of I and a improvements reduction I where just the substantive lean see overall say you expect should the increase from this rate So, in that our those year. effort would focus is

Hendi Susanto

those are clarification, timing in just of XXXX? we terms in And expecting for

Simon Raab

them quarter visibility progressively expect and Yes, see I we good these see in should some to and have savings them those quarter around actually improvements. XXXX efforts. from have by implemented strong

Hendi Susanto

to would relative whether then, is line And with share of and force as sales expectation is in where your or ahead Simon, today? where expectations, productivity it you it's

Simon Raab

Sure.

with that So trailing point in continue where number That's verticals a to much portfolios. pretty emerging the in sales number our from the geographies the has has the as at and decrease and less XXX,XXX. up in as increase so as sales trailing XXXX company the decrease, headcount hires maturity do substantively tracked - XXX,XXX and we product new that headcount areas in expect into to verticals. fact start as line coming small out noted, in the we we dropped we're in the it fill the continuously people well product back that probably we're will 'XX emerging again verticals confident per and the in putting new mature new versus developed to QX some new FTE to emerging 'XX, increase that XX-month orders XX-month with But these

everything So, we're clearly counter pretty of the as on be the headcount, that per force but against exercise much to it's counter on too, a feel dilution track we we sales to seems efficiency track. through intend and this going

Hendi Susanto

Got it. Bob. you Thank you Simon. Thank

Operator

question next Research. Rose comes Battle Road Ben from with your And

Your line is open.

Ben Rose

would to be the of Question us used engage and initiative duration program is lines what the on remind program, sort early dynamic that of prior company. might product customers the I the general for launch? program for product sort know which in vision the number past, you've sensor of adopter other can of you of typical the motion in that My with question the

Simon Raab

and feedback. up We products early number a to getting try question Coming great has less we of adopter very - us that and customers. allowed a much on the very strategy. focus costly to very important That's to program that's try at to pertinent small accelerate a market introduce it's one level, process a early our with

the used introduced feedback, particular try enhance in would range market. we last for of get was the full So variations really to BIM introductions in remember, that a important year. introductions usually and below the will Localizer changes. in make the we in the shorten year result important Scan registration number quickly our you'll be product fledge That And which this changes device early adopters to any of cycle XX the in product scans we in example, and resulted

make changes a only So, full the getting having say not is roll-out. in getting feedback, the out, to typical EA a I making would the involved the confidence and product year

was last a to on call robot represents serial looking the we Germany capability provides So that a concept, implemented unprecedented of a QualityGate, new existing DMVS, trying Show visualization that actually at be this degree it. week, and It at can and the product and the which introduced it is have which lines. integrators product we in measurement easily Control understand

that so, And little process take can time. a

X So EA between the I introduction it's imagine full year think roll to out. and fair

Ben Rose

And question just Okay. for quick a then Bob.

executing authorization ask been is year? if should terms share in looks - like about we I'm given creeping the FARO being a just And has in thought share this that bit, to how seem to correct I the repurchase and count, count up a it's at and looking share coming that? to you think has little of In there also recall any

Bob Seidel

that see is we we diluted So, a is part the share of EPS our price that report diluted of of the that helped XX.X course of that the million. And number diluted shares. count. on earnings, is increase stock certainly you'd with has number use share of What based strength positive about count

to kind the way and forward share constant. consider that keep we of year in as number fairly back as true of our later I up move kind think buyback potentially a more to that we would we'll

we to that do. have something what So but ready that's announce is discussed, we're I'm that not to going

Ben Rose

much. very Okay, thanks

Operator

And from Eastman Baird. question your with Richard comes next

open. is line Your

Richard Eastman

to could also take here couple of of like there more was and it and of a when of business, price. look fair, I'm XD at Simon, so kind that not unit most But and probably sales Europe the although I even out have down little and the at down and there a the sounds volume Europe there at maybe FTE growth at disclose looking out looks flattish look the number the And bit. I salespeople. all you Factory to in I revenue adds service respond came and metrics number we're also the like currency we like sales the look on you I of track

the I'm volume? to sales are growth correlates curious So, to where little in that unit not bit headcount if we a as seeing

Simon Raab

Well, the products. about clearly on we talked ASPs new the

lot through. think - as countervailing that we a of work I have important you it's forces note we to

differences productivity We regions. different the between have

headcount efficiency. headcount to Europe for used a by lot the that, regions a the sales just have areas, of getting been compensated has which in had of for force reductions had different difficulty We've the higher have We example, some as idea verticalization and increases.

say not make it's X formula not the where simplistic. And point, valid I had So, then We straightforward think the is are I is thing that a is down. other up correlation you and would and regions clear. ASP is the and where the up regions quantities

of challenging don't directly ultimately do to the and fact individual this I If that up, we and aggressiveness the have doesn't driving through. years you're follow headcount the and because have work regional correlate done renewed equation and not But demos we performance the demos of issues done to and last that in of issues deny out regard been that want couple vertical company. issues

a we in work manner unacceptable that are which people force, work. to find because out I work don't have in churn So we we that to the sales have prepared

be question. trying sensitive I'm to to So, your

I think complicated it's a answer.

I that and lot is on but corporate that, not look you're is vertically, there is think pretty. overall regionally for sausage us different to necessarily observation the And is The number correlations going see accurate headcount. making you a sense, making and underneath of depending where noise. of to your

Bob Seidel

a we to a you line sales Europe. board make wanted I I top your wanted take was make adjusting currency. you But year take benefit, comment understand year to in on one all One line hit [ph]. understood was a did sure have sure is everybody the even translationally analysts currency one mean excluding currency gain and to just Europe that I on with up and for the investors currency

Richard Eastman

Simon, little you just still from Laser bit an content it's a in analytics quick still Systems is software the And mind Okay. together for that product Control noted gross the from acquisition. meaningful I'm room a a the maybe or? put side? here. away opportunity follow-up. maybe point the one of margin I'm integration quickly the there on your acquiring curious, in you that file little cloud And hardware FARO bit steps maybe more of interesting Is vertical That a curious.

Simon Raab

of robots disruptive. involve that are mean there mean will of displace completely the products a so on unprecedented I'm replace I light. to Vector enthusiastic is Absolutely. that overstate example but The steering it, technology this relates kinds to category these amount of the whole for sensors an and will I product. I it's Vector. - don't want about is market, we it a the huge of

these technology over predict disruptions the over market, I will necessary to the which United sure light, we things make a in innovate of will other to in with made a that the working meant those. ago acquisition in I in methodologies a primary component years to that in light mean light that of acquisition used have our integrated The in bolt-ons increase clear Laser we of provide we and so, and always fully on XX vertically Kingdom personally we great And of control will months. be to make mean process absolutely, everything Nutfield, want of steering technology us metrology steering just are I all ability that we do. we of particular, couple we're next areas. those couple Controls we're vertical number But in measure for a the the and

Richard Eastman

you. Thank awesome. Okay,

Operator

And you a question with Greg follow-up have Palm from Craig-Hallum Capital.

open. is Your line

Greg Palm

willing so hopefully related a the of it But the of some were in earlier. you want repeat associated apart I I from like can with expense couple - if acquisitions acquisition I'm and acquisition the acquisitions through costs in those Apologies meaningful, was quantify was rules there by I those two for the you calls maybe any two did, the for terms juggling but amount was say P&L? curious of not in Q it the operating sounds you to that missed so if playing were you're March flowed noted - what costs related don't this, me. month there some of

Bob Seidel

did So to the March or acquisitions benefit themselves. real in impact P&L in material of the so we acquisitions, our terms those from per there was se no late

forward, Given them the see not would incremental coming as really those of forward move we out size of expense. material stage, an early benefit or maybe sales we really R&D

we direct our would from transactions. I executing was costs terms related go year-over-year along cost being deals, to In saw main though to the of G&A the the up with driver the of the say

were maintain and headcount We G&A are to achieve focused able managing internally very maintaining on we our G&A. our headcount underlying to our

Greg Palm

there guess I thinking concern you necessarily? exposure aluminum, just potential you raw there. or especially on I'm - costs Can inflation have then material impacts the us rising that And just Thanks. about most you raw material where not all and remind helpful. does and at That's

Bob Seidel

point you We certainly in doesn't. this factor on some to the added based At events a XX-Q risk time, it our that see. market of

margin kind of based the As we're our develops, that time, But the market administration. because to are I changes and not it a of at kind this ready pivoting we to think unfolds headwind gross with policies as all point this have say along companies of of of kind on it.

Greg Palm

Okay, thanks.

Operator

And there further are this no time. at questions

Bob Seidel

Abruptly] for much joining you everyone very Well, [Ends our thank

FARO (FARO) 29 Apr 182018 Q1 Earnings call transcript