FARO Technologies, Inc. reported a total revenue of $342.4 million for the fiscal year ending December 31, 2024, a decrease of 4.6% from $358.8 million in 2023. The decline was primarily driven by weakened demand across most product lines, particularly in the China and United States markets, which accounted for a combined $15 million drop in sales. Despite the overall revenue decrease, service sales increased by 2.5% to $82.2 million, while product sales fell by 6.6% to $260.2 million. The company's gross profit rose to $187.2 million, reflecting a gross margin improvement to 54.7%, up from 46.0% in the previous year, attributed to better average selling prices and lower material costs.
In terms of operational changes, FARO has been actively restructuring its business to enhance efficiency and profitability. The company completed its Integration Plan, which aimed to streamline operations following recent acquisitions, including GeoSLAM and SiteScape. The restructuring efforts have resulted in a significant reduction in operating expenses, which fell by 14.3% to $183.8 million in 2024. The company also recorded a net loss of $9.1 million, a substantial improvement from a loss of $56.6 million in 2023, indicating progress in its financial recovery.
FARO's workforce as of December 31, 2024, consisted of 1,181 full-time employees, with a focus on enhancing its human capital strategy to attract and retain skilled personnel. The company has also emphasized diversity and inclusion, with approximately 29% of its global workforce identifying as female. The strategic acquisitions of GeoSLAM and SiteScape have expanded FARO's capabilities in mobile scanning solutions and LiDAR technology, which are expected to drive future growth in the construction and operations markets.
Looking ahead, FARO anticipates continued challenges in the macroeconomic environment, particularly in the manufacturing and construction sectors. The company has initiated a new restructuring plan for 2024 aimed at further optimizing operations and addressing underperforming areas. This plan includes a planned decrease in headcount and consolidation of manufacturing operations with its global partner, Sanmina Corporation. The company expects to incur additional restructuring charges in the range of $6 million to $9 million, primarily related to severance and employee-related termination benefits.
Overall, FARO Technologies is navigating a complex landscape marked by fluctuating demand and economic pressures while implementing strategic initiatives to enhance operational efficiency and drive long-term profitability. The company remains focused on leveraging its technological advancements and expanding its market presence through targeted acquisitions and restructuring efforts.
About FARO TECHNOLOGIES INC
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