FARO Technologies Inc. (NASDAQ:FARO) Q2 2020 Earnings Conference Call - Final Transcript

Aug 05, 2020 • 08:00 am ET


FARO Technologies Inc. (NASDAQ:FARO) Q2 2020 Earnings Conference Call - Final Transcript


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Good morning, everyone, and welcome to the FARO Technologies Second Quarter 2020 Earnings Call. For opening remarks and introductions, I will now turn the call over to Michael Funari at Sapphire Investor Relations. Please go ahead.

Michael Funari

Thank you, and good morning. With me today from FARO are Michael Burger, Chief Executive Officer; and Allen Muhich, Chief Financial Officer.

Yesterday after the market closed, the company released its financial results for the second quarter of 2020. The related press release and Form 10-Q for the second quarter are available on FARO's website at www.faro.com.

In order to help you better understand the company and its results, management may make forward-looking statements during the course of this call. These statements can be identified by words such as expect, will, believe, anticipate, plan, potential, continue, goal, objective, intend, may and similar words. It is possible the company's actual results may differ materially from those projected in these forward-looking statements. Important factors that may cause actual results to differ materially are set forth in yesterday's press release and in the company's Form 10-K for the year ended December 31 and Form 10-Q for the quarter ended June 30, 2020.

During today's conference call, management will discuss certain financial measures that are not presented in accordance with U.S. generally accepted accounting principles or non-GAAP financial measures. In the press release, you will find additional disclosures regarding these non-GAAP measures including reconciliations to comparable GAAP measures. While not recognized under GAAP, management believes these non-GAAP financial measures provide investors with relevant period-to-period comparisons of core operations.

However, they should not be considered in isolation or as a substitute for a measure of financial performance prepared in accordance with GAAP.

Now I'd like to turn the call over to Michael.

Michael Burger

Thank you, Mike. Good morning, and welcome to our call. I'd like to start by providing a brief update on how our business is faring through the recent economic downturn.

I am pleased to report that our global manufacturing facilities remain open, and our supply chain, logistics and operations teams have continued to serve and support our customers at the level they have come to expect from FARO. Our customers continue to pursue 3D measurement initiatives they've had in place at the beginning of the year. However, many have chosen to delay projects, given the ongoing uncertainty caused by the global pandemic.

That said, we do not believe that we have lost market share in this challenging demand environment. From an industry perspective, the aerospace market remains the most cautious in placing new orders, while we're beginning to see signs that other markets are slowly moving forward on a region-by-region basis. It remains difficult to predict how the demand environment will unfold in the coming quarters. All current signs are pointing toward a measured demand recovery in our markets, with the second quarter marking the bottom of the downturn for FARO. However, conditions could deteriorate as countries, respond to new or accelerating outbreaks adversely affecting our customers' near-term