http://www.businessweek.com/news/2013-02-28/faro-surges-after-distributor-purchase-bolsters-revenue

Bloomberg News

Faro Surges After Distributor Purchase Bolsters Revenue

February 28, 2013

Faro Technologies Inc. (FARO:US), a maker of three-dimensional scanners used in everything from car design to forensic investigations, surged after sales topped estimates, aided by a large order for surveying tools.

The shares (FARO:US) rose 18 percent to $42.35 at the close in New York for the biggest gain in two years, and have advanced (FARO:US) 19 percent this year, compared with a 6.9 percent climb for the Standard & Poor’s SmallCap 600 Index.

Fourth-quarter sales climbed 4.7 percent to $80.7 million from a year earlier, the Lake Mary, Florida-based company said in a statement yesterday. Analysts on average had projected revenue of $68 million, according to data compiled by Bloomberg. Faro sold more of its Focus 3D scanner than expected after distributor Trimble Navigation Ltd. (TRMB:US) filled up on inventory, said Richard Eastman, an analyst at Robert W. Baird & Co.

“Faro had better sales than we thought, better orders and better earnings,” Eastman said in an interview today. He has a neutral rating on the stock and a $39 target price.

Net income declined to $7.84 million, or 46 cents a share, from $9.47 million, or 56 cents, a year earlier. That exceeded analysts’ average estimate of $5.26 million, or 31 cents a share.

To contact the reporter on this story: Karl Baker in New York at kbaker30@bloomberg.net

To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net


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