FARO Technologies Inc (FARO) 2023 Q2 法說會逐字稿

Good day, everyone, and welcome to the FARO Technologies Second Quarter 2023 Earnings Call. For opening remarks and introductions, I will now turn the call over to Michael Funari at Sapphire Investor Relations. Please go ahead, sir.

大家好，歡迎參加 FARO Technologies 2023 年第二季度財報電話會議。對於開場白和介紹，我現在將把電話轉給藍寶石投資者關係部的 Michael Funari。請繼續，先生。

Thank you. Good afternoon. With me today from FARO are Yuval Wasserman, Executive Chairman; Peter Lau, President and Chief Executive Officer; and Allen Muhich, Chief Financial Officer.

謝謝。下午好。今天與我一起參加 FARO 的有執行主席 Yuval Wasserman；劉作光，總裁兼首席執行官；和首席財務官艾倫·穆希奇(Allen Muhich)。

Today after market close, the company released its financial results for the second quarter of 2023. The related press release and Form 10-Q is available on FARO's website at www.faro.com.

今天收盤後，該公司發布了 2023 年第二季度的財務業績。相關新聞稿和 10-Q 表格可在 FARO 網站 www.faro.com 上獲取。

Please note, certain statements in this conference call, which are not historical facts, may be considered forward-looking statements that involve risks and uncertainties, some of which are beyond our control and include statements regarding future business results, product and technology development, customer demand, inventory levels, our outlook and financial guidance, economic and industry projections or subsequent events.

請注意，本次電話會議中的某些陳述並非歷史事實，可能被視為涉及風險和不確定性的前瞻性陳述，其中一些風險和不確定性超出了我們的控制範圍，包括有關未來業務業績、產品和技術開發、客戶的陳述。需求、庫存水平、我們的前景和財務指導、經濟和行業預測或後續事件。

Various factors could cause actual results to differ materially. For a more detailed description of these and other risks and uncertainties, please refer to today's press release and our annual and quarterly SEC filings. Forward-looking statements reflect our views only as of today, and except as required by law, we undertake no obligation to update or revise them.

各種因素可能導致實際結果存在重大差異。有關這些以及其他風險和不確定性的更詳細描述，請參閱今天的新聞稿以及我們向 SEC 提交的年度和季度文件。前瞻性陳述僅反映我們截至目前的觀點，除非法律要求，否則我們不承擔更新或修改這些陳述的義務。

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'll 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.

在今天的電話會議上，管理層將討論某些不符合美國公認會計原則或非公認會計準則財務措施的財務措施。在新聞稿中，您會發現有關這些非公認會計準則衡量標準的其他披露，包括與可比公認會計準則衡量標準的調節。雖然未根據公認會計原則予以認可，但管理層認為這些非公認會計原則財務指標為投資者提供了核心業務的相關期間比較。然而，它們不應被孤立地考慮或作為根據 GAAP 編制的財務業績衡量標準的替代品。

Now I'd like to turn the call over to Yuval Wasserman.

現在我想把電話轉給尤瓦爾·瓦瑟曼。

Thank you, Mike. Welcome, everyone, to our call.

謝謝你，邁克。歡迎大家來電諮詢。

Second quarter revenue of $88.2 million was up 10% year-over-year, with hardware revenue of $56.8 million, up 16%, enabled by increased shipments of both our Quantum Max Arm and laser tracker product lines as well as the addition of GeoSLAM to our revenue base following the September 2022 acquisition.

第二季度收入為 8820 萬美元，同比增長 10%，硬件收入為 5680 萬美元，增長 16%，這得益於我們的 Quantum Max Arm 和激光跟踪器產品線的出貨量增加以及 GeoSLAM 的增加2022年9 月收購後我們的收入基礎。

While the overall demand environment has remained relatively unchanged since our last earnings call, we did see some customers accelerate their purchase decision making, particularly on Quantum Max, which when combined with better-than-expected laser tracker supply availability, resulted in higher-than-expected revenue.

雖然自上次財報電話會議以來整體需求環境相對保持不變，但我們確實看到一些客戶加快了購買決策，特別是Quantum Max，再加上好於預期的激光跟踪器供應可用性，導致了高於預期的採購決策。 - 預期收入。

Related to profitability, we also began to see the effects of our previously announced cost reduction activities that further contributed to a better-than-expected bottom line.

與盈利能力相關，我們也開始看到之前宣布的成本削減活動的效果，這進一步促成了好於預期的利潤。

While we are pleased with our improved second quarter results, we continue to expect longer-than-usual sales cycles due to several factors, including the ongoing macro softness in commercial construction, the global PMI continuing below 50 and customers signaling a push in purchasing decision into future quarters. As a result, we remain cautious on second half 2023 revenue levels.

雖然我們對第二季度業績的改善感到滿意，但由於多種因素，我們仍然預計銷售週期將比平常更長，其中包括商業建築持續的宏觀疲軟、全球PMI 持續低於50 以及客戶發出推動採購決策的信號進入未來幾個季度。因此，我們對 2023 年下半年的收入水平保持謹慎。

In response to the uncertain economic outlook on our last call, we discussed our intention to accelerate an additional $10 million to $20 million in annualized operating expense reductions to realize a reduced quarterly spending rate of $40 million to $43 million and improve FARO's underlying profitability.

為了應對上次電話會議中不確定的經濟前景，我們討論了我們打算加速額外削減1000 萬至2000 萬美元的年化運營費用，以實現季度支出減少4000 萬至4300 萬美元，並提高FARO 的基本盈利能力。

I'm pleased to report that during the second quarter, we have completed these actions, which included: first, driving synergies by rightsizing our short-term investment to streamline and consolidate multiple cloud environments that resulted from the combination of internal development and recent acquisitions.

我很高興地向大家報告，在第二季度，我們已經完成了這些行動，其中包括：首先，通過調整我們的短期投資規模來推動協同效應，以簡化和整合內部開發和近期收購相結合產生的多個雲環境。

Our software road map continues to include a robust feature set that enables user to view and collaborate on 3D models created by various culture devices on a single cloud platform with a single user interface. Software remains a key element of our strategy, and we believe by eliminating the redundancy inherent in our prior model will be able to provide customers valuable solutions more efficiently, quickly and cost effectively.

我們的軟件路線圖繼續包含強大的功能集，使用戶能夠在單一云平台上通過單一用戶界面查看各種文化設備創建的 3D 模型並進行協作。軟件仍然是我們戰略的關鍵要素，我們相信，通過消除我們先前模型中固有的冗餘，將能夠更高效、更快速且更具成本效益地為客戶提供有價值的解決方案。

Second, executing opportunities to improve productivity in our global sales organization. We are proactively learning from our higher-productivity regions and affecting change in lower-productivity areas to optimize our overall investment. We believe we have the formula to execute this change without adversely affecting revenue levels.

其次，抓住機會提高我們全球銷售組織的生產力。我們正在積極向生產率較高的地區學習，並影響生產率較低的地區的變化，以優化我們的整體投資。我們相信，我們有辦法執行這一變革，而不會對收入水平產生不利影響。

Third, creating additional synergies across our global organization by consolidating certain functions and eliminate redundancies within our global cost structure, including those that resulted from acquisitions.

第三，通過整合某些職能並消除全球成本結構中的冗餘（包括收購造成的冗餘），在我們的全球組織中創造額外的協同效應。

And finally, executing on the reduction in our global footprint by consolidating sites, exiting inefficient buildings and leveraging our distributed organization model to reduce costs. With this work now complete, we have executed a plan, which in combination with the actions announced in February, will result in non-GAAP operating expenses of between $40 million to $43 million on a quarterly basis, which represents an approximate 17% reduction from our current run rate, when considering the effects of inflation, a weakened dollar exchange rate and the addition of GeoSLAM in September 2022.

最後，通過整合站點、退出低效建築並利用我們的分佈式組織模型來降低成本，減少我們的全球足跡。這項工作現已完成，我們已經執行了一項計劃，結合 2 月份宣布的行動，將導致每季度非 GAAP 運營費用在 4000 萬至 4300 萬美元之間，比上年減少約 17%。考慮到通貨膨脹、美元匯率疲軟以及2022 年9 月添加GeoSLAM 的影響，我們當前的運行速度。

In formalizing this plan, I spent time speaking with many of our stakeholders and would like to share with you some of my observations. First and foremost, as I've met with employees around the globe, I'm struck with the passion, technical expertise and commitment of our broad and talented employee base. They believe in FARO and the mission we've set for ourselves in delivering the industry's very best 4D tools for use in applications ranging from 3D metrology to construction management progress in prime and accident scene analysis, which in turn are targeted at our automotive, aerospace, AEC and public safety end markets.

在正式製定該計劃時，我花了時間與許多利益相關者交談，並想與大家分享我的一些觀察結果。首先，當我與世界各地的員工會面時，我對我們廣泛且才華橫溢的員工群體的熱情、技術專長和承諾感到震驚。他們相信FARO 以及我們為自己設定的使命，即提供業界最好的4D 工具，用於從3D 計量到主要和事故場景分析中的施工管理進展等應用，而這些應用又針對我們的汽車、航空航天、AEC 和公共安全終端市場。

From a customer's point of view, it's apparent that FARO's technology and our brand has demonstrated long-term value. Market trends, customer feedback and competitive analysis reinforces that our efforts to developing a cloud-based solution, which aligns 3D models from different capture devices onto a single coordinated system will simplify and eliminate waste in the virtual management of both facility construction and operation.

從客戶的角度來看，FARO 的技術和我們的品牌顯然已展現出長期價值。市場趨勢、客戶反饋和競爭分析強化了我們開發基於雲的解決方案的努力，該解決方案將來自不同捕獲設備的3D 模型整合到單個協調系統上，這將簡化並消除設施建設和運營的虛擬管理中的浪費。

Through these and other reviews with our management team, I believe this unique combination of hardware capture, cloud processing and hosting along with software applications, specifically designed for individual use case and workflow will further differentiate FARO in the marketplace and over the long term, generate increased shareholder value.

通過我們管理團隊的這些和其他審查，我相信這種硬件捕獲、雲處理和託管以及軟件應用程序的獨特組合（專為個人用例和工作流程而設計）將進一步使FARO 在市場上脫穎而出，並從長遠來看，產生增加股東價值。

To enable the realization of our strategic initiatives and deliver best-in-class execution, I'm pleased to welcome Peter Lau as our new President and CEO. Peter brings a wealth of experience and expertise with a distinguished career and a proven track record of driving business success.

為了實現我們的戰略計劃並提供一流的執行力，我很高興歡迎劉作虎擔任我們的新任總裁兼首席執行官。 Peter 帶來了豐富的經驗和專業知識、傑出的職業生涯以及推動業務成功的良好記錄。

Peter has held key leadership positions at several industry-leading companies, including GE, Honeywell and Hubbell, where he has delivered exceptional results and demonstrated a strong commitment to operational excellence and driving sustainable growth. With demonstrated success in leading organization through the transition to software and solutions, Peter has recognized firsthand how software-enabled solutions can be a key driver of growth and competitive advantage. Under Peter's leadership, we are confident that FARO will continue to expand its global presence and enhance its position as a leader in 4D digital reality technology.

Peter 曾在 GE、Honeywell 和 Hubbell 等多家行業領先公司擔任重要領導職務，取得了卓越的業績，並表現出了對卓越運營和推動可持續增長的堅定承諾。 Peter 在領導組織向軟件和解決方案過渡方面取得了成功，他親身認識到軟件支持的解決方案如何成為增長和競爭優勢的關鍵驅動力。在 Peter 的領導下，我們相信 FARO 將繼續擴大其全球影響力並鞏固其作為 4D 數字現實技術領導者的地位。

With that, let me turn it over to Peter to share a few comments.

接下來，讓我將其轉交給 Peter 來分享一些評論。

Thank you, Yuval, and good afternoon, everyone. Let me start by saying I am really excited to join FARO, a company with a rich legacy of innovation and a track record of delivering high-quality solutions to customers across various industries. In my new leadership role, I'm fortunate to have the opportunity to work alongside a talented team dedicated to driving FARO's success.

謝謝尤瓦爾，大家下午好。首先我要說的是，我很高興加入 FARO，這家公司擁有豐富的創新傳統，並且在為各行業客戶提供高質量解決方案方面擁有良好的記錄。在我的新領導職位上，我很幸運有機會與致力於推動 FARO 成功的才華橫溢的團隊一起工作。

As we look ahead, value creation for customers and shareholders will remain at the heart of our strategy. Our goal is to deepen our understanding of customer needs, enhance our product offerings and continue to provide exceptional service and support. By forging strong partnerships with our customers, we will ensure that FARO remains their trusted partner in their pursuit of operational excellence and digital transformation.

展望未來，為客戶和股東創造價值仍將是我們戰略的核心。我們的目標是加深對客戶需求的了解，增強我們的產品供應並繼續提供卓越的服務和支持。通過與客戶建立牢固的合作夥伴關係，我們將確保 FARO 仍然是他們追求卓越運營和數字化轉型值得信賴的合作夥伴。

I feel very privileged to lead FARO into our next chapter. With our strong foundation, unmatched technological capabilities and commitment to our customers, employees and shareholders, I believe we are well poised for our future growth and success.

我非常榮幸能夠帶領 FARO 進入下一個篇章。憑藉我們堅實的基礎、無與倫比的技術能力以及對客戶、員工和股東的承諾，我相信我們已經為未來的增長和成功做好了準備。

I look forward to speaking with many of you in the months ahead. With that, I'll now turn the call over to Allen to provide an overview of our second quarter financial results.

我期待著在未來幾個月與你們中的許多人交談。現在，我將把電話轉給艾倫，概述我們第二季度的財務業績。

Thank you, Peter, and good afternoon, everyone. Second quarter revenue of $88.2 million was up 10% or 6% organically when compared with the second quarter of 2022, primarily due to higher shipments of our Quantum Max ScanArm and laser trackers.

謝謝你，彼得，大家下午好。與 2022 年第二季度相比，第二季度收入為 8820 萬美元，有機增長了 10% 或 6%，這主要是由於我們的 Quantum Max ScanArm 和激光跟踪器的出貨量增加。

Second quarter hardware revenue of $56.8 million was up 16% year-over-year. Over the last 12 months, hardware revenue, which is a strong leading indicator for service and ultimately, software revenue, is up 14% as reported or 8% organically over the prior 12-month period and is a continuing longer-term reflection of the increased differentiation and success of the hardware products we launched 18 to 24 months ago.

第二季度硬件收入為 5680 萬美元，同比增長 16%。在過去12 個月中，硬件收入（服務和最終軟件收入的一個強有力的領先指標）按報告增長了14%，比前12 個月有機增長了8%，並且是對服務收入和最終軟件收入的持續長期反映。我們 18 至 24 個月前推出的硬件產品的差異化和成功率得到了提高。

Software revenue of $10.8 million was roughly flat year-on-year and continues to reflect the conversion of customer purchases from perpetual licenses to subscription. We continue to expect this conversion to subscription to be predominantly complete by the end of 2023.

軟件收入為 1,080 萬美元，與去年同期基本持平，並繼續反映出客戶購買從永久許可證到訂閱的轉變。我們仍然預計到 2023 年底，訂閱轉換將基本完成。

Finally, while service revenue of $20.6 million represented a modest 2% increase year-over-year, it is the first such year-on-year service revenue growth we reported in 5 consecutive quarters. GAAP gross margin was 37.8% and non-GAAP gross margin was 48% for the second quarter of 2023.

最後，雖然 2060 萬美元的服務收入同比小幅增長 2%，但這是我們連續 5 個季度首次實現服務收入同比增長。 2023 年第二季度 GAAP 毛利率為 37.8%，非 GAAP 毛利率為 48%。

During the quarter, we incurred an $8.1 million inventory reserve and cost of goods sold associated predominantly with discontinued noncore products as well as demo accessories, which adversely impacted our GAAP results.

本季度，我們產生了 810 萬美元的庫存儲備和銷售成本，主要與停產的非核心產品和演示配件相關，這對我們的 GAAP 業績產生了不利影響。

On a non-GAAP basis, continued high raw material costs and relative strength of the U.S. dollar compared to historical exchange rates resulted in the second quarter's year-over-year non-GAAP gross margin decline. As a reminder, the higher cost of raw material primarily stems from sourcing semiconductor components in an extremely tight broker market, which we expect to adversely affect reported gross margins for the balance of 2023. Given their unique nature, these transactions are not expected to adversely affect the timing of the previously committed $12 million in annualized savings that we expect to result from the shift in our supply chain to Southeast Asia. We continue to believe the savings from the shift to lower-cost suppliers will begin to be realized as we exit 2023.

按非公認會計原則計算，原材料成本持續走高以及美元相對於歷史匯率的相對強勢導致第二季度非公認會計原則毛利率同比下降。需要提醒的是，原材料成本較高主要源於在極其緊張的經紀商市場中採購半導體元件，我們預計這將對2023 年餘額的報告毛利率產生不利影響。鑑於其獨特性，預計這些交易不會對影響我們之前承諾的 1200 萬美元年度節省的時間，我們預計將供應鏈轉移到東南亞而實現這一目標。我們仍然相信，隨著 2023 年退出，轉向低成本供應商所節省的成本將開始實現。

I want to emphasize that our underlying average selling prices in local currency and the expectations of long-term product mix has remained relatively unchanged, and therefore, as our material costs normalize and we capitalize on a Southeast Asia supply chain, we expect gross margin to significantly improve in 2024.

我想強調的是，我們以當地貨幣計算的基本平均售價和長期產品組合的預期保持相對不變，因此，隨著我們的材料成本正常化以及我們利用東南亞供應鏈，我們預計毛利率將2024年將顯著改善。

GAAP operating expenses were $58.7 million and included approximately $5.8 million in acquisition-related intangible amortization and stock compensation expenses and $8.8 million in restructuring and other transaction costs. Non-GAAP operating expense was $44.1 million, roughly flat with Q2 last year despite the inclusion of GeoSLAM operating expenses as we began to realize the benefits of our restructuring efforts.

GAAP 運營費用為 5870 萬美元，其中包括約 580 萬美元的收購相關無形攤銷和股票補償費用以及 880 萬美元的重組和其他交易成本。非 GAAP 運營費用為 4410 萬美元，與去年第二季度大致持平，儘管包含了 GeoSLAM 運營費用，因為我們開始意識到重組工作的好處。

With the sooner-than-expected completion of our expense reductions, we are committed to realizing quarterly spending at present FX rates of approximately $40 million to $43 million now beginning in the third quarter instead of the fourth quarter of 2023.

隨著費用削減工作早於預期完成，我們致力於從第三季度（而不是 2023 年第四季度）開始，按目前匯率實現季度支出約為 4,000 萬至 4,300 萬美元。

GAAP operating loss was $25.4 million in the second quarter of 2023 compared with an operating loss of $9 million in the second quarter of 2022. Non-GAAP operating loss was $1.8 million in the second quarter of 2023 compared to a loss of $2.5 million in the second quarter of 2022.

2023 年第二季度的GAAP 運營虧損為2540 萬美元，而2022 年第二季度的運營虧損為900 萬美元。2023 年第二季度的非GAAP 運營虧損為180 萬美元，而2022 年第二季度的運營虧損為250 萬美元。 2022 年第二季度。

Adjusted EBITDA was $900,000. Our GAAP net loss was $28.2 million or $1.49 per share. Our non-GAAP net loss was $2.6 million or $0.14 per share for the second quarter of 2023 compared to a net loss of approximately $600,000 or $0.03 per share in Q2 2022.

調整後 EBITDA 為 900,000 美元。我們的 GAAP 淨虧損為 2820 萬美元，即每股 1.49 美元。 2023 年第二季度的非 GAAP 淨虧損為 260 萬美元，即每股 0.14 美元，而 2022 年第二季度的淨虧損約為 60 萬美元，即每股 0.03 美元。

In May, we discussed a total charge of between $22 million and $28 million to realize our new quarterly expense base. On a year-to-date basis, we have incurred $22 million in charges, resulting from cash severance for affected employees, inventory write-offs as we increase our focus on core strategic product lines and facility and other asset-related write-downs as we seek to reduce utilize square footage by over 25%, given our hybrid work environment. We continue to expect that approximately 40% of the combined charges to be cash payments.

5 月份，我們討論了 2200 萬至 2800 萬美元的總費用，以實現我們新的季度支出基礎。今年迄今為止，我們已經產生了2200 萬美元的費用，這些費用是由於對受影響員工的現金遣散費、由於我們更加關注核心戰略產品線和設施以及其他與資產相關的減記而進行的庫存沖銷造成的。鑑於我們的混合工作環境，我們力求將使用面積減少 25% 以上。我們仍然預計合併費用中約 40% 為現金支付。

Our cash balance at the end of the quarter was $88.5 million and remained approximately flat with Q2. We generated $700,000 in free cash flow during the quarter or $3.9 million when excluding $3.2 million of cash restructuring payments incurred during the quarter. We remain very focused on improving our days sales outstanding with a 6-day sequential improvement in Q2 and further accelerated collections expected in the second half of 2023. Given our current accounts receivable balance, expectations for revenue and our new expense base as well as further enhancements to our inventory management, we expect to remain free cash flow positive in the second half of 2023.

本季度末我們的現金餘額為 8850 萬美元，與第二季度大致持平。本季度我們產生了 70 萬美元的自由現金流，如果不包括本季度發生的 320 萬美元的現金重組付款，則為 390 萬美元。我們仍然非常注重改善應收賬款周轉天數，第二季度連續6 天有所改善，預計2023 年下半年收款將進一步加快。考慮到我們當前的應收賬款餘額、收入預期和新的費用基礎以及進一步的由於我們加強庫存管理，我們預計 2023 年下半年自由現金流將保持正值。

Moving on to guidance. At present FX rates, we expect third quarter revenue of between $76 million and $84 million. At those revenue levels and given corresponding non-GAAP gross margin of between 46% and 48% and non-GAAP operating expenses of between $41 million and $42.5 million, we would expect a non-GAAP loss per share of between $0.35 and $0.10.

繼續指導。按照目前的匯率，我們預計第三季度收入將在 7600 萬美元至 8400 萬美元之間。在這些收入水平上，考慮到相應的非GAAP 毛利率在46% 到48% 之間，非GAAP 運營費用在4100 萬美元到4250 萬美元之間，我們預計非GAAP 每股虧損在0.35 美元到0.10美元之間。

As a reminder, Q3 tends to be a seasonally softer quarter for us due primarily to the summer months in Europe. There are exceptions, such as last year Q3 and Q2 this year, where we experienced a strong benefit from backlog reductions. The Q3 2023 projected sequential decline of approximately 10% at the midpoint when considering the effects of these backlog changes is representative of our historical third quarter seasonality.

提醒一下，第三季度對我們來說往往是一個季節性疲軟的季度，這主要是由於歐洲的夏季。但也有例外，例如去年第三季度和今年第二季度，我們從積壓訂單減少中獲得了巨大收益。考慮到這些積壓變化的影響，2023 年第三季度預計環比下降約 10%，這代表了我們歷史上第三季度的季節性。

This concludes our prepared remarks. And at this time, we'd be pleased to take any of your questions.

我們準備好的發言到此結束。此時，我們很樂意回答您的任何問題。

(Operator Instructions) We'll move first to Greg Palm with Craig-Hallum.

（操作員說明）我們將首先與 Craig-Hallum 聯繫 Greg Palm。

Peter, welcome aboard. Look forward to working with you, and congrats on the improved results here in the quarter. So I guess maybe just starting off, revenue even ahead of the top of the range that you provided last quarter, it doesn't sound like the demand environment has changed, but maybe you can just give us a little bit more color on what you saw, whether it was by end market, by geography, whether it was kind of an end of quarter flush because clearly, the quarter came together quite a bit better than, I think, what many of us were thinking a few months ago.

彼得，歡迎加入。期待與您合作，並祝賀本季度業績的改善。所以我想也許才剛剛開始，收入甚至超過了您上季度提供的範圍的頂部，聽起來需求環境沒有改變，但也許您可以給我們更多關於您的內容的信息看到了，無論是按終端市場、按地理位置，還是季末的沖淡，因為很明顯，這個季度的表現比我認為我們許多人幾個月前的想法要好得多。

Allen, would you like to answer that?

艾倫，你願意回答這個問題嗎？

Sure. So Greg, I think relative to our expectations entering the quarter, we were pleasantly surprised to see a couple of folks accelerate some of the decision-making related to opportunities that they had provided us at the beginning of the quarter that they had expected to close out in time a little bit further. And so as we navigated the quarter, we did see some incremental demand as we closed out the quarter.

當然。因此，格雷格，我認為相對於我們進入本季度的預期，我們驚喜地看到一些人加快了與他們在本季度初為我們提供的機會相關的一些決策，他們原本希望關閉這些機會時間稍微遠一點。因此，在本季度結束時，我們確實看到了一些增量需求。

Additionally, we had some upside that we were able to realize based upon material availability becoming available to us predominantly on the Arm and the laser tracker, as we indicated. As we head into the third quarter, you're right, we -- the underlying demand position remains relatively steady with what we saw at the end of the second quarter. We saw it at the end of the second quarter, and it continued into the third quarter, where our pipeline of building opportunities tends to be a bit more out in the outer quarters as opposed to expectations of closing in the third quarter, which is somewhat consistent with traditional seasonality, as we highlighted in our prepared remarks, but also indicating that the continued softness in the PMI and continued pushout of customer decisions appears to be there.

此外，正如我們所指出的，我們能夠根據主要在 Arm 和激光跟踪器上可用的材料可用性來實現一些優勢。當我們進入第三季度時，你是對的，我們的基本需求狀況與我們在第二季度末看到的情況保持相對穩定。我們在第二季度末看到了這一點，並持續到第三季度，我們的建築機會管道往往在外圍季度更多，而不是在第三季度結束的預期，這在某種程度上是正如我們在準備好的評論中所強調的那樣，與傳統的季節性一致，但也表明PMI 持續疲軟以及客戶決策的持續推遲似乎存在。

The good news continues to be that we don't believe we're losing share. We see customers actively pushing demand sideways as opposed to, again, making different decisions in terms of who they're going to buy or what they're going to buy. And so I think that given the longer-term revenue growth and especially on the hardware side that we've now demonstrated and we highlighted in the prepared remarks, we're cautiously optimistic that as the market stabilizes and continues to improve, that we'll be able to enjoy the benefits of that.

好消息仍然是我們不相信我們正在失去市場份額。我們看到客戶積極地橫向推動需求，而不是在購買誰或購買什麼方面做出不同的決定。因此，我認為，考慮到長期收入增長，特別是我們現在已經展示並在準備好的發言中強調的硬件方面，我們謹慎樂觀地認為，隨著市場穩定並持續改善，我們'就能享受到它帶來的好處。

Understood. Just on the Q3 guide, specifically, I understand the comments. But I think that at least at the midpoint, it suggests, I think, a lot more of a sequential decline than what you've seen historically. And so I guess the question is, did some of those Q3 sales get pulled into Q2? Or maybe it's just a little bit of conservatism but just curious what the thought process is on Q3 as well.

明白了。具體來說，就第三季度指南而言，我理解這些評論。但我認為，至少在中點，它表明，我認為，連續下降的幅度比歷史上看到的要大得多。所以我想問題是，第三季度的一些銷售額是否被拉到了第二季度？或者也許這只是一點保守主義，但只是好奇第三季度的思考過程是什麼。

I think -- this is Yuval. I think that what you see right now is seasonality, also getting signals from our customers in some areas that are delaying buying decisions. Seasonality, of course, last year, Q2 was -- I mean, Q3 was unique. And we basically expect to see a decline -- I'm sorry, Q2, it was unique. We see to see a decline mainly because of seasonality. And also, we're being cautious.

我想——這就是尤瓦爾。我認為你現在看到的是季節性，同時也從某些地區的客戶那裡得到了延遲購買決策的信號。當然，季節性，去年第二季度是——我的意思是，第三季度是獨一無二的。我們基本上預計會出現下降——對不起，第二季度，這是獨一無二的。我們看到下降主要是因為季節性。而且，我們也很謹慎。

We see some headwinds coming from the AEC market, the 3D AM, the manufacturing market is spotty and tend to be changing based on industries and regions. So what you see is a result of our analysis of the market and expectation going forward.

我們看到一些阻力來自 AEC 市場、3D AM、製造市場參差不齊，並且往往會根據行業和地區而變化。所以你所看到的是我們對市場和未來預期的分析結果。

And Greg, just another comment around the sequential because recent history is a little bit hard to interpolate, given COVID and the effect in 2020, the recovery from COVID in 2021, we certainly saw some odd sequential changes by quarter that is not typical of our history.

格雷格（Greg），這只是關於連續性的另一條評論，因為最近的歷史有點難以插值，考慮到新冠病毒和2020 年的影響，以及2021 年從新冠病毒中恢復過來的情況，我們當然看到了一些奇怪的按季度連續變化，這不是我們的典型情況。歷史。

And so if you look back in '18 and '19, the 10% sequential decline is right in the wheelhouse of where we have historically been. And I know that's ancient history, but unfortunately, we do have to go back a while before we see things where it's not affected by the broader demand environment, where it's not available -- where it's not impacted by material availability challenges that cause revenue to be recognized in one quarter and demand in another. So that combined with, as you've all indicated, just the pipeline of opportunities that we see the 2 line up and a desire to be somewhat conservative, the 3 line up to how we guided.

因此，如果你回顧 18 年和 19 年，就會發現 10% 的環比下降正是我們歷史上的情況。我知道那是古老的歷史，但不幸的是，我們確實必須回顧一段時間，才能看到那些不受更廣泛需求環境影響的事情，那些不可用的事情——那些不受材料可用性挑戰影響的事情，這些挑戰導致收入下降在一個季度得到認可，在另一個季度得到需求。因此，正如你們都指出的那樣，我們看到了 2 條路線的機會渠道，以及我們希望保持一定保守的願望，3 條路線符合我們的指導方式。

Yes. Okay. Makes sense. And I guess last one for Peter, if I can. This question, maybe it's not fair because you've only been in the role for a little over a week, but just kind of curious, as you've looked around what excites you most? I mean, anything that you think from a strategic standpoint that can be changed, that can be approved upon? And a little bit more color on why you joined, that would be helpful as well.

是的。好的。說得通。如果可以的話，我想最後一張是給彼得的。這個問題，也許不公平，因為你只擔任這個角色一周多一點，但只是有點好奇，因為你環顧四周，什麼最讓你興奮？我的意思是，從戰略角度來看，您認為任何可以改變、可以批准的事情？進一步說明您加入的原因，這也會有幫助。

Yes. Sure, Greg. Thanks for the question. Strategically, I think our strategy is sound, and it's all about execution for us in the short and midterm. I think exciting technology at FARO right at the convergence of hardware and software and a really fast-moving and growing market is a pretty exciting place to be.

是的。當然，格雷格。謝謝你的提問。從戰略上講，我認為我們的戰略是合理的，而這一切都與我們在短期和中期的執行有關。我認為 FARO 的令人興奮的技術正好融合了硬件和軟件以及真正快速發展和增長的市場，這是一個非常令人興奮的地方。

The opportunity to strategically drive revenue growth in FARO, combined with our operating execution opportunity that's right there in front of us, will give us the ability to expand margins and generate cash. And that's very exciting. And I think it's a great opportunity for us to create value for all of our shareholders.

戰略性推動 FARO 收入增長的機會，加上我們眼前的運營執行機會，將使我們有能力擴大利潤並產生現金。這非常令人興奮。我認為這是我們為所有股東創造價值的絕佳機會。

And we'll move next to Andrew DeGasperi with Berenberg.

接下來我們將與貝倫貝格一起請安德魯·德加斯佩里發言。

Peter, I know it's only been recently you joined and just wondered in terms of the strategy that was implemented before your arrival. I guess maybe if you could broadly discuss, do you think there's any changes that you would make going forward, number one? And number two, in terms of the previous experience you've had at other firms, can you maybe elaborate in terms of how did you essentially commercialize the software hardware solutions? And do you see a similar path for FARO to do so?

彼得，我知道你最近才加入，只是想知道你到來之前實施的戰略。我想也許如果你可以廣泛討論，你認為你未來會做出什麼改變，第一？第二，根據您之前在其他公司的經驗，您能否詳細說明一下您是如何將軟件硬件解決方案商業化的？您是否認為 FARO 也有類似的做法？

Yes. Thank you very much for the question. In terms of strategy changes, as I mentioned, I think the strategy is very sound. There may be degrees of changes as they get in and look under the hood, but I don't think material strategy changes are on the horizon. Again, I think the opportunity for execution ahead of us is there, and it's there for the taking. And I think that execution is going to enable us to create a lot of shareholder value.

是的。非常感謝你的提問。至於策略的改變，正如我提到的，我認為這個策略是非常健全的。當他們深入了解幕後情況時，可能會發生一定程度的變化，但我認為不會出現實質性的戰略變化。再說一次，我認為我們面前的執行機會就在那裡，而且就在那裡，等待著我們去抓住。我認為執行力將使我們能夠創造大量股東價值。

Over the last 2 decades, I've spent with industrial, multinational corporations and pretty high technology businesses where both hardware and software offerings intersected really to create customer value. And I see the same opportunity here at FARO. The similarities between those businesses that I've run and what's here is pretty striking.

在過去的 20 年裡，我曾在工業、跨國公司和相當高科技的企業工作過，這些企業的硬件和軟件產品真正交叉，以創造客戶價值。我在 FARO 看到了同樣的機會。我經營的這些企業與這裡的企業之間的相似之處非常驚人。

Most of the businesses were public, had hardware and software sales were all global in nature. We all required some form of transformation to new business models and a keen understanding of agile product development, and we're all in really fast-paced environment that places a premium on urgency and execution. All the same stuff that I see here and what the opportunity is ahead of us for FARO.

大多數企業都是上市企業，硬件和軟件銷售本質上都是全球性的。我們都需要某種形式的向新業務模式的轉型，以及對敏捷產品開發的敏銳理解，而且我們都處於非常快節奏的環境中，這種環境非常重視緊迫性和執行力。我在這裡看到的所有內容以及 FARO 面臨的機會都是一樣的。

And if we do those, I think we execute on those key priorities. We've got an opportunity to continue on this growth trajectory, expand the margins, which is grow the bottom line faster than the top line and increase our cash flow generation.

如果我們做到了這些，我認為我們就執行了這些關鍵優先事項。我們有機會繼續沿著這種增長軌跡，擴大利潤率，即利潤增長快於收入，並增加我們的現金流量。

That's helpful. And then maybe if I may, on the way you just said in terms of grow the bottom line -- and I mean, if by any chance -- and it doesn't sound like it, but are you precautious -- taking precaution and sort of cutting more on the expense side to reflect the current weakness in the macro? Or is this -- in other words, we should expect some weaker revenue for a while?

這很有幫助。然後也許我可以的話，就像你剛才所說的那樣，增加利潤——我的意思是，如果有任何機會的話——聽起來不像，但你是否謹慎——採取預防措施和是否會進一步削減開支以反映當前宏觀經濟的疲軟？或者換句話說，我們應該預期收入會在一段時間內出現疲軟？

And in other words, are you essentially making that -- creating that balance between margin and growth? And if not, what kind of revenue level would you say -- after this change in the cost structure, would you say your EBITDA margins potentially would land at? Is it still around that 20% that was discussed previously?

換句話說，您是否本質上做到了這一點——在利潤率和增長之間建立平衡？如果不是，你會說什麼樣的收入水平——在成本結構發生變化之後，你會說你的 EBITDA 利潤率可能會達到什麼水平？還在之前討論的那個20%左右嗎？

Yes. So maybe a little early to get into real detail about kind of what we expect on the expenses and certainly on the revenue given the uncertainty in the macroeconomic environment. What I can say is that I think we have a tremendous opportunity in the gross margin. I think we have opportunity as we grow to lever the improved fixed cost base that we've set out the actions for here in Q2 that we'll begin to see the benefit of in Q3 and Q4 and then obviously into 2024 as well.

是的。因此，考慮到宏觀經濟環境的不確定性，現在詳細了解我們對支出以及收入的預期可能還為時過早。我能說的是，我認為我們在毛利率方面有巨大的機會。我認為，隨著我們的成長，我們有機會利用改進的固定成本基礎，我們已經在第二季度製定了行動，我們將在第三季度和第四季度開始看到好處，然後顯然也會進入2024年。

Yes. If I may chime in, this is Yuval. The Q2 actions we've taken, the majority of the actions will be realized in Q3 and Q4. In fact, we have accelerated our program in the restructuring to realize the benefit as soon as possible and also with a look into the future.

是的。請允許我插話一下，我是尤瓦爾。我們在第二季度採取的行動，大部分行動將在第三季度和第四季度實現。事實上，我們加快重組計劃是為了盡快實現效益，也是著眼於未來。

The way we approached it was very surgical. We restructured for efficiency, simplicity, speed, focus and synergies. And a lot of the benefit of these restructuring and cost savings will be realized during the second half of this year as early as Q3.

我們處理這個問題的方式非常外科手術式。我們進行了重組，以提高效率、簡單性、速度、重點和協同效應。這些重組和成本節約的許多好處最早將在今年下半年第三季度實現。

Obviously, as Pete is going to spend more time under the hood more than the 1.5 weeks, he's going to have the opportunity to really look deep into the company and address all the questions you raised. Both myself and Pete has deep, deep experience in operational excellence, operational leverage, running companies in an efficient way, driving execution fast and realizing shareholder value.

顯然，由於 Pete 將在幕後花更多的時間而不是 1.5 週，因此他將有機會真正深入了解公司並解決您提出的所有問題。我和皮特在卓越運營、運營槓桿、高效運營公司、快速推動執行和實現股東價值方面擁有深厚的經驗。

And a lot of what we expect to see, a lot of the excitement that we see right now is the cross-section between the vast opportunities we have here and the experience management has to deliver on those opportunities.

我們期望看到的很多東西，我們現在看到的很多令人興奮的東西，都是我們在這裡擁有的巨大機會和經驗管理必須提供這些機會之間的交叉點。

Andrew, the only other thing I might add is you asked the question around revenue effect, and I think as Yuval indicated and again, in our prepared remarks, how we've outlined and how we've surgically made those changes, we do not expect those changes to adversely affect our ability to be able to generate revenue over the longer term and even in the near term. It's not going to have an effect on us. So at least that's the current expectation.

安德魯，我要補充的唯一一件事是你問了有關收入影響的問題，我認為正如尤瓦爾所指出的那樣，在我們準備好的發言中，我們如何概述以及如何通過手術進行這些改變，我們不預計這些變化會對我們在長期甚至短期內創造收入的能力產生不利影響。它不會對我們產生影響。所以至少這是目前的預期。

We were able to eliminate redundancies resulting from acquisitions, some redundancy in terms of cloud environments, et cetera. So we feel pretty good about our ability to be able to continue on with revenue levels.

我們能夠消除收購造成的冗餘、雲環境方面的一些冗餘等。因此，我們對繼續維持收入水平的能力感到非常滿意。

(Operator Instructions) We'll move next to Joseph Donahue with Baird.

（操作員指示）我們將與貝爾德一起移至約瑟夫·多納休 (Joseph Donahue) 旁邊。

It looks like geographically, the trends were maybe the strongest year-over-year in the Americas, weakest in Asia. Could you just give us a general overview of how sales are trending by geographies that give us some more perspective into that?

從地理上看，美洲的同比趨勢可能最強，亞洲最弱。您能否向我們大致介紹一下各個地區的銷售趨勢，以便我們對此有更多的了解？

Allen, do you have this information?

艾倫，你有這些信息嗎？

Sure. I sure do. So in the Americas, I think we've benefited from a very strong organization and strong leadership of the organization, and the relative growth in the Americas has been quite strong. It also has not had the unfortunate effect of a weakening dollar or weakening dollar over the -- excuse me, a strengthening dollar over the prior 12 months. And therefore, we've seen some relatively steady performance that has continued in the first half of 2023.

當然。我當然知道。因此，在美洲，我認為我們受益於非常強大的組織和強有力的組織領導，而且美洲的相對增長相當強勁。它也沒有產生美元貶值或美元貶值超過過去 12 個月美元升值的不幸影響。因此，我們看到 2023 年上半年繼續保持相對穩定的表現。

In EMEA, it's been a little bit more sporadic. The second quarter in EMEA, we had a very strong particular period. I think we saw some very nice performance within the 3D metrology space, specifically within automotive and aerospace that helped us as we closed out the quarter.

在歐洲、中東和非洲地區，這種情況更加零星。在歐洲、中東和非洲地區，第二季度我們經歷了一個非常強勁的特殊時期。我認為我們在 3D 計量領域看到了一些非常好的表現，特別是在汽車和航空航天領域，這對我們在本季度結束時有所幫助。

And then Asia Pacific tends to be a bit of an area where we need to spend a bit of time and focus on because in the quarter, APAC was a bit of a decliner for us, leading us overall to have a 10% revenue growth basis.

然後亞太地區往往是我們需要花一些時間和重點關注的地區，因為在本季度，亞太地區對我們來說有點下滑，導致我們整體收入增長了 10% 。

As we -- as I commented earlier, the hardware growth for us overall has been quite strong over the last year, where we've grown roughly about 8% on an actual currency basis, when you exclude the effects of acquisitions and on a constant currency basis, closer to 12%.

正如我之前所評論的，去年我們的整體硬件增長相當強勁，當您排除收購的影響並按恆定匯率計算時，我們以實際貨幣計算大約增長了 8% 左右。以貨幣計算，接近12%。

And so we think we've got the right products. We think we've got the right sales organization to go capitalize on these products, and we look forward to continuing the progress that we've made here over the last 12 months into the next several quarters.

所以我們認為我們擁有正確的產品。我們認為我們已經擁有合適的銷售組織來充分利用這些產品，我們期待在接下來的幾個季度繼續取得過去 12 個月取得的進展。

That's great. And kind of continuing on that line, the release today mentioned taking some products out of the portfolio. Can you give any perspective on how this could contribute to gross margin in the second half and maybe 2024 or how it could potentially impact the top line?

那太棒了。今天的發佈內容延續了這一路線，提到將一些產品從產品組合中剔除。您能否就這對下半年乃至 2024 年的毛利率有何貢獻，或者對營收有何潛在影響給出任何看法？

The products that we're referring to are products that are a bit around the periphery. So they are, of course, not our laser scanner, not our Arm and not our laser tracker. I won't go into the details of specifically which ones, but there's a couple of them that have launched over, I want to say, probably 3 or 4 years ago, that have not benefited our revenue materially and therefore, has not really affected our gross margin materially either.

我們所說的產品是一些邊緣產品。所以它們當然不是我們的激光掃描儀，不是我們的手臂，也不是我們的激光跟踪器。我不會詳細介紹具體是哪些，但我想說，有幾個已經推出了，可能是三四年前，它們並沒有給我們的收入帶來實質性好處，因此並沒有真正影響我們的收入。我們的毛利率也很重要。

And so we don't expect to see any significant change in top line or bottom line as a result of the changes. What you will see, though, internally, at least, is an ability to be able to focus more heavily on the products that really matter to us. And that streamlining and that focus has been a mantra of ours that we expect to continue into the future and help us become more and more successful over time.

因此，我們預計這些變化不會導致營收或利潤出現任何重大變化。不過，至少在內部，您將看到能夠更加專注於對我們真正重要的產品的能力。這種精簡和專註一直是我們的座右銘，我們希望在未來繼續下去，並幫助我們隨著時間的推移變得越來越成功。

And it does appear that there are no further questions at this time. I would now like to turn the call back to Yuval Wasserman for any closing remarks.

目前看來確實沒有其他問題了。我現在想將電話轉回尤瓦爾·瓦瑟曼，請其發表結束語。

Thanks, everyone, for joining us today. Q2 was a good quarter for us, realizing some of the changes we're implementing and realizing earlier results than we planned. We're excited about the future. We're excited about the opportunities ahead of us, and we're excited with the new leadership in the company, and we're looking forward to speaking to many of you in the near future. Thank you so much.

謝謝大家今天加入我們。第二季度對我們來說是一個不錯的季度，我們實現了正在實施的一些變革，並比我們計劃更早地實現了結果。我們對未來感到興奮。我們對面前的機會感到興奮，對公司的新領導層感到興奮，我們期待在不久的將來與你們中的許多人交談。太感謝了。

This does conclude today's program. Thank you for your participation. You may disconnect at any time, and have a wonderful evening.

今天的節目到此結束。感謝您的參與。您可以隨時斷開連接，並度過一個美好的夜晚。