FARO Technologies forms OEM partnership with metrology firm

FARO Technologies Inc. (NASDAQ:FARO), a Florida-based company specializing in measuring and controlling devices with a market capitalization of $557 million, announced today a significant OEM partnership agreement with a leading metrology company. According to InvestingPro analysis, FARO currently trades near its 52-week high, having delivered an impressive 94% return over the past six months. This strategic move, formalized on January 28, 2025, allows the unnamed partner to white label FARO’s products and leverage its extensive global marketing network and supply chain to distribute these products widely.

The partnership is expected to enhance FARO’s market reach through the partner’s established distribution channels. While the specific terms of the deal have not been disclosed, the agreement is multi-year, indicating a long-term collaboration between FARO and its new partner.

This development is furnished to the Securities and Exchange Commission (SEC) and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934 or incorporated by reference into any of the company’s filings under the Securities Act of 1933, whether made before or after today’s date, except as expressly set forth by specific reference in such a filing. While FARO maintains a healthy gross profit margin of 55.7%, InvestingPro data indicates the company operates with moderate debt levels and strong liquidity position.

FARO’s forward-looking statements in the report come with the usual caveats, highlighting that they are subject to risks and uncertainties and are not guarantees of future performance. The company cautions investors not to place undue reliance on these projections, as actual outcomes could differ due to various factors, including unforeseen changes in the nature and timing of the partnership.

The announcement reflects FARO’s ongoing efforts to expand its presence in the global market for precision measurement and imaging solutions. The company’s stock is traded on the Nasdaq Global Select Market, and this latest move could potentially impact its future financial performance. While the company has not provided guidance on the partnership’s financial implications, investors should note that FARO’s next earnings report is scheduled for February 12, 2025. For deeper insights into FARO’s valuation and growth prospects, including 8 additional ProTips and comprehensive financial analysis, visit InvestingPro.

This news article is based on the information contained in a press release statement.

In other recent news, Faro Technologies has been the subject of positive analyst attention. Craig-Hallum’s Greg Palm recently upgraded the company’s price target from $33.00 to $36.00, retaining a Buy rating. This adjustment follows Faro’s updated long-term margin goals, presented at a competitor’s conference. The company now targets a 20% EBITDA margin at $400 million in revenue, up from the previous 15% goal. At current revenue levels of $340 million, Faro expects to achieve EBITDA margins between 13-15%, surpassing the initial 11% margin planned for fiscal year 2025.

These recent developments have led to increased investor confidence in Faro’s potential to reach $100 million in EBITDA in the near future. Craig-Hallum’s revised price target anticipates a positive outlook from Faro Technologies when it announces its fourth-quarter results. The analyst’s projection is based on the belief that Faro Technologies is in the "early innings" of a larger move, indicating that the current stock performance is just the beginning of its growth potential. The company’s strategic initiatives are anticipated to materialize and positively impact its financial outcomes in the coming year.

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