| FARO Technologies, Inc. | |||
| Ticker: | FARO | 125 Technology Park | |
| Exchange: | NASDAQ-National Market | Lake Mary, FL 32746 | |
| Industry: | Manufacturing (SIC Code 3829) | (407) 333-9911 | |
| # of Employees: | 104 | ||
| Type of Shares: | Common Shares | Filing Date: | 8/6/97 | |
| U.S. Shares: | 3,360,000 | Offer Date: | 9/17/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $10.00 - $12.00 | |
| Primary Shares: | 2,760,000 | Offer Price: | $12.00 | |
| Secondary Shares: | 600,000 | Gross Spread: | $0.84 | |
| Offering Amount: | $36,960,000 | Selling: | $0.49 | |
| Expenses: | $500,000 | Reallowance: | $0.10 | |
| Shares Out After: | 8,700,000 |
| Manager | Tier | Phone |
| Raymond James & Associates, Inc. | Lead Manager | (813) 573-8108 |
| Hanifen, Imhoff Inc. | Co-manager | (303) 296-2300 |
| Issuer's Law Firm: | Foley & Lardner |
| Bank's Law Firm: | King & Spalding |
| Auditor: | Deloitte & Touche |
| Registrar/Transfer Agent: | Firstar Bank Milwaukee, N.A. |
Dollar amounts in U.S. millions except for per share data | |||||
| 6 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/96 | 6/30/97 | 6/30/96 | 6/30/97 | ||
| Revenue: | $14.66 | $10.32 | $6.46 | Assets: | $10.56 |
| Net Income: | $1.41 | $1.26 | $0.68 | Curr Assets: | $8.97 |
| EPS: | $0.19 | $0.17 | $0.09 | Liabilities: | $5.21 |
| Prior EPS: | $0.22 | $0.27 | $0.73 | Curr Liabilities: | $3.99 |
| Cash Flow/Oper: | $1.52 | -$0.83 | -$0.30 | Equity: | $5.35 |
| Cash Flow/Fin: | -$0.71 | -$0.41 | -$0.27 | Cash: | $0.12 |
| Cash Flow/Inv: | -$0.55 | -$0.41 | Working Cap: | $4.98 | |
| Business Description |
| The company designs, develops, markets and supports portable, software-driven, three dimensional measurement systems that are used in a broad range of manufacturing and industrial applications. The Company's principal products are the FAROArm(R) articulated measuring device and its companion AnthroCam(R) software. Together, these products integrate the measurement and quality inspection function with computer-aided design ("CAD"), computer-aided manufacturing ("CAM") and computer-aided engineering ("CAE") technology to improve productivity, enhance product quality and decrease rework and scrap in the manufacturing process. The Company's products bring precision measurement, quality inspection and specification conformance capabilities, integrated with leading CAD software, to the factory floor. The Company is a pioneer in the development and marketing of 3-D measurement technology for manufacturing and industrial applications and currently holds or has pending 18 patents in the United States, eight of which also are held or pending in other jurisdictions. The Company's products have been purchased by more than 600 customers worldwide, ranging from small machine shops to such large manufacturing and industrial companies as General Motors, Chrysler, Ford, Boeing, Lockheed Martin, General Electric, Westinghouse Electric, Caterpillar and Komatsu Dresser. |
| Competition |
| The broad market for measurement devices for manufacturing and industrial applications, which consists primarily of hand-measurement tools and CMMs, is highly competitive. Manufacturers of hand-measurementtools and CMMs include a significant number of well-established companies that are substantially larger and possess substantially greater financial, technical and marketing resources than the Company. The Company's products compete on the basis of portability, accuracy, application features, ease-of-use, quality, price and technical support. These entities or others may develop products or technologies that will directly compete with those of the Company. Furthermore, there can be no assurance that the Company will have sufficient resources to make additional investments in such products and technologies or that the Company's product development efforts will allow the Company to compete successfully as the industry evolves. The worldwide trend toward CAD-based factory floor metrology has resulted in the introduction of CAD-based inspection software for conventional CMMs by most of the large CMM manufacturers. Certain CMM manufacturers also are miniaturizing, and in some cases increasing the mobility of, their conventional CMMs. There can be no assurance that CMM manufacturers will not alter their products to provide functions which are competitive with those of the Company's products. The Company also competes with a number of smaller companies that market articulated arm measuring devices. There can be no assurance that such companies will not devote additional resources to the development and marketing of products that compete with those of the Company. |
| Business Plan |
| The company's objective is to strengthen its position as the leading provider of portable, software-driven, 3-D measurement systems. To achieve this objective, the company has adopted the following principalstrategies: (I) Focus on the Portable 3-D Measurement Market, (ii) Further Penetrate its Installed Customer Base, (iii) Increase International Sales, (iv) Leverage its Technology and (v) Expand its Product Line and Service Offerings. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for repayment of indebtedness, capital expenditures, working capital and general corporate purposes, including possible acquisitions. |
| Name of Shareholder | % Owned Before | % Owned After |
| Simon Raab, Ph.D. | 44.30% | 33.80% |
| Gregory A. Fraser, Ph.D. | 7.70% | 5.70% |
| Andre Julien | 7.30% | 5.40% |
| Alexandre Raab | 6.60% | 5.30% |
| Officer Name | Title | Age |
| Simon Raab, Ph.D. | Chairman of the Cboard, President Chief Executive Officer and Director | 44 |
| Ali S. Sajedi | Chief Engineer | 37 |
| Gregory A. Fraser, Ph.D. | Chief Financial Officer, Executive Vice President, Secretary, Treasurer and Director | 42 |
| Daniel T. Buckles | Vice President -- Sales | 42 |