FARO TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

June 30,
 2019
(unaudited)

December 31,
 2018

ASSETS

Current assets:

Cash and cash equivalents

$

120,604

$

108,783

Short-term investments

24,819

24,793

Accounts receivable, net

74,430

88,927

Inventories, net

71,970

65,444

Prepaid expenses and other current assets

26,437

28,795

Total current assets

318,260

316,742

Property and equipment:

Machinery and equipment

82,909

76,048

Furniture and fixtures

6,245

6,749

Leasehold improvements

20,636

20,304

Property and equipment at cost

109,790

103,101

Less: accumulated depreciation and amortization

(79,664)

(72,684)

Property and equipment, net

30,126

30,417

Operating lease right-of-use asset

18,068

—

Goodwill

71,210

67,274

Intangible assets, net

28,659

33,054

Service and sales demonstration inventory, net

39,416

39,563

Deferred income tax assets, net

14,732

14,719

Other long-term assets

2,983

4,475

Total assets

$

523,454

$

506,244

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

16,177

$

20,093

Accrued liabilities

37,865

36,327

Income taxes payable

2,386

5,081

Current portion of unearned service revenues

35,082

32,878

Customer deposits

2,701

3,144

Lease liability

6,494

—

Total current liabilities

100,705

97,523

Unearned service revenues - less current portion

17,355

15,505

Lease liability - less current portion

13,483

—

Deferred income tax liabilities

2,614

736

Income taxes payable - less current portion

11,821

12,247

Other long-term liabilities

3,137

3,624

Total liabilities

149,115

129,635

Shareholders' equity:

Common stock - par value $.001, 50,000,000 shares authorized; 18,751,573 and 18,676,059
issued, respectively; 17,339,062 and 17,253,011 outstanding, respectively

19

19

Additional paid-in capital

255,706

251,329

Retained earnings

168,773

175,353

Accumulated other comprehensive loss

(18,784)

(18,483)

Common stock in treasury, at cost; 1,412,511 and 1,423,048 shares, respectively

(31,375)

(31,609)

Total shareholders' equity

374,339

376,609

Total liabilities and shareholders' equity

$

523,454

$

506,244