FARO TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

March 31, 2020
(unaudited)

December 31,
2019

ASSETS

Current assets:

Cash and cash equivalents

$

157,240

$

133,634

Short-term investments

15,955

24,870

Accounts receivable, net

58,834

76,162

Inventories, net

55,044

58,554

Prepaid expenses and other current assets

21,237

28,996

Total current assets

308,310

322,216

Non-current assets:

Plant and equipment, net

24,515

26,954

Operating lease right-of-use asset

16,534

18,418

Goodwill

48,661

49,704

Intangible assets, net

13,820

14,471

Service and sales demonstration inventory, net

34,355

33,349

Deferred income tax assets, net

21,036

18,766

Other long-term assets

2,818

2,964

Total assets

$

470,049

$

486,842

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

11,396

$

13,718

Accrued liabilities

44,360

38,072

Income taxes payable

3,826

5,182

Current portion of unearned service revenues

38,561

39,211

Customer deposits

2,115

3,108

Lease liability

5,947

6,674

Total current liabilities

106,205

105,965

Unearned service revenues - less current portion

19,985

20,578

Lease liability - less current portion

12,745

13,698

Deferred income tax liabilities

173

357

Income taxes payable - less current portion

13,177

13,177

Other long-term liabilities

974

1,075

Total liabilities

153,259

154,850

Shareholders' equity:

Common stock - par value $.001, 50,000,000 shares authorized; 19,116,870 and
18,988,379 issued, respectively; 17,718,179 and 17,576,618 outstanding, respectively

19

19

Additional paid-in capital

270,940

267,868

Retained earnings

98,056

112,879

Accumulated other comprehensive loss

(21,177)

(17,399)

Common stock in treasury, at cost; 1,398,691 and 1,411,761 shares, respectively

(31,048)

(31,375)

Total shareholders' equity

316,790

331,992

Total liabilities and shareholders' equity

$

470,049

$

486,842