FARO Technologies Profile
FARO Technologies, Inc. (FARO) operates as a global technology company.
The company designs, develops, manufactures, markets, and supports software driven, three-dimensional ('3D') measurement, imaging, and realization solutions for the manufacturing, architecture, engineering and construction ('AEC'), operations and maintenance ('O&M') and public safety analytics markets.
The company enables its customers to capture, measure, manipulate, interact with and share 4D, 3D and 2D data from the physical world in a virtual environment and then translate this information back into the physical domain. The company's broad technology set equips its customers with a wide selection of 3D capture technologies that range from ultra-high accuracy laser-scanner-based technology to lower accuracy, photogrammetry-based technology. The company's FARO suite of 3D products and software solutions are used for inspection of components and assemblies, rapid prototyping, reverse engineering, documenting large volume or structures in 3D, surveying and construction, construction management, assembly layout, machine guidance, as well as in investigation and reconstructions of crash and crime scenes.
The company sells the majority of its solutions through a direct sales force, with an increasing volume being sold through an indirect channel across a range of sectors, including manufacturing, surveying, architecture, engineering and construction, public safety forensics and other industries.
Strategy
The company strategically pursues growth and long-term profitability through a combination of strategic acquisitions to bolster the company's investment in software development, and optimize targeted restructuring initiatives.
FARO Products
FaroArm Portfolio. The FaroArm portfolio consists of a combination of a portable, articulated measurement arm available in various sizes, a computer, and CAM2 software programs, which are described below under 'FARO Software', and optional laser line probes ('LLP') for scanning larger objects. They are primarily sold to customers in the automotive, aerospace, metal and machine fabrication industries.
Quantum Max and Gage Max FaroArm - The Quantum Max series of articulated arms comes in various sizes ranging from 2.0 meters up to 4.0 meters in probing diameter to allow for measuring a large array of part sizes. The 2.0 meter Quantum Max FaroArm and 1.5 meter Gage Max FaroArm, offer the highest accuracy for measuring small parts, molds and assemblies replacing the need for small handheld tools, such as micrometers, calipers and height gauges. The Quantum Max and Gage Max FaroArms are ergonomically designed 6- or 7-axis articulated ARMs that have the ability to measure across a wide range of sizes and accuracies in various applications and industries. FaroArm 8-axis allows additional degrees of freedom to capture the most complex parts.
Quantum Max ScanArm - The FAROBlu line of laser line probes ('LLP') offer the ability to upgrade a Quantum Max FaroArm into a Quantum Max ScanArm providing high accuracy, 3D point-cloud data in full color. As with the Quantum Max FaroArm, the Quantum Max ScanArm is available from 2.0 meters to 4.0 meters measuring diameter to allow for a wide range of applications at a wide range of part sizes. The LLP provides the user the ability to achieve high-speed point cloud capture with different density through basic, standard and high-definition models. The Quantum Max ScanArm offers the same portability and ease of use as the Quantum Max FaroArm series.
FARO Laser Tracker. The FARO Vantage Laser Tracker combines a portable, large-volume laser measurement tool, a computer, and CAM2 software programs, representing a product offering primarily sold to customers in the aerospace, automotive, metal and machine fabrication industries.
Vantage - The FARO Laser Tracker Vantage utilizes a laser beam for ultra-precise measurement of objects of up to 80 meters. It enables manufacturing, engineering, and quality control professionals to build, measure and inspect large parts, machine tools and other large objects, on-site and in-process.
Vantage Max - The higher end Laser Tracker maximizes 6 degrees of freedom (6DoF) measurement capabilities via the optional 6Probe, enabling precise measurement of hidden areas and small features. The Vantage Max provides more accurate 6DoF probing that helps speed up inspections and reduce the number of tooling changes and device moves.
FARO Laser Projector. The FARO TracerM and TracerSI accurately project a laser outline onto a 3D surface or object, providing a virtual template that operators and assemblers can use to quickly and accurately position components. The laser template is created using a 3D Computer-Aided Design ('CAD') model that enables the system to visually project a laser outline of parts, reference points, or areas of interest. The result is a virtual and collaborative 3D template to eliminate scrap and streamline a wide range of assembly and production applications. This product is primarily sold to customers in the aerospace, metal working and AEC industries.
FARO Laser Scanning Portfolio. The laser scanning portfolio utilizes laser technology to measure and collect a cloud of data points, allowing for the detailed and precise 3D rendering of an object or area. This technology is primarily used for factory planning, facility life-cycle management, quality control, forensic analysis and capturing large volumes of 3D data.
Focus - The FARO Focus Laser Scanner utilizes laser technology to measure and collect a cloud of data points, allowing for the accurate and photorealistic 3D representations of an object or environment, such as building, facility, street, mine or even crash/crime scene. The Focus is available in several models which allow the customer to choose the best capability for their applications: Focus Core, Focus Premium (available with different ranges: 70m, 150m and 350m). The Focus connects with the FARO Stream mobile app, bridging FARO hardware to the FARO Sphere cloud environment. Users can also benefit from Hybrid Reality Capture, powered by Flash Technology. The new scan mode for the FARO Focus Premium Laser Scanner is available as an add-on subscription that combines the accuracy of a 3D scan with the speed of a panoramic camera. This product line is primarily sold to customers in the AEC and public safety industries.
Freestyle 2 - The FARO Freestyle 2 is a high-quality, portable 3D scanner designed for photorealistic 3D reality capture. It is a lightweight, handheld device with a high degree of flexibility, allowing operators to scan anywhere in most conditions. This product is primarily sold to customers in the AEC and public safety industries.
FARO Mobile Laser Portfolio. The Mobile Scanner Portfolio, inherited from the GeoSLAM acquisition, uses LiDAR technology and SLAM technology to provide fast, highly portable accurate 3D scanning. The portability allows for these solutions to be used in difficult environments and attached to other mobile devices such as drones.
Orbis - The FARO Orbis is a unique hybrid mobile scanning solution created to optimize workflows and elevate productivity. It can be used for both mobile and stationary data capture in one device. Designed for construction, engineering and surveying professionals, Orbis delivers rapid speed of capture, while returning highly accurate 3D visual representations of the real world. Integrating FARO's Flash Technology in Orbis allows for stationary scans in just 15 seconds and provides unrivaled detail from a mobile mapping solution. As with the FARO Focus laser scanner, Orbis is operated with FARO Stream mobile app and connects to the company's FARO Sphere cloud environment.
GeoSLAM Zeb - The legacy GeoSLAM Zeb series is still offered. Several models (Zeb Go, Zeb Revo, Zeb Horizon) provide different levels of point cloud density, range and accuracy.
FARO Software. The company provides a complete portfolio of software solutions that integrate with FARO hardware products to merge data and provide collaborative workflows and applications.
FARO Sphere XG is a cloud-based digital reality platform that provides its users a centralized, collaborative experience across the company's reality capture applications. When paired with the Stream mobile app, Sphere XG enables faster 3D data capture, processing and project management from anywhere in the world.
CAM2 allows users in the 3D metrology market to efficiently fulfill quality assurance and inspection tasks. CAM2 is offered under either a subscription based plan or as a standalone licensed product.
BuildIT Metrology is a 3D metrology software platform for alignment, inspection and build applications. BuildIT Metrology is offered under either a subscription based plan or as a standalone licensed product.
BuildIT Projector allows manufacturers to plan and operate imaging laser projection and verification workflows to improve the quality and speed of assembly processes. BuildIT Projector is offered under either a subscription based plan or as a standalone licensed product.
BuildIT Construction is a construction quality control software solution that leverages reality data to uncover design deviations compared to construction industry standards. BuildIT Construction is offered under either a subscription based plan or as a standalone licensed product.
FARO SCENE software combines ease-of-use, networking, and an enhanced 3D experience to deliver a complete scan processing solution. With SCENE, customers can display, analyze, administer and edit 3D point clouds. FARO SCENE is offered under either a subscription based plan or as a standalone licensed product.
FARO Connect automatically processes mobile scanning data that allows customers to perform additional workflows. It has the capability to provide point cloud measurements, classify the data and perform manual and automatic alignment of multiple data sets. FARO Connect is offered under either a subscription based plan or as a standalone license product.
FARO Zone allows public safety professionals to diagram, analyze and share any scene, available in both 2D and 3D. The software combines data to accelerate forensic crime investigations, crashes and pre-incident planning. FARO Zone is offered under either a subscription based plan or as a standalone licensed product.
FARO As-Built enables AEC professionals to integrate reality data into any CAD and virtual design environment for buildings. FARO As-Built is offered under either a subscription based plan or as a standalone license product.
Webshare is a native cloud platform that allows users to collaborate, view, share and explore 3D reality data securely and directly from any common web browser. Webshare is offered as a subscription based plan.
Holobuilder is a cloud based virtual reality capturing software that allows construction contractors to create, document, analyze, compare and share virtual 3D views of construction projects utilizing commercially available 360° cameras. Holobuilder is offered as a subscription based plan.
SiteScape is a cloud based virtual reality capturing software that uses the Apple LiDAR sensor as a core part of its 3D scanning engine. This software allows users to capture up to 10 scans back-to-back and seamlessly merge them into a single, accurate model. Scans and models can be cloud hosted with the SiteScape web application.
Hardware Warranty, Repair & Other Services
The company generally warrants its products against defects in design, materials and workmanship for one to two years. To support the company's product lines, the company also separately sells hardware service contracts that typically range from one year to three years, software maintenance contracts, which enable the company's customers to receive the latest software updates and typically range from one year to three years, and comprehensive support, training and technology consulting services to the company's customers.
Customers
The company's sales are diversified across a broad number of over 12,000 customers worldwide in a range of metrology, reverse engineering, factory automation, building information modeling, public safety and other applications. The company's metrology, reverse engineering and factory automation applications are purchased by customers in the automotive and aerospace markets and a diverse array of manufacturing customers from small machine shops to large industrial manufacturers. Applications are used by these customers for alignment, part inspection, dimensional analysis, first article inspection, incoming and in-process inspection, machine calibration, non-contact inspection, robot calibration, tool building and setup, and assembly guidance. The company's building information modeling applications are purchased primarily by customers in the AEC markets. Applications are used by these customers for as-built documentation, construction monitoring, surveying, asset and facility management, and heritage preservation. The company's public safety applications are purchased primarily by law enforcement agencies, private investigators, and forensic experts and are used for capturing environmental or situational scenes, crash and fire scene investigations and environmental safety evaluations.
Sales and Marketing
The company sells its products worldwide through direct sales and service offices, as well as third-party distributors and resellers. The company has direct sales personnel in Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Malaysia, Mexico, the Netherlands, Poland, Portugal, Romania, Singapore, South Korea, Spain, Sweden, Switzerland, Thailand, Turkey, the United Arab Emirates, the United Kingdom, Austria, Belgium and the United States. The company's sales and marketing efforts use a process of integrated lead qualification and sales demonstration. Once a customer opportunity is identified, the company employs a team-based sales approach involving inside and outside sales personnel. Each team has the ability to sell multiple product lines. The company employs a variety of marketing techniques to promote brand awareness and customer identification. As of December 31, 2023, the company employed 576 sales and marketing staff globally.
The company's marketing team focuses its efforts on gaining an increased understanding of customer applications and workflows, which enables value-based product positioning while optimizing the company's customer's total cost of ownership. By strengthening the company's understanding of customer applications and workflows, the company continues to develop high-value solutions across its product and software platforms. The company's sales and marketing leadership teams have transformed the company's lead generation process and implemented technology to provide the company's sales organization with higher quality leads which optimizes the time and effort spent by the company's sales team.
Research and Development
The company's research and development expenses were $41.8 million for the year ended December 31, 2023.
Intellectual Property
The company owns approximately 730 patents and pending patent applications worldwide, which generally expire on a rolling basis between 2024 and 2044. The company also owns approximately 510 trademark registrations worldwide, with 220 pending trademark applications.
Manufacturing and Assembly
The company's FARO Laser Tracker, FaroArm, and FAROBlu laser line probe products are all registered to ISO 17025:2005.
Sanmina Corporation manufactures the company's FARO Quantum Max Arm, FARO Focus Laser Scanner, FARO Laser Tracker and the company's FARO Laser Projector products in their facility located in Thailand. The company expects these third-party manufacturing facilities to have the production capacity necessary to support the company's volume requirements during 2024.
Competition
In the FaroArm portfolio, FARO Laser Tracker, FARO Orbis, FARO Focus and FARO Sphere solution lines, the company competes primarily with Hexagon Manufacturing Intelligence, a division of Hexagon AB; Automated Precision, Inc.; Artec Europe, S.a.r.l.; Leica Geosystems AG, a division of Hexagon AB; Creaform, a division of Ametek; and Trimble Inc.
In the FARO Laser Projector product line, the company competes primarily with Virtek Vision International, a division of Gerber Technology LLC.
In the company's cloud based virtual reality capturing software, Holobuilder product line, the company competes primarily with OpenSpace and StructionSite.
Government Regulation
The company's foreign operations are subject to the U.S. Foreign Corrupt Practices Act, or FCPA, and similar foreign anti-corruption laws, which makes illegal any payments to government officials or government employees that are intended to induce their influence to assist the company or to gain any improper advantage for the company. The company operates in certain regions in the Middle East, Africa, Latin America and Asia-Pacific that are more prone to risk under these anti-corruption laws.
In addition, a number of data protection laws impact, or may impact, the manner in which the company collects, processes and transfers personal data. Most notably, the European Union's General Data Protection Regulation ('EU GDPR'), the United Kingdom General Data Protection Regulation and Data Protection Act 2018 (collectively, the 'UK GDPR') and the China personal Information Protection Law adopted in 2021 (the 'China GDPR') (the EU GDPR, UK GDPR and China GDPR together referred to as the 'GDPR'). The GDPR imposes comprehensive data privacy compliance obligations in relation to the company's collection, processing, sharing, disclosure, transfer and other use of data relating to an identifiable living individual or 'personal data', including a principal of accountability and the obligation to demonstrate compliance through policies, procedures, training and audit.
Seasonality
The company typically experiences greater order volume during the fourth quarter (year ended December 2023), as customers spend the remaining balances of their capital expenditure budgets.
History
FARO Technologies, Inc. was founded in 1981. The company was incorporated in Florida in 1992.
