Last Call: Faro Technologies shares sink

Shares of Faro Technologies Inc. sank Thursday after the company reported an increase in its first-quarter profit and revenue, but the results missed estimates of the two analysts polled by Thomson Financial.

Shares of Faro, which makes computerized inspection devices used by manufacturers, fell $7.84, or 22.3 percent, to $27.40. In the past year, the stock has traded between $19 and $50.27.

Faro said late Wednesday that its first-quarter profit rose year-over-year to $3.4 million, or 20 cents per share, from $3.2 million, or 22 cents per share. The company calculated its per-share earnings using a larger number of shares in the most recent quarter.

Revenue rose to $46.1 million from $40.3 million.

However, the two analysts polled by Thomson Financial expected, on average, a higher profit of 27 cents per share and $48.7 million in revenue. The company does not give quarterly guidance, though, which makes it more difficult for analysts to model quarterly estimates.

Faro said shipments were lower than orders in the quarter, as it received a large number of new orders at the end of the period with April customer delivery requirements.

"Overall, lower orders growth in the U.S. during the first quarter was offset by strength in Europe and Asia and we continue to see the right 'buy' signals from our customers in all three regions," Faro Chief Executive and President Jay Freeland said in a statement.

Faro maintained its outlook for full-year sales growth of about 20 percent to 25 percent. Based on 2007 revenue of $191.6 million, this implies 2008 guidance for sales of about $229.9 million to $239.5 million.

Analysts expect full-year revenue of $232 million.