Friday, January 09, 2009 2:13:34 PM
Author: jeffbas (posted on Investors Village board)
A solid, comprehensive They repeated their 5% penetration of a growing $3-5B market opportunity comment.
In the Q&A, they were asked about a protracted downturn relative to 2009. Jay's answer was as follows:
"We believe we can still grow in 2009, but we have also put together scenarios of flat to as bad as minus 20%
... keeping the company profitable in all of those scenarios." I really like a worst case scenario of breakeven.
They will continue to hire sales people, because of the 12-18 month cycle to develop account managers - unless things get really ugly - but very tight operations elsewhere.
Interestingly, they continue to say that the front end of the sales process - leads and demos - is still growing at 20-25%. It is the back end - closings - that has slowed down (as we know already).
They gave the parameters of their long term model again:
Sales growth - 20-25%
Gross Margin - 60-65%
Sales & Mktg - 25%
G & A - 10%
R & D - 5-7%
Tax Rate - 25% or less
To put some numbers to this:
- One year of zero followed by 5 years sales growth of 20%, starting from $200M, is $500M sales in 6 years.
- With 62% GM, 25% S&M, 10% G&A, 6% R&D, 24% taxes, you get $80M after tax income on $500M sales.
- That would be $4.00 per share on the 20M shares that might be outstanding then.
- At a conservative peak P/E of 25, that would give a target price of $100 in maybe half a dozen years. That would be about a 37% compound annual rate of return from $15 on the stock
Unless their long term model is out to lunch, I am very glad they have the buyback in place to take advantage of opportunities that might present themselves that would represent an outstanding long term investment for shareholders.
Recent FARO News
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/09/2024 08:38:48 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 09/06/2024 08:24:50 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/22/2024 08:30:26 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/08/2024 08:20:15 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/08/2024 08:15:35 PM
- FARO Announces Second Quarter Financial Results • PR Newswire (US) • 08/08/2024 08:05:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/31/2024 08:06:55 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/30/2024 08:14:21 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 07/30/2024 07:37:01 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 07/26/2024 07:49:12 PM
- FARO to Announce Financial Results for the Second Quarter 2024 on August 8, 2024 • PR Newswire (US) • 07/26/2024 12:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/17/2024 11:20:59 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/17/2024 11:20:07 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/17/2024 11:19:19 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/17/2024 11:18:24 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/17/2024 11:17:24 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/17/2024 11:15:58 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/17/2024 08:31:40 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 06/14/2024 08:14:08 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/14/2024 12:29:48 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/14/2024 12:29:03 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/14/2024 12:28:04 AM
- Form 144/A - Report of proposed sale of securities: [Amend] • Edgar (US Regulatory) • 06/12/2024 08:54:08 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/12/2024 07:56:48 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/12/2024 07:56:34 PM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM