FARO
#So let me answer that.
So I think there is a ---+ we are completing a couple of different numbers, first of all.
The number that you recall of $1 million, $1.5 million was typical on what an account manager on their own felt.
But the FTE is the entire sales force, which is our pyramid of our complete sales structure, which includes the account managers, the internal sales specialists, the regional managers, the country managers, and the regional managers.
So the ---+ that headcount includes the entire underlying sales structure.
So those numbers can't be compared.
The only thing excluded from the sales FTE headcount are the two global horizontals for sales operation and sales marketing, global horizontal.
So the headcount of those two horizontals is not included in that number.
So it is the entire ---+ just to repeat myself, it's the entire full-time experience headcount starting from the account managers up to the regionals through the [IFSs], through the regionals, and through the country and so on.
And ---+ so that's the full direct sales headcount.
And that number then represents not just the efficiency of a particular account manager, but it represents the efficiency of the entire structure.
We were working through a couple of other large companies and their distribution partners rather and their distribution networks, which represent hundreds and hundreds of potential sales people around the world.
So, as we transition from there and we were forcibly transitioned from there back to the direct sales force, we ---+ it takes a reasonable ---+ I'm actually quite surprised how quickly we caught up from the direct sales force model because we literally had to, over the period of a year and a half, replace the sales efforts of hundreds of salespeople and distribution organizations around the world.
So we're getting there.
I think we will continue to head in that direction as we build up the sales force.
Well, trying to avoid any strategic revelations about our structure.
It has now been enveloped ---+ it included the [MPR] process.
That includes qualification of the lead, preparation before demos, follow-up interactions, and we are even moving it into the service environment to assist in sales and application engineering.
So it is becoming really a necessary communication tool throughout every process of our sales organization.
The idea, though, is to improve the qualification, reduce the number of unnecessary demos, and improve our relationships with the customers directly.
In terms of the sales and demonstration equipment, we were very consistent in Q4 with our prior quarter where we talked about $9 million in sales.
That was about a 25% increase year over year for us on a quarter basis.
So our full-year increase was around 50%.
We sold about an additional $10 million in premium sales equipment.
In terms of the headcount of both selling and marketing, what we were ---+ we're focused on is our sales headcount, and that's what we will be disclosing going forward.
Because that's really where we feel, though, that our investors and analysts can get the most out of information.
I won't speak to any of the operating margin.
Obviously I have indicated our intention to keep all the horizontals flat while driving the top-line sales.
So you can make some assumptions about the expenses relating to those horizontal expense components of the sheet.
I have been, though, and we have been quite clear about trying to return to what was a very consistent 59% to 60% gross margins in the past, and that would represent a realistic target for us.
I think we're well on the way.
Our goal is to be ---+ by midyear to be substantively back to technological leadership so that we can get back to pricing ---+ competitive price performance positioning in the market that we have had in the past, and that will take a continuous effort.
But I would say we will be substantively there by midyear.
Obviously we have introduced the very latest scanner products which are market-leading.
Our new tracker products are also ---+ will be dominant in the market at its current pricing and performance with more to come.
And then, of course, we have the other primary product lines which will all evolve as necessary, but the largest changes will have occurred all by midyear.
<UNK>, just one additional comment is, generally speaking, we have talked in the past about when we roll out new products.
It takes time to take that and move it to our sales column.
So there could be a little bit of time until midyear, later half of the year.
Traditionally we have not ---+ our (inaudible) practice is not to provide guidance on any single number on our P&L.
What I can say is what has grown service revenue has been a dedicated effort to sell warranty.
So that is a great effort by our CCO and his group.
The other side has been from our COO.
She has driven the process on the customer service side, increased turnaround time, service.
We have come off a very strong 2014.
Those units have come off the embedded warranties.
So what I would say is certainly we have to sell the products in order to continue to sell the warranties, but we're going to be as aggressive as we have been in the future to drive that line item on our P&L.
And just add to that, I would say that the 3D service and support vertical which we intend to have in place financially by midyear, we will have added to it a number of higher-margin 3D service products that we intend to have ---+ to increase the overall service margin for that vertical.
So I would expect to see growth with the addition of these new services.
In terms of tax rate, we have not provided guidance because, as you see, year over year our tax rate has been certainly differing year to year based on our geographical distribution.
I especially did not provide guidance as we move forward with the different administration in the US, as well as best across the world and how the treatment will be.
So what I would say is I won't provide guidance at this time.
Yes, the recent introduction of the Vantage series product line for the tractor, we have really broken into a new price performance area for trackers historically.
We expect that this will significantly open up the market, and our intention is to continue to move price performance in that direction as we have always done with all our products.
The other most exciting one is one I did mention in the prepared remarks, which is the VectorRI, which is the laser ---+ scanning laser radar, which will have a dramatic impact on factory environments for high-speed long-distance measurements contact-free measurement.
It represents a whole new (multiple speakers)
I'm sorry.
I don't know what happened.
So I expect that that will be an important contributor.
In addition, the Cobalt Imager which was introduced last year is now starting to take form in very specific applications as it relates to our 3D solutions group.
And so we're also excited about the potential growth in the metrology area from those configurable solutions.
So I would say broadly we are excited in many areas of the business for the new product set introductions.
<UNK>, are you on the line.
<UNK>by.
Okay.
All right.
Well, thank you, everybody, for your attentions today, and we look forward to describing the progress as we go this year.
