Financial Performance - Net loss for Q4 2024 was $1.442 million, compared to net income of $2.422 million in Q4 2023, including a non-cash tax valuation allowance of $193,000[1] - Gross profit for Q4 2024 was $12.186 million, or 23% of sales, compared to $17.419 million, or 26% of sales, in Q4 2023[11] - Gross profit for the twelve months ended October 31, 2024, was $37.7 million, down from $56.2 million in 2023[18] - Net loss for the twelve months ended October 31, 2024, was $16.6 million, compared to a net income of $4.4 million in 2023[18] - Gross margin for the twelve months ended October 31, 2024, was 20%, down from 25% in 2023[19] - Operating loss as a percentage of sales was 4% for the twelve months ended October 31, 2024, compared to an operating income of 3% in 2023[19] Sales and Orders - Sales and service fees for Q4 2024 decreased by 19% to $53.702 million, with a favorable currency impact of 2%[2] - Americas sales for Q4 2024 decreased by 21% to $23.331 million, primarily due to decreased shipments of Hurco and Takumi machines[4] - European sales for Q4 2024 decreased by 18% to $25.381 million, with a favorable currency impact of 3%[5] - Asian Pacific sales for Q4 2024 decreased by 11% to $4.990 million, with a favorable currency impact of less than 1%[6] - Orders for Q4 2024 decreased by 6% to $51.077 million, with a favorable currency impact of 2%[7] - Asian Pacific orders for Q4 2024 increased by 103% to $5.980 million, with a favorable currency impact of 2%[8] - Sales and service fees for the three months ended October 31, 2024, were $53.7 million, a decrease from $66.1 million in the same period in 2023[18] - Global orders for fiscal year 2024 outpaced sales in every region, with orders improving from the first half to the second half of the year[3] Expenses and Efficiency - SG&A expense as a percentage of sales increased to 25% for the twelve months ended October 31, 2024, from 22% in 2023[19] - Days sales outstanding increased to 49 days as of October 31, 2024, from 41 days in 2023[19] - Inventory turns decreased to 1.0 as of October 31, 2024, from 1.1 in 2023[19] Cash and Assets - Cash and cash equivalents totaled $33.330 million as of October 31, 2024, compared to $41.784 million as of October 31, 2023[14] - Total assets decreased to $268.6 million as of October 31, 2024, from $290.6 million in 2023[21] - Shareholders' equity decreased to $207.2 million as of October 31, 2024, from $222.2 million in 2023[21]

Financial Performance - Sales and service fees for Q4 FY2024 were $53,702,000, a 19% decrease compared to the same period in FY2023, with a favorable currency impact of $1,008,000 [1] - Full-year sales and service fees for FY2024 were $186,584,000, an 18% decrease compared to FY2023, with a favorable currency impact of $1,804,000 [1] - Gross profit for Q4 FY2024 was $12,186,000 (23% of sales), down from $17,419,000 (26% of sales) in Q4 FY2023 [10] - Full-year gross profit for FY2024 was $37,743,000 (20% of sales), compared to $56,168,000 (25% of sales) in FY2023 [10] - Net loss for Q4 FY2024 was $1,442,000 ($0.23 per diluted share), compared to net income of $2,422,000 ($0.36 per diluted share) in Q4 FY2023 [17] - Full-year net loss for FY2024 was $16,608,000 ($2.56 per diluted share), compared to net income of $4,389,000 ($0.66 per diluted share) in FY2023 [17] Regional Sales Performance - Americas sales for Q4 FY2024 decreased by 21% compared to Q4 FY2023, primarily due to decreased shipments of Hurco and Takumi machines [15] - European sales for Q4 FY2024 decreased by 18% compared to Q4 FY2023, with a favorable currency impact of 3% [18] - Asian Pacific sales for Q4 FY2024 decreased by 11% compared to Q4 FY2023, with a favorable currency impact of less than 1% [2] - Full-year Asian Pacific sales for FY2024 increased by 2% compared to FY2023, with an unfavorable currency impact of 1% [16] Orders and Market Trends - Total orders for Q4 FY2024 were $51,077,000, a 6% decrease compared to Q4 FY2023, with a favorable currency impact of $1,077,000 [19] - Full-year orders for FY2024 were $198,302,000, a 5% decrease compared to FY2023, with a favorable currency impact of $1,923,000 [19] - Asian Pacific orders for Q4 FY2024 increased by 103% compared to Q4 FY2023, driven by increased demand in China, India, and Southeast Asia [4] - European orders for Q4 FY2024 decreased by 13% compared to Q4 FY2023, with a favorable currency impact of 4% [9] Operational Highlights - Selling, general, and administrative expenses for Q4 FY2024 were $12,677,000 (24% of sales), compared to $14,040,000 (21% of sales) in Q4 FY2023 [5] - Full-year SG&A expenses for FY2024 were $46,029,000 (25% of sales), compared to $49,552,000 (22% of sales) in FY2023 [5] - The company implemented global cost reductions in Q3 FY2024 to offset the impact of lower sales volumes and pricing [10][11] - Cash and cash equivalents totaled $33,330,000 as of October 31, 2024, compared to $41,784,000 as of October 31, 2023 [12] Industry and Company Outlook - The machine tool market was down almost 19% according to Oxford Economics U.S. machine tool forecasts [15] - The company focused on technological innovations, showcasing next-generation controls and CNC machines with ProCobots at IMTS [15] - The company believes its strong balance sheet and focus on technological advancement differentiate it from competitors [15] - The company is prepared for increased customer demand as global markets begin to recover [15]

Core Vision and Strategy - The company aims to drive the future of Autonomous Machining Centers by leveraging AI, mechatronics, motion, and simulation technologies [1] - The vision includes reshaping industry standards and revolutionizing market presence with cutting-edge technologies to address labor challenges and enhance automation and connectivity [1] - AI-driven capabilities such as feature detection, operation sequencing, and process control are critical to realizing the vision of Autonomous Machining Centers as the cornerstone of manufacturing [1] - The company is committed to commercializing incremental advancements in hybrid AI-assisted solutions to enhance productivity and operational efficiency [1] Operational Excellence and Efficiency - The company is leveraging the scalability of its three global CNC brands to drive operational excellence and efficiency through standardized industrial hardware components and smart manufacturing processes [3] - Strategies include streamlining manufacturing processes, optimizing resource allocation, and reducing the global energy footprint to improve cost efficiency and align with sustainable practices [3] - Data-driven analytics for inventory management and R&D of innovative technologies like polymer-mineral castings support sustained and responsible growth [3] Market Expansion and Innovation - The company plans to expand market share through product development, partnerships, and acquisitions, with a focus on robotics, automation, and AI-driven applications across all product categories [4] - Strategic partnerships and collaborations with other OEMs, both within and outside the company's business segments, will diversify offerings and address global demand for automated and autonomous systems [4] - The company aims to position itself as a leader in Industry 5.0, where connected and automated systems drive sustainable, workforce-centric productivity and scalability [4] Talent Management and Development - The company prioritizes talent and career development initiatives to support its leadership in the Industry 5.0 manufacturing revolution [5] - Strategic partnerships with universities and research groups globally provide opportunities to acquire top talent and foster innovation [5] - Continuous investment in employee skill development and knowledge growth is seen as a catalyst for innovation and business advancement [5] Technological Advancements - The company is enabling smarter, safer, and more autonomous manufacturing practices through cloud computing, edge computing, and digital twin technologies [6] - These technologies allow seamless adaptation to global market demands, heralding a new era of innovation and excellence in manufacturing [6] Company Overview - The company is an international industrial technology firm specializing in CNC machine tools for the metal cutting and metal forming industry [7] - It operates three brands: Hurco, Milltronics, and Takumi, each with unique control systems and software capabilities [7] - The company serves independent job shops, short-run manufacturing operations, and production-oriented manufacturers across industries such as aerospace, defense, medical equipment, energy, transportation, and computer equipment [7] - Manufacturing operations are located in Taiwan, Italy, the U.S., and China, with a global sales and support network spanning the Americas, Europe, and Asia [7]

Company Overview - Hurco Companies Inc is an international industrial technology company specializing in CNC machine tools for the metal cutting and metal forming industry [4] - The company operates three brands: Hurco, Milltronics, and Takumi, with proprietary software for the first two brands and third-party controls for Takumi [4] - Hurco produces high-value machine tool components, accessories, and automation solutions that can integrate with any machine tool [4] - The company serves independent job shops, short-run manufacturing operations in large corporations, and production-oriented manufacturers across industries including aerospace, defense, medical equipment, energy, transportation, and computer equipment [4] - With manufacturing operations in Taiwan, Italy, the US, and China, Hurco maintains a global presence through direct and indirect sales forces across the Americas, Europe, and Asia [4] Technological Advancements - Hurco unveiled cutting-edge AI-driven features in its next-generation control systems at the 2024 International Manufacturing Technology Show (IMTS) [1] - The company's AI implementation significantly reduces programming time from several minutes to seconds, enhancing machine tool operation efficiency [2] - Hurco's AI technology is embedded at the core of control technology, enabling faster, smarter, and more precise outcomes for customers [2] - The company's vertical integration allows complete control over CNC machines, controls, and software, facilitating rapid testing and integration of new technologies [3] Strategic Advantages - Hurco's complete vertical integration provides unparalleled agility in technology development and implementation [3] - The company maintains a strong commitment to innovation across economic cycles, supported by a robust balance sheet and disciplined financial strategy [3] - AI-driven tools like ChatCNC™ Chatbot and AI Feature Recognition are transforming manufacturing efficiency and profitability for customers [3] - With a strong innovation pipeline and solid financial strength, Hurco is positioned to continue leading the AI manufacturing revolution [3] Market Position - Hurco's technological advancements position the company as a leader in machine tool technology [1] - The company's AI-driven innovations are expected to redefine the competitive landscape in the manufacturing industry [3] - Hurco's global presence and comprehensive product offerings strengthen its position in the international CNC machine tool market [4]

Company Performance at IMTS 2024 - Hurco Companies showcased groundbreaking advancements in CNC technology and control systems at the 2024 International Manufacturing Technology Show (IMTS) in Chicago, attracting a significant number of visitors to its 16,000-square-foot booth [1] - The company's new control system, featuring an ergonomic design and fully customizable interface, integrated AI tools like ChatCNC™ and AI feature recognition, which simplified machine operations and reduced programming time [2] - ChatCNC™ and AI-driven features were particularly well-received, offering real-time support and efficiency gains for operators [3] - Hurco's strategic partnerships, including seamless integration with Universal Robots and Kawasaki Robotics, highlighted its commitment to advancing automation and flexibility on the shop floor [3] - The company's presence at IMTS 2024 demonstrated its strength and reputation in driving innovation and setting new benchmarks in manufacturing technology [4] Industry and Market Position - Hurco Companies is an international industrial technology company specializing in CNC machine tools for the metal cutting and metal forming industry, with brands including Hurco, Milltronics, and Takumi [5] - The company designs and develops proprietary software for its Hurco and Milltronics brands, while Takumi CNC machine tools are equipped with third-party industrial controls [5] - Hurco serves independent job shops, short-run manufacturing operations within large corporations, and production-oriented manufacturers in industries such as aerospace, defense, medical equipment, energy, transportation, and computer equipment [5] - The company operates manufacturing facilities in Taiwan, Italy, the U S, and China, with a global sales and support network spanning the Americas, Europe, and Asia [5] Innovation and Technology - Hurco's focus on advanced technologies, such as AI-driven features and automation solutions, aligns with the evolving needs of manufacturers for productivity and profitability [2][3] - The company's ProCobots automated machine-tending solution, integrated with Universal Robots and Kawasaki Robotics, exemplifies its leadership in combining technological capabilities through powerful CNC control systems [3]

Financial Performance - The company reported a loss per share of $1.47 in Q3 FY2024, compared to earnings per share of 4 cents in the same quarter last year [1] - Revenues declined 19.8% year-over-year to $42.7 million in Q3 FY2024 [2] - Gross profit decreased 41.7% year-over-year to $7.8 million, with gross margin contracting 689 basis points to 18.4% [10] - Operating loss totaled $2.5 million in Q3 FY2024, compared to an operating profit of $1 million in the prior-year quarter [12] - Net loss was $9.6 million in Q3 FY2024, compared to net income of $0.3 million in the same quarter last year [12] Geographic Sales Performance - Americas sales declined 15.8% year-over-year to $15.4 million, primarily due to decreased shipments of Hurco and Takumi machines [4] - Europe sales decreased 22.8% year-over-year to $24.1 million, driven by reduced shipments in Germany, Italy, and the UK [5] - Asia Pacific sales fell 15.2% year-over-year to $3.2 million, with declines in China and Southeast Asia partially offset by growth in India [6] Order Performance - Total orders increased 25.5% year-over-year to $52.8 million in Q3 FY2024 [7] - Americas orders grew 20.7% year-over-year to $17.6 million, driven by demand for higher-performing 5-axis machines and lathes [7] - Europe orders rose 14.5% year-over-year to $28.3 million, with increased demand in the UK, France, and Italy [8] - Asia Pacific orders surged 151.2% year-over-year to $6.8 million, primarily due to increased demand in China and India [9] Operating Expenses and Liquidity - Selling, general and administrative expenses decreased 16.6% year-over-year to $10.4 million in Q3 FY2024 [11] - The company ended Q3 FY2024 with $36.1 million in cash and cash equivalents, down from $37.5 million at the end of Q2 FY2024 [13] - Cumulative net cash used for operating activities was $1.3 million, compared to $16.2 million in the prior-year quarter [13] - The company had no outstanding debt at the end of Q3 FY2024 [13]

Sales Performance - Sales and service fees for Q3 FY2024 were $42.7 million, a 20% decrease compared to Q3 FY2023, with an unfavorable currency impact of less than 1%[82] - European sales for Q3 FY2024 decreased by 23% compared to Q3 FY2023, with a favorable currency impact of less than 1%[84] - Asian Pacific sales for Q3 FY2024 decreased by 15% compared to Q3 FY2023, with an unfavorable currency impact of 2%[86] - Sales of computerized machine tools for Q3 FY2024 decreased by 23% compared to Q3 FY2023, with an unfavorable currency impact of less than 1%[88] - Sales and service fees for the nine months ended July 31, 2024, were $132.9 million, down 18% YoY, with a favorable currency impact of $0.8 million[95] - Americas sales for the nine months ended July 31, 2024, decreased by 16% YoY to $48.986 million, driven by lower shipments of Hurco and Takumi machines[96] - European sales for the nine months ended July 31, 2024, decreased by 23% YoY to $69.538 million, with a 1% favorable currency impact[97] - Asian Pacific sales for the nine months ended July 31, 2024, increased by 8% YoY to $14.358 million, despite a 2% unfavorable currency impact[98] - Sales of computerized machine tools for the nine months ended July 31, 2024, decreased by 21% YoY to $104.176 million[99] Orders and Demand - Orders for Q3 FY2024 were $52.8 million, a 26% increase compared to Q3 FY2023, with an unfavorable currency impact of less than 1%[89] - Asian Pacific orders for Q3 FY2024 increased by 151% compared to Q3 FY2023, with an unfavorable currency impact of 5%[90] - Orders for the nine months ended July 31, 2024, were $147.2 million, down 5% YoY, with a favorable currency impact of $0.8 million[101] Financial Performance - Gross profit for Q3 FY2024 was $7.8 million, or 18% of sales, compared to $13.4 million, or 25% of sales, for Q3 FY2023[91] - Selling, general, and administrative expenses for Q3 FY2024 were $10.4 million, or 24% of sales, compared to $12.4 million, or 23% of sales, for Q3 FY2023[92] - Operating loss for Q3 FY2024 was $2.5 million, compared to operating income of $1.0 million in Q3 FY2023, primarily due to lower sales of vertical milling machines and fixed cost impacts[93] - Income tax expense for Q3 FY2024 was $7.0 million, up from $0.4 million in Q3 FY2023, driven by an $8.2 million non-cash valuation allowance on U.S. deferred tax assets[94] - Gross profit for the nine months ended July 31, 2024, was $25.6 million, or 19% of sales, down from $38.7 million, or 24% of sales, in the prior year period[104] - Operating loss for the nine months ended July 31, 2024, was $7.8 million, compared to operating income of $3.2 million in the prior year period[106] Capital and Shareholder Activities - Cash dividends paid to shareholders totaled $2.1 million for the nine months ended July 31, 2024[111] - The company repurchased $1.3 million (73,765 shares) of its common stock through August 30, 2024[111] Credit Facilities and Financial Obligations - The 2018 Credit Agreement provides for a maximum aggregate amount of $40.0 million in revolving credit and letter of credit facilities[112] - The company must maintain a minimum working capital of $125.0 million and a minimum tangible net worth of $176.5 million under the 2018 Credit Agreement[114] - As of July 31, 2024, the company had no debt or borrowings under its credit facilities, which include a €1.5 million facility in Germany, a 150 million New Taiwan Dollars facility in Taiwan, a 32.5 million Chinese Yuan facility in China, and the $40.0 million 2018 Credit Agreement[115] - The company had approximately $50.7 million available for borrowing under its credit facilities as of July 31, 2024[116] - The company had no borrowings outstanding under any of its credit facilities as of July 31, 2024[121] Foreign Exchange and Currency Risk - Approximately 63% of the company's revenues in the nine months of fiscal year 2024 were derived from customers located outside the Americas[122] - The company had nine outstanding third-party payment guarantees totaling approximately $0.9 million as of July 31, 2024[119] - Forward contracts for the sale or purchase of foreign currencies as of July 31, 2024 included €6.9 million at a weighted average forward rate of 1.0912 and £3.5 million at a weighted average forward rate of 1.2601[125] - The company entered into a forward contract to purchase 470,000 New Taiwan Dollars at a weighted average forward rate of 30.7976 as of July 31, 2024[125] - The company has a forward contract with a notional amount of €3.0 million to hedge its net investment in Euro-denominated assets, maturing in November 2024, with a realized gain of $1.2 million as of July 31, 2024[126] - Approximately 63% of the company's revenues in the nine months of fiscal year 2024 were derived from customers located outside the Americas, invoiced and received in foreign currencies[122] - The company's purchases are predominantly in foreign currencies, with significant exchange rate risk related to the New Taiwan Dollar and the Euro[123] - Forward contracts for the sale or purchase of foreign currencies as of July 31, 2024, include Euro sale contracts with a notional amount of 10,146 and a weighted average forward rate of 1.0824, maturing between August 2024 and November 2024[126] - Forward contracts for the purchase of New Taiwan Dollars as of July 31, 2024, include a notional amount of 1,315,881 and a weighted average forward rate of 31.7645, maturing between August 2024 and February 2025[126] - The company has forward contracts for the sale of Euro with a notional amount of 6,900 and a weighted average forward rate of 1.0912, maturing between August 2024 and July 2025[125] - Forward contracts for the sale of Sterling as of July 31, 2024, include a notional amount of 3,500 and a weighted average forward rate of 1.2601, maturing between August 2024 and July 2025[125] - The company has forward contracts for the purchase of New Taiwan Dollars with a notional amount of 470,000 and a weighted average forward rate of 30.7976, maturing between August 2024 and July 2025[125] Internal Controls and Procedures - The company's disclosure controls and procedures were evaluated and found to be effective as of July 31, 2024, under the supervision of management, including the CEO and CFO[126]

Financial Performance - Net loss for Q3 FY2024 was $9,596,000, compared to net income of $260,000 in Q3 FY2023, primarily due to a non-cash tax valuation allowance of $8,158,000[1] - Gross profit for Q3 FY2024 was $7,843,000, or 18% of sales, compared to $13,448,000, or 25% of sales, in Q3 FY2023[12] - Selling, general, and administrative expenses for Q3 FY2024 were $10,376,000, or 24% of sales, compared to $12,436,000, or 23% of sales, in Q3 FY2023[13] - Income tax expense for Q3 FY2024 was $6,999,000, primarily due to a non-cash valuation allowance on U.S. deferred tax assets[14] - Sales and service fees for the three months ended July 2024 were $42.651 million, a decrease from $53.201 million in the same period in 2023[18] - Gross profit for the three months ended July 2024 was $7.843 million, down from $13.448 million in the same period in 2023[18] - Net loss for the three months ended July 2024 was $9.596 million, compared to a net income of $260 thousand in the same period in 2023[18] - Gross margin for the three months ended July 2024 was 18%, down from 25% in the same period in 2023[18] - Operating loss as a percentage of sales for the three months ended July 2024 was 6%, compared to an operating income of 2% in the same period in 2023[18] Sales and Orders - Sales and service fees for Q3 FY2024 decreased by 20% to $42,651,000, with a currency impact of less than 1%[2] - Global orders for Q3 FY2024 increased by 26% to $52,815,000, outpacing sales by more than $10,000,000[3][8] - Americas sales decreased by 16% in Q3 FY2024, primarily due to reduced shipments of Hurco and Takumi 3-axis vertical machines[5] - European sales decreased by 23% in Q3 FY2024, with a favorable currency impact of 1%[6] - Asia Pacific sales decreased by 15% in Q3 FY2024, with an unfavorable currency impact of 2%, but increased by 8% for the nine-month period[7] Cash and Assets - Cash and cash equivalents totaled $36,054,000 at July 31, 2024, compared to $41,784,000 at October 31, 2023[15] - Cash and cash equivalents as of July 31, 2024, were $36.054 million, down from $41.784 million as of October 31, 2023[19] - Accounts receivable, net as of July 31, 2024, were $25.128 million, down from $39.965 million as of October 31, 2023[19] - Total current assets as of July 31, 2024, were $233.212 million, down from $248.230 million as of October 31, 2023[19] - Shareholders' equity as of July 31, 2024, was $206.625 million, down from $222.231 million as of October 31, 2023[19] Capital Expenditures - Capital expenditures for the nine months ended July 2024 were $2.046 million, up from $1.751 million in the same period in 2023[18]

Core Viewpoint - Hurco Companies, Inc. reported a significant net loss for the third fiscal quarter of 2024, primarily due to decreased sales and a non-cash tax valuation allowance impacting financial results [1][14]. Financial Performance - The net loss for the third quarter of fiscal year 2024 was $9,596,000, or $(1.47) per diluted share, compared to a net income of $260,000, or $0.04 per diluted share in the same period of fiscal year 2023 [1]. - For the nine months of fiscal year 2024, the net loss was $15,166,000, or $(2.33) per diluted share, compared to a net income of $1,967,000, or $0.30 per diluted share for the same period in fiscal year 2023 [1]. Sales and Orders - Sales and service fees for the third quarter of fiscal year 2024 were $42,651,000, a decrease of $10,550,000, or 20%, compared to the prior year [2]. - Global orders for the third quarter exceeded $52,000,000, representing a year-over-year increase of 26% [3][7]. - Orders in the Americas increased by 21% in the third quarter, driven by demand for higher-performing machines [8][9]. Geographic Sales Breakdown - Sales in the Americas decreased by 16% for both the third quarter and nine months of fiscal year 2024, primarily due to reduced shipments of certain machine types [4]. - European sales decreased by 23% for both the third quarter and nine months, attributed to lower shipments in key countries [5]. - Asian Pacific sales decreased by 15% in the third quarter but increased by 8% for the nine months, driven by demand in India and specific customer orders in China [6][10]. Profitability Metrics - Gross profit for the third quarter was $7,843,000, or 18% of sales, down from 25% in the prior year [12]. - Selling, general, and administrative expenses for the third quarter were $10,376,000, or 24% of sales, compared to 23% in the prior year [13]. Tax and Valuation - Income tax expenses for the third quarter were $6,999,000, significantly higher than $385,000 in the prior year, primarily due to a non-cash tax valuation allowance [14]. Cash and Working Capital - Cash and cash equivalents totaled $36,054,000 at July 31, 2024, down from $41,784,000 at October 31, 2023 [15]. - Working capital decreased to $181,979,000 from $193,257,000 during the same period [15].

INDIANAPOLIS, Aug. 23, 2024 (GLOBE NEWSWIRE) -- Hurco Companies, Inc. (Nasdaq: HURC), a leader in CNC machine and controls technology, is poised to make a significant impact at the International Manufacturing Technology Show (IMTS) in Chicago next month. Being North America's largest manufacturing technology exhibition, Hurco chose IMTS to unveil the results of its aggressive technology innovation and product development strategies. With an expanded 16,000-square-foot IMTS booth, Hurco will showcase how its ...