Hurco(HURC)2025-03-07 14:04Financial Performance - Hurco reported a net loss of 0.67 loss per diluted share, for Q1 FY 2025, compared to a net loss of 0.25 loss per diluted share, in Q1 FY 2024[1][17]. - Sales and service fees for Q1 FY 2025 were 1,355,000, or 3%, compared to Q1 FY 2024, despite a 1% unfavorable currency impact[2][17]. - Gross profit for Q1 FY 2025 was 9,695,000, or 22% of sales, in Q1 FY 2024[10][18]. - Orders for Q1 FY 2025 totaled 10,133,000, or 20%, compared to Q1 FY 2024, with a notable 30% decrease in the Americas[7][17]. Regional Sales Performance - Sales in the Americas increased by 9% year-over-year, while European sales decreased by 5% and Asia Pacific sales increased by 18%[3][4][6]. Expenses and Cost Management - Selling, general, and administrative expenses for Q1 FY 2025 were 11,515,000, or 26% of sales, in Q1 FY 2024[11][18]. Cash and Working Capital - Cash and cash equivalents increased to 33,330,000 at October 31, 2024[13][18]. - Working capital decreased to 180,788,000 at October 31, 2024[13][18]. - The company continues to focus on optimizing operations and managing working capital despite economic uncertainties affecting order volumes[3][4]. Asset and Liability Changes - Total assets decreased from 255,831 million on January 31, 2025, representing a decline of approximately 4.4%[20]. - Current assets decreased from 216,555 million, a reduction of about 5.3%[20]. - Accounts receivable decreased from 28,355 million, a decline of about 22.8%[20]. - Total current liabilities decreased from 43,964 million, a reduction of approximately 8.0%[20]. - Total shareholders' equity decreased from 198,143 million, a decline of about 4.4%[20]. - Retained earnings decreased from 157,102 million, a reduction of approximately 2.0%[20]. - The company reported an increase in additional paid-in capital from 61,728 million, reflecting a growth of about 0.4%[20]. - Inventories decreased from 139,736 million, a decline of approximately 8.6%[20]. - Derivative liabilities increased from 1,817 million, representing a significant increase of approximately 157.3%[20]. Taxation - The effective tax rate for Q1 FY 2025 was (90)%, compared to 27% in Q1 FY 2024, primarily due to a non-cash tax valuation allowance of $2,385,000[12][18].