Hurco(HURC) - 2025 Q2 - Quarterly Report

Financial Performance - Sales and service fees for the second quarter of fiscal year 2025 were $40.9 million, a decrease of$4.3 million, or 10%, compared to the same period in fiscal year 2024[90]. - Orders for the second quarter of fiscal year 2025 were $43.7 million, a decrease of$0.5 million, or 1%, compared to the corresponding period in fiscal year 2024[96]. - Sales in the Americas for the second quarter of fiscal year 2025 decreased by 9%, while European sales decreased by 5%, and Asian Pacific sales decreased by 29% compared to the same period in fiscal year 2024[91][92][93]. - Gross profit for the second quarter of fiscal year 2025 was $7.8 million, or 19$8.0 million, or 18% of sales, for the corresponding prior year period[99]. - Selling, general, and administrative expenses for the second quarter of fiscal year 2025 were $10.9 million, or 27$11.5 million, or 25% of sales, in the corresponding fiscal year 2024 period[100]. - Operating loss for the second quarter of fiscal year 2025 was $3.1 million, compared to$3.4 million for the corresponding period in fiscal year 2024[101]. - Sales of computerized machine tools for the second quarter of fiscal year 2025 decreased by 10%, while sales of computer control systems and software increased by 12%[95]. - Sales and service fees for the first six months of fiscal year 2025 were $87.3 million, a decrease of$3.0 million, or 3%, compared to the prior year period[104]. - Orders for the first six months of fiscal year 2025 were $83.8 million, a decrease of$10.6 million, or 11%, compared to the prior year period[111]. - Gross profit for the first six months of fiscal year 2025 was $16.1 million, or 18$17.7 million, or 20% of sales, for the prior year period[115]. - Operating loss for the first six months of fiscal year 2025 was $5.2 million, compared to$5.3 million for the prior year period[117]. Cash Flow and Capital Management - Cash and cash equivalents at April 30, 2025, were $43.8 million, compared to$33.3 million at October 31, 2024[120]. - Working capital was $175.9 million at April 30, 2025, compared to$180.8 million at October 31, 2024[121]. - Capital expenditures of $1.4 million during the first six months of fiscal year 2025 were primarily for software development costs and capital improvements[121]. - The company announced a share repurchase program of up to$25.0 million, with $21.7 million remaining available as of April 30, 2025[122]. - The company suspended its regular quarterly cash dividend on June 14, 2024, to enhance financial flexibility and manage market volatility[123]. - As of April 30, 2025, the company had no debt or borrowings under any of its credit facilities, with approximately$50.8 million available for borrowing[129][130]. Credit Facilities and Compliance - The 2018 Credit Agreement provides for an unsecured revolving credit facility of up to $40.0 million, with a maturity date of December 31, 2025[124]. - The company has a minimum working capital requirement of$125.0 million and a minimum tangible net worth of $176.5 million under the 2018 Credit Agreement[126]. - The company is in compliance with all covenants related to its credit facilities as of April 30, 2025[130]. - The company has renewed its uncommitted revolving credit facilities in Taiwan and China on substantially similar terms in February and December 2023, respectively[128]. Market and Strategic Initiatives - The company operates in a cyclical industry with approximately 50$0.8 million[135].