Hurco(US:HURC)2025-03-07 14:04Financial Performance - Hurco reported a net loss of $4,320,000, or $0.67 loss per diluted share, for Q1 FY 2025, compared to a net loss of $1,648,000, or $0.25 loss per diluted share, in Q1 FY 2024[1][17]. - Sales and service fees for Q1 FY 2025 were $46,414,000, an increase of $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 $8,290,000, or 18% of sales, down from $9,695,000, or 22% of sales, in Q1 FY 2024[10][18]. - Orders for Q1 FY 2025 totaled $40,085,000, a decrease of $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 $10,382,000, or 22% of sales, down from $11,515,000, or 26% of sales, in Q1 FY 2024[11][18]. Cash and Working Capital - Cash and cash equivalents increased to $41,820,000 at January 31, 2025, compared to $33,330,000 at October 31, 2024[13][18]. - Working capital decreased to $172,591,000 at January 31, 2025, from $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 $268,643 million on October 31, 2024, to $255,831 million on January 31, 2025, representing a decline of approximately 4.4%[20]. - Current assets decreased from $228,577 million to $216,555 million, a reduction of about 5.3%[20]. - Accounts receivable decreased from $36,678 million to $28,355 million, a decline of about 22.8%[20]. - Total current liabilities decreased from $47,789 million to $43,964 million, a reduction of approximately 8.0%[20]. - Total shareholders' equity decreased from $207,172 million to $198,143 million, a decline of about 4.4%[20]. - Retained earnings decreased from $161,422 million to $157,102 million, a reduction of approximately 2.0%[20]. - The company reported an increase in additional paid-in capital from $61,500 million to $61,728 million, reflecting a growth of about 0.4%[20]. - Inventories decreased from $153,037 million to $139,736 million, a decline of approximately 8.6%[20]. - Derivative liabilities increased from $705 million to $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].