Hurco(HURC) - 2025 Q2 - Quarterly Results

Financial Performance - Hurco reported a net loss of $4,063,000, or $0.62 per diluted share, for Q2 FY 2025, compared to a net loss of $3,922,000, or $0.61 per diluted share, in Q2 FY 2024[1]. - Sales and service fees for Q2 FY 2025 were $40,867,000, a decrease of $4,305,000, or 10%, compared to the same period in FY 2024[2]. - Orders for Q2 FY 2025 were $43,700,000, a decrease of $492,000, or 1%, compared to Q2 FY 2024[7]. - Gross profit for Q2 FY 2025 was $7,829,000, or 19% of sales, compared to $8,019,000, or 18% of sales, in Q2 FY 2024[12]. - Selling, general, and administrative expenses for Q2 FY 2025 were $10,897,000, or 27% of sales, compared to $11,461,000, or 25% of sales, in Q2 FY 2024[13]. - The net loss for the three months ended April 30, 2025, was $4,063,000, compared to a net loss of $3,922,000 for the same period in 2024[19]. - Selling, general and administrative expenses as a percentage of sales increased to 27% for the three months ended April 30, 2025, from 25% in the same period of 2024[20]. - Gross profit for the six months ended April 30, 2025, was $16,119,000, down from $17,714,000 in 2024, reflecting a gross margin of 18% compared to 20% in the prior year[19][20]. Cash and Working Capital - Cash and cash equivalents totaled $43,807,000 at April 30, 2025, compared to $33,330,000 at October 31, 2024[15]. - Working capital was $175,914,000 at April 30, 2025, down from $180,788,000 at October 31, 2024[15]. - Total current assets decreased to $222,909,000 as of April 30, 2025, from $228,577,000 as of October 31, 2024[22]. - Shareholders' equity decreased to $202,280,000 as of April 30, 2025, from $207,172,000 as of October 31, 2024[22]. - The company reported a decrease in accounts receivable, net, to $25,583,000 as of April 30, 2025, from $36,678,000 as of October 31, 2024[22]. - Days sales outstanding increased to 51 days as of April 30, 2025, compared to 49 days as of October 31, 2024[20]. Sales Performance by Region - Sales in the Americas decreased by 9% in Q2 FY 2025 compared to Q2 FY 2024, primarily due to decreased shipments of Hurco and Takumi machines[4]. - European sales decreased by 5% in Q2 FY 2025 compared to Q2 FY 2024, driven by decreased shipments in Germany, France, and Italy[5]. - Asian Pacific sales decreased by 29% in Q2 FY 2025 compared to Q2 FY 2024, primarily due to decreased sales of higher-performance machines in India[6]. Tax and Capital Expenditures - The effective tax rate for the six months ended April 30, 2025, was (44)%, compared to 9% in the same period of 2024[20]. - Capital expenditures for the six months ended April 30, 2025, were $1,356,000, compared to $1,311,000 in 2024[20].