Hurco Reports Third Quarter Results for Fiscal Year 2024

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].