Hurco Reports Fourth Quarter and Full Year Results for Fiscal Year 2024

Financial Performance - Sales and service fees for Q4 FY2024 were $53,702,000, a 19% decrease compared to the same period in FY2023, with a favorable currency impact of $1,008,000 [1] - Full-year sales and service fees for FY2024 were $186,584,000, an 18% decrease compared to FY2023, with a favorable currency impact of $1,804,000 [1] - Gross profit for Q4 FY2024 was $12,186,000 (23% of sales), down from $17,419,000 (26% of sales) in Q4 FY2023 [10] - Full-year gross profit for FY2024 was $37,743,000 (20% of sales), compared to $56,168,000 (25% of sales) in FY2023 [10] - Net loss for Q4 FY2024 was $1,442,000 ($0.23 per diluted share), compared to net income of $2,422,000 ($0.36 per diluted share) in Q4 FY2023 [17] - Full-year net loss for FY2024 was $16,608,000 ($2.56 per diluted share), compared to net income of $4,389,000 ($0.66 per diluted share) in FY2023 [17] Regional Sales Performance - Americas sales for Q4 FY2024 decreased by 21% compared to Q4 FY2023, primarily due to decreased shipments of Hurco and Takumi machines [15] - European sales for Q4 FY2024 decreased by 18% compared to Q4 FY2023, with a favorable currency impact of 3% [18] - Asian Pacific sales for Q4 FY2024 decreased by 11% compared to Q4 FY2023, with a favorable currency impact of less than 1% [2] - Full-year Asian Pacific sales for FY2024 increased by 2% compared to FY2023, with an unfavorable currency impact of 1% [16] Orders and Market Trends - Total orders for Q4 FY2024 were $51,077,000, a 6% decrease compared to Q4 FY2023, with a favorable currency impact of $1,077,000 [19] - Full-year orders for FY2024 were $198,302,000, a 5% decrease compared to FY2023, with a favorable currency impact of $1,923,000 [19] - Asian Pacific orders for Q4 FY2024 increased by 103% compared to Q4 FY2023, driven by increased demand in China, India, and Southeast Asia [4] - European orders for Q4 FY2024 decreased by 13% compared to Q4 FY2023, with a favorable currency impact of 4% [9] Operational Highlights - Selling, general, and administrative expenses for Q4 FY2024 were $12,677,000 (24% of sales), compared to $14,040,000 (21% of sales) in Q4 FY2023 [5] - Full-year SG&A expenses for FY2024 were $46,029,000 (25% of sales), compared to $49,552,000 (22% of sales) in FY2023 [5] - The company implemented global cost reductions in Q3 FY2024 to offset the impact of lower sales volumes and pricing [10][11] - Cash and cash equivalents totaled $33,330,000 as of October 31, 2024, compared to $41,784,000 as of October 31, 2023 [12] Industry and Company Outlook - The machine tool market was down almost 19% according to Oxford Economics U.S. machine tool forecasts [15] - The company focused on technological innovations, showcasing next-generation controls and CNC machines with ProCobots at IMTS [15] - The company believes its strong balance sheet and focus on technological advancement differentiate it from competitors [15] - The company is prepared for increased customer demand as global markets begin to recover [15]