Core Viewpoint - Hurco Companies, Inc. reported a net loss for the first quarter of fiscal 2026, with significant declines in sales and profitability metrics, while new orders showed a slight increase, indicating mixed performance amid challenging market conditions [2][6][10]. Financial Performance - Hurco reported a net loss of $3.5 million, or $0.54 per diluted share, for Q1 fiscal 2026, compared to a net loss of $4.3 million, or $0.67 per diluted share, in the same quarter last year [2]. - Sales and service fees decreased by 7.6% year over year to $42.9 million from $46.4 million [2]. - Gross profit was $7.9 million, down 4.2% from $8.3 million a year earlier, but gross margin improved to 19% from 18% [7]. Regional Sales Performance - Sales fell by 8% in the Americas to $16.6 million, decreased by 5% in Europe to $20.5 million, and dropped by 15% in the Asia Pacific region to $5.7 million [3]. - Computerized machine tool sales, the largest revenue contributor, declined by 11.3% year over year to $33.5 million from $37.8 million [4]. Segment and Product Performance - Sales of computer control systems and software decreased by 31.1% year over year to $0.5 million from $0.7 million [5]. - Service parts revenue rose by 17% to $6.9 million from $5.9 million, while service fees declined by 3.8% to $2 million from $2.1 million [5]. Orders and Demand - New orders totaled $41.9 million, up 5% from $40.1 million in the prior-year quarter [6]. - Orders in the Americas increased by 18% to $17.3 million, while European orders declined by 2% to $18.9 million, and Asia Pacific orders fell by 6% to $5.7 million [6]. Cost Management and Financial Flexibility - Selling, general and administrative expenses rose by 6.9% to $11.1 million, representing 26% of sales compared to 22% in the prior-year quarter [8]. - The company has implemented cost-reduction initiatives and suspended its quarterly dividend to preserve cash [11]. Liquidity and Capital Resources - Hurco ended the quarter with $48 million in cash and cash equivalents, slightly down from $48.7 million at the end of fiscal 2025 [12]. - Capital expenditures during the quarter were approximately $0.6 million, primarily for software development and facility improvements [13]. Credit Facilities - Hurco entered into a new credit agreement with Bank of America providing a secured revolving credit and letter-of-credit facility of up to $20 million [14][17]. Management Commentary and Guidance - Management noted improved order activity in the U.S. despite higher tariffs and indicated that the uptick in U.S. orders could signal early signs of recovery in global machine tool markets [10]. - The company did not issue formal financial guidance for the remainder of fiscal 2026, citing uncertain demand conditions [15][16].