Core Viewpoint - Hurco Companies, Inc. reported a net loss for the third quarter of fiscal 2025, but showed improvements in revenue and gross margin, indicating a mixed performance amid regional disparities in demand [2][3][4]. Financial Performance - Hurco posted a net loss of $3.7 million, or $0.58 per diluted share, for Q3 2025, an improvement from a loss of $9.6 million, or $1.47 per share, in the same quarter last year [2]. - Revenue increased by 7.4% year over year to $45.8 million, up from $42.7 million, driven by favorable foreign currency translation and strong sales in the Americas and Asia Pacific [2][3]. - Gross margin expanded to 20% from 18% a year earlier, reflecting improved cost management and a better mix of machine sales [3]. Geographic Performance - Sales in the Americas advanced by 9.8%, while Asia Pacific surged by 48.4%. However, Europe remained flat due to lower demand in Germany and France [3]. - Orders fell 22.4% year over year to $40.9 million, with declines across all regions: Americas down 11.7%, Europe down 28.5%, and Asia Pacific down 24.5% [4][8]. Cost Management and Expenses - Gross profit improved by 16.2% to $9.1 million from $7.8 million, while selling, general, and administrative expenses rose by 3.7% to $10.8 million [4]. - Despite revenue and margin gains, the operating loss was $1.7 million, narrower than the $2.5 million loss in the prior year [4]. Liquidity and Cash Position - Cash and cash equivalents were $44.5 million as of July 31, 2025, up from $33.3 million at the end of fiscal 2024, indicating a stronger liquidity position [5]. - Working capital slightly decreased to $176.8 million from $180.8 million as of October 31, 2024 [5]. Management Insights - CEO Greg Volovic emphasized the company's discipline in cost control and sales growth in the Americas and Asia Pacific, highlighting a healthy cash balance for future investments [6]. - Management expressed confidence in returning to profitability over time, supported by strong liquidity and ongoing technology investments [9]. Share Repurchase and Future Plans - Hurco continued its share repurchase program, buying back 104,472 shares for nearly $2 million in the quarter, with a total of approximately $5.3 million repurchased since the program's inception [10]. - Management indicated that reinstating dividend payments may be considered once profitability resumes, alongside exploring potential acquisitions for long-term growth [10].