Fri, Sep 6, 7:54 PM (105 days ago)
For the third quarter ending July 31, 2024, Hurco Companies, Inc. reported a significant decline in sales and service fees of $42.7 million, down 20% year-over-year, primarily due to reduced shipments of its machine tools, particularly in Europe and the Americas. Gross profit also fell to $7.8 million, representing an 18% margin, compared to a 25% margin in the prior year, reflecting lower sales volumes and pricing pressures. Operating expenses decreased to $10.4 million, but as a percentage of sales, they rose to 24%. The company recorded an operating loss of $2.5 million, contrasting with a profit of $1.0 million in the previous year. Tax expenses surged to $7.0 million, largely due to a non-cash valuation allowance on U.S. deferred tax assets. Cash and equivalents stood at $36.1 million, down from $41.8 million at fiscal year-end, while working capital decreased to $182.0 million. The firm has initiated cost reductions and a share repurchase program amidst market uncertainties, reflecting a cautious approach to future operations. Overall, the financial performance indicates significant challenges in a cyclical industry impacted by global economic conditions.