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Hurco Companies Inc. (HURC+5.49%) has filed its Form 10-Q filing for the quarterly period ended January 31, 2025.
The filing reports sales and service fees of $46.4 million for the quarter, marking a 3% increase from the $45.1 million reported in the same quarter of the previous year. This increase was primarily driven by higher sales in the Americas and Asia Pacific regions, offset by a decline in the European region.
The company reported a gross profit of $8.3 million, which is 18% of sales, compared to $9.7 million, or 22% of sales, in the previous year. The decrease in gross profit margin is attributed to lower sales volumes of higher-performance machines and the allocation of fixed costs.
Operating expenses for the quarter were $10.4 million, representing 22% of sales, down from $11.5 million, or 26% of sales, in the prior year. This reduction was due to lower discretionary spending and reduced sales commissions.
Hurco reported an operating loss of $2.1 million for the quarter, compared to a loss of $1.8 million in the previous year. The increase in loss is attributed to lower sales volumes and the impact of fixed cost allocations.
Net loss for the quarter was $4.3 million, compared to a net loss of $1.6 million in the prior year. The increased loss was primarily due to a $2.4 million non-cash valuation allowance on deferred tax assets and changes in geographic income mix.
The company ended the quarter with cash and cash equivalents of $41.8 million, up from $33.3 million at the end of the previous fiscal year. Working capital decreased to $172.6 million from $180.8 million, primarily due to reductions in inventories and accounts receivable.
Hurco's order intake for the quarter was $40.1 million, a decrease of 20% from the $50.2 million reported in the same period last year. This decline was mainly due to reduced demand in the Americas and Europe.
The company continues to operate under its 2018 Credit Agreement, which provides for a $40.0 million unsecured revolving credit facility. As of January 31, 2025, there were no borrowings under this facility.
Hurco maintains a share repurchase program with $21.7 million remaining available for repurchase as of January 31, 2025. The company did not repurchase any shares during the quarter.
The filing also discusses various risks, including foreign currency exchange risks, competitive pressures, and the impact of economic conditions on demand for its products.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Hurco Companies Inc. quarterly 10-Q report dated March 7, 2025. To report an error, please email earnings@qz.com.