UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
DC 20549
FORM
8-K
CURRENT
REPORT PURSUANT
TO
SECTION 13 OR 15(D) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date
of
report (Date of earliest event reported) February 16, 2007
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Hurco
Companies, Inc.
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(Exact
Name of Registrant as Specified in Its Charter
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Indiana
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(State
or Other Jurisdiction of Incorporation
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0-9143
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35-1150732
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(Commission
File Number)
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(I.R.S.
Employer Identification Number)
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One
Technology Way
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Indianapolis,
Indiana
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46268
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(Address
of principal executive offices)
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(Zip
code)
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(317)
293-5309
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(Registrant’s
Telephone Number, Including Area Code
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Not
Applicable
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(Former
Name or Former Address, if Changed Since Last
Report)
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Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see
General
Instruction A.2. below):
o Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
o Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item
2.02. Results
of Operation and Financial Condition
On
February 16, 2007, Hurco Companies, Inc. (the "Registrant") reported its results
of operations for the first quarter ended January 31, 2007. The Registrant's
earnings release for the period is attached as Exhibit 99 and the information
set forth therein is incorporated herein by reference and constitutes a part
of
this report. The attached Exhibit is furnished pursuant to Item 2.02 of
Form 8-K.
Item
9.01 Financial
Statements and Exhibits.
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99
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Press
Release dated February 16, 2007
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SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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Dated:
February 16, 2007
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HURCO
COMPANIES, INC
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By:
/s/ John G. Oblazney
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Vice
President and
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Chief
Financial Officer
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EXHIBIT
INDEX
Exhibit
99 Press
Release of Hurco Companies, Inc. dated February 16, 2007
FOR
IMMEDIATE RELEASE
FRIDAY,
FEBRUARY 16, 2007
HURCO
REPORTS FIRST QUARTER SALES UP 47% AND EARNINGS UP 78%.
INDIANAPOLIS,
INDIANA, — February 16, 2007, Hurco
Companies, Inc. (Nasdaq, Global Select Market: HURC) today reported net income
of $5,395,000 or $.84 per share, for its first fiscal quarter, which ended
January 31, 2007, compared to $3,033,000 or $.48 per share, for the
corresponding period in 2006.
Sales
and
service fees for the first quarter of fiscal 2007 were $46,878,000, an increase
of $14,984,000, or 47% from the amount for the prior year period. These results
reflected a significant improvement in demand, primarily in European markets,
as
well as increased shipments of the Company’s larger and more highly-priced
machines in those markets. In addition, approximately 9% of the year over year
increase reflected the effects of a weaker U.S. dollar when translating foreign
sales to U.S. dollars for financial reporting purposes.
New
orders booked during the first quarter of fiscal 2007 totaled $47,095,000,
an
increase of $9,305,000, or 25% over the amount recorded in the first quarter
of
fiscal 2006. The impact of currency translation on new orders booked was
consistent with the impact on sales and service fees. Unit orders increased
in
Europe, but decreased in North America due to market softening in the northern
Midwest and decreased in Asia due to timing of order activity.
Gross
margin for the first quarter of fiscal 2007 was 37% compared to 34% for the
prior year period, as a result of higher volume and favorable model and sales
region mix. Selling, general and administrative expenses were $9,250,000, an
increase from the $6,296,000 reported in the prior year period due to selling
and marketing expenses related to export market expansion, increased commissions
and compensation expense, and administrative expenses related to ongoing
compliance costs for Sarbanes-Oxley.
Operating
income for the first quarter was $8,074,000, or 17% of sales and service fees,
compared to $4,631,000, or 15% of sales and service fees for the prior year
period.
Michael
Doar, Chairman and Chief Executive Officer, stated, “We are pleased with the
first quarter increase in sales and earnings. The European market remains strong
and we continue to benefit from our global market strategy. I am also pleased
with the positive response to our participation in the Indian Machine Tool
Exhibition 2007 held in Bangalore, India. Our focus on making machine tools
that
are powerful, yet easy to use is a natural fit for the Indian market. The
integrated control and software on the Hurco machine tools that simplifies
programming and machining processes is especially appealing to shop owners
in
India who face high employee turnover and an unskilled to semi-skilled labor
force.”
Hurco
Companies, Inc. is an industrial technology company that designs and produces
interactive computer controls, software and computerized machine tools for
the
worldwide metal cutting and metal forming industry. The end market for the
Company's products consists primarily of independent job shops and short-run
manufacturing operations within large corporations in industries such as the
aerospace, defense, medical equipment, energy, transportation and computer
equipment. The Company is based in Indianapolis, Indiana, and has sales,
application engineering and service subsidiaries in High Wycombe, England;
Munich, Germany; Paris, France; Milan, Italy; Shanghai, China and Singapore,
along with manufacturing operations in Taiwan and China. Products are sold
through independent agents and distributors in the United States, Europe and
Asia. The Company also has direct sales forces in the United Kingdom, Germany,
France, Italy, and Asia.
Web
Site:
www.hurco.com
This
news release contains forward looking statements which involve known and unknown
risks, uncertainties and other factors that may cause our actual results,
performance or achievements to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements. These factors include, among others, changes in general economic
and
business conditions that affect demand for computerized machine systems,
computer numerical control systems and software products, changes in
manufacturing markets, innovations by competitors, our ability to protect our
intellectual property, fluctuations in exchange rates, fluctuations in prices
of
raw materials, changes in market demands, quality and delivery performance
by
our contract manufacturers and governmental actions and initiatives including
import and export restrictions and tariffs.
Contact:
John G. Oblazney
Vice
President & Chief Financial Officer
317-293-5309
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HURCO
COMPANIES, INC.
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CONDENSED
CONSOLIDATED BALANCE SHEET
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(In
thousands, except per-share data)
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January
31,
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October
31,
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2007
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2006
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(unaudited)
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(audited)
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ASSETS
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Current
assets:
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Cash
and cash equivalents
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$
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32,326
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$
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29,846
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Accounts
receivable
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25,169
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22,248
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Inventories
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40,324
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43,343
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Deferred
tax assets, net
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1,910
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2,768
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Other
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3,170
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2,677
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Total
current assets
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102,899
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100,882
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Property
and equipment:
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Land
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761
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761
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Building
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7,234
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7,234
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Machinery
and equipment
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13,132
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12,952
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Leasehold
improvements
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1,167
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1,147
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22,294
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22,094
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Less
accumulated depreciation and amortization
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(13,262
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)
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(12,944
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)
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9,032
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9,150
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Non-current
assets:
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Deferred
tax assets, net
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1,088
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1,121
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Software
development costs, less amortization
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5,992
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5,580
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Investments
and other assets
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7,812
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7,381
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$
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126,823
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$
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124,114
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LIABILITIES
AND SHAREHOLDER'S EQUITY
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Current
liabilities:
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Accounts
payable
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$
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24,227
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$
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26,605
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Accrued
expenses
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16,575
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17,599
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Current
portion of long-term debt
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138
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136
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Total
current liabilities
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40,940
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44,340
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Non-current
liabilities:
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Long-term
debt
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3,839
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3,874
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Defered
credits and other obligations
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588
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525
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Total
liabilities
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45,367
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48,739
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Shareholders'
equity:
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Preferred
stock: no par value per share; 1,000,000 shares
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authorized;
no shares issued
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Common
stock: no par value; $.10 stated value per share;
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12,500,000
shares authorized; and 6,341,020 and
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6,220,220
shares issued, respectively
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638
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635
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Additional
paid-in capital
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50,291
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50,011
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Retained
earnings
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33,875
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28,480
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Accumulated
other comprehensive income
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(3,348
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)
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(3,751
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)
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Total
shareholders' equity
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81,456
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75,375
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$
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126,823
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$
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124,114
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HURCO
COMPANIES, INC.
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CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS
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(In
thousands, except per-share data)
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Three
Months Ended
January
31,
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2007
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2006
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(unaudited)
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Sales
and service fees
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$
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46,878
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$
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31,894
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Cost
of sales and service
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29,554
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20,967
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Gross
profit
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17,324
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10,927
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Selling,
general and administrative expenses
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9,250
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6,296
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Operating
income
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8,074
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4,631
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Interest
expense
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43
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84
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Other
(income) expense, net
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(362
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)
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(104
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)
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Income
before taxes
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8,393
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4,651
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Provision
for income taxes
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2,998
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1,618
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Net
income
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$
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5,395
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$
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3,033
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Earnings
per common share
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Basic
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$
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0.85
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$
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0.49
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Diluted
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$
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0.84
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$
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0.48
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Weighted
average common shares outstanding
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Basic
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6,362
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6,242
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Diluted
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6,418
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6,328
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OTHER
CONSOLIDATED FINANCIAL DATA
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Three
Months Ended
January
31,
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||||||
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Operating
Data:
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2007
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2006
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(unaudited)
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Gross
margin
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37.0
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%
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34.3
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%
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SG&A
expense as a percentage of sales
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19.7
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%
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19.7
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%
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Operating
income as a percentage of sales
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17.2
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%
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14.5
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%
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Pre-tax
income as a percentage of sales
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17.9
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%
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14.6
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%
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Effective
tax rate
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35.7
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%
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34.8
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%
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Depreciation
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388
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365
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Capital
expenditures
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654
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492
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Balance
Sheet Data:
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1/31/2006
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10/31/2006
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Working
capital
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$
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62,097
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$
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56,678
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Days
sales outstanding
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43
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41
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Inventory
turns
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2.5
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2.2
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Capitalization
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|||||||
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Total
Debt
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$
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3,977
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$
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4,010
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Shareholders'
Equity
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81,456
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75,375
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Total
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$
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85,433
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$
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79,385
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