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 28, 2008
|
Hurco
Companies, Inc.
|
||
|
(Exact
Name of Registrant as Specified in Its Charter
|
||
|
Indiana
|
||
|
(State
or Other Jurisdiction of Incorporation
|
||
|
0-9143
|
35-1150732
|
|
|
(Commission
File Number)
|
(I.R.S.
Employer Identification Number)
|
|
|
One
Technology Way
|
||
|
Indianapolis,
Indiana
|
46268
|
|
|
(Address
of principal executive offices)
|
(Zip
code)
|
|
|
(317)
293-5309
|
||
|
(Registrant’s
Telephone Number, Including Area Code
|
||
|
Not
Applicable
|
||
|
(Former
Name or Former Address, if Changed Since Last
Report)
|
||
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 28, 2008, Hurco Companies,
Inc. (the "Registrant") reported its results of operations for the first quarter
ended January 31, 2008. 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.
|
|
99
|
Press
Release dated February 28, 2008
|
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.
|
Dated: February
28, 2008
|
|
|
HURCO
COMPANIES, INC
|
|
|
By: /s/ John G.
Oblazney
|
|
|
Vice
President and
|
|
|
Chief
Financial Officer
|
EXHIBIT
INDEX
Exhibit
99 Press
Release of Hurco Companies, Inc. dated February 28, 2008
FOR
IMMEDIATE RELEASE
THURSDAY,
FEBRUARY 28, 2008
HURCO
REPORTS STRONG FIRST QUARTER RESULTS
INDIANAPOLIS, INDIANA, — February 28,
2008, Hurco Companies, Inc., (Nasdaq, Global Select Market: HURC) today
reported for its first quarter ended January 31, 2008, net income of $7,805,000,
or $1.21 per share, which is a 45% increase over the $5,395,000, or $.84 per
share, reported for the corresponding period in fiscal 2007.
Sales and
service fees for the first quarter of fiscal 2008 totaled $60,923,000, an
increase of $14,045,000, or 30%, over the first quarter of fiscal
2007. The effect of a weaker U.S. dollar when translating foreign
sales to U.S. dollars for financial reporting purposes had a favorable impact of
approximately 10%, or $4,581,000, on the year-to-year comparison.
The
following table sets forth net sales and service fees by geographic region for
the first quarter of fiscal 2008 and 2007:
Net
Sales and Service Fees by Geographic Region
|
Three
Months Ended
January
31,
|
|||
|
2008
|
2007
|
%
Change
|
|
|
North
America
|
$ 13,079
|
$ 13,223
|
-1%
|
|
Europe
|
45,052
|
31,494
|
43%
|
|
Asia
Pacific
|
2,792
|
2,161
|
29%
|
|
Total
|
$ 60,923
|
$ 46,878
|
30%
|
Growth was primarily driven by strong demand in existing European markets, expansion into Eastern European markets, and increased shipments of the higher end VMX product line. Growth in the Asia Pacific region was primarily due to penetration into India, a market targeted by Hurco last year. The effect of a weaker U.S. dollar when translating fiscal 2008 foreign sales into U.S. dollars for financial reporting purposes had a favorable impact of approximately 14% in Europe and 8% in the Asia Pacific market. Sales in North America reflected continued market softness.
New order
bookings in the first quarter of fiscal 2008, were $61,147,000, an increase of
$14,052,000, or 30%, over the prior year period. Of that increase,
European and Asia Pacific orders increased $14,180,000, or 44%, and $603,000, or
27%, respectively. North American bookings declined by $750,000, or
6%.
Hurco’s
gross margin for the first quarter of fiscal 2008 was 41%, compared to 37% for
the 2007 period. The improvement was attributable to increased sales
of higher margin VMX products in European sales regions, as well as the impact
of a continuing decline in the value of the U.S. dollar when European sales
results are translated to U.S. dollars for financial reporting
purposes. Selling, general and administrative expenses were
$12,376,000 for the first quarter of fiscal 2008, an increase of $3,126,000 over
the 2007 period, reflecting greater expenditures for sales, product development
and market expansion. The increase also reflected the unfavorable
effect of a weaker U.S. dollar during the 2008 period when translating foreign
operating expenses for financial reporting purposes.
Hurco’s
effective tax rate for the first quarter of fiscal 2008 was relatively unchanged
compared to the same period in the prior year at approximately 37%.
Cash and
short-term investments totaled $35,176,000 as of January 31, 2008, compared to
$39,760,000 as of October 31, 2007. Working capital, excluding cash
and short-term investments, was $48,884,000 as of January 31, 2008, compared to
$36,290,000 as of October 31, 2007, reflecting increases in accounts receivable
and inventory due to growth in product demand.
Michael
Doar, Hurco’s Chief Executive Officer, stated, “Strong first quarter results,
despite market softness in the U.S., affirm the importance of our global
strategy. Europe continues to exceed
expectations. Increased sales in the Asia Pacific region are a direct
result of the resources we devoted to India last year to expand our presence in
this key market. We will continue to monitor the U.S. market
closely.”
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;
Mississauga, Canada and Singapore, along with manufacturing operations in Taiwan
and China. Products are sold through independent agents and
distributors in North America, Europe and Asia. The Company also has
direct sales forces in the United Kingdom, Germany, France, Italy, Canada, 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
Oblazney
Vice President
& Chief Financial Officer
317-293-5309
|
HURCO
COMPANIES, INC.
|
||||||||
|
CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS
|
||||||||
|
(In
thousands, except per-share data)
|
||||||||
|
Three
Months Ended
January
31,
|
||||||||
|
2008
|
2007
|
|||||||
|
(unaudited)
|
||||||||
|
Sales
and service fees
|
$ | 60,923 | $ | 46,878 | ||||
|
Cost
of sales and service
|
36,066 | 29,554 | ||||||
|
Gross profit
|
24,857 | 17,324 | ||||||
|
Selling,
general and administrative expenses
|
12,376 | 9,250 | ||||||
|
Operating income
|
12,481 | 8,074 | ||||||
|
Interest
expense
|
11 | 82 | ||||||
|
Interest
income
|
149 | 193 | ||||||
|
Investment
income
|
172 | 21 | ||||||
|
Other
(income) expense, net
|
464 | (187 | ) | |||||
|
Income before taxes
|
12,327 | 8,393 | ||||||
|
Provision
for income taxes
|
4,522 | 2,998 | ||||||
|
Net
income
|
$ | 7,805 | $ | 5,395 | ||||
|
Earnings
per common share
|
||||||||
|
Basic
|
$ | 1.22 | $ | 0.85 | ||||
|
Diluted
|
$ | 1.21 | $ | 0.84 | ||||
|
Weighted
average common shares outstanding
|
||||||||
|
Basic
|
6,401 | 6,362 | ||||||
|
Diluted
|
6,433 | 6,418 | ||||||
|
OTHER
CONSOLIDATED FINANCIAL DATA
|
Three
Months Ended
January
31,
|
|||||||
|
Operating
Data:
|
2008
|
2007
|
||||||
|
(unaudited)
|
||||||||
|
Gross
margin
|
40.8 | % | 37.0 | % | ||||
|
SG&A
expense as a percentage of sales
|
20.3 | % | 19.7 | % | ||||
|
Operating
income as a percentage of sales
|
20.5 | % | 17.2 | % | ||||
|
Pre-tax
income as a percentage of sales
|
20.2 | % | 17.9 | % | ||||
|
Effective
tax rate
|
36.7 | % | 35.7 | % | ||||
|
Depreciation
|
683 | 388 | ||||||
|
Capital
expenditures
|
1,147 | 654 | ||||||
|
Balance
Sheet Data:
|
1/31/2008
|
10/31/2007
|
||||||
|
Working
capital
|
$ | 84,060 | $ | 76,050 | ||||
|
Days
sales outstanding
|
43 | 33 | ||||||
|
Inventory
turns
|
2.0 | 2.0 | ||||||
|
Capitalization
|
||||||||
|
Total Debt
|
$ |
-
|
$ | - | ||||
|
Shareholders' Equity
|
106,005 | 97,603 | ||||||
|
Total
|
$ | 106,005 | $ | 97,603 | ||||
|
HURCO
COMPANIES, INC.
|
||||||||
|
CONDENSED
CONSOLIDATED BALANCE SHEET
|
||||||||
|
(In
thousands, except per-share data)
|
||||||||
|
January
31,
|
October
31,
|
|||||||
|
2008
|
2007
|
|||||||
|
(unaudited)
|
(audited)
|
|||||||
|
ASSETS
|
||||||||
|
Current
assets:
|
||||||||
|
Cash and cash equivalents
|
$ | 21,176 | $ | 29,760 | ||||
|
Short-term investments
|
14,000 | 10,000 | ||||||
|
Accounts receivable
|
35,977 | 25,645 | ||||||
|
Inventories
|
63,829 | 61,121 | ||||||
|
Deferred tax assets, net
|
8,249 | 8,258 | ||||||
|
Other
|
3,155 | 4,481 | ||||||
|
Total current assets
|
146,386 | 139,265 | ||||||
|
Property
and equipment:
|
||||||||
|
Land
|
776 | 776 | ||||||
|
Building
|
7,135 | 7,135 | ||||||
|
Machinery and equipment
|
14,621 | 13,629 | ||||||
|
Leasehold improvements
|
1,549 | 1,473 | ||||||
| 24,081 | 23,013 | |||||||
|
Less accumulated depreciation and amortization
|
(11,935 | ) | (11,617 | ) | ||||
| 12,146 | 11,396 | |||||||
|
Non-current
assets:
|
||||||||
|
Software development costs, less amortization
|
5,737 | 5,960 | ||||||
|
Investments
and other assets
|
7,085 | 7,160 | ||||||
| $ | 171,354 | $ | 163,781 | |||||
|
LIABILITIES
AND SHAREHOLDER'S EQUITY
|
||||||||
|
Current
liabilities:
|
||||||||
|
Accounts payable
|
$ | 36,730 | $ | 35,486 | ||||
|
Accrued expenses
|
25,596 | 27,729 | ||||||
|
Total current liabilities
|
62,326 | 63,215 | ||||||
|
Non-current
liabilities:
|
||||||||
|
Deferred tax liability, net
|
2,008 | 1,956 | ||||||
|
Deferred credits and other obligations
|
1,015 | 1,007 | ||||||
|
Total liabilities
|
65,349 | 66,178 | ||||||
|
Shareholders'
equity:
|
||||||||
|
Preferred stock: no par value per share; 1,000,000
shares
|
||||||||
|
authorized; no shares issued
|
||||||||
|
Common stock: no par value; $.10 stated value per
share;
|
||||||||
|
12,500,000 shares authorized; and 6,417,220 and
|
||||||||
|
6,392,220 shares issued, respectively
|
642 | 639 | ||||||
|
Additional paid-in capital
|
51,079 | 50,971 | ||||||
|
Retained earnings
|
57,174 | 49,369 | ||||||
|
Accumulated other comprehensive income
|
(2,890 | ) | (3,376 | ) | ||||
|
Total shareholders' equity
|
106,005 | 97,603 | ||||||
| $ | 171,354 | $ | 163,781 | |||||