x
|
Quarterly
report pursuant to section 13 or 15(d) of the Securities Exchange Act of
1934 for the quarterly period ended April 30, 2010
or
|
¨
|
Transition
report pursuant to section 13 or 15(d) of the Securities Exchange Act of
1934 for the transition period from _________ to
_________.
|
Indiana
|
35-1150732
|
|
(State
or other jurisdiction of
|
(I.R.S.
Employer Identification Number)
|
|
incorporation
or organization)
|
||
One
Technology Way
|
||
Indianapolis,
Indiana
|
46268
|
|
(Address
of principal executive offices)
|
(Zip
code)
|
Large accelerated filer ¨
|
Accelerated filer x
|
Non-accelerated filer ¨ (Do not check if a smaller reporting company)
|
Smaller reporting company ¨
|
Part
I - Financial Information
|
||
Item
1.
|
Financial
Statements
|
|
Condensed
Consolidated Statements of Operations
Three
and six months ended April 30, 2010 and 2009
|
3
|
|
Condensed
Consolidated Balance Sheets
As
of April 30, 2010 and October 31, 2009
|
4
|
|
Condensed
Consolidated Statements of Cash Flows
Three
and six months ended April 30, 2010 and 2009
|
5
|
|
Condensed
Consolidated Statements of Changes in Shareholders' Equity
Six
months ended April 30, 2010 and 2009
|
6
|
|
Notes
to Condensed Consolidated Financial Statements
|
7
|
|
Item
2.
|
Management's
Discussion and Analysis of Financial
Condition
and Results of Operations
|
15
|
Item
3.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
21
|
Item
4.
|
Controls
and Procedures
|
23
|
Part
II - Other Information
|
||
Item
1.
|
Legal
Proceedings
|
24
|
Item
1A.
|
Risk
Factors
|
24
|
Item
5.
|
Other
Information
|
24
|
Item
6.
|
Exhibits
|
25
|
Signatures
|
26
|
Item
1.
|
FINANCIAL
STATEMENTS
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
April 30
|
April 30
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
Sales
and service fees
|
$ | 24,088 | $ | 20,489 | $ | 44,704 | $ | 48,796 | ||||||||
Cost
of sales and service
|
19,411 | 15,269 | 36,047 | 35,034 | ||||||||||||
Gross
profit
|
4,677 | 5,220 | 8,657 | 13,762 | ||||||||||||
Selling,
general and administrative expenses
|
7,230 | 7,518 | 13,763 | 15,547 | ||||||||||||
Operating
loss
|
(2,553 | ) | (2,298 | ) | (5,106 | ) | (1,785 | ) | ||||||||
Interest
expense
|
8 | 4 | 22 | 27 | ||||||||||||
Interest
income
|
5 | 45 | 25 | 149 | ||||||||||||
Investment
income
|
3 | 1 | 8 | 29 | ||||||||||||
Other
(income) expense, net
|
116 | (1,768 | ) | 393 | (1,695 | ) | ||||||||||
Income
(loss) before taxes
|
(2,669 | ) | (488 | ) | (5,488 | ) | 61 | |||||||||
Benefit
for income taxes
|
(1,096 | ) | (207 | ) | (2,079 | ) | (12 | ) | ||||||||
Net
income (loss)
|
$ | (1,573 | ) | $ | (281 | ) | $ | (3,409 | ) | $ | 73 | |||||
Earnings
(losses) per common share
|
||||||||||||||||
Basic
|
$ | (0.24 | ) | $ | (0.04 | ) | $ | (0.53 | ) | $ | 0.01 | |||||
Diluted
|
$ | (0.24 | ) | $ | (0.04 | ) | $ | (0.53 | ) | $ | 0.01 | |||||
Weighted
average common shares outstanding
|
||||||||||||||||
Basic
|
6,441 | 6,421 | 6,441 | 6,421 | ||||||||||||
Diluted
|
6,441 | 6,421 | 6,441 | 6,430 |
April 30
2010
|
October 31
2009
|
|||||||
(Unaudited)
|
(Audited)
|
|||||||
ASSETS
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$ | 36,018 | $ | 28,782 | ||||
Accounts
receivable, net
|
13,697 | 13,988 | ||||||
Refundable
taxes
|
5,516 | 7,121 | ||||||
Inventories,
net
|
50,667 | 60,281 | ||||||
Deferred
income taxes, net
|
2,263 | 2,670 | ||||||
Derivative
assets
|
1,372 | 376 | ||||||
Other
|
7,353 | 5,046 | ||||||
Total
current assets
|
116,886 | 118,264 | ||||||
Property
and equipment:
|
||||||||
Land
|
782 | 782 | ||||||
Building
|
7,116 | 7,116 | ||||||
Machinery
and equipment
|
15,136 | 14,995 | ||||||
Leasehold
improvements
|
1,967 | 2,021 | ||||||
25,001 | 24,914 | |||||||
Less
accumulated depreciation and amortization
|
(12,688 | ) | (11,802 | ) | ||||
12,313 | 13,112 | |||||||
Software
development costs, less accumulated amortization
|
6,244 | 6,503 | ||||||
Investments
and other assets, net
|
6,506 | 6,864 | ||||||
$ | 141,949 | $ | 144,743 | |||||
LIABILITIES
AND SHAREHOLDERS’ EQUITY
|
||||||||
Current
liabilities:
|
||||||||
Accounts
payable
|
$ | 12,961 | $ | 8,262 | ||||
Accrued
expenses and other
|
7,658 | 9,025 | ||||||
Accrued
warranty expenses
|
1,222 | 1,286 | ||||||
Derivative
liabilities
|
153 | 2,234 | ||||||
Total
current liabilities
|
21,994 | 20,807 | ||||||
Non-current
liabilities:
|
||||||||
Deferred
income taxes, net
|
2,577 | 2,570 | ||||||
Deferred
credits and other
|
1,039 | 990 | ||||||
Total
liabilities
|
25,610 | 24,367 | ||||||
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, 13,250,000 shares
authorized, 6,440,851 shares issued and outstanding,
respectively
|
644 | 644 | ||||||
Additional
paid-in capital
|
52,052 | 52,003 | ||||||
Retained
earnings
|
66,159 | 69,568 | ||||||
Accumulated
other comprehensive loss
|
(2,516 | ) | (1,839 | ) | ||||
Total
shareholders’ equity
|
116,339 | 120,376 | ||||||
$ | 141,949 | $ | 144,743 |
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
April 30
|
April 30
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
Cash
flows from operating activities:
|
||||||||||||||||
Net
income (loss)
|
$ | (1,573 | ) | $ | (281 | ) | $ | (3,409 | ) | $ | 73 | |||||
Adjustments to
reconcile net income (loss) to net cash provided by (used for)
operating activities:
|
||||||||||||||||
Provision
for doubtful accounts
|
(74 | ) | 210 | (189 | ) | 516 | ||||||||||
Changes
in deferred income taxes
|
(243 | ) | (140 | ) | (783 | ) | (1,246 | ) | ||||||||
Equity
in loss of affiliates
|
69 | 64 | 181 | 88 | ||||||||||||
Depreciation
and amortization
|
1,000 | 814 | 1,833 | 1,605 | ||||||||||||
Foreign
currency (gain) loss
|
1,365 | (1,941 | ) | 3,584 | (861 | ) | ||||||||||
Unrealized
(gain) loss on derivatives
|
(173 | ) | 1,771 | (835 | ) | 4,016 | ||||||||||
Stock-based
compensation
|
31 | 57 | 49 | 114 | ||||||||||||
Change
in assets and liabilities:
|
||||||||||||||||
(Increase)
decrease in accounts receivable
|
(1,609 | ) | 2,848 | (403 | ) | 15,895 | ||||||||||
(Increase)
decrease in inventories
|
2,135 | 571 | 7,413 | 3,500 | ||||||||||||
Increase
(decrease) in accounts payable
|
4,876 | (4,072 | ) | 4,649 | (17,513 | ) | ||||||||||
Increase
(decrease) in accrued expenses
|
(336 | ) | (1,313 | ) | (1,067 | ) | (9,306 | ) | ||||||||
Net
change in derivative assets and liabilities
|
(1 | ) | 1,657 | (1,039 | ) | 2,611 | ||||||||||
Other
|
(1,042 | ) | (1,138 | ) | (848 | ) | (1,895 | ) | ||||||||
Net
cash provided by (used for) operating activities
|
4,425 | (893 | ) | 9,136 | (2,403 | ) | ||||||||||
Cash
flows from investing activities:
|
||||||||||||||||
Proceeds
from sale of property and equipment
|
35 | 217 | 35 | 221 | ||||||||||||
Purchase
of property and equipment
|
(67 | ) | (536 | ) | (249 | ) | (1,328 | ) | ||||||||
Sale
of investments
|
— | — | — | 6,674 | ||||||||||||
Software
development costs
|
(202 | ) | (432 | ) | (495 | ) | (991 | ) | ||||||||
Other
investments
|
(8 | ) | (846 | ) | (17 | ) | (894 | ) | ||||||||
Net
cash provided by (used for) investing activities
|
(242 | ) | (1,597 | ) | (726 | ) | 3,682 | |||||||||
Effect
of exchange rate changes on cash
|
(546 | ) | 214 | (1,174 | ) | 177 | ||||||||||
Net
increase (decrease) in cash and cash equivalents
|
3,637 | (2,276 | ) | 7,236 | 1,456 | |||||||||||
Cash
and cash equivalents at beginning of period
|
32,381 | 30,126 | 28,782 | 26,394 | ||||||||||||
Cash
and cash equivalents at end of period
|
$ | 36,018 | $ | 27,850 | $ | 36,018 | $ | 27,850 |
(In thousands, except
shares issued and outstanding)
|
Common stock
|
Additional
|
Accumulated
other
comprehensive
|
|||||||||||||||||||||
Shares issued
& outstanding
|
Amount
|
paid-in
capital
|
Retained
earnings
|
income
(loss)
|
Total
|
|||||||||||||||||||
Balances,
October 31, 2008
|
6,420,851 | $ | 642 | $ | 51,690 | $ | 71,889 | $ | (744 | ) | $ | 123,477 | ||||||||||||
Net
income
|
— | — | — | 73 | — | 73 | ||||||||||||||||||
Translation
of foreign currency financial statements
|
— | — | — | — | 65 | 65 | ||||||||||||||||||
Realized
losses on derivative instruments reclassified into operations, net of tax
of $(251)
|
— | — | — | — | (408 | ) | (408 | ) | ||||||||||||||||
Unrealized
loss on derivative instruments, net of tax of ($989)
|
— | — | — | — | (1,606 | ) | (1,606 | ) | ||||||||||||||||
Reversal
of unrealized loss on investments, net of tax
|
— | — | — | — | 202 | 202 | ||||||||||||||||||
Comprehensive
loss
|
— | — | — | — | — | (1,674 | ) | |||||||||||||||||
Stock-based
compensation expense
|
— | — | 114 | — | — | 114 | ||||||||||||||||||
Balances, April
30, 2009 (Unaudited)
|
6,420,851 | $ | 642 | $ | 51,804 | $ | 71,962 | $ | (2,491 | ) | $ | 121,917 | ||||||||||||
Balances,
October 31, 2009
|
6,440,851 | $ | 644 | $ | 52,003 | $ | 69,568 | $ | (1,839 | ) | $ | 120,376 | ||||||||||||
Net
loss
|
— | — | — | (3,409 | ) | — | (3,409 | ) | ||||||||||||||||
Translation
of foreign currency financial statements
|
— | — | — | — | (1,617 | ) | (1,617 | ) | ||||||||||||||||
Realized
losses on derivative instruments reclassified into operations, net of tax
of $(46)
|
— | — | — | — | (75 | ) | (75 | ) | ||||||||||||||||
Unrealized
gain on derivative instruments, net of tax of $625
|
— | — | — | — | 1,015 | 1,015 | ||||||||||||||||||
Comprehensive
loss
|
— | — | — | — | — | (4,086 | ) | |||||||||||||||||
Stock-based
compensation expense
|
— | — | 49 | — | — | 49 | ||||||||||||||||||
Balances, April
30, 2010 (Unaudited)
|
6,440,851 | $ | 644 | $ | 52,052 | $ | 66,159 | $ | (2,516 | ) | $ | 116,339 |
1.
|
GENERAL
|
2.
|
DERIVATIVE
INSTRUMENTS AND HEDGING ACTIVITIES
|
2010
|
2009
|
||||||||||
Balance sheet
|
Fair
|
Balance sheet
|
Fair
|
||||||||
Derivatives
|
location
|
value
|
location
|
value
|
|||||||
Designated
as hedging instruments:
|
|||||||||||
Foreign
exchange forward contracts
|
Derivative assets
|
$ | 1,367 |
Derivative assets
|
$ | 74 | |||||
Foreign
exchange forward contracts
|
Derivative liabilities
|
$ | 89 |
Derivative liabilities
|
$ | 1,246 | |||||
Not designated as hedging instruments:
|
|||||||||||
Foreign
exchange forward contracts
|
Derivative assets
|
$ | 5 |
Derivative assets
|
$ | 302 | |||||
Foreign
exchange forward contracts
|
Derivative liabilities
|
$ | 64 |
Derivative liabilities
|
$ | 988 |
Derivatives
|
Amount of gain (loss)
recognized in other
comprehensive loss
|
Location of gain (loss)
reclassified from other
comprehensive loss
|
Amount of gain (loss)
reclassified from other
comprehensive loss
|
||||||||||||||
2010
|
2009
|
2010
|
2009
|
||||||||||||||
Designated
as hedging instruments:
(Effective
portion)
|
|||||||||||||||||
Foreign
exchange forward contracts
–
Intercompany sales/purchases
|
$ | 1,640 | $ | (2,595 | ) |
Cost
of sales and
service
|
$ | (121 | ) | $ | (659 | ) | |||||
Foreign
exchange forward contract
–
Net investment
|
$ | 401 | $ | (148 | ) |
Cost
of sales and
service
|
N/A | N/A |
Location of gain
|
Amount of gain (loss)
|
|||||||||
Derivatives
|
recognized in operations
|
recognized in operations
|
||||||||
2010
|
2009
|
|||||||||
Not
designated as hedging instruments:
|
||||||||||
Foreign
exchange forward contracts
|
Other
(income) expense, net
|
$ | 1,334 | $ | (1,108 | ) |
3.
|
STOCK
OPTIONS
|
Stock
options
|
Weighted
average
exercise
price
|
|||||||
Outstanding
at October 31, 2009
|
65,369 | $ | 24.11 | |||||
Options
granted
|
30,000 | 14.82 | ||||||
Options
exercised
|
— | — | ||||||
Options
cancelled
|
— | — | ||||||
Outstanding
at April 30, 2010
|
95,369 | $ | 21.19 |
Options already
vested and expected
to vest
|
Options currently
exercisable
|
|||||||
Number
of outstanding options
|
95,369 | 51,369 | ||||||
Weighted
average remaining contractual life (years)
|
7.90 | 6.31 | ||||||
Weighted
average exercise price per share
|
$ | 21.19 | $ | 26.62 | ||||
Intrinsic
value
|
$ | 244,000 | $ | 41,000 |
4.
|
EARNINGS
(LOSSES) PER SHARE
|
Three months ended
|
Six months ended
|
|||||||||||||||||||||||||||||||
April 30,
|
April 30,
|
|||||||||||||||||||||||||||||||
(in thousands, except per share
amount) |
2010
|
2009
|
2010
|
2009
|
||||||||||||||||||||||||||||
Basic
|
Diluted
|
Basic
|
Diluted
|
Basic
|
Diluted
|
Basic
|
Diluted
|
|||||||||||||||||||||||||
Net
income (loss)
|
$ | (1,573 | ) | $ | (1,573 | ) | $ | (281 | ) | $ | (281 | ) | $ | (3,409 | ) | $ | (3,409 | ) | $ | 73 | $ | 73 | ||||||||||
Weighted
average shares
|
||||||||||||||||||||||||||||||||
outstanding
|
6,441 | 6,441 | 6,421 | 6,421 | 6,441 | 6,441 | 6,421 | 6,421 | ||||||||||||||||||||||||
Assumed
issuances under
|
||||||||||||||||||||||||||||||||
stock
options plans
|
— | — | — | — | — | — | — | 9 | ||||||||||||||||||||||||
6,441 | 6,441 | 6,421 | 6,421 | 6,441 | 6,441 | 6,421 | 6,430 | |||||||||||||||||||||||||
Income
(loss) per share
|
$ | (0.24 | ) | $ | (0.24 | ) | $ | (0.04 | ) | $ | (0.04 | ) | $ | (0.53 | ) | $ | (0.53 | ) | $ | 0.01 | $ | 0.01 |
5.
|
ACCOUNTS
RECEIVABLE
|
6.
|
INVENTORIES
|
April 30, 2010
|
October 31, 2009
|
|||||||
Purchased
parts and sub-assemblies
|
$ | 14,730 | $ | 14,961 | ||||
Work-in-process
|
7,060 | 3,559 | ||||||
Finished
goods
|
28,877 | 41,761 | ||||||
$ | 50,667 | $ | 60,281 |
7.
|
SEGMENT
INFORMATION
|
8.
|
GUARANTEES
AND WARRANTIES
|
Six months ended
|
||||||||
April 30, 2010
|
April 30, 2009
|
|||||||
Balance,
beginning of period
|
$ | 1,286 | $ | 2,536 | ||||
Provision
for warranties during the period
|
835 | 248 | ||||||
Charges
to the reserve
|
(854 | ) | (829 | ) | ||||
Impact
of foreign currency translation
|
(45 | ) | (6 | ) | ||||
Balance,
end of period
|
$ | 1,222 | $ | 1,949 |
9.
|
COMPREHENSIVE
LOSS
|
Three months ended
|
||||||||
April 30, 2010
|
April 30, 2009
|
|||||||
Net
income (loss)
|
$ | (1,573 | ) | $ | (281 | ) | ||
Translation
of foreign currency financial statements
|
(586 | ) | 810 | |||||
Realized
gain (loss) on derivative instruments reclassified into operations, net of
tax
|
(92 | ) | (65 | ) | ||||
Unrealized
gain (loss) on derivative instruments, net of tax
|
536 | (1,655 | ) | |||||
Comprehensive
loss
|
$ | (1,715 | ) | $ | (1,191 | ) |
10.
|
DEBT
AGREEMENTS
|
11.
|
INCOME
TAXES
|
12.
|
FINANCIAL
INSTRUMENTS
|
Assets
|
Liabilities
|
|||||||||||||||
April 30,
2010
|
October 31,
2009
|
April 30,
2010
|
October 31,
2009
|
|||||||||||||
Level 1
|
||||||||||||||||
Deferred
Compensation
|
$ | 724 | $ | 642 | $ | - | $ | - | ||||||||
Level 2
|
||||||||||||||||
Derivatives
|
$ | 1,372 | $ | 376 | $ | 153 | $ | 2,234 | ||||||||
Total
|
$ | 2,096 | $ | 1,018 | $ | 153 | $ | 2,234 |
Net Sales and Service Fees by Geographic Region
|
||||||||||||||||||||||||
Three months ended April 30,
|
Change
|
|||||||||||||||||||||||
2010
|
2009
|
Amount
|
%
|
|||||||||||||||||||||
North
America
|
$ | 5,804 | 24.1 | % | $ | 6,171 | 30.1 | % | $ | (367 | ) | (5.9 | )% | |||||||||||
Europe
|
15,342 | 63.7 | % | 13,042 | 63.7 | % | 2,300 | 17.6 | % | |||||||||||||||
Asia
Pacific
|
2,942 | 12.2 | % | 1,276 | 6.2 | % | 1,666 | 130.6 | % | |||||||||||||||
Total
|
$ | 24,088 | 100.0 | % | $ | 20,489 | 100.0 | % | $ | 3,599 | 17.6 | % |
Net Sales and Service Fees by Product Category
|
||||||||||||||||||||||||
Three months ended April 30,
|
Change
|
|||||||||||||||||||||||
2010
|
2009
|
Amount
|
%
|
|||||||||||||||||||||
Computerized
Machine Tools
|
$ | 19,883 | 82.5 | % | $ | 16,518 | 80.6 | % | $ | 3,365 | 20.4 | % | ||||||||||||
Service
Fees, Parts and Other
|
4,205 | 17.5 | % | 3,971 | 19.4 | % | 234 | 5.9 | % | |||||||||||||||
Total
|
$ | 24,088 | 100.0 | % | $ | 20,489 | 100.0 | % | $ | 3,599 | 17.6 | % |
Net Sales and Service Fees by Geographic Region
|
||||||||||||||||||||||||
Six months ended April 30,
|
Change
|
|||||||||||||||||||||||
2010
|
2009
|
Amount
|
%
|
|||||||||||||||||||||
North
America
|
$ | 11,905 | 26.6 | % | $ | 15,808 | 32.4 | % | $ | (3,903 | ) | (24.7 | )% | |||||||||||
Europe
|
27,358 | 61.2 | % | 31,102 | 63.7 | % | (3,744 | ) | (12.0 | )% | ||||||||||||||
Asia
Pacific
|
5,441 | 12.2 | % | 1,886 | 3.9 | % | 3,555 | 188.5 | % | |||||||||||||||
Total
|
$ | 44,704 | 100.0 | % | $ | 48,796 | 100.0 | % | $ | (4,092 | ) | (8.4 | )% |
Net Sales and Service Fees by Product Category
|
||||||||||||||||||||||||
Six months ended April 30,
|
Change
|
|||||||||||||||||||||||
2010
|
2009
|
Amount
|
%
|
|||||||||||||||||||||
Computerized
Machine Tools
|
$ | 36,773 | 82.3 | % | $ | 40,466 | 82.9 | % | $ | (3,693 | ) | (9.1 | )% | |||||||||||
Service
Fees, Parts and Other
|
7,931 | 17.7 | % | 8,330 | 17.1 | % | (399 | ) | (4.8 | )% | ||||||||||||||
Total
|
$ | 44,704 | 100.0 | % | $ | 48,796 | 100.0 | % | $ | (4,092 | ) | (8.4 | )% |
|
·
|
The
impact of economic uncertainty in Europe on demand for our
products;
|
|
·
|
The
cyclical nature of the machine tool
industry;
|
|
·
|
The
risks of our international
operations;
|
|
·
|
The
limited number of our manufacturing
sources;
|
|
·
|
The
effects of changes in currency exchange
rates;
|
|
·
|
Our
dependence on new product
development;
|
|
·
|
The
need to make technological
advances;
|
|
·
|
Competition
with larger companies that have greater financial
resources;
|
|
·
|
Changes
in the prices of raw materials, especially steel and iron
products;
|
|
·
|
Possible
obsolescence of our technology;
|
|
·
|
Acquisitions
that could disrupt our operations and affect operating
results;
|
|
·
|
Impairment
of our assets;
|
|
·
|
The
need to protect our intellectual property
assets;
|
|
·
|
The
impact of the continuing downturn in the global
economy;
|
|
·
|
The
impact of ongoing disruptions in the credit markets on our investment
securities; and
|
|
·
|
The
effect of the loss of key
personnel.
|
Notional
Amount
|
Weighted
Avg.
|
Contract Amount at
Forward Rates in
U.S. Dollars
|
|||||||||||||||
Forward Contracts
|
in Foreign
Currency
|
Forward
Rate
|
Contract
Date
|
April 30,
2010
|
Maturity Dates
|
||||||||||||
Sale
Contracts:
|
|||||||||||||||||
Euro
|
9,850,000 | 1.3947 | 13,737,740 | 13,118,747 |
May
2010 – April 2011
|
||||||||||||
Pound
Sterling
|
2,855,000 | 1.5808 | 4,513,108 | 4,359,868 |
May
2010 – April 2011
|
||||||||||||
Purchase
Contracts:
|
|||||||||||||||||
New
Taiwan Dollar
|
415,000,000 | 30.94 | * | 13,412,502 | 13,445,514 |
May
2010 – April 2011
|
Contract Amount at
Forward Rates in
U.S. Dollars
|
|||||||||||||||||
Forward Contracts
|
Notional
Amount in
Foreign
Currency
|
Weighted
Avg.
Forward
Rate
|
Contract
Date
|
April 30,
2010
|
Maturity Dates
|
||||||||||||
Sale
Contracts:
|
|||||||||||||||||
Euro
|
6,756,769 | 1.3298 | 8,984,867 | 8,997,634 |
May 2010 – October 2010
|
||||||||||||
Pound
Sterling
|
508,257 | 1.5415 | 783,484 | 776,522 |
May 2010
|
||||||||||||
Canadian
Dollar
|
439,818 | .9930 | 436,749 | 432,060 |
September 2010
|
||||||||||||
Singapore
Dollar
|
2,787,184 | .7132 | 1,987,736 | 2,035,335 |
March 2011
|
||||||||||||
Purchase
Contracts:
|
|||||||||||||||||
New
Taiwan Dollar
|
88,994,500 | 31.21 | * | 2,851,889 |
2,847,631
|
May 2010 – June 2010
|
Notional
Amount
|
Weighted
Avg.
|
Contract Amount at
Forward Rates in
U.S. Dollars
|
|||||||||||||||
Forward Contracts
|
in Foreign
Currency
|
Forward
Rate
|
Contract
Date
|
April 30,
2010
|
Maturity Date
|
||||||||||||
Sale
Contracts:
|
|||||||||||||||||
Euro
|
3,000,000 | 1.4896 | 4,468,800 | 3,995,730 |
November
2010
|
Item
6.
|
EXHIBITS
|
31.1
|
Certification
by the Chief Executive Officer, pursuant to Rule 13a-15(b) under the
Securities and Exchange Act of 1934, as amended.
|
31.2
|
Certification
by the Chief Financial Officer, pursuant to Rule 13a-15(b) under the
Securities and Exchange Act of 1934, as amended.
|
32.1
|
Certification
by the Chief Executive Officer pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
|
32.2
|
Certification
by the Chief Financial Officer pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
|
HURCO
COMPANIES, INC.
|
|||
By:
|
/s/ John G. Oblazney
|
||
John
G. Oblazney
|
|||
Vice
President and
|
|||
Chief
Financial Officer
|
|||
By:
|
/s/ Sonja K. McClelland
|
||
Sonja
K. McClelland
|
|||
Corporate
Controller and
|
|||
Principal
Accounting Officer
|
1.
|
I
have reviewed this quarterly report on Form 10-Q of Hurco Companies,
Inc.;
|
|
2.
|
Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
|
3.
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report;
|
|
4.
|
The
registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures [as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)] and internal
control over financial reporting [as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)] for the registrant and
have:
|
|
(a)
|
Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
|
|
(b)
|
Designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles.
|
|
(c)
|
Evaluated
the effectiveness of the registrant's disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation;
and
|
|
(d)
|
Disclosed
in this report any change in the registrant's internal control over
financial reporting that occurred during the registrant's most recent
fiscal quarter (the registrant's first fiscal quarter) that has materially
affected, or is reasonably likely to materially affect, the registrant's
internal control over financial reporting;
and
|
|
5.
|
The
registrant's other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to
the registrant's auditors and the audit committee of registrant's board of
directors (or persons performing the equivalent
functions):
|
|
(a)
|
All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant's ability to record,
process, summarize and report financial information;
and
|
|
(b)
|
Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control
over financial reporting.
|
/s/ Michael Doar
|
|
Michael
Doar
|
|
Chairman
& Chief Executive Officer
|
|
June
4, 2010
|
1.
|
I
have reviewed this quarterly report on Form 10-Q of Hurco Companies,
Inc.;
|
|
2.
|
Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
|
3.
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report;
|
|
4.
|
The
registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures [as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)] and internal
control over financial reporting [as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)] for the registrant and
have:
|
|
a.
|
Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
|
|
b.
|
Designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles.
|
|
c.
|
Evaluated
the effectiveness of the registrant's disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation;
and
|
|
d.
|
Disclosed
in this report any change in the registrant's internal control over
financial reporting that occurred during the registrant's most recent
fiscal quarter (the registrant's first fiscal quarter) that has materially
affected, or is reasonably likely to materially affect, the registrant's
internal control over financial reporting;
and
|
|
5.
|
The
registrant's other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to
the registrant's auditors and the audit committee of registrant's board of
directors (or persons performing the equivalent
functions):
|
|
(a)
|
All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant's ability to record,
process, summarize and report financial information;
and
|
|
(b)
|
Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control
over financial reporting.
|
/s/ John G. Oblazney
|
|
John
G. Oblazney
|
|
Vice
President & Chief Financial Officer
|
|
June
4, 2010
|
(1)
|
The
Report fully complies with the requirements of section 13(a) or 15(d)
of the Securities Exchange Act of 1934;
and
|
(2)
|
The
information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the
Company.
|
/s/ Michael Doar
|
|
Michael
Doar
|
|
Chairman
& Chief Executive Officer
|
|
June
4, 2010
|
(1)
|
The
Report fully complies with the requirements of section 13(a) or 15(d)
of the Securities Exchange Act of 1934;
and
|
(2)
|
The
information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the
Company.
|
/s/ John G. Oblazney
|
|
John
G. Oblazney
|
|
Vice
President & Chief Financial Officer
|
|
June
4, 2010
|