x
|
Annual
report pursuant to section 13 or 15(d) of the Securities Exchange
Act of
1934 [Fee
Required]
for the fiscal year ended October 31, 2005
or
|
o
|
Transition
report pursuant to section 13 or 15(d) of the Securities Exchange
Act of
1934 [No
Fee Required]
for the transition period from _________ to
_________.
|
Indiana
|
|
35-1150732
|
|
|
|
(State
or other jurisdiction of incorporation or organization)
|
|
(I.R.S.
Employer Identification Number)
|
|
|
|
|
|
|
|
|
|
|
|
|
One
Technology Way
|
|
|
|
|
Indianapolis,
Indiana
|
|
46268
|
|
|
(Address
of principal executive offices)
|
|
(Zip
code)
|
Registrant’s
telephone number, including area code
|
(317)
293-5309
|
Securities
registered pursuant to Section 12(b) of the Act:
|
None
|
||
Securities
registered pursuant to Section 12(g) of the Act:
|
Common
Stock, No Par Value
|
||
(Title
of Class)
|
Yes o
|
No
x
|
Yes
o
|
No
x
|
Yes
x
|
No
o
|
Large
accelerated filer o
|
Accelerated
filer o
|
Non-accelerated
filer x
|
Yes
o
|
No
x
|
Item
1.
|
BUSINESS
|
Net
Sales and Service Fees by Product Category
|
|||||||||||||||||||
(Dollars
in thousands)
|
Year
ended October 31,
|
||||||||||||||||||
2005
|
2004
|
2003
|
|||||||||||||||||
Continuing
Products and Services
|
|||||||||||||||||||
Computerized
Machine Tools
|
$
|
107,313
|
85.5
|
%
|
$
|
83,663
|
84.0
|
%
|
$
|
61,412
|
81.3
|
%
|
|||||||
Computer
Control Systems and Software *
|
4,129
|
3.3
|
%
|
3,604
|
3.6
|
%
|
3,044
|
4.0
|
%
|
||||||||||
Service
Parts
|
9,991
|
8.0
|
%
|
8,696
|
8.8
|
%
|
7,616
|
10.1
|
%
|
||||||||||
Service
Fees
|
4,076
|
3.2
|
%
|
3,609
|
3.6
|
%
|
3,460
|
4.6
|
%
|
||||||||||
Total
|
$
|
125,509
|
100
|
%
|
$
|
99,572
|
100
|
%
|
$
|
75,532
|
100.0
|
%
|
*
|
Amounts
shown do not include computer control systems sold as integrated
components of computerized machine
tools.
|
·
|
Autobend®
|
·
|
CAM
and Software Products
|
·
|
the
need to continuously improve productivity and shorten cycle time,
|
·
|
an
aging machine tool installed base that will require replacement
with more
advanced and efficient technology created by shorter product life
cycles,
|
·
|
the
industrial development of emerging countries in Asia and Eastern
Europe,
and
|
·
|
the
declining supply of skilled machinists.
|
Item
2.
|
PROPERTIES
|
Location
|
Square
Footage
|
Principal
Uses
|
|||
Indianapolis,
Indiana
|
165,000
|
(1)
|
Corporate
headquarters, design and engineering,
product testing, computer control assembly, sales, application
engineering
and customer service
|
||
Los
Angeles, California
|
13,000
|
Warehouse,
distribution, sales, application engineering and customer
service
|
|||
High
Wycombe, England
|
12,000
|
Sales,
application engineering and customer
service
|
|||
Paris,
France
|
4,800
|
Sales,
application engineering and customer
service
|
|||
Munich,
Germany
|
22,850
|
Sales,
application engineering and customer
service
|
|||
Milan,
Italy
|
4,850
|
Sales,
application engineering and customer
service
|
|||
Singapore
|
3,000
|
Sales,
application engineering and customer
service
|
|||
Shanghai,
China
|
3,000
|
Sales,
application engineering and customer
service
|
|||
Taichung,
Taiwan
|
83,700
|
Manufacturing
|
(1)
|
Approximately
50,000 square feet is leased to a third-party under a lease, which
expires
April 30, 2010.
|
Item
3.
|
LEGAL
PROCEEDINGS
|
Item.
4.
|
SUBMISSION
OF MATTERS TO A VOTE OF SECURITY
HOLDERS
|
Name
|
Age
|
Position(s)
with the Company
|
||
Michael
Doar
|
50
|
Chairman
of the Board and Chief Executive Officer
|
||
James
D. Fabris
|
54
|
President
and Chief Operating Officer
|
||
Stephen
J. Alesia
|
39
|
Vice
President, Secretary, Treasurer and Chief Financial
Officer
|
||
David
E. Platts
|
53
|
Vice
President, Technology
|
||
Sonja
K. McClelland
|
34
|
Corporate
Controller, Assistant Secretary
|
Item
5.
|
MARKET
FOR THE REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS
AND ISSUER
REPURCHES OF EQUITY SECURITIES
|
2005
|
2004
|
||||||||||||
Fiscal
Quarter Ended:
|
High
|
Low
|
High
|
Low
|
|||||||||
January
31
|
$
|
19.40
|
$
|
12.65
|
$
|
5.82
|
$
|
2.52
|
|||||
April
30
|
19.38
|
10.50
|
10.70
|
4.25
|
|||||||||
July
31
|
20.00
|
10.25
|
14.40
|
7.83
|
|||||||||
October
31
|
19.09
|
13.81
|
17.37
|
6.68
|
Item
6.
|
SELECTED
FINANCIAL DATA
|
Year
Ended October 31
|
||||||||||||||||
2005
|
2004
|
2003
|
2002
|
2001
|
||||||||||||
Statement
of Operations Data:
|
(In
thousands, except per share amounts)
|
|||||||||||||||
Sales
and service fees
|
$
|
125,509
|
$
|
99,572
|
$
|
75,532
|
$
|
70,486
|
$
|
92,267
|
||||||
Gross
profit
|
42,558
|
30,298
|
20,822
|
15,246
|
(1)
|
23,262
|
||||||||||
Selling,
general and administrative expenses
|
26,057
|
21,401
|
18,749
|
19,658
|
24,040
|
|||||||||||
Restructuring
expense (credit) and other expense, net
|
--
|
465
|
(124
|
)
|
2,755
|
143
|
||||||||||
Operating
income (loss)
|
16,501
|
8,432
|
2,197
|
(7,167
|
)
|
(921
|
)
|
|||||||||
Interest
expense
|
355
|
468
|
658
|
634
|
790
|
|||||||||||
License
fee income and litigation settlement fees, net
|
--
|
--
|
--
|
163
|
723
|
|||||||||||
Net
income (loss)
|
16,443
|
6,269
|
462
|
(8,263
|
)
|
(1,597
|
)
|
|||||||||
Earnings
(loss) per common share-diluted
|
2.60
|
1.04
|
0.08
|
(1.48
|
)
|
(.28
|
)
|
|||||||||
Weighted
average common shares outstanding-diluted
|
6,336
|
6,026
|
5,582
|
5,583
|
5,670
|
(1)
|
Includes
$1,083 of inventory write-down
provision.
|
As
of October 31
|
||||||||||||||||
2005
|
2004
|
2003
|
2002
|
2001
|
||||||||||||
Balance
Sheet Data:
|
(Dollars
in thousands)
|
|||||||||||||||
Current
assets
|
$
|
73,818
|
$
|
56,472
|
$
|
42,390
|
$
|
41,535
|
$
|
49,510
|
||||||
Current
liabilities
|
30,761
|
30,125
|
20,154
|
21,185
|
18,217
|
|||||||||||
Working
capital
|
43,057
|
26,347
|
22,236
|
20,350
|
31,293
|
|||||||||||
Current
ratio
|
2.4
|
1.9
|
2.1
|
2.0
|
2.7
|
|||||||||||
Total
assets
|
94,114
|
73,446
|
57,958
|
57,152
|
66,217
|
|||||||||||
Non-current
liabilities
|
4,409
|
4,866
|
9,063
|
7,950
|
12,532
|
|||||||||||
Total
debt
|
4,136
|
4,600
|
9,222
|
8,885
|
12,000
|
|||||||||||
Shareholders’
equity
|
58,944
|
38,455
|
28,741
|
28,017
|
35,468
|
Item
7.
|
MANAGEMENT'S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
|
Percentage
of Revenues
|
Year-to-Year
% Change
|
|||||||||||||||
2005
|
2004
|
2003
|
Increase
(Decrease)
|
|||||||||||||
05
vs. 04
|
04
vs. 03
|
|||||||||||||||
Sales
and service fees
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
26.0
|
%
|
31.8
|
%
|
||||||
Gross
profit
|
33.9
|
%
|
30.4
|
%
|
27.6
|
%
|
40.5
|
%
|
45.5
|
%
|
||||||
Selling,
general and Administrative expenses
|
20.7
|
%
|
21.5
|
%
|
24.8
|
%
|
21.8
|
%
|
14.1
|
%
|
||||||
Restructuring
expense and Other expenses, net
|
--
|
.05
|
%
|
(0.2
|
%)
|
N/A
|
N/A
|
|||||||||
Operating
income
|
13.1
|
%
|
8.50
|
%
|
2.9
|
%
|
95.7
|
%
|
283.8
|
%
|
||||||
Interest
expense
|
0.3
|
%
|
.05
|
%
|
0.9
|
%
|
(24.1
|
%)
|
(28.9
|
%)
|
||||||
Net
income
|
13.1
|
%
|
6.30
|
%
|
0.6
|
%
|
162.3
|
%
|
1256.9
|
%
|
October
31,
|
Increase
|
||||||||||||||||||
|
|
2005
|
|
2004
|
|
Amount
|
|
%
|
|||||||||||
Americas
|
$
|
43,194
|
34.4
|
%
|
$
|
32,423
|
32.5
|
%
|
$
|
10,771
|
33
|
%
|
|||||||
Europe
|
75,225
|
59.9
|
%
|
60,395
|
60.7
|
%
|
14,830
|
25
|
%
|
||||||||||
Asia
Pacific
|
7,090
|
5.7
|
%
|
6,754
|
6.8
|
%
|
336
|
5
|
%
|
||||||||||
Total
|
$
|
125,509
|
100.0
|
%
|
$
|
99,572
|
100.0
|
%
|
$
|
25,937
|
26
|
%
|
October
31,
|
Increase
|
||||||||||||||||||
2005
|
2004
|
Amount
|
%
|
||||||||||||||||
Computerized
Machine Tools
|
$
|
107,313
|
85.5
|
%
|
$
|
83,663
|
84.0
|
%
|
$
|
23,650
|
28
|
%
|
|||||||
Service
Fees, Parts and Other
|
18,196
|
14.5
|
%
|
15,909
|
16.0
|
%
|
2,287
|
14
|
%
|
||||||||||
Total
|
$
|
125,509
|
100.0
|
%
|
$
|
99,572
|
100.0
|
%
|
$
|
25,937
|
26
|
%
|
October
31,
|
Increase
|
||||||||||||||||||
2004
|
2003
|
Amount
|
%
|
||||||||||||||||
Americas
|
$
|
32,423
|
32.5
|
%
|
$
|
24,313
|
32.2
|
%
|
$
|
8,110
|
33
|
%
|
|||||||
Europe
|
60,395
|
60.7
|
%
|
48,277
|
63.9
|
%
|
12,118
|
25
|
%
|
||||||||||
Asia
Pacific
|
6,754
|
6.8
|
%
|
2,942
|
3.9
|
%
|
3,812
|
130
|
%
|
||||||||||
Total
|
$
|
99,572
|
100.0
|
%
|
$
|
75,532
|
100.0
|
%
|
$
|
24,040
|
32
|
%
|
October
31,
|
Increase
|
||||||||||||||||||
2004
|
2003
|
Amount
|
%
|
||||||||||||||||
Computerized
Machine Tools
|
$
|
83,663
|
84.0
|
%
|
$
|
60,977
|
80.7
|
%
|
$
|
22,686
|
37
|
%
|
|||||||
Service
Fees, Parts and Other
|
15,909
|
16.0
|
%
|
14,555
|
19.3
|
%
|
1,354
|
9
|
%
|
||||||||||
Total
|
$
|
99,572
|
100.0
|
%
|
$
|
75,532
|
100.0
|
%
|
$
|
24,040
|
32
|
%
|
Payments
Due by Period
|
||||||||||||||||
Total
|
Less
than 1 Year
|
1-3
Years
|
3-5
Years
|
More
than 5 Years
|
||||||||||||
Long-Term
Debt
|
$
|
4,136
|
$
|
126
|
$
|
4,010
|
$
|
--
|
$
|
--
|
||||||
Operating
Leases
|
4,201
|
1,543
|
2,173
|
291
|
194
|
|||||||||||
Deferred
Credits and Other
|
399
|
--
|
--
|
--
|
399
|
|||||||||||
Total
|
$
|
8,736
|
$
|
1,669
|
$
|
6,183
|
$
|
291
|
$
|
593
|
Item
7a.
|
QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISKS
|
Notional
Amount
|
Weighted
Avg.
|
Contract
Amount at Forward Rates in U.S.
Dollars
|
||||||||||||||
Forward
Contracts
|
in
Foreign Currency
|
Forward
Rate
|
Contract
Date
|
October
31, 2005
|
Maturity
Dates
|
|||||||||||
Sale
Contracts:
|
||||||||||||||||
Euro
|
23,650,000
|
$
|
1.2976
|
30,688,240
|
28,645,047
|
Nov
2005-Oct 2006
|
||||||||||
Sterling
|
2,550,000
|
$
|
1.8120
|
4,620,600
|
4,513,863
|
Nov
2005-Aug 2006
|
||||||||||
Purchase
Contracts:
|
||||||||||||||||
New
Taiwan Dollar
|
770,000,000
|
31.54*
|
24,413,443
|
23,295,292
|
Nov
2005-Oct 2006
|
*
|
NT
Dollars per U.S. Dollar
|
Notional
Amount
|
Weighted
Avg.
|
Contract
Amount at Forward Rates in U.S.
Dollars
|
||||||||||||||
Forward
Contracts
|
in
Foreign Currency
|
Forward
Rate
|
Contract
Date
|
October
31, 2005
|
Maturity
Dates
|
|||||||||||
Sale
Contracts:
|
||||||||||||||||
Euro
|
6,692,237
|
$
|
1.2054
|
8,066,822
|
8,042,396
|
Nov
2005-Dec 2005
|
||||||||||
Singapore
Dollar
|
6,998,334
|
$
|
.5998
|
4,198,167
|
4,154,353
|
Nov
2005-Apr 2006
|
||||||||||
Sterling
|
613,635
|
$
|
1.7827
|
1,093,927
|
1,086,008
|
Nov
2005-Dec 2005
|
||||||||||
Purchase
Contracts:
|
||||||||||||||||
New
Taiwan Dollar
|
254,000,000
|
33.17*
|
7,657,522
|
7,578,810
|
Nov
2005-Dec 2005
|
*
|
NT
Dollars per U.S. Dollar
|
Item
8.
|
FINANCIAL
STATEMENTS AND SUPPLEMENTARY
DATA
|
Year
Ended October 31
|
||||||||||
2005
|
2004
|
2003
|
||||||||
(Dollars
in thousands, except per share amounts)
|
||||||||||
Sales
and service fees
|
$
|
125,509
|
$
|
99,572
|
$
|
75,532
|
||||
Cost
of sales and service
|
82,951
|
69,274
|
54,710
|
|||||||
Gross
profit
|
42,558
|
30,298
|
20,822
|
|||||||
Selling,
general and administrative expenses
|
26,057
|
21,401
|
18,749
|
|||||||
Restructuring
expense (credit) and other expense, net (Note 15)
|
--
|
465
|
(124
|
)
|
||||||
Operating
income
|
16,501
|
8,432
|
2,197
|
|||||||
Interest
expense
|
355
|
468
|
658
|
|||||||
Variable
options expense
|
--
|
322
|
51
|
|||||||
Earnings
from equity investments
|
418
|
387
|
202
|
|||||||
Other
income (expense), net
|
(482
|
)
|
(461
|
)
|
(270
|
)
|
||||
Income
before income taxes
|
16,082
|
7,568
|
1,420
|
|||||||
Provision
(benefit) for income taxes (Note 6)
|
(361
|
)
|
1,299
|
958
|
||||||
Net
income
|
$
|
16,443
|
$
|
6,269
|
$
|
462
|
||||
Earnings
per common share - basic
|
$
|
2.66
|
$
|
1.08
|
$
|
0.08
|
||||
Weighted
average common shares outstanding - basic
|
6,171
|
5,784
|
5,582
|
|||||||
Earnings
per common share - diluted
|
$
|
2.60
|
$
|
1.04
|
$
|
0.08
|
||||
Weighted
average common shares outstanding - diluted
|
6,336
|
6,026
|
5,582
|
As
of October 31
|
|||||||
2005
|
2004
|
||||||
Current
assets:
|
(Dollars
in thousands, except per share amounts)
|
||||||
Cash
and cash equivalents
|
$
|
17,559
|
$
|
8,249
|
|||
Cash
- restricted
|
--
|
277
|
|||||
Accounts
receivable, less allowance for doubtful accounts of $842 in
2005 and $723
in 2004
|
20,100
|
17,337
|
|||||
Inventories
|
29,530
|
28,937
|
|||||
Deferred
tax assets
|
3,043
|
--
|
|||||
Other
|
3,586
|
1,672
|
|||||
Total
current assets
|
73,818
|
56,472
|
|||||
Property
and equipment:
|
|||||||
Land
|
761
|
761
|
|||||
Building
|
7,205
|
7,205
|
|||||
Machinery
and equipment
|
13,170
|
12,106
|
|||||
Leasehold
improvements
|
1,102
|
676
|
|||||
22,238
|
20,748
|
||||||
Less
accumulated depreciation and amortization
|
(13,187
|
)
|
(12,512
|
)
|
|||
9,051
|
8,236
|
||||||
Deferred
tax assets - long-term
|
1,346
|
--
|
|||||
Software
development costs, less accumulated amortization
|
3,752
|
2,920
|
|||||
Investments
and other assets
|
6,147
|
5,818
|
|||||
$
|
94,114
|
$
|
73,446
|
||||
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|||||||
Current
liabilities:
|
|||||||
Accounts
payable
|
$
|
17,051
|
$
|
15,737
|
|||
Accounts
payable-related parties
|
2,087
|
2,624
|
|||||
Accrued
expenses and other
|
9,879
|
9,697
|
|||||
Accrued
warranty expenses
|
1,618
|
1,750
|
|||||
Current
portion of long-term debt
|
126
|
317
|
|||||
Total
current liabilities
|
30,761
|
30,125
|
|||||
Non-current
liabilities:
|
|||||||
Long-term
debt
|
4,010
|
4,283
|
|||||
Deferred
credits and other
|
399
|
583
|
|||||
4,409
|
4,866
|
||||||
Commitments
and contingencies (Notes 10 and 11)
|
|||||||
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, 6,220,220 and 6,019,594 shares issued and outstanding
in 2005
and 2004, respectively
|
622
|
602
|
|||||
Additional
paid-in capital
|
48,701
|
46,778
|
|||||
Retained
earnings (deficit)
|
13,001
|
(3,442
|
)
|
||||
Accumulated
other comprehensive income (loss)
|
(3,380
|
)
|
(5,483
|
)
|
|||
Total
shareholders’ equity
|
58,944
|
38,455
|
|||||
$
|
94,114
|
$
|
73,446
|
Year
Ended October 31
|
||||||||||
2005
|
2004
|
2003
|
||||||||
Cash
flows from operating activities:
|
(Dollars
in thousands)
|
|||||||||
Net
income
|
$
|
16,443
|
$
|
6,269
|
$
|
462
|
||||
Adjustments
to reconcile net income to Net cash provided by (used for) operating
activities:
|
||||||||||
Provision
for doubtful accounts
|
119
|
286
|
421
|
|||||||
Equity
in income of affiliates
|
(418
|
)
|
(387
|
)
|
(202
|
)
|
||||
Depreciation
and amortization
|
1,331
|
1,223
|
1,429
|
|||||||
Restructuring
and other charges
|
--
|
465
|
--
|
|||||||
Tax
benefit from exercise of stock options
|
1,146
|
--
|
--
|
|||||||
Change
in assets/liabilities
|
||||||||||
(Increase)
decrease in accounts receivable
|
(3,606
|
)
|
(3,992
|
)
|
1,348
|
|||||
(Increase)
decrease in inventories
|
(660
|
)
|
(4,947
|
)
|
1,465
|
|||||
Increase
(decrease) in accounts payable
|
(1,191
|
)
|
8,623
|
(687
|
)
|
|||||
Increase
(decrease) in accrued expenses
|
2,653
|
(197
|
)
|
(1,760
|
)
|
|||||
(Increase)
decrease in deferred tax asset
|
(4,389
|
)
|
--
|
--
|
||||||
Other
|
549
|
(537
|
)
|
(200
|
)
|
|||||
Net
cash provided by operating activities
|
11,977
|
6,806
|
2,276
|
|||||||
|
||||||||||
Cash
flows from investing activities:
|
||||||||||
Proceeds
from sale of property and equipment
|
--
|
26
|
14
|
|||||||
Purchase
of property and equipment
|
(1,879
|
)
|
(762
|
)
|
(536
|
)
|
||||
Software
development costs
|
(1,161
|
)
|
(1,290
|
)
|
(679
|
)
|
||||
Change
in restricted cash
|
277
|
345
|
(622
|
)
|
||||||
Other
proceeds (investments)
|
224
|
(53
|
)
|
(25
|
)
|
|||||
Net
cash used for investing activities
|
(2,539
|
)
|
(1,734
|
)
|
(1,848
|
)
|
||||
|
||||||||||
Cash
flows from financing activities:
|
||||||||||
Advances
on bank credit facilities
|
4,977
|
20,468
|
55,731
|
|||||||
Repayments
on bank credit facilities
|
(5,124
|
)
|
(24,520
|
)
|
(54,418
|
)
|
||||
Repayments
of term debt
|
(200
|
)
|
(538
|
)
|
(1,211
|
)
|
||||
Repayment
of first mortgage
|
(117
|
)
|
(108
|
)
|
(108
|
)
|
||||
Proceeds
from exercise of common stock options
|
797
|
2,128
|
--
|
|||||||
Purchase
of common stock
|
--
|
--
|
(23
|
)
|
||||||
Net
cash provided by (used for) financing activities
|
333
|
(2,570
|
)
|
(29
|
)
|
|||||
|
||||||||||
Effect
of exchange rate changes on cash
|
(461
|
)
|
458
|
532
|
||||||
Net
increase in cash
|
9,310
|
2,960
|
931
|
|||||||
|
||||||||||
Cash
and cash equivalents at beginning of year
|
8,249
|
5,289
|
4,358
|
|||||||
|
||||||||||
Cash
and cash equivalents at end of year
|
$
|
17,559
|
$
|
8,249
|
$
|
5,289
|
||||
|
||||||||||
Supplemental
disclosures:
|
||||||||||
Cash
paid for:
|
||||||||||
Interest
|
$
|
331
|
$
|
439
|
$
|
595
|
||||
Income
taxes
|
$
|
1,509
|
$
|
286
|
$
|
468
|
Common
Stock
|
Accumulated
|
||||||||||||||||||
Shares
Issued &
Outstanding
|
Amount
|
Additional
Paid-In
Capital
|
Retained
Earnings
(Deficit)
|
Other
Comprehensive
Income
(Loss)
|
Total
|
||||||||||||||
(Dollars
in thousands)
|
|||||||||||||||||||
Balances,
October 31, 2002
|
5,583,158
|
$
|
558
|
$
|
44,717
|
$
|
(10,173
|
)
|
$
|
(7,085
|
)
|
$
|
28,017
|
||||||
Net
income
|
--
|
--
|
--
|
462
|
--
|
462
|
|||||||||||||
Translation
of foreign currency financial statements
|
--
|
--
|
--
|
--
|
1,454
|
1,454
|
|||||||||||||
Unrealized
loss of derivative instruments
|
--
|
--
|
--
|
--
|
(1,169
|
)
|
(1,169
|
)
|
|||||||||||
Comprehensive
income
|
747
|
||||||||||||||||||
Repurchase
of common stock
|
(7,171
|
)
|
(1
|
)
|
(22
|
)
|
--
|
--
|
(23
|
)
|
|||||||||
Balances,
October 31, 2003
|
5,575,987
|
$
|
557
|
$
|
44,695
|
$
|
(9,711
|
)
|
$
|
(6,800
|
)
|
$
|
28,741
|
||||||
Net
income
|
--
|
--
|
--
|
6,269
|
--
|
6,269
|
|||||||||||||
Translation
of foreign currency financial statements
|
--
|
--
|
--
|
--
|
1,227
|
1,227
|
|||||||||||||
Unrealized
gain of derivative instruments
|
--
|
--
|
--
|
--
|
90
|
90
|
|||||||||||||
Comprehensive
income
|
7,586
|
||||||||||||||||||
Exercise
of common stock options
|
443,607
|
45
|
2,083
|
--
|
--
|
2,128
|
|||||||||||||
Balances,
October 31, 2004
|
6,019,594
|
$
|
602
|
$
|
46,778
|
$
|
(3,442
|
)
|
$
|
(5,483
|
)
|
$
|
38,455
|
||||||
Net
income
|
--
|
--
|
--
|
16,443
|
--
|
16,443
|
|||||||||||||
Translation
of foreign currency financial statements
|
--
|
--
|
--
|
--
|
(838
|
)
|
(838
|
)
|
|||||||||||
Unrealized
gain of derivative instruments
|
--
|
--
|
--
|
--
|
2,941
|
2,941
|
|||||||||||||
Comprehensive
income
|
18,546
|
||||||||||||||||||
Exercise
of common stock options
|
200,626
|
20
|
777
|
--
|
--
|
797
|
|||||||||||||
Tax
benefit from exercise of stock options
|
--
|
--
|
1,146
|
--
|
--
|
1,146
|
|||||||||||||
Balances,
October 31, 2005
|
6,220,220
|
$
|
622
|
$
|
48,701
|
$
|
13,001
|
$
|
(3,380
|
)
|
$
|
58,944
|
1.
|
SUMMARY
OF SIGNIFICANT ACCOUNTING
POLICIES
|
Number
of Years
|
|
Building
|
40
|
Machines
|
10
|
Shop
and office equipment
|
5
|
Leasehold
improvements
|
5
|
Fiscal
Year
|
Amortization
Expense
|
|||
2006
|
$
|
535
|
||
2007
|
760
|
|||
2008
|
714
|
|||
2009
|
714
|
|||
2010
|
605
|
2005
|
2004
|
2003
|
||||||||
Net
income (in thousands)
|
$
|
16,420
|
$
|
6,174
|
$
|
265
|
||||
Earnings
per share:
|
||||||||||
Basic
|
$
|
2.66
|
$
|
1.07
|
$
|
0.05
|
||||
Diluted
|
$
|
2.59
|
$
|
1.02
|
$
|
0.05
|
2.
|
BUSINESS
OPERATIONS
|
3.
|
INVENTORIES
|
2005
|
2004
|
||||||
Purchased
parts and sub assemblies
|
$
|
6,561
|
$
|
6,888
|
|||
Work-in-process
|
5,403
|
5,148
|
|||||
Finished
goods
|
17,566
|
16,901
|
|||||
$
|
29,530
|
$
|
28,937
|
4.
|
DEBT
AGREEMENTS
|
2005
|
2004
|
||||||
Domestic
bank revolving credit facility
|
$
|
--
|
$
|
--
|
|||
European
bank credit facility
|
--
|
147
|
|||||
First
Mortgage
|
4,136
|
4,253
|
|||||
Economic
Development Revenue Bonds, Series 1990
|
--
|
200
|
|||||
4,136
|
4,600
|
||||||
Less
current portion
|
126
|
317
|
|||||
$
|
4,010
|
$
|
4,283
|
Fiscal
2006
|
$
|
126
|
|||||
Fiscal
2007
|
136
|
||||||
Fiscal
2008
|
145
|
||||||
Fiscal
2009
|
3,729
|
||||||
Fiscal
2010
|
--
|
||||||
Thereafter
|
--
|
||||||
$
|
4,136
|
Ratio
of Total Funded Debt/EBITDA ratio
|
LIBOR
Margin
|
Prime
Margin
|
|||||
Greater
than 3.0
|
2.75
|
%
|
0
|
%
|
|||
Greater
than 2.5 and less than or equal to 3.0
|
2.0
|
%
|
(.25
|
%)
|
|||
Greater
than 2.0 and less than or equal to 2.5
|
1.5
|
%
|
(.50
|
%)
|
|||
Less
than or equal to 2.0
|
1.0
|
%
|
(.75
|
%)
|
5.
|
FINANCIAL
INSTRUMENTS
|
6.
|
INCOME
TAXES
|
October
31
|
|||||||
2005
|
2004
|
||||||
Tax
effects of future tax deductible items related to:
|
|||||||
Current:
|
|||||||
Inter-company
profit in inventory
|
$
|
1,672
|
$
|
1,426
|
|||
Accrued
inventory reserves
|
834
|
404
|
|||||
Accrued
warranty expenses
|
164
|
124
|
|||||
Deferred
compensation
|
151
|
245
|
|||||
Other
accrued expenses
|
498
|
390
|
|||||
Total
current deferred tax assets
|
3,319
|
2,589
|
|||||
Non-current:
|
|||||||
Goodwill
|
61
|
61
|
|||||
Total
deferred tax assets
|
3,380
|
2,650
|
|||||
|
|||||||
Tax
effects of future taxable differences related to:
|
|||||||
Accelerated
tax deduction and other tax over book deductions related to property,
equipment and software
|
(1,699
|
)
|
(1,377
|
)
|
|||
Other
|
--
|
(604
|
)
|
||||
Total
deferred tax liabilities
|
(1,699
|
)
|
(1,981
|
)
|
|||
|
|||||||
Net
tax effects of temporary differences
|
1,682
|
669
|
|||||
|
|||||||
Tax
effects of carryforward benefits:
|
|||||||
U.S.
federal and state net operating loss carryforwards, expiring 2006-2023
|
312
|
3,592
|
|||||
Foreign
tax benefit carryforwards, expiring 2005-2008
|
--
|
402
|
|||||
Foreign
net operating loss carryforwards, with no expiration
|
1,544
|
1,301
|
|||||
U.S.
federal general business tax credits, expiring 2005-2025
|
882
|
1,026
|
|||||
U.S.
Alternative minimum tax credit with no expiration
|
190
|
--
|
|||||
Tax
effects of carryforwards
|
2,928
|
6,321
|
|||||
Tax
effects of temporary differences and carryforwards, net
|
4,610
|
6,990
|
|||||
Less
valuation allowance
|
221
|
6,990
|
|||||
Net
deferred tax asset
|
$
|
4,389
|
$
|
--
|
Income
(loss) before income taxes (in thousands):
|
Year
Ended October 31
|
|||||||||
2005
|
2004
|
2003
|
||||||||
Domestic
|
$
|
9,834
|
$
|
3,424
|
$
|
(875
|
)
|
|||
Foreign
|
6,248
|
4,144
|
2,295
|
|||||||
|
$
|
16,082
|
$
|
7,568
|
$
|
1,420
|
||||
The
provision for income taxes consists of:
|
||||||||||
Current:
|
||||||||||
Federal
|
$
|
3,457
|
$
|
--
|
$
|
--
|
||||
State
|
279
|
11
|
--
|
|||||||
Foreign
|
2,259
|
1,240
|
1,148
|
|||||||
5,995
|
1,251
|
1,148
|
||||||||
Deferred:
|
||||||||||
Federal
|
(4,685
|
)
|
48
|
(190
|
)
|
|||||
State
|
(553
|
)
|
--
|
--
|
||||||
Foreign
|
(1,118
|
)
|
--
|
--
|
||||||
(6,356
|
)
|
48
|
(190
|
)
|
||||||
$
|
(361
|
)
|
$
|
1,299
|
$
|
958
|
||||
Differences
between the effective tax rate and U.S. federal income tax rate
were (in
thousands):
|
||||||||||
Tax
at U.S. statutory rate
|
$
|
5,468
|
$
|
2,649
|
$
|
497
|
||||
Effect
of tax rates of international jurisdictions
|
||||||||||
In
excess (less than) of U.S. statutory rates
|
81
|
8
|
(130
|
)
|
||||||
State
income taxes
|
279
|
11
|
--
|
|||||||
Effect
of losses without current year benefit
|
--
|
--
|
591
|
|||||||
Deferred
tax asset valuation adjustment
|
(2,342
|
)
|
--
|
--
|
||||||
Utilization
of net operating loss carryforwards
|
(3,740
|
)
|
(1,369
|
)
|
--
|
|||||
Permanent
items
|
(155
|
)
|
--
|
--
|
||||||
Others
|
48
|
--
|
--
|
|||||||
Provision
(benefit) for income taxes
|
$
|
(361
|
)
|
$
|
1,299
|
$
|
958
|
7.
|
EMPLOYEE
BENEFITS
|
8.
|
STOCK
OPTIONS
|
Shares
Under Option
|
Weighted
Average Exercise Price Per Share
|
||||||
Balance
October 31, 2002
|
830,160
|
$
|
3.78
|
||||
Granted
|
--
|
--
|
|||||
Cancelled
|
(8,000
|
)
|
4.14
|
||||
Expired
|
(33,500
|
)
|
5.85
|
||||
Exercised
|
--
|
--
|
|||||
Balance
October 31, 2003
|
788,660
|
$
|
3.69
|
||||
Granted
|
--
|
--
|
|||||
Cancelled
|
--
|
--
|
|||||
Expired
|
(2,000
|
)
|
2.13
|
||||
Exercised
|
(383,607
|
)
|
3.67
|
||||
Balance
October 31, 2004
|
403,053
|
$
|
3.71
|
||||
Granted
|
--
|
--
|
|||||
Cancelled
|
--
|
--
|
|||||
Expired
|
(2,000
|
)
|
2.15
|
||||
Exercised
|
(185,653
|
)
|
3.82
|
||||
Balance
October 31, 2005
|
215,400
|
$
|
3.63
|
Range
of Exercise Prices Per Share
|
Shares
Under Option
|
Weighted
Average Exercise Price Per Share
|
Weighted
Average Remaining Contractual Life in Years
|
||||||||
Outstanding
|
|||||||||||
$
|
2.125
- 5.125
|
151,500
|
$
|
2.62
|
6.6
|
||||||
5.813
- 8.250
|
63,900
|
6.00
|
4.0
|
||||||||
$
|
2.125
- 8.250
|
215,400
|
$
|
3.63
|
5.8
|
||||||
Exercisable | |||||||||||
$
|
2.125
- 5.125
|
142,420
|
$
|
2.65
|
--
|
||||||
5.813
- 8.250
|
63,900
|
6.00
|
--
|
||||||||
$
|
2.125
- 8.250
|
206,320
|
$
|
3.69
|
--
|
2005
|
2004
|
2003
|
||||||||
Net
income (in thousands)
|
$
|
16,420
|
$
|
6,174
|
$
|
265
|
||||
Earnings
per share:
|
||||||||||
Basic
|
$
|
2.66
|
$
|
1.07
|
$
|
0.05
|
||||
Diluted
|
$
|
2.59
|
$
|
1.02
|
$
|
0.05
|
9.
|
RELATED
PARTY TRANSACTIONS
|
(in
thousands)
|
2005
|
2004
|
2003
|
|||||||
Net
Sales
|
$
|
50,896
|
$
|
23,469
|
$
|
26,284
|
||||
Gross
Profit
|
8,947
|
7,780
|
4,409
|
|||||||
Operating
Income
|
2,676
|
2,210
|
564
|
|||||||
Net
Income
|
2,313
|
1,479
|
261
|
|||||||
Current
Assets
|
$
|
21,553
|
$
|
16,194
|
$
|
17,162
|
||||
Non-current
Assets
|
1,824
|
2,031
|
2,015
|
|||||||
Current
Liabilities
|
14,857
|
17,215
|
13,549
|
10.
|
CONTINGENCIES
AND LITIGATION
|
11.
|
GUARANTEES
|
Warranty
Reserve
|
||||
Balance
at October 31, 2004
|
$
|
1,750
|
||
Provision
for warranties during the period
|
1,709
|
|||
Charges
to the accrual
|
(1,778
|
)
|
||
Impact
of foreign currency translation
|
(63
|
)
|
||
Balance
at October 31, 2005
|
$
|
1,618
|
12.
|
OPERATING
LEASES
|
2006
|
$
|
1,543
|
||
2007
|
1,098
|
|||
2008
|
617
|
|||
2009
|
458
|
|||
2010
|
291
|
|||
Thereafter
|
194
|
|||
Total
|
$
|
4,201
|
13.
|
QUARTERLY
HIGHLIGHTS (Unaudited)
|
First
Quarter
|
Second
Quarter
|
Third
Quarter
|
Fourth
Quarter
|
||||||||||
2005
(In thousands, except per share data)
|
|||||||||||||
Sales
and service fees
|
$
|
30,246
|
$
|
30,990
|
$
|
29,555
|
$
|
34,718
|
|||||
Gross
profit
|
9,740
|
10,767
|
9,863
|
12,188
|
|||||||||
Gross
profit margin
|
32.2
|
%
|
34.7
|
%
|
33.3
|
%
|
35.1
|
%
|
|||||
Selling,
general and administrative expenses
|
6,187
|
6,363
|
6,637
|
6,870
|
|||||||||
Operating
income
|
3,553
|
4,404
|
3,226
|
5,318
|
|||||||||
Provision
(benefit) for income taxes
|
369
|
781
|
317
|
(1,828)
|
(1)
|
||||||||
Net
income
|
3,030
|
3,299
|
2,879
|
7,235
|
|||||||||
Income
per common share - basic
|
$
|
.50
|
$
|
.53
|
$
|
.46
|
$
|
1.16
|
|||||
Income
per common share - diluted
|
$
|
.48
|
$
|
.52
|
$
|
.45
|
$
|
1.13
|
First
Quarter
|
Second
Quarter
|
Third
Quarter
|
Fourth
Quarter
|
||||||||||
2004
(In thousands, except per share data)
|
|||||||||||||
Sales
and service fees
|
$
|
22,718
|
$
|
24,255
|
$
|
23,748
|
$
|
28,851
|
|||||
Gross
profit
|
6,531
|
7,413
|
7,313
|
9,041
|
|||||||||
Gross
profit margin
|
28.7
|
%
|
30.6
|
%
|
30.8
|
%
|
31.3
|
%
|
|||||
Restructuring
expense and other expense, net (Note 15)
|
--
|
--
|
--
|
465
|
|||||||||
Selling,
general and administrative expenses
|
4,927
|
5,127
|
5,241
|
6,106
|
|||||||||
Operating
Income
|
1,604
|
2,286
|
2,072
|
2,470
|
|||||||||
Provision
(benefit) for income taxes
|
366
|
388
|
405
|
140
|
|||||||||
Net
Income
|
669
|
1,737
|
1,582
|
2,281
|
|||||||||
Income
per common share - basic
|
$
|
.12
|
$
|
.31
|
$
|
.27
|
$
|
.38
|
|||||
Income
per common share - diluted
|
$
|
.12
|
$
|
.29
|
$
|
.25
|
$
|
.36
|
14.
|
SEGMENT
INFORMATION
|
Net
Sales and Service Fees by Product Category
|
Year
ended October 31,
|
|||||||||
2005
|
2004
|
2003
|
||||||||
Computerized
Machine Tools
|
$
|
107,313
|
$
|
83,663
|
$
|
61,385
|
||||
Computer
Control Systems and Software *
|
4,129
|
3,604
|
3,044
|
|||||||
Service
Parts
|
9,991
|
8,696
|
7,643
|
|||||||
Service
Fees
|
4,076
|
3,609
|
3,460
|
|||||||
Total
|
$
|
125,509
|
$
|
99,572
|
$
|
75,532
|
Revenues
by Geographic Area
|
Year
Ended October 31
|
|||||||||
2005
|
2004
|
2003
|
||||||||
United
States
|
$
|
40,666
|
$
|
30,654
|
$
|
22,829
|
||||
Germany
|
36,039
|
31,206
|
22,111
|
|||||||
United
Kingdom
|
11,917
|
8,818
|
8,381
|
|||||||
Other
Europe
|
26,061
|
20,361
|
17,735
|
|||||||
Total
Europe
|
74,017
|
60,385
|
48,227
|
|||||||
Asia
and Other
|
10,826
|
8,533
|
4,476
|
|||||||
Total
Foreign
|
84,843
|
68,918
|
52,703
|
|||||||
$
|
125,509
|
$
|
99,572
|
$
|
75,532
|
October
31
|
|||||||
2005
|
2004
|
||||||
United
States
|
$
|
8,034
|
$
|
7,458
|
|||
Foreign
countries
|
3,117
|
1,489
|
|||||
$
|
11,151
|
$
|
8,947
|
15.
|
RESTRUCTURING
EXPENSE AND OTHER EXPENSE,
NET
|
Description
|
Balance
10/31/02
|
Provision
(Credit)
|
Charges
to Accrual
|
Balance
10/31/03
|
|||||||||
Severance
costs
|
$
|
264
|
$
|
(43
|
)
|
$
|
221
|
$
|
--
|
||||
Foreign
lease termination liability
|
1,113
|
(81
|
)
|
(157
|
)
|
1,189
|
|||||||
$
|
1,377
|
$
|
(124
|
)
|
$
|
64
|
$
|
1,189
|
Description
|
Balance
10/31/03
|
Provision
(Credit)
|
|
Charges
to Accrual
|
Balance
10/31/04
|
||||||||
Severance
costs
|
$
|
--
|
$
|
465
|
$
|
--
|
$
|
465
|
|||||
Foreign
lease termination liability
|
1,189
|
--
|
1,189
|
--
|
|||||||||
$
|
1,189
|
$
|
465
|
$
|
1,189
|
$
|
465
|
Description
|
Balance
10/31/04
|
Provision
(Credit)
|
|
Charges
to Accrual
|
Balance
10/31/05
|
||||||||
Severance
costs
|
$
|
465
|
$
|
--
|
$
|
321
|
$
|
144
|
|||||
$
|
465
|
$
|
--
|
$
|
321
|
$
|
144
|
16.
|
NEW
ACCOUNTING PRONOUNCEMENTS
|
Item
9.
|
CHANGES
IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURES
|
Item
9A.
|
CONTROLS
AND PROCEDURES
|
Item9B.
|
OTHER
INFORMATION
|
Item
10.
|
DIRECTORS
AND EXECUTIVE OFFICERS OF THE
REGISTRANT
|
Item
11.
|
EXECUTIVE
COMPENSATION
|
Item
12.
|
SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED
STOCKHOLDER MATTERS
|
Plan
Category
|
Number
of securities to be issued upon exercise of outstanding options,
warrants
and rights (a) (#)
|
Weighted-average
exercise price of outstanding options, warrants and rights (b)
($)
|
Number
of securities remaining available for future issuance under equity
compensation plans (excluding securities reflected in column (a))
(c)
(#)
|
|||||||
Equity
compensation plans approved by security holders
|
215,400
|
|
$3.63
|
341,500
|
||||||
Equity
compensation plans not approved by security holders
|
--
|
--
|
--
|
|||||||
Total
|
215,400
|
|
$3.63
|
341,500
|
Item
13.
|
CERTAIN
RELATIONSHIPS AND RELATED
TRANSACTIONS
|
Item
14.
|
PRINCIPAL
ACCOUNTANT FEES AND
SERVICES
|
Item
15.
|
EXHIBITS
AND FINANCIAL STATEMENT SCHEDULES
|
(a)
|
1.
|
Financial
Statements.
The following consolidated financial statements of Registrant
are included
herein under Item 8 of Part II:
|
Page
|
||
Report
of Independent Registered Public Accounting Firm
|
22
|
|
Consolidated
Statements of Income - years ended October 31, 2005, 2004 and
2003
|
23
|
|
Consolidated
Balance Sheets - as of October 31, 2005 and 2004
|
24
|
|
Consolidated
Statements of Cash Flows - years ended October 31, 2005, 2004
and
2003
|
25
|
|
Consolidated
Statements of Changes in Shareholders’ Equity - years ended October 31,
2005, 2004 and 2003
|
26
|
|
Notes
to Consolidated Financial Statements
|
27
|
2.
|
Financial
Statement Schedule.
The following financial statement schedule is included in this
Item
|
Page
|
||
Schedule
II - Valuation and Qualifying Accounts and Reserves
|
47
|
(b) |
Exhibits
|
Description
|
Balance
at Beginning of Period
|
Charged
to Costs and Expenses
|
Charged
To Other Accounts
|
Deductions
|
Balance
At End Of Period
|
|||||||||||
Allowance
for doubtful
|
||||||||||||||||
Accounts
for the year ended:
|
||||||||||||||||
October
31, 2005
|
$
|
723
|
$
|
169
|
--
|
$
|
50
|
(1)
|
$
|
842
|
||||||
October
31, 2004
|
$
|
630
|
$
|
286
|
--
|
$
|
193
|
(2)
|
$
|
723
|
||||||
October
31, 2003
|
$
|
689
|
$
|
421
|
$
|
--
|
$
|
480
|
(3)
|
$
|
630
|
|||||
Accrued
warranty expenses
|
||||||||||||||||
For
the year ended:
|
||||||||||||||||
October
31, 2005
|
$
|
1,750
|
$
|
1,646
|
--
|
$
|
1,778
|
$
|
1,618
|
|||||||
October
31, 2004
|
$
|
1,016
|
$
|
2,323
|
--
|
$
|
1,589
|
$
|
1,750
|
|||||||
October
31, 2003
|
$
|
1,003
|
$
|
1,148
|
$
|
--
|
$
|
1,135
|
$
|
1,016
|
(1)
|
Receivable
write-offs of $50,000, net of cash recoveries on accounts previously
written off of $0.
|
(2)
|
Receivable
write-offs of $193,000, net of cash recoveries on accounts previously
written off of $0.
|
(3)
|
Receivable
write-offs of $493,000 net of cash recoveries on accounts previously
written off of $13,000.
|
Statement
re: computation of per share earnings.
|
|
Subsidiaries
of the Registrant.
|
|
Consent
of PricewaterhouseCoopers LLP.
|
|
Certification
by the Chief Executive Officer, pursuant to Rule 13a-15(b) under
the
Securities and Exchange Act of 1934, as amended.
|
|
Certification
by the Chief Financial Officer, pursuant to Rule 13a-15(b) under
the
Securities and Exchange Act of 1934, as amended.
|
|
Certification
by the Chief Financial Officer pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
|
|
Certification
by the Chief Financial Officer pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
|
3.1
|
Amended
and Restated Articles of Incorporation of the Registrant, incorporated
by
reference to Exhibit 3.1 to the Registrant's Report on Form 10-Q
for the
quarter ended July 31, 2000.
|
3.2
|
Amended
and Restated By-Laws of the Registrant dated January 5, 2005, incorporated
by reference as Exhibit 3.1 to the Registrant’s Form 8-K filed on January
11, 2005.
|
10.3
|
First
Amendment to the Third Amended and Restated Credit Agreement between
the
Registrant and Bank One, NA dated as of October 26, 2004, incorporated
by
reference as Exhibit 10.1 to the Registrant’s Form 8-K filed on November
1, 2004.
|
10.4
|
Revolving
Credit Facility and Overdraft Facility - Supplemental Facility
Agreement
between Hurco Europe Limited and Bank One, NA dated October 26,
2004,
incorporated by reference as Exhibit 10.2 to the Registrant’s Form 8-K
filed on November 1, 2004.
|
10.5
|
Employment
Agreement between the Registrant and James D. Fabris dated November
18,
1997, incorporated by reference as Exhibit 10.15 to the Registrant's
Report on Form 10-Q for the quarter ended January 31,
1998.
|
10.6
|
Mortgage
dated April 30, 2002 between the Registrant and American Equity
Investment
Life Insurance Company incorporated by reference as Exhibit 10.2
to the
Registrant’s Report on Form 10-Q for the quarter ended April 30,
2002.
|
10.7
|
Employment
Agreement between the Registrant and Michael Doar dated November
13, 2001
incorporated by reference as Exhibit 10.2 to the Registrant’s Report on
Form 10-Q dated January 31,
2002.
|
10.8
|
Separation
and Release Severance Agreement between the Registrant and Roger
J. Wolf,
incorporated by reference as Exhibit 10.2 to the Registrant’s Form 8-K
filed November 24, 2004.
|
10.9*
|
Amended
1997 Stock Option and Incentive Plan incorporated by reference
as Exhibit
10 to the Registrant’s Report on Form 10-Q filed for the quarter ended
July 31, 2005.
|
10.10
|
Employment
Agreement between the Registrant and Stephen J. Alesia dated January
18,
2005 incorporated by reference as Exhibit 10.2 to the Registrant’s Annual
Report on Form 10-K dated October 31, 2004.
|
10.11*
|
Form
of option agreement relating to the Amended 1997 Stock Option and
Incentive Plan incorporated by reference as Exhibit 10.1 to the
Registrant’s Annual Report on Form 10-K dated October 31,
2004.
|
*
|
The
indicated exhibit is a management contract, compensatory plan or
arrangement required to be listed by Item 601 of Regulation S-K.
|
HURCO
COMPANIES, INC.
|
|||
By:
|
/s/
Stephen J. Alesia
|
||
Stephen
J. Alesia
|
|||
Vice-President,
Secretary,
|
|||
Treasurer
and
|
|||
Chief
Financial Officer
|
Signature
and Title(s)
|
Date
|
||
/s/
Michael Doar
|
January
23, 2006
|
||
Michael
Doar, Chairman of the Board,
|
|||
Chief
Executive Officer and Director
|
|||
of
Hurco Companies, Inc.
|
|||
(Principal
Executive Officer)
|
|||
/s/
Stephen J. Alesia
|
January
23, 2006
|
||
Stephen
J. Alesia
|
|||
Vice-President,
|
|||
Secretary,
Treasurer and
|
|||
Chief
Financial Officer
|
|||
of
Hurco Companies, Inc.
|
|||
(Principal
Financial Officer)
|
|||
/s/
Sonja K. McClelland
|
January
23, 2006
|
||
Sonja
K. McClelland
|
|||
Corporate
Controller, Assistant Secretary
|
|||
of
Hurco Companies, Inc.
|
|||
(Principal
Accounting Officer)
|
/s/
Stephen H. Cooper
|
January
23, 2006
|
||
Stephen
H. Cooper, Director
|
|||
/s/
Robert W. Cruickshank
|
January
23, 2006
|
||
Robert
W. Cruickshank, Director
|
|||
/s/
Richard T. Niner
|
January
23, 2006
|
||
Richard
T. Niner, Director
|
|||
/s/
O. Curtis Noel
|
January
23, 2006
|
||
O.
Curtis Noel, Director
|
|||
/s/
Charlie Rentschler
|
January
23, 2006
|
||
Charlie
Rentschler, Director
|
|||
/s/
Gerald V. Roch
|
January
23, 2006
|
||
Gerald
V. Roch, Director
|
|||
Three
Months Ended
|
Twelve
Months Ended
|
||||||||||||||||||||||||
October
31,
|
October
31,
|
||||||||||||||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||||||||||||||
(in
thousands, except per share amount)
|
|||||||||||||||||||||||||
Basic
|
Diluted
|
Basic
|
Diluted
|
Basic
|
Diluted
|
Basic
|
Diluted
|
||||||||||||||||||
Net
income
|
$
|
7,235
|
$
|
7,235
|
$
|
2,281
|
$
|
2,281
|
$
|
16,443
|
$
|
16,443
|
$
|
6,269
|
$
|
6,269
|
|||||||||
Weighted
average shares outstanding
|
6,216
|
6,216
|
5,969
|
5,969
|
6,171
|
6,171
|
5,784
|
5,784
|
|||||||||||||||||
Assumed
issuances under stock options plans
|
--
|
167
|
--
|
294
|
--
|
165
|
--
|
242
|
|||||||||||||||||
6,216
|
6,383
|
5,969
|
6,263
|
6,171
|
6,336
|
5,784
|
6,026
|
||||||||||||||||||
Income
per common share
|
$
|
1.16
|
$
|
1.13
|
$
|
0.38
|
$
|
0.36
|
$
|
2.66
|
$
|
2.60
|
$
|
1.08
|
$
|
1.04
|
Name
|
Jurisdiction
Of
Incorporation
|
|
Hurco
B.V.
|
the
Netherlands
|
|
Hurco
Europe Limited
|
United
Kingdom
|
|
Hurco
GmbH
|
Federal
Republic of Germany
|
|
Hurco
Manufacturing Ltd.
|
Taiwan
R.O.C.
|
|
Hurco
S.a.r.l.
|
France
|
|
Hurco
S.r.l.
|
Italy
|
|
Hurco
(S.E. Asia) Pte Ltd.
|
Singapore
|
1.
|
I
have reviewed this annual report on Form 10-K 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 am responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) 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)
|
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
|
(c)
|
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 fourth fiscal quarter in the case
of an
annual report) 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
of the Board & Chief Executive Officer
|
|
January
23, 2006
|
1.
|
I
have reviewed this annual report on Form 10-K 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 am responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) 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)
|
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
|
(c)
|
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 fourth fiscal quarter in the case
of an
annual report) 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/
Stephen J. Alesia
|
|
Stephen
J. Alesia
|
|
Vice
President & Chief Financial Officer
|
|
January
23, 2006
|
(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
of the Board & Chief Executive Officer
|
|
January
23, 2006
|
(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/
Stephen J. Alesia
|
|
Stephen
J. Alesia
|
|
Vice
President & Chief Financial Officer
|
|
January
23, 2006
|