SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
Quarterly report pursuant to section 13 or 15(d) of the Securities
Exchange Act of 1934 for the quarterly period ended July 31, 1998
Transition report pursuant to section 13 or 15(d) of the Securities
Exchange Act of 1934 for the transition period from _________ to
_________.
Commission File No. 0-9143
HURCO COMPANIES, INC.
(Exact name of registrant as specified in its charter)
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)
Registrant's telephone number, including area code (317) 293-5309
--------------
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months, and (2) has been subject to the filing
requirements for the past 90 days:
Yes X No
The number of shares of the Registrant's common stock outstanding as of August
31, 1998 was 6,594,311.
HURCO COMPANIES, INC.
July 1998 Form 10-Q Quarterly Report
Table of Contents
Part I - Financial Information
Page
Item 1. Condensed Financial Statements
Condensed Consolidated Statement of Operations -
Three months and nine months ended July 31, 1998
and 1997....................................................3
Condensed Consolidated Balance Sheet -
As of July 31, 1998 and October 31, 1997....................4
Condensed Consolidated Statement of Cash Flows -
Three months and nine months ended July 31, 1998 and 1997...5
Notes to Condensed Consolidated Financial Statements............6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.............................7
Part II - Other Information
Item 1. Legal Proceedings..............................................12
Item 4. Submission of Matters to a Vote of Security Holders............12
Item 6. Exhibits and Reports on Form 8-K...............................13
Signature....................................................................13
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
HURCO COMPANIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per-share data)
Three Months Ended Nine Months Ended
July 31, July 31,
-------------- -------------
1998 1997 1998 1997
- --------------------------------------------------------------------------------
(unaudited) (unaudited)
Sales and service fees..............$23,444 $24,637 $67,106 $69,495
Cost of sales and service........... 16,464 17,462 47,716 48,992
------- -------- -------- -------
Gross profit................... 6,980 7,175 19,390 20,503
Selling, general and
administrative expenses............. 5,573 5,352 15,951 15,615
------- ------- ------- -------
Operating income .............. 1,407 1,823 3,439 4,888
License fee income and litigation
settlement fees, net................ 1,025 1,221 6,810 7,396
Interest expense, net............... 149 473 633 1,533
Other expense, net.................. 72 34 97 84
------- ------- ------- -------
Income before taxes............ 2,211 2,537 9,519 10,667
Provision for foreign income taxes.. 381 3 1,233 917
------- ------- ------- -------
Net income.........................$ 1,830 $ 2,534 $ 8,286 $ 9,750
======= ======= ======= =======
Earnings per common share
Basic.........................$ .28 $ .39 $ 1.27 $ 1.49
======= ======= ======= =======
Diluted.......................$ .27 $ .38 $ 1.23 $ 1.46
======= ======= ======= =======
Weighted average common
shares outstanding
Basic......................... 6,472 6,536 6,528 6,535
======= ======= ======= =======
Diluted....................... 6,664 6,690 6,720 6,675
======= ======= ======= =======
The accompanying notes are an integral part of the condensed consolidated
financial statements.
HURCO COMPANIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(Dollars in thousands, except per share amounts)
July 31, October 31,
1998 1997
- -------------------------------------------------------------------------------
ASSETS (Unaudited) (Audited)
Current assets:
Cash and temporary investments............... $ 7,021 $ 3,371
Accounts receivable.......................... 15,988 15,687
Inventories.................................. 26,773 21,752
Other........................................ 1,719 1,412
-------- --------
Total current assets..................... 51,501 42,222
-------- --------
Long-term license fees receivable................. 1,010 1,178
-------- --------
Property and equipment:
Land ..................................... 761 761
Building..................................... 7,067 7,067
Machinery and equipment...................... 10,549 11,463
Leasehold improvements....................... 1,278 1,121
Less accumulated depreciation and
amortization............................ (10,556) (11,218)
-------- ---------
9,099 9,194
-------- ---------
Software development costs, net of amortization... 4,459 4,447
Other assets ..................................... 2,127 1,707
-------- ---------
$ 68,196 $ 58,748
======== =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable............................. $ 16,033 $ 9,246
Accrued expenses............................. 7,618 8,338
Current portion of long-term debt............ 1,786 1,786
-------- -------
Total current liabilities................ 25,437 19,370
-------- -------
Non-current liabilities:
Long-term debt............................... 4,572 8,257
Deferred credits and other obligations....... 1,315 1,345
-------- -------
Total non-current liabilities......... 5,887 9,602
-------- -------
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 6,461,111 and 6,544,831 shares issued
and outstanding, respectively ............ 646 654
Additional paid-in capital.................... 49,459 50,349
Accumulated deficit........................... (8,118) (16,404)
Foreign currency translation adjustment....... (5,115) (4,823)
-------- --------
Total shareholders' equity................ 36,872 29,776
-------- --------
$68,196 $58,748
======== ========
The accompanying notes are an integral part of the condensed consolidated
financial statements.
HURCO COMPANIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Dollars in thousands)
Three Months Ended Nine Months Ended
July 31, July 31,
------------------ -----------------
1998 1997 1998 1997
- --------------------------------------------------------------------------------
(unaudited) (unaudited)
Cash flows from operating activities:
Net income ............................... $1,830 $2,534 $8,286 $9,750
Adjustments to reconcile net income to net
cash provided by (used for) operating activities:
Depreciation and amortization........... 531 502 1,603 1,433
Change in assets and liabilities:
(Increase) decrease in accounts
receivable............................. (1,505) (381) (65) 1,125
(Increase) decrease in license fee
receivables............................ (36) 150 (376) 165
(Increase) decrease in inventories...... (4,342) 1,379 (5,203) (2,248)
Increase (decrease) in accounts payable. 3,934 (800) 6,817 (1,844)
Increase (decrease) in accrued expenses. (211) 476 (641) (807)
Other................................... 201 (113) (500) 449
------- ------- ------- ------
Net cash provided by (used for)
operating activities.................. 402 3,747 9,921 8,023
------- ------- ------- ------
Cash flows from investing activities:
Proceeds from sale of equipment........... 3 23 13 106
Purchase of property and equipment........ (177) (244) (716) (493)
Software development costs................ (442) (270) (822) (997)
Other investments......................... (24) (11) (220) (429)
------- ------- ------ ------
Net cash provided by (used for)
investing activities.................... (640) (502) (1,745) (1,813)
------- ------- ------ ------
Cash flows from financing activities:
Advances on bank credit facilities........ 752 7,222 9,252 25,279
Repayment on bank credit facilities ...... (752) (9,722) (11,152)(29,512)
Repayment of term debt ................... -- -- (1,786) (1,786)
Proceeds from exercise of common stock
options................................ 18 5 100 13
Purchase of common stock.................. (720) -- (998) --
------- ------ ------- -------
Net cash provided by (used for)
financing activities.................... (702) (2,495) (4,584) (6,006)
------- ------ ------- -------
Effect of exchange rate changes on cash...... 39 229 58 36
------- ------ ------- -------
Net increase (decrease) in cash and
temporary investments................... (901) 979 3,650 240
Cash and temporary investments
at beginning of period.................. 7,922 1,138 3,371 1,877
------- -------- ------- -------
Cash and temporary investments
at end of period........................ $7,021 $2,117 $7,021 $2,117
======= ======== ======= =======
The accompanying notes are an integral part of the condensed consolidated
financial statements.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. GENERAL
The unaudited Condensed Consolidated Financial Statements include the accounts
of Hurco Companies, Inc. and its consolidated subsidiaries (collectively the
Company). The Company is an industrial automation company that designs and
produces interactive computer controls, software and computerized machine
systems for the worldwide metal cutting and metal forming industries.
The condensed financial information as of July 31, 1998 and 1997 is unaudited
but includes all adjustments which the Company considers necessary for a fair
presentation of financial position at those dates and its results of operations
and cash flows for the three months and nine months then ended. It is suggested
that these condensed financial statements be read in conjunction with the
financial statements and the notes thereto included in the Company's Annual
Report on Form 10-K for the year ended October 31, 1997.
2. LICENSE FEE INCOME AND LITIGATION SETTLEMENT FEES, NET
From time to time, the Company's wholly-owned subsidiary, IMS Technology, Inc.
(IMS) enters into agreements for the licensing of its interactive computer
numerical control (CNC) patents. License fees received or receivable under a
fully paid-up license, for which there are no future performance requirements or
contingencies, and payments received or receivable to settle litigation related
to the patents, are recognized in income, net of legal fees and expenses, if
any, at the time the license agreement is executed. License fees received in
periodic installments that are contingent upon the continuing validity of a
licensed patent are recognized in income, net of legal fees and expenses, if
any, over the life of the licensed patent.
During the third quarter ended July 31, 1998, IMS entered into license
agreements and litigation settlements with a number of manufacturers and
end-users of interactive CNCs, some of which were defendants in patent
infringement actions brought by IMS. These agreements resulted in the
recognition of license fee and litigation settlement fee income of approximately
$1.0 million, net of expenses, all of which was received in the third quarter.
3. PROVISION FOR FOREIGN INCOME TAXES
The provision for foreign income taxes represents primarily foreign withholding
taxes and income tax related to a foreign subsidiary.
4. HEDGING
The Company seeks to hedge its exposure to fluctuations in foreign currency
exchange rates through the use of foreign currency forward exchange contracts.
The U.S. dollar equivalent notional amount of outstanding foreign currency
forward exchange contracts was approximately $14.0 million as of July 31, 1998
(substantially all related to firm intercompany sales commitments) and $19.0
million as of October 31, 1997 ($17.8 million related to intercompany sales
commitments). Deferred losses related to hedges of future sales transactions
were approximately $194,000 as of July 31, 1998, compared to deferred losses
of $408,000 as of October 31, 1997. Contracts outstanding at July 31, 1998
mature at various times through October 9, 1998. All contracts are for sale of
currency. The Company does not enter into these contracts for trading purposes.
5. EARNINGS PER SHARE
Basic and diluted earnings per common share are based on the weighted average
number of common shares outstanding. Diluted earnings per common share give
effect to outstanding stock options using the treasury stock method. Common
stock equivalents totaled approximately 190,000 shares as of July 31, 1998. As
of July 31, 1998, the Company had repurchased 125,000 shares of its common
stock under its previously-announced stock repurchase program.
6. ACCOUNTS RECEIVABLE
The allowance for doubtful accounts was $712,000 as of July 31, 1998 and
$757,000 as of October 31, 1997.
7. INVENTORIES
Inventories, priced at the lower of cost (first-in, first-out method) or market
are summarized below (in thousands):
July 31, 1998 October 31, 1997
------------- ----------------
Purchased parts and sub-assemblies $ 11,896 $ 9,749
Work-in-process 1,861 1,578
Finished goods 13,016 10,425
---------- ---------
$ 26,773 $ 21,752
========== =========
8. TAX CONTINGENCY
The German tax authority is challenging the Company's 1996 transfer of net
operating losses between two German subsidiaries of the Company that merged in
fiscal 1996. The contingent tax liability resulting from this issue is
approximately $1.4 million. The Company is contesting the claim and, as of July
31, 1998, no provision for the contingency has been recorded.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
The following discussion should be read in conjunction with the Condensed
Consolidated Financial Statements and Notes thereto appearing elsewhere herein.
Certain statements made in this report relating to trends in the Company's
operations or financial results, as well as other statements, including words
such as "anticipate", "believe", "plan", "estimate", "expect", "intend", and
other similar expressions, constitute forward-looking statements under the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements are subject to known and unknown risks, uncertainties and other
factors which could cause actual results to be materially different from those
contemplated by the forward-looking statements, including those risks,
uncertainties and other factors described in the Company's annual report on Form
10-K for the year ended October 31, 1997.
RESULTS OF OPERATIONS
Three Months Ended July 31, 1998 Compared to Three Months Ended July 31, 1997
Sales and service fees for the third quarter of fiscal 1998 declined
approximately $1.2 million, or 4.8%, from the amount recorded during the third
quarter of fiscal 1997. Of the total decrease, approximately $373,000 was
attributable to the effects of a stronger U.S. dollar when translating foreign
sales of computerized machine systems for financial reporting purposes. Sales of
stand-alone computer numeric control (CNC) systems, substantially all of
which were domestic, decreased approximately $916,000, or 22.5%, reflecting
reduced shipments to original equipment manufacturers of the Company's
Delta(TM) Series CNC systems, as well as a decrease in the related service fees,
as the Company repositions these products for marketing as components of
integrated machine systems. The Company's ongoing transfer of customer
servicing responsibility to certain of its distributors also contributed to a
decline in service fees. Sales of software and parts increased slightly over
the third quarter of fiscal 1997.
New order bookings were $22.1 million, compared to $25.7 million for the
corresponding 1997 period, a decrease of 14%. Of the total decrease,
approximately $1.9 million was attributable to a reduction in orders for
stand-alone CNC systems consistent with the Company's planned repositioning of
these products. The balance, which was associated with computerized machine
systems, reflected the combined effects of a stronger U.S. dollar when
translating orders from foreign markets and a higher percentage of smaller,
lower-priced, models in the product mix. On a unit basis, orders for
computerized machine systems increased approximately 1.8%. A 27% increase in
orders from foreign markets - most notably Germany and France, which more than
compensated for weakness in the United Kingdom and Southeast Asia - was offset
by a decline of approximately 30.4% in the United States, reflecting the
combined effects of an unusually strong domestic order rate in the second
quarter of fiscal 1998, the impact on certain domestic market sectors of the
economic turmoil in Asia and the recent strike at General Motors assembly
plants. Backlog was $11.4 million at July 31, 1998 compared to $12.5 million at
April 30, 1998 and $7.5 million at October 31, 1997.
Gross profit margins as a percentage of sales continued to be strong at 29.8%,
compared to 29.1% in the third quarter of fiscal 1997, due, in part, to the
favorable effects of the strong U.S. dollar on the Company's costs of
Asian-sourced products.
Operating expenses increased $221,000, or 4.1%, due primarily to new product
launches and expenses associated with the Company's preparation for the
bi-annual International Manufacturing Trade Show to be held in September 1998.
The Company is introducing nine new computerized metal cutting machine systems
and four new computerized metal fabrication machine systems at IMTS.
License fees and payments received in settlements of litigation from certain
alleged infringers of IMS' interactive machining patents aggregated $1.0
million, net of legal expenses, during the 1998 third quarter, a decrease of
$196,000, or 16.0%, from the $1.2 million recorded during the corresponding 1997
period. IMS has now granted fully-paid licenses to most of the manufacturers
believed to be employing its technology and, therefore, aggregate license fee
income for fiscal 1998 is likely to be less than the amount recorded in fiscal
1997.
Interest expense, net of interest income, for the third quarter of fiscal 1998
decreased $324,000, or 68.5%, from the amount reported for the corresponding
period of fiscal 1997, reflecting the substantially lower amount of debt
outstanding.
The provision for foreign income taxes of $381,000 relates primarily to the
earnings of a foreign subsidiary which no longer has the benefit of net
operating loss carryforwards to offset taxable income.
Nine Months Ended July 31, 1998 Compared to Nine Months Ended July 31, 1997
Sales and service fees for the first nine months of fiscal 1998 decreased
approximately $2.4 million, or 3.4%, compared to the corresponding period of
fiscal 1997. Of the total decrease, approximately $1.7 million reflected the
effects of a stronger U.S. dollar when translating foreign currency sales of
computerized machine systems for financial reporting purposes.
Sales of computerized machine systems increased $2.7 million, or 6.0%, when
measured at constant exchange rates. The increase was most pronounced in Europe
where sales of computerized machine systems increased $2.8 million, or 10.7%,
before the adverse impact of foreign currency translation. Sales of
computerized machine systems were flat in the United States but declined
$271,000, or 40.0%, in Southeast Asia, before currency translation effects,
due to the continued economic turmoil in that region. Also contributing to
the increase in computerized machine systems sales were $568,000 of sales of
machine systems featuring the Autobend(R) and Delta(TM) Series CNC systems
reflecting the repositioning of these product lines.
Sales of stand-alone CNC systems declined $2.6 million, or 20.1%, compared to
the first nine months of fiscal 1997. The decrease was primarily attributable to
a decline in sales of the Company's Delta(TM) Series and Autobend(R) CNC system
product lines to original equipment manufacturers as the Company repositions
these products for inclusion as fully integrated components of computerized
machine systems. Currency translation had little impact on the decline in CNC
system sales because the majority of CNC system sales occur in the U.S. market.
Service fees and parts sales declined $989,000, or 8.8%, due principally to
reduced service fees, reflecting the combined effects of the decline in
stand-alone CNC systems and the Company's ongoing transfer of customer
servicing responsibility to certain of its distributors.
Operating expenses increased $336,000, or 2.2%, during the first nine months of
fiscal 1998 compared to the same period in fiscal 1997. The increase was
primarily attributable to new product launches and the Company's preparations
for the bi-annual International Manufacturing Trade Show.
Interest expense, net of interest income, for the first nine months of fiscal
1998 decreased $900,000, or 58.7%, from the amount reported for the
corresponding period of fiscal 1997 due primarily to $3.7 million of debt
reduction and a $3.7 million increase in cash and temporary investments.
License fee income and payments received in settlements of litigation from
certain alleged infringers of IMS' interactive machining patents aggregated $6.2
million, net of legal expenses and foreign withholding taxes, during the first
nine months of fiscal 1998, a decrease of $266,000, or 4.1%, from the $6.5
million recorded during the corresponding period of fiscal 1997.
The provision for foreign income taxes consists of approximately $640,000 of
foreign withholding taxes in fiscal 1998 compared to $896,000 during the
corresponding period of fiscal 1997. Also included in income tax expense in
fiscal 1998 is $571,000 of income tax expense related to the earnings of a
foreign subsidiary which no longer has the benefit of net operating loss
carryforwards to offset taxable income.
Foreign Currency Risk Management
The Company seeks to manage its foreign currency exposure through the use of
foreign currency forward exchange contracts. The Company does not speculate in
the financial markets and, therefore, does not enter into these contracts for
trading purposes. The Company also endeavors to moderate its currency risk
related to significant purchase commitments with certain foreign vendors through
price adjustment agreements that provide for a sharing of, or otherwise limit,
the potential adverse effect of currency fluctuations on the costs of purchased
products. The results of these programs achieved management's objectives for the
first nine months of fiscal 1998. See Note 4 to the Condensed Consolidated
Financial Statements.
LIQUIDITY AND CAPITAL RESOURCES
At July 31, 1998, the Company had cash and temporary investments of $7.0 million
compared to $3.4 million at October 31, 1997. Cash provided by operations
totaled approximately $400,000 in the third quarter of fiscal 1998 compared to
$3.7 million for the same period of fiscal 1997. The decrease is primarily due
to an increase in operating working capital in the fiscal 1998 third quarter as
compared to a decrease in operating working capital in the prior year period,
along with the decrease in net income.
For the nine months ended July 31, 1998, cash provided by operations was
$9.9 million, of which $6.9 million was attributable to license fees and
payments received in settlements of litigation, net of related expenses.
Working capital was $26.1 million at July 31, 1998, compared to $22.9 million at
October 31, 1997. The increase was attributable primarily to an increase in cash
and temporary investments of $3.7 million. Inventory increased $4.3 million in
the third fiscal quarter and approximately $5.0 million for the first nine
months of the year, reflecting increased computer control and electronic
components on hand along with increased product deliveries from the Company's
contract manufacturers. Products are purchased under commercial letters of
credit with terms generally ranging from 60 to 120 days. Purchases are reflected
in increased accounts payable of $6.8 million for the fiscal year to date. At
July 31, 1998, accounts payable include $9.2 million due under commercial
letters of credit, of which approximately $5.6 million will mature in the fourth
fiscal quarter and will be funded by available cash and cash flow from
operations. The ratio of current assets to current liabilities was 2.0 to 1 at
July 31, 1998 and 2.2 to 1 at October 31, 1997.
Capital investments for the quarter and nine months ended July 31, 1998
consisted principally of expenditures for software development projects and
purchases of equipment. Cash used for investing activities during the quarter
and year to date were funded by cash flow from operations.
As of July 31, 1998, the Company had repurchased 125,000 shares of its common
stock under its previously-announced stock repurchase program. These shares are
reflected as a reduction of common stock outstanding in calculating basic and
fully-diluted earnings per common share.
Total debt at July 31, 1998 was $6.4 million, representing 15% of total
capitalization, compared to $16.0 million, or 39% of total capitalization,
at July 31, 1997. The Company's cash and temporary investments exceeded total
debt at July 31, 1998.
Management believes that anticipated cash flow from operations and available
borrowings under credit facilities will be sufficient to meet its anticipated
cash requirements in the foreseeable future.
PART II - OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
As previously reported, the Company and its wholly-owned subsidiary, IMS
Technology, Inc. (IMS) are parties to a number of pending legal actions
involving the IMS interactive machining patent (the Patent), including patent
infringement actions and actions brought by third parties against IMS and the
Company relating to the Patent.
Two previously reported actions involving Centroid Corporation (Centroid) have
been resolved. In the action commenced by IMS against Centroid in the United
States District Court for the Eastern District of Virginia, a consent judgment
was entered in favor of IMS, the parties agreed to a license for the Patent and
Centroid acknowledged the validity of the Patent. In a related action brought by
Centroid against IMS, the Company, three officers of IMS and Patent counsel for
IMS in the United States District Court for the Middle District of Pennsylvania,
the action was dismissed with prejudice and Centroid agreed to reimburse IMS,
the Company and its counsel for legal fees incurred in defending the action.
In a previously reported action commenced by IMS against Haas Automation, Inc.
and Gene Francis Haas which is pending in the United States District Court for
the Eastern District of Virginia, the court denied the defendants' motion for
summary judgment and has scheduled trial for October 1998.
On July 17, 1998, IMS commenced an action against Okamoto Corporation and Taizo
Hosoda in the United States District Court for the Northern District of
Illinois. The action seeks monetary damages, injunctive relief, and attorneys'
fees and costs for infringement of the Patent. Additionally, IMS has asserted a
related claim against the defendants arising out of their tortuous interference
with IMS's contractual relationship with an expert witness who was retained to
testify in another lawsuit. IMS is seeking damages in excess of $75,000 and
exemplary damages against the defendants in the related claim.
Management is unable to predict the outcome of any of the actions described
above.
The Company is involved in various other claims and lawsuits arising in the
ordinary course of business, none of which, in the opinion of management, is
expected to have a material adverse effect on its consolidated financial
position or results of operations.
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
At the Company's Annual Meeting of Shareholders held on May 12, 1998, the
following individuals were elected to the Board of Directors by the following
votes cast at the meeting:
Abstentions and
Affirmative Votes Negative Votes Broker Non-Votes
Brian D. McLaughlin 5,954,005 1,417 34,610
E. Keith Moore 5,954,082 1,340 34,610
Richard T. Niner 5,954,578 844 34,610
O. Curtis Noel 5,954,405 1,017 34,610
Charles E.M. Rentschler 5,955,305 117 34,610
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
11 Statement re: Computation of Per Share Earnings
27 Financial Data Schedule (electronic filing only).
(b) Reports on Form 8-K: None
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 thereunto duly authorized.
HURCO COMPANIES, INC.
By: /s/ Roger J. Wolf
Roger J. Wolf
Senior Vice President and
Chief Financial Officer
By: /s/ Stephen J. Alesia
Stephen J. Alesia
Corporate Controller and
Principal Accounting Officer
September 10, 1998
Exhibit 11
Statement Re: Computation of Per Share Earnings
Three Months Ended Nine Months Ended
July 31, 1998 July 31, 1998
-------------------- ----------------------
1998 1997 1998 1997
-------------------- ----------------------
(in thousands, except per share amount)
Basic Diluted Basic Diluted Basic Diluted Basic Diluted
------------------------------ -----------------------------
Net income $1,830 $1,830 $2,534 $2,534 $8,286 $8,286 $9,750 $9,750
Weighted average
shares
outstanding 6,472 6,472 6,536 6,536 6,528 6,528 6,535 6,535
Assumed issuances
under stock
option plans - 192 - 154 - 192 - 140
------------------------------ ----------------------------
6,472 6,664 6,536 6,690 6,528 6,720 6,535 6,675
Earnings per
common share $0.28 $0.27 $0.39 $0.38 $1.27 $1.23 $1.49 $1.46
============================== =============================
5
0000315374
SONJA BUCKLES
1,000
US DOLLARS
9-MOS
OCT-31-1998
NOV-1-1997
JUL-31-1998
1
7,021
0
16,700
712
26,773
51,501
19,655
10,556
68,196
25,437
0
0
0
646
36,226
68,196
67,106
67,106
47,716
47,716
6,713
0
633
9,519
1,233
1,233
0
0
0
8,286
1.27
1.23
