UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
DC 20549
FORM
8-K
CURRENT
REPORT PURSUANT
TO
SECTION 13 OR 15(D) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date
of
report (Date of earliest event reported) May 18, 2007
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Hurco
Companies, Inc.
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(Exact
Name of Registrant as Specified in Its Charter
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Indiana
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(State
or Other Jurisdiction of Incorporation
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0-9143
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35-1150732
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(Commission
File Number)
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(I.R.S.
Employer Identification Number)
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One
Technology Way
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Indianapolis,
Indiana
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46268
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(Address
of principal executive offices)
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(Zip
code)
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(317)
293-5309
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(Registrant’s
Telephone Number, Including Area Code
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Not
Applicable
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(Former
Name or Former Address, if Changed Since Last
Report)
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Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see
General
Instruction A.2. below):
o Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
o Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item
2.02. Results
of Operation and Financial Condition
On
May
18, 2007, Hurco Companies, Inc. (the "Registrant") reported its results of
operations for the second quarter ended April 30, 2007. The Registrant's
earnings release for the period is attached as Exhibit 99 and the information
set forth therein is incorporated herein by reference and constitutes a part
of
this report. The attached Exhibit is furnished pursuant to Item 2.02 of
Form 8-K.
Item
9.01 Financial
Statements and Exhibits.
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99
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Press
Release dated May 18, 2007
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SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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Dated:
May 18, 2007
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HURCO
COMPANIES, INC
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By:
/s/
John G. Oblazney
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Vice
President and
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Chief
Financial Officer
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EXHIBIT
INDEX
Exhibit
99 Press
Release of Hurco Companies, Inc. dated May 18, 2007
FOR
IMMEDIATE RELEASE
FRIDAY,
MAY 18, 2007
HURCO
REPORTS STRONG SECOND QUARTER RESULTS - SALES UP 15% AND RECORD
ORDERS.
INDIANAPOLIS,
INDIANA, — May 18, 2007, Hurco
Companies, Inc., (Nasdaq, Global Select Market: HURC) today reported net income
of $4,680,000, or $.73 per share, for its second fiscal quarter, which ended
April 30, 2007, compared to $3,929,000, or $.62 per share, for the corresponding
period in 2006. For the first six months of fiscal 2007, Hurco recorded net
income of $10,075,000, or $1.57 per share, compared to $6,962,000, or $1.09
per
share, for the corresponding period in 2006.
Sales
and
service fees for the second quarter of fiscal 2007 were $42,494,000, an increase
of $5,633,000, or 15%, from the amount for the prior year period. Approximately
8% of the year-over-year increase reflects the effect of a weaker U.S. dollar
when translating foreign sales to U.S. dollars for financial reporting purposes.
These results reflect a significant improvement in demand, primarily in European
markets. Sales and service fees for the six months ended April 30, 2007 totaled
$89,372,000, an increase of $20,617,000, or 30%, over the corresponding period
in 2006.
New
orders booked during the second quarter of fiscal 2007 totaled $48,474,000,
an
increase of $11,484,000, or 31%, over the amount recorded in the second quarter
of fiscal 2006. During the latest quarter, orders increased in Europe and Asia
by 50% and 23%, respectively, compared to the second quarter of 2006. North
American orders decreased by 1%. The impact of currency translation on new
orders booked was consistent with the impact on sales and service fees. For
the
six months ended April 30, 2007, new orders totaled $95,569,000, an increase
of
$20,848,000, or 28%, over the corresponding period in 2006.
Gross
margin for the second quarter of fiscal 2007 was 39% compared to 36% for the
prior year period, as a result of higher volume and favorable mix. Selling,
general and administrative expenses were $9,405,000, an increase from the
$7,140,000 reported in the prior year period. The increase was due to the
effects of foreign currency translation of foreign operating expenses and
incremental variable expenses related to market expansion, commissions and
compensation expense.
Hurco’s
debt balance was eliminated as the $3,967,000 mortgage for the Indianapolis
facility was fully repaid in April.
Michael
Doar, Chairman and Chief Executive Officer, stated, “Although the U.S. machine
tool market softened during the second quarter, our global strategy minimized
the impact. The world market remains strong and our diverse markets in Europe
and Asia are offsetting the slowdown in the U.S.
Continued
and timely product development is an important part of our global
strategy. The second quarter was particularly positive in terms of
new products. We successfully launched our WinMax control software in the
United States as scheduled and finalized introduction of the largest vertical
machining center Hurco has ever developed—the VMX84. This vertical machining
center will extend our flagship VMX product line so we can meet the needs of
existing customers and it will also attract new customers worldwide because
of
the large size parts it can produce.”
Hurco
Companies, Inc., is an industrial technology company that designs and produces
interactive computer controls, software and computerized machine tools for
the
worldwide metal cutting and metal forming industry. The end market for the
Company's products consists primarily of independent job shops and short-run
manufacturing operations within large corporations in industries such as the
aerospace, defense, medical equipment, energy, transportation and computer
equipment. The Company is based in Indianapolis, Indiana, and has sales,
application engineering and service subsidiaries in High Wycombe, England;
Munich, Germany; Paris, France; Milan, Italy; Shanghai, China and Singapore,
along with manufacturing operations in Taiwan and China. Products are sold
through independent agents and distributors in the United States, Europe and
Asia. The Company also has direct sales forces in the United Kingdom, Germany,
France, Italy, and Asia.
Web
Site:
www.hurco.com
This
news release contains forward looking statements which involve known and unknown
risks, uncertainties and other factors that may cause our actual results,
performance or achievements to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements. These factors include, among others, changes in general economic
and
business conditions that affect demand for computerized machine systems,
computer numerical control systems and software products, changes in
manufacturing markets, innovations by competitors, our ability to protect our
intellectual property, fluctuations in exchange rates, fluctuations in prices
of
raw materials, changes in market demands, quality and delivery performance
by
our contract manufacturers and governmental actions and initiatives including
import and export restrictions and tariffs.
Contact:
John G. Oblazney
Vice
President & Chief Financial Officer
317-293-5309
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Hurco
Companies, Inc.
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CONDENSED
CONSOLIDATED BALANCE SHEET
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(In
thousands, except per-share data)
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April
30,
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October
31,
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2007
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2006
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(unaudited)
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(audited)
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ASSETS
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Current
assets:
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|||||||
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Cash
and cash equivalents
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$
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34,457
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$
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29,846
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Accounts
receivable
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24,122
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22,248
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Inventories
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45,149
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43,343
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|||||
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Deferred
tax assets, net
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2,987
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2,768
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Other
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3,796
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2,677
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Total
current assets
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110,511
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100,882
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Property
and equipment:
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Land
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761
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761
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Building
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7,234
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7,234
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Machinery
and equipment
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13,633
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12,952
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Leasehold
improvements
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1,241
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1,147
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22,869
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22,094
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Less
accumulated depreciation and amortization
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(13,580
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)
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(12,944
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)
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9,289
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9,150
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Deferred
tax assets, net
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1,021
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1,121
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Software
development costs, less amortization
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6,341
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5,580
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Investments
and other assets
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8,235
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7,381
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$
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135,397
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$
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124,114
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LIABILITIES
AND SHAREHOLDERS' EQUITY
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Current
liabilities:
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Accounts
payable
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$
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27,883
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$
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26,605
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Accrued
expenses
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20,690
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17,599
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Current
portion of long-term debt
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-
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136
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Total
current liabilities
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48,573
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44,340
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Non-current
liabilities:
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Long-term
debt
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-
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3,874
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Deferred
credits and other obligations
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625
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525
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Total
liabilities
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49,198
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48,739
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Shareholders'
equity:
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Preferred
stock: no par value per share; 1,000,000 shares
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-
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authorized;
no shares issued
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Common
stock: no par value; $.10 stated value per share;
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12,500,000
shares authorized; and 6,389,720 and
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6,346,520
shares issued, respectively
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639
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635
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Additional
paid-in capital
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50,760
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50,011
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Retained
earnings
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38,555
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28,480
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Accumulated
other comprehensive income
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(3,755
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)
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(3,751
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)
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Total
shareholders' equity
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86,199
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75,375
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$
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135,397
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$
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124,114
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Hurco
Companies, Inc.
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CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS
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(In
thousands, except per-share data)
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Three
Months Ended
April
30,
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Six
Months Ended
April
30,
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2007
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2006
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2007
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2006
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(unaudited)
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(unaudited)
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Sales
and service fees
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$
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42,494
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$
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36,861
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$
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89,372
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$
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68,755
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Cost
of sales and service
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26,145
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23,682
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55,700
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44,649
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Gross
profit
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16,349
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13,179
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33,672
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24,106
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Selling,
general and administrative expenses
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9,405
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7,140
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18,655
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13,436
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Operating
income
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6,944
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6,039
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15,017
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10,670
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Interest
expense
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(5
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)
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80
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39
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164
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Other
income (expense), net
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495
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220
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858
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325
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Income
before taxes
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7,444
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6,179
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15,836
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10,831
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|||||||||
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Provision
for income taxes
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2,764
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2,250
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5,761
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3,869
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Net
income
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$
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4,680
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$
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3,929
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$
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10,075
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$
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6,962
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Earnings
per common share
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Basic
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$
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0.73
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$
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0.62
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$
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1.58
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$
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1.11
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Diluted
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$
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0.73
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$
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0.62
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$
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1.57
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$
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1.09
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Weighted
average common shares outstanding
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|||||||||||||
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Basic
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6,373
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6,291
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6,373
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6,291
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Diluted
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6,431
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6,377
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6,427
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6,377
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|||||||||
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OTHER
CONSOLIDATED FINANCIAL DATA
|
Three
Months Ended
April
30,
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Six
Months Ended
April
30,
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|||||||||||
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Operating
Data:
|
2007
|
2006
|
2007
|
2006
|
|||||||||
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(unaudited)
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(unaudited)
|
|||||||||||
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Gross
margin
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38.5
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%
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35.8
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%
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37.7
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%
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35.1
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%
|
|||||
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SG&A
expense as a percentage of sales
|
22.1
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%
|
19.4
|
%
|
20.9
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%
|
19.5
|
%
|
|||||
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Operating
income as a percentage of sales
|
16.3
|
%
|
16.4
|
%
|
16.8
|
%
|
15.5
|
%
|
|||||
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Income
before taxes as a percentage of sales
|
17.5
|
%
|
16.8
|
%
|
17.7
|
%
|
15.8
|
%
|
|||||
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Effective
Tax Rate
|
37.1
|
%
|
36.4
|
%
|
36.4
|
%
|
35.7
|
%
|
|||||
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Depreciation
|
399
|
367
|
787
|
732
|
|||||||||
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Capital
expenditures
|
988
|
704
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1,642
|
1,197
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Balance
Sheet Data:
|
4/30/2007
|
4/30/2006
|
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Working
capital (excluding short term debt)
|
$
|
61,938
|
$
|
50,761
|
|||||||||
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Days
sales outstanding
|
45
|
45
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|||||||||||
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Inventory
turns
|
2.5
|
2.5
|
|||||||||||
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Capitalization
|
|||||||||||||
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Total
debt
|
$
|
-
|
$
|
4,074
|
|||||||||
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Shareholders'
equity
|
86,199
|
67,624
|
|||||||||||
|
Total
|
$
|
86,199
|
$
|
71,698
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