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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 18, 2004

HURCO COMPANIES, INC.

(Exact name of registrant as specified in its charter)

INDIANA               0-9143             35-1150732

(State or other jurisdiction       (Commission File No.)       (I.R.S. Employer

of incorporation or organization)                        Identification No.)

ONE TECHNOLOGY WAY

INDIANAPOLIS, INDIANA  46268

(Address of principal executive offices and zip code)

(317) 293-5309

(Registrants' telephone number, including area code)

NOT APPLICABLE

(Former name or former address, if changed since last report)

On August 18, 2004, Hurco Companies, Inc. (the "Registrant") reported its results of operations for the third quarter ended July 31, 2004. The Registrant's earnings release for the quarter 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 12 of Form 8-K.

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.

       

	HURCO COMPANIES, INC
Date: August 18, 2004	By:	/s/ Roger J. Wolf
		Senior Vice President and Chief Financial Officer
		Title

               

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INDIANAPOLIS, INDIANA, — August 18, 2004—Hurco Companies, Inc. (Nasdaq:HURC) today announced that for its third fiscal quarter, which ended July 31, 2004, it recorded net income of $1,582,000, or $.25 per share, compared to $331,000, or $.06 per share, for the corresponding quarter of 2003. For the first nine months of fiscal 2004, Hurco recorded net income of $3,988,000, or $.67 per share, compared to a net loss of $112,000, or $.02 per share, for the corresponding 2003 period.

The Company attributed the dramatic improvement in its operating results to a substantial increase in its sales of computerized machine tools, due primarily to strong demand for its new machine tool models introduced over the past two years and improving market conditions, particularly in the United States and Southeast Asia. The improved results also reflected the favorable effects of stronger European currencies during the 2004 period, which resulted in a more favorable average exchange rate when translating foreign currencies into U.S. dollars for financial reporting purposes.

Sales and service fees for the third quarter of fiscal 2004 were $23,748,000, an increase of $5,394,000, or 29%, over the corresponding quarter of 2003. Approximately 67% of Hurco’s sales during the 2004 period were made outside the United States and were denominated in local currencies (primarily the Euro and Pound Sterling). As a result, approximately $1,000,000 of the increase was attributable to the favorable effects of currency translation.

New order bookings for the third quarter of fiscal 2004 were $27,448,000, an increase of $8,539,000, or 45%, over the third quarter of 2003. Approximately $1,200,000 of the increase was attributable to the favorable effects of currency translation. Orders increased 54% in the United States, 33% in Europe and 244% in Asia. For the nine months ended July 31, 2004, new orders increased $19,995,000, or 38%, over the 2003 period. Backlog was $11,104,000 at July 31, 2004, compared to $7,392,000 at April 30, 2004., and $8,153,000 at October 31, 2003.

Hurco’s gross margin for the third quarter of fiscal 2004 was 30.8% compared to 27.6% for the prior year period. The improvement reflected the benefits of higher unit sales and stronger European currencies. Selling, general and administrative expenses were $5,241,000 for the 2004 period, an increase of $909,000 over the amount recorded for the corresponding 2003 period.

Total debt was $4,953,000 at July 31, 2004, and represented 12% of the Company’s total capitalization, which aggregated $40,859,000. As of July 31, 2004, the Company had unutilized credit facilities of  $12,211,000 available for direct borrowing or commercial letters of credit.

Michael Doar, Chief Executive Officer, stated, "We are encouraged by the financial results achieved in the third quarter. Order intake in the United States and Asia continues to be strong while order rates in Europe improved considerably in the third quarter. Our lower-priced VM product line introduced nearly two years ago continues to generate significant orders. To meet customer demand, we have increased our inventories of finished products and are increasing our production capacity. We look forward to introducing new machine tool models at the International Manufacturing Technology Show in September, including a series of turning centers (lathes), a first for Hurco, that will broaden our product lines and the markets we can serve. ”

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. 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, Ger many, France, Italy, and Asia.

Web Site: www.hurco.com

Contact: Roger J. Wolf

Sr. Vice President & CFO

317-293-5319

 

 

Hurco Companies, Inc.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per-share data)
		Three Months Ended July 31,						Nine Months Ended July 31,
		2004			2003			2004			2003
			(unaudited)						(unaudited)
Sales and service fees		$	23,748		$	18,354		$	70,721		$	51,760
Cost of sales and service			16,435			13,280			49,464			37,564
Gross profit			7,313			5,074			21,257			14,196
Selling, general and administrative expenses			5,241			4,332			15,295			13,323
Operating income			2,072			742			5,962			873
Interest expense			113			167			374			476
Variable Option Expense			-			-			322			-
Other income (expense), net			28			(43	)		(119	)		5
Income before taxes			1,987			532			5,147			402
Provision for income taxes			405			201			1,159			514
Net income (loss)		$	1,582		$	331		$	3,988		$	(112	)
Earnings (loss) per common share
Basic		$	0.27		$	0.06		$	0.70		$	(0.02	)
Diluted		$	0.25		$	0.06		$	0.67		$	(0.02	)
Weighted average common shares outstanding
Basic			5,882			5,583			5,722			5,583
Diluted			6,204			5,630			5,964			5,583
OTHER CONSOLIDATED FINANCIAL DATA			Three Months Ended July 31,						Nine Months Ended July 31,
Operating Data:			2004			2003			2004			2003
			(unaudited)						(unaudited )
Gross margin			30.8	%		27.6	%		30.1	%		27.4	%
SG&A expense as a percentage of sales			22.1	%		23.6	%		21.6	%		25.7	%
Operating income as a percentage of sales			8.7	%		4.0	%		8.4	%		1.7	%
Income before taxes as a percentage of sales			8.4	%		2.9	%		7.3	%		0.8	%
Depreciation			291			358			932			1,073
Capital expenditures			742			338			1,732			835
Balance Sheet Data:			7/31/2004			7/31/2003
Working capital (excluding short term debt)		$	24,698		$	23,448
Days sales outstanding			45			45
Inventory turns			2.5			1.9
Capitalization
Total debt		$	4,953		$	10,334
Shareholders' equity			35,906			27,986
Total		$	40,859		$	38,320