Hurco Companies Inc. (HURC, Financial) filed Quarterly Report for the period ended 2009-03-09.
Hurco Companies Inc. is an industrial automation systems company. They design and produce interactive computer numerical control systems and software and computerized machine systems for sale through their own distribution network to the worldwide metal working market. Their proprietary systems and related software products are either sold as an integral component of computerized machine systems or sold separately to machine tool end-users and other machine tool manufacturers who integrate them with their own products. Hurco Companies Inc. has a market cap of $53.8 million; its shares were traded at around $8.38 with a P/E ratio of 3.6 and P/S ratio of 0.2. Hurco Companies Inc. had an annual average earning growth of 82.4% over the past 5 years.
Orders. New order bookings in the first quarter of fiscal 2009, were $24,516,000, a decrease of $36,631,000, or 60%, compared to the prior year period. Orders in the North America, Europe and Asia Pacific regions decreased $3,655,000, or 30%, $30,754,000, or 67% and $2,222,000, or 79%, respectively. The decline in orders we experienced at the end of fiscal 2008 continued and worsened as our customers, consisting primarily of small job shops, reacted to the deteriorating conditions in the markets they serve. The impact of currency translation on new orders booked for the first quarter was consistent with the impact on sales.
Operating Expenses. Selling, general and administrative expenses were $8,029,000 for the first quarter of fiscal 2009, a decrease of $4,347,000, or 35%, from the 2008 period, reflecting lower sales commissions, cost reduction initiatives and the favorable effect of a stronger U.S. Dollar during the 2009 period when translating foreign operating expenses for financial reporting purposes.
Operating Income. Operating income for the first quarter of fiscal 2009 was $0.5 million, or 2% of sales and service fees, compared to $12.5 million, or 20% of sales and service fees, for the prior year period. The reduction in operating income year-over-year was primarily due to lower overall volume, and particularly in sales of higher margin VMX machines in the Europe sales region.
At January 31, 2009, we had cash and cash equivalents of $30.1 million, compared to cash and cash equivalents and short term investments of $33.1 million at October 31, 2008. Cash used for operations totaled $1.5 million for the quarter ended January 31, 2009, compared to $3.7 million in the prior year period. Cash provided by investing activities was $5.3 million for the first fiscal quarter of 2009, primarily due to the sale of our investments in auction rate securities which were sold at par value. Approximately 64% of the $30.1 million of cash and cash equivalents is denominated in U.S. Dollars. The remaining balances are held outside the U.S. in the local currencies of our various foreign entities and are subject to fluctuations in currency exchange rates.
Working capital, excluding cash and cash equivalents and short-term investments, was $69.2 million at January 31, 2009, compared to $67.1 million at October 31, 2008. The $2.1 million increase in working capital, excluding cash and cash equivalents and short-term investments, was primarily driven by reduced accounts payable as a result of lower production levels and a reduction in accrued expenses.
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Hurco Companies Inc. is an industrial automation systems company. They design and produce interactive computer numerical control systems and software and computerized machine systems for sale through their own distribution network to the worldwide metal working market. Their proprietary systems and related software products are either sold as an integral component of computerized machine systems or sold separately to machine tool end-users and other machine tool manufacturers who integrate them with their own products. Hurco Companies Inc. has a market cap of $53.8 million; its shares were traded at around $8.38 with a P/E ratio of 3.6 and P/S ratio of 0.2. Hurco Companies Inc. had an annual average earning growth of 82.4% over the past 5 years.
Highlight of Business Operations:
Sales and Service Fees. Sales and service fees for the first quarter of fiscal 2009 were $28.3 million, a decrease of $32.6 million, or 54%, from the first quarter of fiscal 2008. The drop of first quarter revenues was primarily the result of the global economic downturn. Due to the effects of a stronger U.S. Dollar when translating foreign sales to U.S. Dollars for financial reporting purposes, sales and service fees for the first quarter of fiscal 2009 were approximately $2.9 million, or 5%, less than would have been the case if foreign sales had been translated at the same rate of exchange that was utilized for the first quarter of 2008.Orders. New order bookings in the first quarter of fiscal 2009, were $24,516,000, a decrease of $36,631,000, or 60%, compared to the prior year period. Orders in the North America, Europe and Asia Pacific regions decreased $3,655,000, or 30%, $30,754,000, or 67% and $2,222,000, or 79%, respectively. The decline in orders we experienced at the end of fiscal 2008 continued and worsened as our customers, consisting primarily of small job shops, reacted to the deteriorating conditions in the markets they serve. The impact of currency translation on new orders booked for the first quarter was consistent with the impact on sales.
Operating Expenses. Selling, general and administrative expenses were $8,029,000 for the first quarter of fiscal 2009, a decrease of $4,347,000, or 35%, from the 2008 period, reflecting lower sales commissions, cost reduction initiatives and the favorable effect of a stronger U.S. Dollar during the 2009 period when translating foreign operating expenses for financial reporting purposes.
Operating Income. Operating income for the first quarter of fiscal 2009 was $0.5 million, or 2% of sales and service fees, compared to $12.5 million, or 20% of sales and service fees, for the prior year period. The reduction in operating income year-over-year was primarily due to lower overall volume, and particularly in sales of higher margin VMX machines in the Europe sales region.
At January 31, 2009, we had cash and cash equivalents of $30.1 million, compared to cash and cash equivalents and short term investments of $33.1 million at October 31, 2008. Cash used for operations totaled $1.5 million for the quarter ended January 31, 2009, compared to $3.7 million in the prior year period. Cash provided by investing activities was $5.3 million for the first fiscal quarter of 2009, primarily due to the sale of our investments in auction rate securities which were sold at par value. Approximately 64% of the $30.1 million of cash and cash equivalents is denominated in U.S. Dollars. The remaining balances are held outside the U.S. in the local currencies of our various foreign entities and are subject to fluctuations in currency exchange rates.
Working capital, excluding cash and cash equivalents and short-term investments, was $69.2 million at January 31, 2009, compared to $67.1 million at October 31, 2008. The $2.1 million increase in working capital, excluding cash and cash equivalents and short-term investments, was primarily driven by reduced accounts payable as a result of lower production levels and a reduction in accrued expenses.
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