May 18, 2007 -- Hurco Companies, Inc., 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."
Source: Business Wire
Source: Factiva
