HURCO REPORTS RESULTS FOR THE THIRD QUARTER OF 1992
HURCO REPORTS RESULTS FOR THE THIRD QUARTER OF 1992 INDIANAPOLIS, Aug. 20 /PRNewswire/ -- Hurco Companies, Inc.
(NASDAQ: HURC) today reported a net loss of $1,989,000, or $.36 per share, on sales of $20,857,000 for the third quarter of 1992, compared to net income of $102,000, or $.02 per share, on sales of $18,865,000 for the same period last year. The net loss totaled $3,782,000, or $.69 per share, on sales of $63,025,000 for the nine months ended July 31, 1992, compared to net income of $1,434,000, or $.26 per share, on sales of $63,058,000 for the same period a year ago.
Backlog as of July 31, 1992 was $6,800,000 compared to $6,900,000 as of April 30, 1992. Orders for the third quarter of 1992 were $20,900,000 compared to $19,400,000 for the third quarter of 1991. The major reason for the disappointing results in the third quarter of fiscal 1992, compared to the third quarter of fiscal 1991, is largely attributable to the difficult economic conditions in the worldwide machine tool industry, particularly in Europe. Although sales were 10 percent higher in the current quarter, profitability has been depressed due to heavy price discounting and higher marketing expenses in the new subsidiary companies. As the company looks forward to gradual improvement in the economic conditions, the company's management, in the meanwhile, is implementing aggressive cost reduction programs which have already resulted in the company's employment levels being reduced worldwide by 7 percent between April 30, 1992 and July 31, 1992. The company plans to maintain its current high level of investment in R&D, based on the positive response it is receiving to its next generation of products. However, major cost reduction programs are under way in all non-R&D areas and programs to reduce the company's relatively high inventory levels have been put in place. "As these cost reduction programs are fully implemented, we are confident that despite the difficult economic climate, the company's performance will improve," said Brian D. McLaughlin, chief executive officer. HURCO COMPANIES, INC. FINANCIAL HIGHLIGHTS (In thousands, except per share data) (unaudited) Three Months Ended July 31, 1992 1991 Sales $20,857 $18,865 Net Income (loss) $(1,989) $ 102 Earnings (loss) per common and common equivalent share $(.36) $.02 Weighted average common and common equivalent shares outstanding 5,475 5,514 Nine Months Ended July 31, 1992 1991 Sales $63,025 $63,058 Net Income (loss) $(3,782) $1,434 Earnings (loss) per common and common equivalent share $(.69) $.26 Weighted average common and common equivalent shares outstanding 5,504 5,481 Hurco Companies, Inc. is one of the largest manufacturers of computer numerical control systems designed and built in the United States for stand-alone machine tools. 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 industries. The company is based in Indianapolis, has additional manufacturing facilities in Detroit, Phoenix, Ariz. and High Wycombe, England, and has sales, application engineering and service subsidiaries in Munich, Germany, Paris, France and Singapore. Products are sold through 145 independent agents and distributors in the United States and 32 other countries. The company also has direct sales forces in the United States, the United Kingdom, Germany, France and Asia. -0- 8/20/92 /CONTACT: Michael K. Campbell, senior vice president and chief financial officer of Hurco Companies, Inc., 317-293-5309/ (HURC) CO: Hurco Companies, Inc. ST: Indiana IN: MAC SU: ERN
KK -- CL003 -- 1585 08/20/92 08:52 EDT
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|Date:||Aug 20, 1992|
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