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HURCO REPORTS RESULTS FOR THE THIRD QUARTER OF 1993

 INDIANAPOLIS, Aug. 20 /PRNewswire/ -- Hurco Companies, Inc. (NASDAQ: HURC) today reported a loss of $6,255,000, or $1.15 per share, for the fiscal quarter ended July 31, 1993, compared to a net loss of $1,989,000, or $0.36 per share, for the corresponding period of 1992. For the nine months ended July 31, 1993 the company reported a net loss of $11,189,000, or $2.06 per share, compared to a net loss of $3,782,000, or $0.69 per share, for the 1992 nine-month period.
 The net loss for the latest quarter includes the effects of a special charge of $3,433,000, which is in addition to an operating loss of $2,822,000. The company stated that the operating loss reflected a decline in sales to $17,602,000 from the $20,850,000 reported for the third quarter of fiscal 1992, due primarily to the severe economic recession in Europe and resulting price discounting by many European machine tool manufacturers. For the nine months ended July 31, 1993, sales aggregated $53,495,000, compared with sales of $63,025,000 for the corresponding period of fiscal 1992. New orders received during the 1993 third quarter were $18,600,000, compared to $20,300,000 for the immediately preceding quarter. However, backlog at July 31, 1993 increased to $7,400,000 from $6,400,000 at April 30, 1993.
 The special charge consisted entirely of inventory adjustments. The company attributed approximately $2,225,000 (65 percent) of the charge to shortages that were confirmed through a physical inventory conducted during the third quarter under review of the company's independent auditors, Coopers & Lybrand. The balance of the special charge reflected adjustments to valuations and reserves to reflect current lower manufacturing costs, excess quantities and obsolescence.
 The company noted that a new management information system that become operational during the first quarter of fiscal 1993, had indicated possible discrepancies in the company's internal inventory records. In an effort to ascertain the validity and source of thes discrepancies, and to establish appropriate baselines for future financial reporting, Roger Wolf, who became the company's chief financial officer at the end of the first quarter 1993, recommended that a physical inventory be taken during the third quarter. This inventory and the related reassessment of current production costs and anticipated business levels resulted in the special charge.
 The company also reported that discussions have been initiated with its principal lenders to obtain waivers of certain debt covenants and to modify certain of the terms of its existing credit agreement. At July 31, 1993, total debt outstanding was $37,050,000, as compared with $37,773,000 at April 30, 1993.
 "The Company's sales have been effected primarily by the decline in the European markets," said Brian D. McLaughlin, president and CEO. "The strengthened financial management systems and consolidation of the U.S. operations is substantially complete, however the Company will continue to evaluate its operating structure considering changing market conditions."
 HURCO COMPANIES, INC. FINANCIAL HIGHLIGHTS
 (In thousands, except per-share data)
 (unaudited)
 Three Months Ended Nine Months Ended
 July 31, July 31,
 1993 1992 1993 1992
 Sales $17,602 $20,857 $ 53,495 $63,025
 Loss before inventory
 charges $(2,822) $(1,989) $(11,189) $(3,782)
 Special inventory
 charge $(3,433) --- --- ---
 Net income (loss) $(6,255) $(1,989) $(11,189) $(3,782)
 Earnings (loss) per
 common & common
 equivalent share $ (1.15) $ (.36) $ (2.06) $ (.69)
 Weighted average common
 and common equivalent
 shares outstanding 5,439 5,475 5,445 5,504
 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 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- 8/20/93
 /CONTACT: Roger J. Wolf, 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

BM -- CL002 -- 4615 08/20/93 08:49 EDT
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Publication:PR Newswire
Date:Aug 20, 1993
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