Hurco Reports Record Full-Year and Fourth Quarter Results.
INDIANAPOLIS -- Hurco Companies, Inc. (Nasdaq:HURC) announced today that it's net sales Net Sales
The amount a seller receives from the buyer after costs associated with the sale are deducted.
This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for fiscal 2006 were the highest in the company's 37-year history, totaling $148,517,000, an increase of $23,008,000, or 18%, over fiscal 2005. Net sales for the fourth quarter of fiscal 2006 also were a record and totaled $43,164,000, an increase of $8,446,000, or 24%, over the corresponding 2005 period.
Operating income Operating Income
The profit realized from a business' own operations.
This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for fiscal 2006 was a record $22,628,000, or 15.2% of sales, compared to $16,501,000, or 13.1% of sales, in fiscal 2005. Operating income in the fourth quarter totaled $6,515,000, or 15.1% of sales, compared to $5,318,000, or 15.3% of sales, in the same period one year ago.
Net income for fiscal 2006 was $15,479,000, or $2.42 per share reflecting the fact that Hurco was fully taxable in 2006 and incurred income tax expense of $7,635,000. In contrast Hurco had no income tax expense in 2005 due to the utilization of domestic net operating loss carryforwards Net operating loss carryforwards
Application of losses to offset earnings in future years. and therefore, net income for fiscal 2005 was $16,443,000, or $2.60 per share. Net income for fourth quarter of fiscal 2006 was $4,714,000, or $.74 per share compared to net income of $7,235,000, or $1.13 per share.
New order bookings in fiscal 2006, were a record $154,767,000, an increase of $31,905,000, or 26%, over the prior year. Unit orders increased by 33% in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , 29% in Europe and 68% in Asia. New order bookings for the fourth quarter of fiscal 2006, also a record, totaled $42,087,000, an increase of $7,932,000, or 23%, over the corresponding 2005 period.
The financial statement impact of translating foreign currency denominated sales and orders to US dollars was an insignificant amount for the fourth quarter and full fiscal year.
Hurco's gross margin for fiscal 2006 was 35.9% compared to 33.9% for the prior year, reflecting both higher unit sales unit sales
Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. and improved mix. Gross margin for the fourth quarter of fiscal 2006 was 38.0% compared to 35.1% for the corresponding 2005 period. Selling, general and administrative expenses were $30,697,000 for fiscal 2006, an increase of $4,640,000 over the amount for fiscal 2005. Selling, general and administrative expenses were $9,869,000 for the fourth quarter of fiscal 2006, an increase of $2,999,000 over the amount recorded for the same period in 2005. The increase in selling, general and administrative expenses for the fourth quarter and the fiscal year 2006 were primarily attributable to increased sales and marketing expenses for local and international trade shows, agent's commissions, and expansion of sales in emerging markets.
Cash and cash equivalents totaled $29,846,000 at October 31, 2006 compared to $17,559,000 at October 31, 2005 and $24,504,000 at the third quarter ending July 31, 2006. Total debt was $4,010,000 at October 31, 2006 and represented 5.1% of the company's total capitalization Total capitalization
The total long-term debt and all types of equity of a company that constitutes its capital structure.
See capitalization. , which aggregated $79,385,000.
Michael Doar, Chief Executive Officer, stated, "This was another great year for Hurco as we achieved even higher milestones, putting the company in the best financial position in it's history. Much of our success is due to the strategic planning Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. that began in 2001. Focusing on our core competencies, we have centered our efforts around three objectives: identifying our customers and understanding how to best serve them; defining our unique selling proposition The Unique Selling Proposition (also Unique Selling Point) is the marketing concept that was first proposed as a theory to explain a pattern among successful advertising campaigns of the early 1940s. by understanding what we do better than anyone else; and maximizing profits for both the short term and the long term.
As a global company with more than 60 percent of our sales outside of the United States, understanding emerging markets is an integral part of sustainable success. Using a disciplined approach to globalization globalization
Process by which the experience of everyday life, marked by the diffusion of commodities and ideas, is becoming standardized around the world. Factors that have contributed to globalization include increasingly sophisticated communications and transportation , we have leveraged technical resources, system platforms, and processes to facilitate a consistent, yet flexible, brand identity and an ability to conduct global business efficiently."
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 Metal forming
Manufacturing processes by which parts or components are fabricated from metal stock. In the specific technical sense, metal forming involves changing the shape of a piece of metal. industry. The end market for the Company's products consists primarily of independent job shops and short-run manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. within large corporations in industries such as the aerospace, defense, medical equipment, energy, transportation and computer equipment. The Company is based in Indianapolis, Indiana “Indianapolis” redirects here. For other uses, see Indianapolis (disambiguation).
Indianapolis (IPA: [ˌɪndiəˈnæpəlɪs]) is the capital city of the U.S. , and has sales, application engineering and service subsidiaries in High Wycombe High Wycombe (wĭk`əm), city (1991 pop. 69,575), Buckinghamshire, S England. The city is well known for its furniture industry and also has paper mills, sawmills, and engineering works. , 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, Germany, France, Italy, and Asia.
Web Site: www.hurco.com
This news release contains forward looking statements which involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements forward-looking statement
A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . These factors include, among others, changes in general economic and business conditions that affect demand for computerized machine systems, computer numerical control Computer numerical control
The method of controlling machines by the application of digital electronic computers and circuitry. Machine movements that are controlled by cams, gears, levers, or screws in conventional machines are directed by computers and systems and software products, changes in manufacturing markets, innovations by competitors, our ability to protect our intellectual property, fluctuations in exchange rates, fluctuations in prices of raw materials, changes in market demands, quality and delivery performance by our contract manufacturers and governmental actions and initiatives including import and export restrictions and tariffs.
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