Hurco Reports Third Quarter Results
New order bookings in the third quarter of fiscal 2010 were $28,013,000, an increase of $10,099,000, or 56%, compared to the prior year period. Orders in the North America, Europe and Asia Pacific regions increased $2,444,000, or 45%, $4,312,000, or 38%, and $3,343,000, or 285%, respectively. For the first nine months of fiscal 2010, new orders totaled $79,213,000, an increase of $18,648,000, or 31%, from the corresponding period in 2009. Of that increase, North America, Europe and Asia Pacific orders increased $2,946,000, or 16%, $7,005,000, or 18%, and $8,697,000, or 316%, respectively. The impact of currency translation on new orders booked in the third quarter and first nine months of 2010 was consistent with the impact on sales.
Hurco's gross profit for the third quarter of fiscal 2010 was 18%, compared to 28% for the same period in 2009. The decrease in profit as a percentage of sales was the result of machines sold during the period which were produced at a time of lower production levels that resulted in higher production costs per machine which increased this period's cost of sales. Also contributing to the decrease was a product mix that included a greater amount of our entry-level, lower margin machines that were in high demand in the Asia Pacific region where competitive pricing pressure also exists. Selling, general and administrative expenses for the third quarter of fiscal 2010 were $6,994,000, a decrease of $206,000, or 3%, from the corresponding period in 2009, reflecting the benefit of cost reduction initiatives and the favorable effect of a stronger U.S. Dollar in fiscal 2010 when translating foreign operating expenses for financial reporting purposes, partially offset by increased sales commissions.
Cash increased by $16,407,000 from October 31, 2009, to $45,189,000 at July 31, 2010, primarily due to a reduction in inventory. Inventory decreased during the first nine months of fiscal 2010 by $9,254,000, or 15%, of which $2,112,000, or 4%, related to the impact of a weaker U.S. Dollar when translating inventory values for financial reporting purposes.
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