Hurco's fourth quarter gross profit was $17,220,000, or 31% of sales, compared to $15,682,000, or 32% of sales, for the prior year period. For the full fiscal year 2012, gross profit was $63,181,000, or 31% of sales, compared to $55,874,000, or 31% of sales, for fiscal 2011. The increase in gross profit for the fourth quarter and the year was due primarily to the increase in sales.
Selling, general and administrative expenses for the fourth quarter of fiscal 2012 were $11,870,000, an increase of $778,000, or 7%, from the corresponding period in 2011. Selling, general and administrative expenses were $41,160,000 for fiscal 2012, an increase of $2,667,000, or 7%, over fiscal 2011. The increases in selling, general and administrative expenses for the fourth quarter and fiscal year were primarily due to higher sales and marketing expenses and higher commissions as a result of increased sales.
Other expenses during the fourth quarter of fiscal 2012 decreased $1,051,000 compared to the fourth quarter of fiscal 2011. Other expenses for fiscal 2012 decreased by $1,605,000. These decreases were primarily due to decreased foreign currency losses experienced in fiscal 2012.
Cash and cash equivalents totaled $35,770,000 as of October 31, 2012, compared to $44,961,000 as of October 31, 2011. Inventories as of October 31, 2012 were $91,320,000, an increase of $10,193,000, or 13%, from the end of the prior fiscal year primarily due to an increase in finished goods inventory intended to meet forecasted growth in customer demand. Working capital, excluding cash, was $88,239,000 as of October 31, 2012, compared to $61,885,000 as of October 31, 2011. The increase in working capital, excluding cash, was primarily due to increased inventory resulting from higher production levels and increased accounts receivable from higher sales volumes.Michael Doar, President and Chief Executive Officer, stated, "Considering the economic uncertainty in Europe, we finished the year with a strong performance. I believe our results are a testament to customer acceptance of our cutting edge control technology and product line expansion. North America achieved record sales for the quarter, which I attribute to the excitement surrounding the rebranding initiative that we introduced at the International Manufacturing Technology Show in Chicago. Additionally, I believe U.S. customers appreciate the fact that our control technology focuses on helping them increase profitability, especially in the manufacture of small-to-medium-sized lots, which accounts for the majority of their machining activity. Going forward, we will continue to deliver machine tools with advanced technology that simplifies complex operations, while providing a user interface that is intuitive and user-friendly."
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