Selling, general and administrative expenses were $8,920,000 for the first quarter of fiscal 2013, a decrease of $810,000, or 8%, from the first quarter of fiscal 2012. The decrease is primarily related to variable related costs including lower sales commissions and sales and marketing expenses. Selling, general and administrative expenses were 20% of sales and service fees during the first quarter of fiscal 2013 compared to 19% for the first quarter of fiscal 2012. 

Cash and cash equivalents totaled $39,108,000 as of January 31, 2013, compared to $35,770,000 as of October 31, 2012. Working capital, excluding cash, was $86,612,000 as of January 31, 2013, compared to $88,239,000 as of October 31, 2012. The decrease in working capital, excluding cash, was primarily due to a decrease in accounts receivable during the first quarter of fiscal 2013. Inventory levels were relatively unchanged from October 31, 2012 to January 31, 2013.

Michael Doar, Chairman, Chief Executive Officer and President, stated, "I believe our rebranding initiative, which premiered last September in the United States at the International Manufacturing Technology Show, has had a positive impact throughout North America. The initiative energized our sales channels and existing customers, and attracted new customers. Our divisions throughout Asia and Europe will officially introduce the updated Hurco brand at key shows in their regions in the upcoming quarters. While we experienced good order activity in all regions, we continue to monitor the ongoing economic situation in Europe and the overall economic activity in China.

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 industry. 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 aerospace, defense, medical equipment, energy, transportation and computer equipment. The Company is based in Indianapolis, Indiana, with manufacturing operations in Taiwan and China, and sells its products through direct and indirect sales forces throughout North America, Europe, and Asia. The Company has sales, application engineering support and service subsidiaries in China, England, France, Germany, India, Italy, Poland, Singapore, South Africa and the United States of America.  Web Site:

The Hurco Companies, Inc. logo is available at

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. These factors include, among others, the cyclical nature of the machine tool industry, changes in general economic and business conditions that affect demand for our products, the risks of our international operations, changes in manufacturing markets, innovations by competitors, the ability to protect our intellectual property, fluctuations in foreign currency exchange rates, increases in prices of raw materials, quality and delivery performance by our vendors, changes in operations due to acquisitions or loss of key personnel, and governmental actions and initiatives including import and export restrictions and tariffs.
Hurco Companies, Inc.
(In thousands, except per-share data)
  Quarter Ended  January 31,
  2013 2012
Sales and service fees  $ 44,085  $ 51,126
Cost of sales and service  31,169  34,642
Gross profit  12,916  16,484
Selling, general and administrative expenses  8,920  9,730
Operating income  3,996  6,754
Interest expense  65  24
Interest income  16  22
Investment income  11  6
Other expense (income), net  259  (138)
Income before taxes  3,699  6,896
Provision for income taxes  1,445  2,263
Net income  $ 2,254  $ 4,633
Earnings per common share    
Basic  $ 0.35  $ 0.71
Diluted  $ 0.34  $ 0.71
Weighted average common shares outstanding    
Basic  6,447  6,441
Diluted  6,484  6,466
Operating Data: 2013 2012
Gross margin 29% 32%
SG&A expense as a percentage of sales 20% 19%
Operating income as a percentage of sales 9% 13%
Pre-tax income as a percentage of sales  8% 13%
Effective Tax Rate 39% 33%
Depreciation and amortization  917  1,087
Capital expenditures  836  544
Balance Sheet Data: 1/31/2012 10/31/2012
Working capital (excluding cash)  $ 86,612  $ 88,239
Days sales outstanding (unaudited)  51  38
Inventory turns (unaudited)  1.5  1.5
Total debt  $ 3,216  $ 3,206
Shareholders' equity  145,564  143,793
Total  $ 148,780  $ 146,999
Hurco Companies, Inc.
(In thousands, except share and per-share data)
  January 31, October 31,
  2013 2012
   (Unaudited)   (Audited) 
Current assets:    
Cash and cash equivalents  $ 39,108  $ 35,770
Accounts receivable, net  31,748  35,297
Refundable taxes  1,418  1,459
Inventories, net  91,513  91,320
Deferred income taxes  2,309  1,182
Derivative assets  132  708
Other  8,521  7,645
Total current assets  174,749  173,381
Property and equipment:    
Land  782  782
Building  7,326  7,352
Machinery and equipment  17,771  17,411
Leasehold improvements  3,548  3,467
   29,427  29,012
Less accumulated depreciation and amortization  (17,387)  (16,933)
   12,040  12,079
Non-current assets:    
 Software development costs, less accumulated amortization  3,921  3,969
 Other assets  6,120  5,883
   $ 196,830  $ 195,312
Current liabilities:    
Accounts payable  $ 29,741  $ 29,788
Derivative liabilities  2,883  569
Accrued expenses  13,189  15,809
Short-term debt  3,216  3,206
Total current liabilities  49,029  49,372
Non-current liabilities:    
Deferred income taxes  910  903
Deferred credits and other obligations  1,327  1,244
Total liabilities  51,266  51,519
Shareholders' equity:    
Preferred stock: no par value per share; 1,000,000 shares authorized; no shares issued  --  --
Common stock: no par value; $.10 stated value per share; 12,500,000 shares authorized; 6,515,911 and  6,502,298 shares issued; and 6,447,210 and 6,447,210 shares outstanding, as of January 31, 2013 and October 31, 2012, respectively  645  645
Additional paid-in capital  53,663  53,415
Retained earnings  92,840  90,586
Accumulated other comprehensive loss  (1,584)  (853)
Total shareholders' equity  145,564  143,793
   $ 196,830  $ 195,312
CONTACT: John G. Oblazney         Vice President & Chief Financial Officer         317-293-5309

Hurco Companies, Inc. Logo

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