Hurco Companies, Inc. reported a revenue of $46.4 million for the first quarter of fiscal 2025, reflecting a 3% increase from $45.1 million in the same period of the previous year. The company's gross profit decreased to $8.3 million, or 18% of sales, down from $9.7 million, or 22% of sales, in the prior year. The operating loss widened to $2.1 million compared to a loss of $1.8 million in the first quarter of fiscal 2024. The net loss for the quarter was $4.3 million, or $(0.67) per share, compared to a net loss of $1.6 million, or $(0.25) per share, in the same period last year.
The increase in sales was primarily driven by a 9% rise in the Americas, attributed to higher shipments of Hurco and Milltronics machines. However, this was offset by a 5% decline in European sales, largely due to decreased demand for higher-performance machines in France and Italy. Orders for the quarter fell by 20% to $40.1 million, with significant decreases in both the Americas and Europe, while orders in the Asia Pacific region saw a slight increase of 3%. The company noted that the unfavorable currency impact on sales was approximately $0.4 million.
In terms of operational developments, Hurco continues to focus on its three main brands: Hurco, Milltronics, and Takumi, which cater to different segments of the CNC machine tool market. The company has also been expanding its product portfolio by adding non-Hurco branded products, enhancing its market penetration. As of January 31, 2025, Hurco had cash and cash equivalents of $41.8 million, up from $33.3 million at the end of the previous fiscal year, while working capital decreased to $172.6 million.
Looking ahead, Hurco is navigating a cyclical industry with ongoing challenges, including fluctuating demand and currency exchange risks. The company has implemented measures to mitigate these risks, including the use of foreign currency forward exchange contracts. Management remains focused on enhancing financial flexibility and plans to continue investing in product innovation and market expansion. The company has suspended its regular quarterly cash dividend to strengthen its balance sheet and manage market volatility effectively.
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