Hurco Companies, Inc. reported significant declines in revenue and profitability for the third quarter and nine months ended July 31, 2024, compared to the same periods in 2023. Sales and service fees for Q3 2024 totaled $42.7 million, down 20% from $53.2 million in Q3 2023. For the nine months, total sales and service fees decreased by 18% to $132.9 million from $161.7 million in the prior year. The decline was attributed to reduced shipments of Hurco and Takumi machines, particularly in the Americas and Europe, despite a slight increase in service fees.
Gross profit for Q3 2024 was $7.8 million, representing 18% of sales, a decrease from $13.4 million (25% of sales) in Q3 2023. For the nine months, gross profit fell to $25.6 million (19% of sales) from $38.7 million (24% of sales) in the previous year. The operating loss for Q3 2024 was $(2.5 million), a shift from an operating income of $1.0 million in Q3 2023, primarily due to lower sales volumes and fixed costs. The net loss for Q3 2024 was $(9.6 million), compared to a net income of $0.3 million in Q3 2023. For the nine months, the net loss was $(15.2 million), contrasting with a net income of $2.0 million in the same period last year.
Current assets as of July 31, 2024, were $233.2 million, down from $248.2 million at the end of October 2023. Cash and cash equivalents also decreased to $36.1 million from $41.8 million. Total liabilities decreased slightly to $51.2 million from $55.0 million, while total shareholders’ equity fell to $206.6 million from $222.2 million.
The company has implemented cost management strategies to address the lower sales volumes, including reductions in selling, general, and administrative expenses, which decreased to $10.4 million in Q3 2024 from $12.4 million in Q3 2023. Despite these efforts, the overall financial performance was adversely affected by the cyclical nature of the industry and unfavorable market conditions.
In terms of orders, Hurco reported a total of $52.8 million in Q3 2024, a 26% increase compared to $42.1 million in Q3 2023, with notable growth in the Asia Pacific region. The company continues to focus on investing in new technologies and product development while maintaining a strong liquidity position, with no borrowings under its credit facilities as of July 31, 2024.
About HURCO COMPANIES INC
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