SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
X Quarterly report pursuant to section 13 or 15(d) of the Securities
____ Exchange Act of 1934 for the quarterly period ended April 30, 1996
Transition report pursuant to section 13 or 15(d) of the Securities
____ Exchange Act of 1934 for the transition period from _________ to
_________.
Commission File No. 0-9143
HURCO COMPANIES, INC.
(Exact name of registrant as specified in its charter)
INDIANA 35-1150732
(State or other jurisdiction of (I.R.S. Employer Identification Number)
incorporation or organization)
ONE TECHNOLOGY WAY
INDIANAPOLIS, INDIANA 46268
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code (317) 293-5309
--------------
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months, and (2) has been subject to the filing
requirements for the past 90 days:
Yes X No
The number of shares of the Registrant's common stock outstanding as of June 5,
1996 was 5,426,482.
<PAGE>
HURCO COMPANIES, INC.
April 1996 Form 10-Q Quarterly Report
TABLE OF CONTENTS
PART I - FINANCIAL INFORMATION
Item 1. Condensed Financial Statements
Consolidated Statement of Operations -
Three months ended April 30, 1996 and 1995
Consolidated Balance Sheet -
As of April 30, 1996 and 1995
Consolidated Statement of Cash Flows -
Three months ended April 30, 1996 and 1995
Notes to Consolidated Financial Statements
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
Item 6. Exhibits and Reports on Form 8-K
Signature
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
HURCO COMPANIES, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per-share data)
Three Months Ended Six Months Ended
APRIL 30, APRIL 30,
--------------------------------------
1996 1995 1996 1995
- --------------------------------------------------------------------------------
(Unaudited)
SALES AND SERVICE FEES................... $26,095 $20,687 $49,319 $39,559
COST OF SALES AND SERVICE................ 18,864 15,298 35,613 29,512
------- ------- ------- -------
Gross profit........................ 7,231 5,389 13,706 10,047
Selling, general and
administrative expenses.................. 5,363 4,616 10,412 8,862
------- ------- ------- -------
OPERATING INCOME ................... 1,868 773 3,294 1,185
Interest expense......................... 789 974 1,919 1,878
Other (income) expense (net)............. 15 38 (261) 19
------- ------- ------- -------
Income (loss) before income taxes... 1,064 (239) 1,636 (712)
Income tax expense (benefit)............. 33 -- 33 --
------- ------- ------- -------
NET INCOME (LOSS)........................ $1,031 $(239) $1,603 $(712)
======= ======= ======= =======
EARNINGS (LOSS)
PER COMMON SHARE.................... $.19 $(.04) $.29 $(.13)
======= ======== ======== =======
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING.................. 5,524 5,417 5,555 5,416
======= ======== ======= =======
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE CONSOLIDATED FINANCIAL
STATEMENTS.
<PAGE>
HURCO COMPANIES, INC.
CONSOLIDATED BALANCE SHEET
(Dollars in thousands)
April 30, October 31,
1996 1995
ASSETS (Unaudited) (Audited)
CURRENT ASSETS:
Cash and cash equivalents.................. $ 952 $ 2,072
Accounts receivable........................ 16,270 17,809
Inventories................................ 24,391 25,238
Other...................................... 695 1,237
--------- ---------
Total current assets................... 42,308 46,356
--------- ---------
PROPERTY AND EQUIPMENT.......................... 10,066 10,629
SOFTWARE DEVELOPMENT COSTS, LESS AMORTIZATION... 3,864 3,513
OTHER ASSETS ................................... 918 923
--------- ---------
Total non-current assets............. 14,848 15,065
--------- ---------
$ 57,156 $ 61,421
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable........................... $ 9,486 $ 10,570
Accrued expenses........................... 8,066 9,552
Current portion of long-term debt.......... 6,192 6,357
--------- ---------
Total current liabilities.............. 23,744 26,479
--------- ---------
NON-CURRENT LIABILITIES
Long-term debt............................. 24,261 27,242
Other long-term obligations................ 638 217
--------- ---------
Total non-current liabilities....... 24,899 27,459
--------- ---------
SHAREHOLDERS' EQUITY:
Preferred stock: $100 par value per share;
40,000 shares authorized; no shares
issued................................... -- --
Common stock: no par value; $.10 stated
value per share; 7,500,000 shares
authorized; and 5,426,482 and 5,425,302
shares issued, respectively.............. 543 543
Additional paid-in capital................. 45,573 45,573
Accumulated deficit........................ (32,869) (34,472)
Foreign currency translation adjustment.... (4,734) (4,161)
--------- ---------
Total shareholders' equity................. 8,513 7,483
--------- ---------
$ 57,156 $ 61,421
========= =========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE CONSOLIDATED FINANCIAL
STATEMENTS.
<PAGE>
<TABLE>
HURCO COMPANIES, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Dollars in thousands)
<CAPTION>
Three Months Ended Six Months Ended
APRIL 30, APRIL 30,
---------------------- --------------------
1996 1995 1996 1995
(Unaudited)
<S> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss).......................................... $ 1,031 $ (239) $ 1,603 $ (712)
Adjustments to reconcile net income (loss) to net
cash provided by (used for) operating activities:
Depreciation and amortization............................ 778 671 1,558 1,314
Change in assets and liabilities:
(Increase) decrease in accounts receivable............... 648 (689) 1,066 (803)
(Increase) decrease in inventories....................... 1,696 845 429 (77)
Increase (decrease) in accounts payable.................. (524) 1,084 (1,045) (57)
Increase (decrease) in accrued expenses.................. 533 (261) (1,245) (949)
Other.................................................... (78) 247 441 354
--------- ---------- --------- ---------
NET CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES................................... 4,084 1,658 2,807 (930)
--------- --------- -------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of equipment............................ 30 -- 32 --
Purchase of property and equipment......................... (152) (148) (253) (232)
Software development costs................................. (384) (261) (668) (484)
Other investments.......................................... 37 (153) 74 (140)
--------- --------- --------- ---------
NET CASH PROVIDED BY (USED FOR)
INVESTING ACTIVITIES..................................... (469) (562) (815) (856)
--------- --------- -------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Advances on bank credit facilities......................... 9,403 24,946 30,065 38,272
Repayments on bank credit facilities ...................... (12,837) (25,928) (31,150) (36,386)
Repayments of term debt ................................... (82) (85) (1,950) (164)
Proceeds from exercise of common stock options............. -- 7 -- 11
--------- --------- --------- -----------
NET CASH PROVIDED BY (USED FOR)
FINANCING ACTIVITIES..................................... (3,516) (1,060) (3,035) 1,733
--------- --------- -------- ---------
EFFECT OF EXCHANGE RATE CHANGES ON CASH....................... (67) (146) (77) (119)
--------- --------- -------- ---------
NET INCREASE (DECREASE) IN CASH.......................... 35 (110) (1,120) (172)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD.............. 917 1,039 2,072 1,101
--------- --------- -------- ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD.................... $ 952 $ 929 $ 952 $ 929
========= ========= ========= =========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE CONSOLIDATED FINANCIAL
STATEMENTS.
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. GENERAL
The condensed financial information as of April 30, 1996 and 1995 is unaudited
but includes all adjustments which the Company considers necessary for a fair
presentation of its financial position at those dates and its results of
operations and cash flows for the three months then ended. It is suggested that
those condensed financial statements be read in conjunction with the financial
statements and the notes thereto included in the Company's Annual Report on Form
10-K for the year ended October 31, 1995.
2. HEDGING
The U.S. dollar equivalent notional amount of the Company's outstanding foreign
currency forward exchange contracts, which are entered into for hedging
purposes, was approximately $12,108,000 as of April 30, 1996 and $18,879,000 as
of October 31, 1995. Deferred gains related to hedging activities were
approximately $406,000 as of April 30, 1996. Contracts outstanding at April 30,
1996 mature at various times through September 30, 1996.
3. EARNINGS PER SHARE
Earnings per share of common stock are based on the weighted average number of
common shares outstanding, which includes the effects of outstanding stock
options computed using the treasury method. Such common stock equivalents
totaled 98,000 and 129,000 shares respectively for the three and six month
periods ended April 30, 1996. Fully diluted earnings per share are the same as
primary earnings per share for these periods. No effect has been given to
options outstanding for the comparable periods ended April 30, 1995 as no
dilution would result from their exercise.
4. ACCOUNTS RECEIVABLE
The allowance for doubtful accounts was $1,000,000 as of April 30, 1996 and
$1,070,000 as of October 31, 1995.
5. INVENTORIES
Inventories, priced at the lower of cost (first-in, first-out method) or market
are summarized below (in thousands):
APRIL 30, 1996 OCTOBER 31, 1995
-------------- ----------------
Purchased parts and sub-assemblies $ 14,540 $ 15,681
Work-in-Process 2,271 3,523
Finished Goods 7,580 6,034
---------- ---------
$ 24,391 $ 25,238
========== =========
Inventories as of October 31, 1995 have been reclassified to conform to the
current year presentation.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
RESULTS OF OPERATIONS
THREE MONTHS ENDED APRIL 30, 1996 COMPARED TO THREE MONTHS ENDED APRIL 30, 1995
Total sales and service fees for the second quarter of fiscal 1996 increased
$5.4 million, or 26%, over the second quarter of fiscal 1995. This sales growth
was due primarily to increased shipments of machine tool products worldwide, as
increased availability of products for shipment enabled the Company to meet
current demand and reduce its backlog of orders which had accumulated during
fiscal 1995. Sales of CNC control systems and software products remained
relatively constant with the prior year levels.
European sales and service fees increased $3.2 million, or 49%, over the second
quarter of fiscal 1995 and accounted for 38% of total revenues in the second
quarter of fiscal 1996 compared to 32% for the same quarter of fiscal 1995.
Increased market penetration by the Company's new "Advantage Series" machine
tool line, which was introduced in Europe in the latter part of fiscal 1995,
along with increased availability of products for shipment, contributed to the
strong second quarter sales. Foreign currency translation was not a significant
factor when comparing second quarter 1996 sales to the second quarter of fiscal
1995.
In the United States, sales and service fees for the second quarter of fiscal
1996 increased $2.0 million, or 15%, over the comparable 1995 period, despite a
softening of demand. The increase was due almost entirely to increased shipments
of machine tool products and related parts and service fees. Approximately 10
$900,000 of the increase was attributable to sales of discontinued older product
models from inventory. In addition, increased availability of products for
shipment enabled the Company to reduce its backlog of domestic orders.
Gross profit increased $1.8 million, or 34%, for the second quarter of fiscal
1996 over the comparable period of fiscal 1995 due to increased sales and an
increase in gross profit margin. Gross profit margin, as a percentage of sales,
increased to 27.7% in fiscal 1996 from 26.1% in fiscal 1995. The improvement in
gross profit margin percentage was primarily due to an increased percentage of
higher-margin European sales, including sales of the higher-margin "Advantage
Series" products, in the total world-wide sales mix.
Selling, general and administration (SG&A) expenses for the second quarter of
fiscal 1996 increased $747,000, or 16%, compared to the corresponding 1995
period, principally due to increased selling expenses associated with increased
unit volume, planned product introduction and promotion costs and normal annual
compensation adjustments. However, as a percentage of sales and service fees,
SG&A expenses were 20.6% in the second quarter of fiscal 1996 compared to 22.3%
for the same quarter of fiscal 1995, reflecting the benefits of the substantial
increase in sales of machine tool products.
Operating income in the second quarter of fiscal 1996 increased to $1.9 million,
approximately 2.4 times the $770,000 reported for the second quarter of fiscal
1995, because of higher sales and the improved gross profit margin.
<PAGE>
Interest expense for the second quarter of fiscal 1996 decreased $185,000 from
the amount reported in the same period of fiscal 1995 due to a reduction in the
average debt outstanding during the period as well as decreases in interest
rates.
Income tax expense of $33,000 has been provided for the first quarter of fiscal
1996 related to earnings of a foreign subsidiary. The income tax liability
incurred in the United States and certain other tax jurisdictions was offset by
the reversal of valuation allowance reserves against the Company's net operating
loss carryforwards.
Worldwide new order bookings were $23.9 million in the second quarter of fiscal
1996, a decrease of $2.1 million, or 8%, from the second quarter of fiscal 1995,
but an improvement of $3.9 million, or 19%, over the preceding quarter of fiscal
1996. While international orders increased approximately 5% over the prior-year
level, domestic machine tool orders were significantly lower than those recorded
during the 1995 second quarter. Domestic bookings during the second quarter of
fiscal 1995 reflected unusually high demand for the "Advantage Series" machine
tool line introduced in the United States in late fiscal 1994, fueled in part by
distributor anticipation of limited product availability. The lower domestic
order rates also reflect the short-term impact of changes being implemented in
the Company's sales and distribution organization. As a result of the above,
backlog at April 30, 1996 was $10.4 million compared to $12.3 million at the end
of the preceding fiscal quarter.
The Company manages its foreign currency exposure through the use of foreign
currency forward exchange contracts. The Company does not speculate in the
financial markets and, therefore, does not enter into those contracts for
trading purposes. The Company also moderates its currency risk related to
significant purchase commitments with certain foreign vendors through price
adjustment agreements that provide for a sharing of, or otherwise limit, the
potential adverse effect of currency fluctuations on the costs of purchased
products. The results of these programs achieved management's objectives for the
second quarter of fiscal 1996.
SIX MONTHS ENDED APRIL 30, 1996 COMPARED TO SIX MONTHS ENDED APRIL 30, 1995
Sales and service fees for the first half of fiscal 1996 increased $9.8 million,
or 25%, over the sales level for the same period of fiscal 1995.
European sales and service fees increased $6.6 million, or 49%, over the first
six months of fiscal 1995 and accounted for 41% of total revenues compared to
34% for the first half of fiscal 1995. As noted in the discussion of results for
the second fiscal quarter above, this increase is due principally to increased
market penetration of the "Advantage Series" machine tool line, along with
increased availability of products for shipment.
In the United States, sales and service fees increased $2.8 million, or 11.1%,
over the first six months of fiscal 1995. The increase was due primarily to
increased shipments of machine tool products, including the discontinued
products discussed above, and related parts and service fees. Increased
availability of products for shipment in the first half of fiscal 1996 compared
to the prior year period enabled the Company to reduce its backlog of orders in
the United States and increase its shipments of current machine tool products
compared to the prior year period in spite of reduced domestic order rates.
Sales of CNC systems and software during the first six months of
<PAGE>
fiscal 1996 increased only slightly over the same period in 1995 as increased
shipments of Delta Series control systems for metal cutting machine tools,
primarily to original equipment manufacturers, were offset by decreased
shipments of Autobend products to the metal fabrication equipment market
reflecting less demand in that market.
Gross profit increased $3.7 million, or 36%, for the first half of fiscal 1996
over the comparable period of fiscal 1995 due to increased sales and an increase
in gross profit margin. Gross profit margin, as a percentage of sales, increased
to 27.8% in fiscal 1996 from 25.4% in fiscal 1995, primarily due to an increased
percentage of higher-margin European sales of the higher-margin "Advantage
Series" machine tool line, in the Company's total worldwide sales mix.
Selling, general and administration (SG&A) expenses for the first half of fiscal
1996 increased $1.5 million, or 17%, compared to the corresponding 1995 period,
principally due to increased selling expenses associated with increased unit
volume, planned product introduction and promotion costs and normal annual
compensation adjustments. However, as a percentage of sales and service fees,
SG&A expenses declined to 21.1% in the first half of fiscal 1996 compared to
22.4% for the same period of fiscal 1995, reflecting the substantial increase in
sales.
Operating income in the first half of fiscal 1996 increased approximately 2.8
times to $3.3 million from the $1.2 million reported for the first half of
fiscal 1995, because of higher sales and the improved gross profit margin.
Interest expense for the first six months of fiscal 1996 included a $240,000
amortization of non-recurring contingent fees to the Company's lenders based on
fiscal 1995 operating results. Excluding this charge, interest expense for the
first half of fiscal 1996 was $199,000 less than in the first half of fiscal
1995 due to reduced interest rates and a reduction in the average outstanding
borrowings.
Other income for the six months ended April 30, 1996 included $324,000 of
income, net of legal fees, related to a patent license issued in January 1996.
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
At April 30, 1996, the Company had cash and cash equivalents of $952,000
compared to $2.1 million at October 31, 1995. Cash flow from operations for the
fiscal quarter ended April 30, 1996 was $4.1 million, compared to $1.6 million
for the same period in fiscal 1995, due to improved earnings, and receivables
collections as well as increased inventory reduction activities. Outstanding
indebtedness was reduced by $3.5 million in the quarter. For the immediately
preceding fiscal quarter cash of $1.3 million was used for operations, resulting
in net cash flow from operations of $2.8 million for the six months ended April
30, 1996.
Working capital was $18.6 million at April 30, 1996, compared to $19.9 million
at October 31, 1995. The ratio of current assets to current liabilities was 1.78
to 1 at April 30, 1996, compared to 1.75 to 1 at October 31, 1995. As of April
30, 1996, the Company had unutilized credit facilities of $7.4 million available
for either direct borrowings or commercial letters of credit.
Under the terms of the Company's agreements with its lenders, which were amended
and restated effective January 26, 1996, $6.2 million of term loan payments are
due and payable over the next 12 months, including approximately $3.1 million in
installment payments which are due on July 31, 1996.
On June 6, 1996, the Company announced the distribution to holders of record of
it outstanding common stock as of the close of business on June 5, 1996 of
non-transferable rights to subscribe for and purchase an aggregate of
approximately 1,085,300 additional shares of common stock at a price of $4.63
per share (the "Rights Offering"). The Rights Offering will expire at the close
of business in New York City on July 3, 1996. The Company has also entered into
arrangements with certain standby purchasers that will assure the purchase of at
least 604,752 of such shares. The net proceeds to the Company from the Rights
Offering, after payment of related expenses, will range from a minimum of
approximately $2.6 million if only 604,752 shares are subscribed, to a maximum
of approximately $4.8 million, if all of the shares are subscribed. Such
proceeds, together with the Company's existing cash (if and to the extent such
proceeds are less than $3.1 million), will be used to prepay the $3.1 million of
installments of the Company's outstanding indebtedness to its senior lenders
that would otherwise be due on July 31, 1996. Of the amount to be so prepaid,
$1.4 million consists of bank debt bearing interest at a variable rate (8.50%
per annum at April 30, 1996) and $1.7 million is due to the holders of the
Company's 11.12% Senior Notes. The balance of the net proceeds, if any, will be
used for general corporate purposes and, pending such utilization, will be
applied to reduce outstanding revolving credit borrowings.
Management believes that the proceeds from the Rights Offering (even if only the
minimum amount noted above), together with anticipated cash flow from operations
and available borrowings under the Company's bank credit facilities, will be
sufficient to enable the Company to meet its anticipated cash requirements,
including scheduled debt amortization payments for the next twelve months.
However, if cash flow from operations is less than currently anticipated, the
Company may be required to limit planned investments in new products, equipment
and business development opportunities.
<PAGE>
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
As previously reported, IMS Technology, Inc. (IMS), a wholly-owned subsidiary of
the Company is a party to a number of pending legal proceedings which relate to
patents covering the machining method practiced when a machine tool is
integrated with an interactive CNC (the Interactive Machining Patents).
On October 10, 1995, IMS commenced an action in the U.S. District Court for the
Northern District of Illinois against fourteen manufacturers, distributors and
end-users of CNC machine tools for infringement of the Interactive Machining
Patents (the First Infringement Action). The defendants in the First
Infringement Action are: Yamazaki Mazak Corporation; Yamazaki Mazak Trading
Corporation; Mazak Corporation; Machinery Systems, Inc., Fox Tool Co. Inc.,;
Okuma Machinery Works Ltd.; Okuma America Corporation; Ellison Machinery Company
of the Midwest, Inc.; Apollo Machine & Manufacturing Company, Inc.; Arpac
Corporation; American Control Technology, Inc.; Nissan Motor Co. Ltd.; Nissan
Motor Car Carrier Co., Ltd.; and Nissan Motor Corp., USA, Inc. IMS is seeking
monetary damages from, and an injunction against, future infringement by the
defendants. Fanuc, Ltd., a supplier of CNC systems, has moved to intervene in
this action. The motion was granted by the Court on June 12, 1996. In addition,
on June 12, 1996, the claims against the first five defendants listed above were
severed from this action and were consolidated with the Mitsubishi Action
defined below.
On November 30, 1995, Southwestern Industries, Inc., a CNC machine tool
manufacturer (Southwestern), commenced an action against IMS in the U.S.
District Court for the Central District of California seeking to have the
Interactive Machining Patents declared invalid (the Southwestern Action). In May
1996, the Court transferred the Southwestern Action to the U.S. District Court
in Virginia; however, Southwestern has appealed the Court's ruling and the
appeal is currently pending.
On January 11, 1996, IMS commenced an action in the U.S. District Court for the
Eastern District of Virginia against Southwestern and Bridgeport Machines, Inc.,
another CNC machine tool manufacturer, alleging infringement of the Interactive
Machining Patents (the Second Infringement Action). IMS later added Mitsubishi
Electric Corporation (Mitsubishi) as a defendant in this action. In May 1996,
the Court transferred the Second Infringement Action to the U.S. District Court
for the Northern District of Illinois.
On January 29, 1996, Mitsubishi and Mitsubishi Electric Industrial Controls
commenced an action against IMS and the Company in the U.S. District Court for
the Northern District of Illinois seeking to have the Interactive Machining
Patents declared invalid (the Mitsubishi Action). Mitsubishi also alleged that
IMS and the Company violated federal antitrust laws in connection with the
Company's acquisition of the Interactive Machining Patents. IMS has filed a
counter-claim alleging infringement of the Interactive Machining Patents. As
noted above, the claims against five of the original defendants in the First
Infringement Action were recently consolidated in this action.
<PAGE>
On February 20, 1996, IMS commenced an action against Mitsubishi, Mitsubishi
Electric America, Inc., and eight of the defendants the First Infringement
Action, for violation of federal antitrust laws arising out of a conspiracy and
combination to boycott licenses under the Interactive Machining Patents (the
Virginia Antitrust Action). In May 1996, the Court dismissed the claims against
three of the defendants with prejudice and IMS voluntarily dismissed the claims
against the remaining defendants. As a result, the Virginia Antitrust Action is
no longer pending.
All of the above actions, unless otherwise noted, are still pending and remain
in preliminary stages.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits: None
(b) Reports on Form 8-K:
1. The Company filed a Form 8-K on May 29, 1996 reporting the Company's
press release dated May 22, 1996.
2. The Company filed a Form 8-K on June 6, 1996 reporting the Company's
press release dated June 6, 1996.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
HURCO COMPANIES, INC.
By: /S/ ROGER J. WOLF
--- -----------------
Roger J. Wolf
Senior Vice President and
Chief Financial Officer
June 14, 1996
Exhibit 11
STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS
<PAGE>
<TABLE>
EXHIBIT 11
STATEMENT RE: COMPUTATION OF
PER SHARE EARNINGS
<CAPTION>
Three Months Ended Six Months Ended
APRIL 30, APRIL 30,
------------------------------------------------------------------------
1996 1995 1996 1995
FULLY FULLY FULLY FULLY
PRIMARY DILUTED PRIMARY DILUTED PRIMARY DILUTED PRIMARY DILUTED
------- ------- ------- ------- ------- ------- ------- -------
(in thousands, except
per share amount)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net income (loss)..... $ 1,031 $ 1,031 $(239) $(239) $ 1,603 $ 1,603 $ (712) $ (712)
Weighted average
shares outstanding... 5,426 5,426 5,417 5,417 5,426 5,426 5,416 5,416
Assumed issuances under
stock options plans (1) 98 117 - - 129 129 - -
------ ------ ------ ------ ------ ------ ------ ------
5,524 5,543 5,417 5,417 5,555 5,555 5,416 5,416
====== ====== ====== ====== ====== ====== ====== ======
Earnings (loss) per
common share......... $ .19 $ .19 $ (.04) $ (.04) $ .29 $ .29 $ (.13) $ (.13)
====== ====== ====== ====== ====== ====== ====== ======
</TABLE>
(1) NO ASSUMMED ISSUANCES UNDER STOCK OPTION PLANS WERE MADE IN 1995 BECAUSE
SUCH ISSUANCES WOULD HAVE BEEN ANTI-DULUTIVE.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
QUARTERLY REPORT 10-Q FOR THE PERIOD ENDED APRIL 30, 1996 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000315374
<NAME> DAWN HIATT
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-1-1995
<PERIOD-END> APR-30-1996
<CASH> 952
<SECURITIES> 0
<RECEIVABLES> 17,270
<ALLOWANCES> 1,000
<INVENTORY> 24,391
<CURRENT-ASSETS> 42,308
<PP&E> 21,738
<DEPRECIATION> 11,672
<TOTAL-ASSETS> 57,156
<CURRENT-LIABILITIES> 23,744
<BONDS> 0
0
0
<COMMON> 543
<OTHER-SE> 7,970
<TOTAL-LIABILITY-AND-EQUITY> 57,156
<SALES> 49,319
<TOTAL-REVENUES> 49,319
<CGS> 35,613
<TOTAL-COSTS> 35,613
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,919
<INCOME-PRETAX> 1,636
<INCOME-TAX> 33
<INCOME-CONTINUING> 1,603
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,603
<EPS-PRIMARY> .29
<EPS-DILUTED> .29
</TABLE>
