HURCO COMPANIES INC - 10-Q Quarterly Report

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

x	Quarterly report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended January 31, 2005 or

o	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:

Indicate by check mark whether the Registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).

The number of shares of the Registrant's common stock outstanding as of March 1, 2005 was 6,199,447.

HURCO COMPANIES, INC.

January 2005 Form 10-Q Quarterly Report

Table of Contents

Part I - Financial Information

Item 1.	Financial Statements

	Condensed Consolidated Statement of Operations ……………………………………….. Three months ended January 31, 2005 and 2004	3

	Condensed Consolidated Balance Sheet ………………………………………………….. As of January 31, 2005 and October 31, 2004	4

	Condensed Consolidated Statement of Cash Flows……………………………………….. Three months ended January 31, 2005 and 2004	5

	Condensed Consolidated Statement of Changes in Shareholders' Equity………………… Three months ended January 31, 2005 and 2004	6

	Notes to Condensed Consolidated Financial Statements…………………………………..	7

Item 2.	Management's Discussion and Analysis of Financial …………………………………….. Condition and Results of Operations	10

Item 3.	Quantitative and Qualitative Disclosures About Market Risk …………………………….	15

Item 4.	Controls and Procedures …………………………………………………………………...	17

Part II - Other Information

Item 1.	Legal Proceedings…………………………………...…………………………………...	18

Item 6.	Exhibits................................................................................................................................	18

Signatures	…………………………………………………………………………………………….	19

PART I - FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

HURCO COMPANIES, INC.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(In thousands, except per share data)

	Three Months Ended
	January 31
	2005		2004
	(unaudited)

Sales and service fees	$	30,246	$	22,718

Cost of sales and service		20,506		16,187

Gross profit		9,740		6,531

Selling, general and administrative expenses		6,187		4,927

Operating income		3,553		1,604

Interest expense		83		144

Variable options expense		--		255

Other expense, net		71		170

Income before taxes		3,399		1,035

Provision for income taxes		369		366

Net income	$	3,030	$	669

Earnings per common share

Basic	$	0.50	$	0.12
Diluted	$	0.48	$	0.12

Weighted average common shares outstanding

Basic		6,071		5,588
Diluted		6,270		5,753

The accompanying notes are an integral part of the condensed consolidated financial statements.

HURCO COMPANIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEET

(Dollars in thousands)

	January 31			October 31
	2005			2004
	(unaudited)			(audited)
ASSETS
Current assets:
Cash and cash equivalents	$	11,303		$	8,249
Cash - restricted		--			277
Accounts receivable		16,651			17,337
Inventories		31,394			28,937
Other		3,232			1,672
Total current assets		62,580			56,472

Property and equipment:
Land		761			761
Building		7,205			7,205
Machinery and equipment		12,645			12,106
Leasehold improvements		700			676
		21,311			20,748
Less accumulated depreciation and amortization		(12,772	)		(12,512	)
		8,539			8,236

Software development costs, less amortization		2,979			2,920
Investments and other assets		5,878			5,818
	$	79,976		$	73,446

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	19,249		$	18,361
Accrued expenses		11,541			11,447
Current portion of long-term debt		319			317
Total current liabilities		31,109			30,125

Non-current liabilities:
Long-term debt		4,106			4,283
Deferred credits and other obligations		659			583
Total liabilities		35,874			34,991

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, and 6,177,714 and 6,019,594