HURCO COMPANIES INC - 10-Q Quarterly Report

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, 2005 or

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 o

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

Yes o No x

The number of shares of the Registrant's common stock outstanding as of June 1, 2005 was 6,201,920.

HURCO COMPANIES, INC.

April 2005 Form 10-Q Quarterly Report

Table of Contents

Part I - Financial Information

Item 1.	Financial Statements

	Condensed Consolidated Statement of Operations Three months and six months ended April 30, 2005 and 2004	3

	Condensed Consolidated Balance Sheet As of April 30, 2005 and October 31, 2004	4

	Condensed Consolidated Statement of Cash Flows Three months and six months ended April 30, 2005 and 2004	5

	Condensed Consolidated Statement of Changes in Shareholders' Equity Three months and six months ended April 30, 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	16

Item 4.	Controls and Procedures	18

Part II - Other Information

Item 1.	Legal Proceedings	19

Item 4.	Submission of Matters to a Vote of Security Holders	19

Item 6.	Exhibits	20

Signatures		21

PART I - FINANCIAL INFORMATION

Item 1. CONDENSED FINANCIAL STATEMENTS

HURCO COMPANIES, INC.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(In thousands, except per share data)

	Three Months Ended					Six Months Ended
	April 30					April 30
	2005			2004		2005			2004
	(unaudited)					(unaudited)

Sales and service fees	$	30,990		$	24,255	$	61,236		$	46,973

Cost of sales and service		20,223			16,842		40,729			33,029

Gross profit		10,767			7,413		20,507			13,944

Selling, general and administrative expenses		6,363			5,127		12,550			10,054

Operating income		4,404			2,286		7,957			3,890

Interest expense		86			117		169			261

Variable options expense		--			67		--			322

Other income (expense), net		(238	)		23		(309	)		(147	)

Income before taxes		4,080			2,125		7,479			3,160

Provision for income taxes		781			388		1,150			754

Net income	$	3,299		$	1,737	$	6,329		$	2,406

Earnings per common share

Basic	$	0.53		$	0.31	$	1.03		$	0.43
Diluted	$	0.52		$	0.29	$	1.00		$	0.41

Weighted average common shares outstanding

Basic		6,193			5,695		6,131			5,641
Diluted		6,370			5,976		6,307			5,838

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

HURCO COMPANIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEET

(Dollars in thousands)

	April 30		October 31
	2005		2004
	(unaudited)		(audited)
ASSETS
Current assets:
Cash and cash equivalents	$	11,669	$	8,249
Cash - restricted		--		277
Accounts receivable		18,195		17,337
Inventories		33,828		28,937
Other		3,494		1,672
Total current assets		67,186		56,472

Property and equipment:
Land		761		761
Building		7,218		7,205
Machinery and equipment		12,880		12,106
Leasehold improvements		712		676
		21,571		20,748
Less accumulated depreciation and amortization