Hurco-HURC Stock Falls Post Q1 Earnings Decline, Orders Dip Y/Y

Financial Performance - Hurco reported a net loss of $4.3 million, or$ 0.67 per diluted share, for Q1 fiscal 2025, compared to a net loss of $1.6 million, or$ 0.25 per diluted share, in the prior-year period [2] - Sales and service fees increased by 3% year over year to $46.4 million, driven by an 8.8% increase in the Americas and an 18.3% increase in the Asia Pacific region, despite a 4.9% decline in European sales [3] - Gross profit decreased by 14.5% to$ 8.3 million, with gross margin contracting to 18% from 22% due to lower sales volumes of high-margin products [4] Orders and Market Dynamics - Order volume declined by 20.2% year over year to $40.1 million, with a significant 29.6% drop in orders from the Americas and a 17.7% decline in Europe [6] - In Europe, reduced demand for Hurco and Takumi machines contributed to the decline, while the Asia Pacific region saw a modest 3.1% increase in orders, particularly in China [7] Cash and Working Capital - Hurco ended the quarter with$ 41.8 million in cash and cash equivalents, an increase from $33.3 million at the end of fiscal 2024, while working capital decreased to$ 172.6 million [8] Management Commentary - CEO Greg Volovic noted the softer order volume in the U.S. due to delayed capital investments amid economic uncertainty, emphasizing the company's financial strength and diverse product portfolio [9] Guidance and Strategic Focus - The company did not provide explicit forward-looking guidance but acknowledged challenges from market uncertainty, focusing on financial discipline and inventory management [10] Share Repurchase and Dividend Policy - The $25 million share repurchase program remains active, with$ 21.7 million available for future repurchases, although no buybacks occurred during the quarter [11]