After examining their books of the third fiscal quarter, Hurco Companies reported its net income for $4.38 million or $0.66 each shares from $854,000 or $0.13 each share corresponding for the fiscal period of 2013.
Operating incomes rose to $6.14 million from $1.70 million. The service and sales fees for the third quarter increased to $55.38 million ($10.22 million) or 23 percent compared to the third quarter of fiscal 2013. Every year increase in service and sales fees for the third quarter earned from the favorable currency impacts of $1.66 million, when translating the foreign sales to U.S. Dollars used for financial reporting.
Some of the factors that contributed to the increase of sales are: European high demand of small machine tool; addition of 3D printing capabilities to machine tools; and companies leveraged to metalworking. The company also announced a patent on CNC machining and 3D printing combination to progressing well. Europe has been the long-time key market of Hurco Companies. Aside from this, the domestic machine tool orders in Germany have decreased a bit but with the company’s specialty in high specs systems, they were able to product high-tolerance products even in low volumes. Hence, the clients of Hurco were companies who were doing a lot of specialty or custom work and other industries specializing on aerospace and autos.
The boost in gross margin has lifted the profits of the company even with the small financial glitches. With patenting their innovative solutions, they have also designed ways of improving profit in the future. This will leverage their competition against those who have the same products in metalworking industry. Reaching the amendments at these stages, Hurco aims to increase their profits more. Specifications in their profit have largely increased compared to last year, as major modifications were made for Hurco Companies.