Indianapolis-based Hurco Cos. reported a $281,000 loss in its latest fiscal quarter after sales dropped a whopping 65 percent.
Hurco announced after the market closed Friday that it lost 4 cents per share in the second quarter, which ended April 30. That’s down dramatically from the $5.5 million, or 85 cents per share, it made in the same quarter last year.
Revenue fell to $20.5 million, a decrease of $37.8 million.
Hurco shares today tumbled as investors reacted to the earnings report. The stock late this morning was trading at $13.25, down $1.11, or 7.3 percent.
The company designs and produces interactive computer controls and software for the metal-cutting and metal-forming industry.
Sales dropped in all of the company’s major markets – 69 percent in Europe, 67 percent in Asia and 47 percent in North America.
Nearly 30 percent of Hurco’s sales decline can be attributed to a decrease in sales of higher-priced machines in Europe, and competitive pricing pressures globally.
“Although the order pattern this quarter has stabilized, we will continue our fiscally conservative approach so that the company will be ready to capitalize on opportunities when conditions improve,” CEO Michael Doar said in a statement.
The company has reduced pay, cut staff and suspended 401(k) matching contributions to cut costs, it said in a press release.
Hurco officials could not be reached this morning to comment on specific staff reductions.
Shares of Hurco traded as high as $38.24 in August. Even with today’s decline, the stock is well above its recent low of $8.30 in March.