Hurco Companies, Inc. released a 10-Q report today which covers the company’s fiscal second quarter ending on April 30, 2009. I covered the initial release of Hurco’s earnings for the quarter in an article last week. In that article, I mentioned some concerns about an unexplained drop in Hurco’s warranty provision in Q1 and the need to closely examine the warranty provisions once the 10-Q for the second quarter is released. Now that we have the 10-Q, let’s take a look at the warranty provision concern. Read the article for more details.
In my coverage last week regarding Hurco’s initial news release for fiscal second quarter results, I expressed some concern regarding the company’s provision for warranty reserves documented in the 10-Q report for the first quarter and indicated that I had not received a response to my inquiries on the subject. I received a response today. Read this article for details.
Hurco Companies provided a press release this afternoon with results for the second fiscal quarter of 2009 which ended on April 30. The 10Q report has yet to be posted to the SEC website. While the results reflect significant weakness in Hurco’s business, this is hardly a major surprise given the continued turmoil in the global economy. This was to be expected under the circumstances and a superficial look at the press release shows that Hurco only sustained a minor loss of four cents per share. However, a closer look reveals some potentially larger problems.