On this page of StockholderLetter.com we present the 1/23/2023 shareholder letter from HURCO COMPANIES INC — ticker symbol HURC. Reading current and past HURC letters to shareholders can bring important insights into the investment thesis.

 •  1/23/2023 Letter Continued (Full PDF)
 •  1/29/2024 HURC Stockholder Letter
 •  1/29/2025 HURC Stockholder Letter
 •  1/28/2026 HURC Stockholder Letter
 •  More "Industrial Machinery & Equipment" Category Stockholder Letters
 •  HURC Benford's Law Stock Score = 57

HURC 1/23/2023 Shareholder/Stockholder Letter Transcript:

ANNUAL REPORT

Gregory S. Volovic
President and Chief Executive Of   cer
Sonja McClelland
Executive Vice President, Treasurer, and
Chief Financial Of   cer
Michael Doar
Executive Chairman
LEADERSHIP TEAM

REPORT TO SHAREHOLDERS
Fiscal year 2022 reaf   rmed Hurco   s investments in multi-axis
milling, turning, and automation, which drove a considerable
increase in demand within these product segments. It was a
year we realized tangible success from our culture of innovation
and continuous research and development. It was also a year of
opportunity where we once again reconnected in person with our
customers at the International Manufacturing Technology Show
(IMTS) in Chicago.
We improved our pro   tability despite the many obstacles our
industry has faced since 2020. Our revenue in    scal year 2022
would have been the second highest in the company   s history,
excluding the impact of foreign currency. Over the past two years,
we have been particularly focused on growth for the future,
launching new offerings that expand our product portfolio and
market reach and evaluating accretive opportunities.
Hurco   s 2019 acquisition of ProCobots, a business focused on
automation technologies, has led to innovation that has added
to our intellectual property portfolio. With several new patents
pending, the automation software capabilities we invented
and implemented this year for the complete and seamless
integration between Hurco CNC machines and the ProCobots
automated robotic machine tending systems are an example
of ground-breaking, out-of-the-box innovation that is practical,
accessible, and affordable for our customers. The seamless
interoperability of Hurco automation powered by ProCobots
allows our customers to increase their productivity and
ef   ciency while helping to offset the impact of labor shortages
so many manufacturers are facing today.
Fiscal year 2022 was a year we experienced a breakthrough
in demand for our advanced multi-axis machines. Our longterm investments in LCM Precision Technology, S.r.l. (   LCM   ),
which is solely focused on the design and manufacture of
state-of-the-art multi-axis electro-mechanical components
and subassemblies, facilitated the advancement of our highend multi-axis machines; in    scal year 2022, we experienced
breakthrough demand for these products.
Across all three of our machine tool brands, we have expanded
our product portfolio in both our value and performance market
segments. We have improved machine capacity, capabilities,
and throughput with faster speeds, increased torque, and larger
travels across numerous models.
unique functionality only available from the Hurco control due to
our proprietary vertical ownership of the entire CNC machine and
control product technologies.
It was exciting for us to share our inventions, new technologies,
and products at IMTS with our customers and distributors. It
provided a time for us to reconnect, collaborate, and energize
our customers and industry partners. While we are proud to have
customers who are well-known Fortune 500 companies, such
as Boeing, Caterpillar, Cummins, Eli Lilly, GM, Lockheed Martin,
and others, we take pride that many of our customers are also
small businesses, often family-owned, who count on us to deliver
products equipped with technologies uniquely engineered to
meet their requirements. Our customers are pragmatic, smart,
resilient, and hard-working. We want our products to be an
integral part of their success.
Hurco   s core competencies include software and product
innovation; ef   cient design and manufacturing of machine tools
with a well-developed supply chain; targeted and continual
expansion of products and markets; and strategic acquisitions.
Our ability to provide customers with high performing machine
tools equipped with industry leading control technology is our
key differentiator. Customers rely on our technology to simplify
complex processes with the user-friendly attributes of our
control systems and integrated automation.
We are committed to the continuous investment in new and
advanced technologies and research & development projects
to grow our pipeline of new products. We will maintain our
persistent pursuit of a balanced capital allocation strategy
that prioritizes a strong balance sheet and liquidity position
while recognizing the importance of accretive growth and
returning value to shareholders. While we evaluated potential
strategic acquisitions during    scal year 2022, the volatility in the
macroeconomic environment in the end proved unfavorable. We
remain committed to evaluate future acquisition opportunities
accretive to our businesses. The ability to return value to
shareholders, even during periods of economic uncertainty, is a
testament to the company   s    scally responsible culture.
All Hurco CNCs received design enhancements for control
processing speed and graphics performance. New 3D solid model
programming functionality was introduced that exploits these
new computing capabilities. In addition, the new control reduces
our component footprint, which, going forward, further secures
our supply chain resilience.
On behalf of everyone here at Hurco, I would like to thank our
shareholders for the trust you bestow on us to be principled
stewards of your investment. I also want to thank our Board of
Directors for their insight, guidance, and encouragement. We
extend sincere appreciation to our customers for their loyalty and
continued support and a special thank you to our employees for their
dedication, commitment, and ability to execute. As a global public
company, we pledge to continue our strategic initiatives     to innovate,
automate, and bring simplicity to that which is complex     in our pursuit
to create value for those who produce not only what is needed
for the world today but also tomorrow.
Productivity improvements have always been forefront in our
commitment to add value for our customers. During IMTS, we
introduced our new Extended Shop Floor IoT platform with
advanced tools for productivity and OEE monitoring featuring
Gregory S. Volovic
President and Chief Executive Of   cer

HURCO     MIND OVER METAL  
Hurco CNC machines are powered by proprietary technology that
increases customer productivity and pro   tability. We provide customers
with reliable machine tools equipped with sophisticated technologies that
simplify complex processes. The integrated Hurco control is the most
versatile in the industry, supporting both industry standard programming
and conversational programming.
HASSLE-FREE CNC
MILLTRONICS     HASSLE-FREE CNC   
Milltronics CNC machines are equipped with an interactive computer
control system that is compatible with G-codes and M-codes generated
from CAD/CAM software and conversational visual-aid programming.
The Milltronics brand includes seven product lines of general purpose CNC
mills and lathes. The Milltronics line is designed for excellent value with
more standard features for the price versus other market leaders.

When precision matters.
TAKUMI     WHEN PRECISION MATTERS   
Takumi CNC machines are designed and built for high ef   ciency milling
and high level precision. Equipped with control systems such as Fanuc   ,
Siemens   , Mitsubishi   , and Heidenhain   .
LCM PRECISION TECHNOLOGY
LCM designs and manufactures advanced
components for machine tools, such as
rotary tables, tilt tables, swivel heads, and
electro-mechanical spindles.



 1/23/2023 Letter Continued (Full PDF)