On this page of StockholderLetter.com we present the 1/29/2024 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.
2023 ANNUAL REPORT Precision United: Engineering Excellence Across Every Brand

REPORT TO SHAREHOLDERS I am pleased to report on the accomplishments and performance of Hurco Companies, Inc. during the 2023 scal year. Building upon the successful strides made in 2022, where we experienced increased demand for automation and advanced manufacturing technologies, this past year has once again demonstrated our resilience and commitment to innovation that promotes signi cant product line growth to position us for future success. Despite the initial uncertainty in demand witnessed in the global machine tool market at the beginning of 2023, Hurco remained steadfast in its dedication to innovation and investment in new and advanced technologies. Throughout the year, we navigated challenging conditions in key machine tool markets such as the U.S., China, and Germany. Nevertheless, our divisions in smaller European markets, including Italy and the United Kingdom, experienced higher sales, driven by strong customer interest and demand for Hurco machines. As we concluded the scal year, our company achieved remarkable fourth-quarter sales, signaling a positive trajectory that hopefully foreshadows a more general and sustainable market recovery. This success is underpinned by our strong balance sheet and liquidity, positioning us to be both opportunistic and prepared to capitalize on the upside of the market cycle when it unfolds. Fiscal year 2023 serves as a testament to our unwavering dedication to innovation and continuous research and development. We are proud to highlight signi cant advancements in our industry-leading WinMax control software for Hurco CNC machines. These updates not only simplify the user experience but also enhance operational ef ciency. Furthermore, a substantial update to UltiMonitor, our Extended Shop Floor IoT platform, now incorporates productivity monitoring and Overall Equipment Effectiveness (OEE), providing our customers with advanced tools to drive immediate operational transparency, ef ciency, and productivity. The Milltronics brand achieved a signi cant milestone with the introduction of the INSPIRE V11 control. Built on decades of innovation, this state-of-the-art technology enhances cutting performance, precision, and surface nish while providing a user-friendly interface. We successfully relocated Milltronics corporate headquarters to a new facility in Indianapolis, which will allow us to leverage resources and expertise to expedite product development and better support the Milltronics brand on a national and global scale moving forward. A pivotal element of our success in recent years lies in the expansion of our product portfolio across our three brands Hurco, Takumi, and Milltronics. This expansion has resulted in increased machine capacity, capabilities, and throughput, featuring faster speeds, improved torque, and larger travels across all brands in numerous models. Our participation at the European Machine tool exhibition in Hannover, Germany, provided a platform to reconnect with customers and distributors from all over the world. It also allowed us to showcase the advancements of ProCobots, our automation technology subsidiary. The seamless integration of ProCobots automation with Hurco CNC machines and controls has positioned us uniquely to address the labor shortage constraining our customers growth potential. Notable sales growth for ProCobots automation solutions across our divisions in the U.K., U.S., France, and Germany underscores the success of these initiatives. Looking ahead, our commitment to technological leadership is evident in the groundwork laid by our engineers in 2023. Hurco is poised to lead the industry in commercializing emerging technologies, integrating automation, and leveraging arti cial intelligence (AI) to transform manufacturing. Our goal is to provide our customers with sophisticated, accessible products that empower them to navigate both current and future challenges. The pillars of our success are anchored in software and product innovation, ef cient machine tool design and manufacturing, targeted expansion of products and markets, and strategic acquisitions. The complete vertical integration of the CNC machine, control, software, and automation is what sets Hurco apart. This unique level of control over the complete software and hardware machining environment arms us with a distinctive opportunity to develop technology that truly simpli es complex processes ultimately enhancing our customers ef ciency and pro tability. On behalf of everyone at Hurco, I extend heartfelt thanks to our shareholders for the trust you place in us as conscientious stewards of your investment. I express gratitude to our Board of Directors for their insight, guidance, and encouragement. Sincere appreciation goes to our customers for their loyalty and continued support, and a special thank you to our employees for their dedication, talent, and commitment. As a worldwide leader in our industry, we are committed to sustaining our strategic endeavors, driving innovation, simplifying complexity, and facilitating automation. Our mission is to be a global partner to those who contribute not only to solving the demands of today but also the needs of the future. 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. MILLTRONICS Let s Invent 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.
 • shareholder letter icon 1/29/2024 Letter Continued (Full PDF)
 • stockholder letter icon 1/23/2023 HURC Stockholder Letter
 • stockholder letter icon 1/29/2025 HURC Stockholder Letter
 • stockholder letter icon 1/28/2026 HURC Stockholder Letter
 • stockholder letter icon More "Industrial Machinery & Equipment" Category Stockholder Letters
 • Benford's Law Stocks icon HURC Benford's Law Stock Score = 57


HURC 1/29/2024 Shareholder/Stockholder Letter Transcript:

2023
ANNUAL
REPORT
Precision United: Engineering Excellence Across Every Brand


REPORT TO SHAREHOLDERS
I am pleased to report on the accomplishments and performance of Hurco
Companies, Inc. during the 2023    scal year. Building upon the successful
strides made in 2022, where we experienced increased demand for
automation and advanced manufacturing technologies, this past year has
once again demonstrated our resilience and commitment to innovation
that promotes signi   cant product line growth to position us for future
success.
Despite the initial uncertainty in demand witnessed in the global
machine tool market at the beginning of 2023, Hurco remained steadfast
in its dedication to innovation and investment in new and advanced
technologies. Throughout the year, we navigated challenging conditions
in key machine tool markets such as the U.S., China, and Germany.
Nevertheless, our divisions in smaller European markets, including Italy
and the United Kingdom, experienced higher sales, driven by strong
customer interest and demand for Hurco machines.
As we concluded the    scal year, our company achieved remarkable
fourth-quarter sales, signaling a positive trajectory that hopefully
foreshadows a more general and sustainable market recovery. This
success is underpinned by our strong balance sheet and liquidity,
positioning us to be both opportunistic and prepared to capitalize on the
upside of the market cycle when it unfolds.
Fiscal year 2023 serves as a testament to our unwavering dedication
to innovation and continuous research and development. We are proud
to highlight signi   cant advancements in our industry-leading WinMax  
control software for Hurco CNC machines. These updates not only
simplify the user experience but also enhance operational ef   ciency.
Furthermore, a substantial update to UltiMonitor, our Extended Shop
Floor IoT platform, now incorporates productivity monitoring and Overall
Equipment Effectiveness (OEE), providing our customers with advanced
tools to drive immediate operational transparency, ef   ciency, and
productivity.
The Milltronics brand achieved a signi   cant milestone with the
introduction of the INSPIRE V11 control. Built on decades of innovation,
this state-of-the-art technology enhances cutting performance,
precision, and surface    nish while providing a user-friendly interface.
We successfully relocated Milltronics    corporate headquarters to a
new facility in Indianapolis, which will allow us to leverage resources
and expertise to expedite product development and better support the
Milltronics brand on a national and global scale moving forward.
A pivotal element of our success in recent years lies in the expansion
of our product portfolio across our three brands     Hurco, Takumi, and
Milltronics. This expansion has resulted in increased machine capacity,
capabilities, and throughput, featuring faster speeds, improved torque,
and larger travels across all brands in numerous models.
Our participation at the European Machine tool exhibition in Hannover,
Germany, provided a platform to reconnect with customers and
distributors from all over the world. It also allowed us to showcase the
advancements of ProCobots, our automation technology subsidiary.
The seamless integration of ProCobots automation with Hurco CNC
machines and controls has positioned us uniquely to address the labor
shortage constraining our customers    growth potential. Notable sales
growth for ProCobots automation solutions across our divisions in
the U.K., U.S., France, and Germany underscores the success of these
initiatives.
Looking ahead, our commitment to technological leadership is evident
in the groundwork laid by our engineers in 2023. Hurco is poised
to lead the industry in commercializing emerging technologies,
integrating automation, and leveraging arti   cial intelligence (AI) to
transform manufacturing. Our goal is to provide our customers with
sophisticated, accessible products that empower them to navigate
both current and future challenges.
The pillars of our success are anchored in software and product
innovation, ef   cient machine tool design and manufacturing, targeted
expansion of products and markets, and strategic acquisitions. The
complete vertical integration of the CNC machine, control, software,
and automation is what sets Hurco apart. This unique level of control
over the complete software and hardware machining environment
arms us with a distinctive opportunity to develop technology that truly
simpli   es complex processes     ultimately enhancing our customers   
ef   ciency and pro   tability.
On behalf of everyone at Hurco, I extend heartfelt thanks to our
shareholders for the trust you place in us as conscientious stewards
of your investment. I express gratitude to our Board of Directors for
their insight, guidance, and encouragement. Sincere appreciation
goes to our customers for their loyalty and continued support, and a
special thank you to our employees for their dedication, talent, and
commitment.
As a worldwide leader in our industry, we are committed to sustaining
our strategic endeavors, driving innovation, simplifying complexity,
and facilitating automation. Our mission is to be a global partner to
those who contribute not only to solving the demands of today but also
the needs of the future.
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.
MILLTRONICS     Let   s Invent
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.


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