INDIANAPOLIS - Hurco Companies, Inc. (NASDAQ:HURC), a global provider of CNC machine tools, has partnered with Universal Robots to launch an innovative automation solution designed to address the skilled labor shortage in manufacturing. The new system, which integrates collaborative robotics technology with CNC machine tools, aims to streamline production and reduce reliance on manual labor.
The collaboration has resulted in the Conversational Automation Job Manager, a system that combines Hurco's CNC machine controls with Universal Robots' user-friendly cobot technology. This integration allows for quick and easy job changes in less than five minutes, without the need for extensive robot programming knowledge. The plug-and-play solution is engineered to enable manufacturers to be operational with robotic machine tending within a day.
Greg Volovic, President and CEO of Hurco Companies, Inc., emphasized the significance of the partnership with Universal Robots, stating that the new product not only addresses the immediate labor challenges but also simplifies the adoption of automation technology in manufacturing.
Hurco, known for its conversational programming in CNC controls, and Universal Robots, recognized for its advancements in collaborative robotics, share a philosophy of making technology accessible. The new automation solution is expected to free up workers from repetitive tasks and help manufacturers maintain production capabilities despite labor shortages.
The announcement comes at a time when industries are increasingly seeking innovative ways to combat workforce shortages and enhance productivity. Hurco's approach appears to offer a practical solution for high-mix manufacturers who have traditionally found automation adoption cost-prohibitive.
The company, headquartered in Indianapolis, Indiana, operates internationally, providing a range of CNC machine tools under its brands Hurco, Milltronics, and Takumi. Hurco serves various sectors, including aerospace, defense, medical equipment, energy, transportation, and computer equipment manufacturing.
While the press release contains forward-looking statements and acknowledges various risks and uncertainties, the information provided in this article is based on the statement from Hurco Companies, Inc. and does not speculate on future performance or broader industry trends.
In other recent news, global industrial technology firm Hurco Companies, Inc. has made a strategic move to suspend its regular quarterly cash dividend on common stock. The decision, effective immediately, is designed to boost financial resilience amid market volatility by improving cash flow and allowing for strategic reinvestment in core operations and research into emerging technologies. As part of this development, Hurco's President and CEO, Greg Volovic, highlighted that this decision, although difficult, is expected to enhance the company's capital allocation across various strategies. During the fiscal year ending October 31, 2024, Hurco had paid two quarterly cash dividends of $0.16 per share. The company's board plans to assess the possibility of future dividends based on several factors, including the company's performance, financial health, and market conditions. It is important to note that Hurco remains committed to shareholder value and plans to resume dividends and share repurchases when deemed appropriate. These are the recent developments in the company's financial strategy.
InvestingPro Insights
As Hurco Companies, Inc. (NASDAQ:HURC) embarks on this innovative partnership with Universal Robots, it's worth noting that the company's financial health and market performance provide a backdrop for understanding its strategic decisions. InvestingPro data indicates that Hurco holds a market capitalization of $117.35 million, with a negative P/E ratio of -40.13, reflecting challenges in profitability over the last twelve months as of Q2 2024. However, the company's Price / Book multiple stands at an attractive 0.54, suggesting that the stock may be trading at a low valuation relative to its book value.
From an operational standpoint, Hurco's gross profit margin remains solid at 23.18%, despite a revenue decline of 8.74% over the same period. This demonstrates the company's ability to maintain margins even in the face of decreasing revenues. Additionally, the dividend yield of 3.54% as of the last dividend ex-date on March 27, 2024, underscores Hurco's commitment to returning value to shareholders, having maintained dividend payments for 12 consecutive years—an InvestingPro Tip that highlights the company's consistent shareholder-friendly approach.
InvestingPro Tips also reveal that Hurco's liquid assets exceed short-term obligations and that the company holds more cash than debt on its balance sheet, providing a cushion for operational flexibility and potential investments in growth initiatives like the collaboration with Universal Robots. For those interested in deeper analysis, InvestingPro offers additional tips to help investors make informed decisions about Hurco's prospects in the context of its industry and current market trends.
For more in-depth insights and to explore further InvestingPro Tips, which can provide a comprehensive view of Hurco's financial position and market performance, visit: https://www.investing.com/pro/HURC.
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