Indianapolis-based Hurco Companies Inc. (Nasdaq: HURC) is reporting a second-quarter net loss of nearly $4 million, compared to net income of $5 million during the same period a year ago.
“The COVID-19 pandemic has had a significant impact on our business and industry,” said Chief Executive Officer Michael Doar.
The industrial technology company said sales and service fees for Q2 were down approximately 47%. Hurco designs and produces CNC machining tools for metal cutting and forming industries.
While it is considered an essential business and was allowed to operate in many communities where it has plants, the company said many of its customers experienced significant disruptions.
Doar said the shutdowns resulted in what he called a “sudden shock” to demand.
“Therefore, we developed and implemented a strategy to ensure we would be able to maintain the strength of our balance sheet amid anticipated levels of reduced revenue and demand, including proactive cost reduction plans and delays in non-critical discretionary spending or capital expenditures,” said Doar.
Some of those cost reduction plans included an unspecified number of layoffs.
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