Hurco Companies (HURC) risk factors, FY2025 10-K

Risks Related to Our Industry and International Operations

1. 01The cyclical nature of our business causes fluctuations in our operating results
2. 02Material adverse developments in global economic conditions, or the occurrence of certain other world events, could negatively affect demand for our products and harm our business
3. 03Changes in U.S. trade policy, including the imposition of tariffs and the resulting consequences, may have a material adverse impact on our business, financial condition, and results of operationsNew
4. 04Our international operations pose additional risks that may adversely impact sales and earnings
5. 05Fluctuations in the exchange rates between the U.S. dollar and any of several foreign currencies can increase our costs and decrease our revenues20% rewritten
6. 06We compete with larger companies that have greater financial resources, and our business could be harmed by competitors’ actions

Operational and Strategic Risks

1. 07Our competitive position and prospects for growth may be diminished if we are unable to develop and introduce new and enhanced products on a timely basis that are accepted in the market
2. 08Our continued success depends on our ability to protect our intellectual property
3. 09Disruptions in our manufacturing operations or the supply of materials and components could adversely affect our business, results of operations and financial condition
4. 10Fluctuations in the price of raw materials and other inputs, especially steel, iron, and energy, could adversely affect our sales, costs, and profitability
5. 11The unanticipated loss of current members of our senior management team and other key personnel may adversely affect our operating results
6. 12Acquisitions could disrupt our operations and harm our operating results
7. 13incur large acquisition and integration costs, immediate write-offs, and restructuring and other related expenses; and
8. 14Failure to comply with data privacy and security laws and regulations could adversely affect our operating results and business
9. 15If our network and system security measures are breached and unauthorized access is obtained to our data, to our employees’, customers’, or vendors’ data, or to our critical information technology systems, we may incur legal and financial exposure and liabilities
10. 16Public health emergencies or outbreaks of epidemics, pandemics, or contagious diseases have disrupted, and could continue to disrupt, our operations and materially and adversely affect our business, financial condition, and results of operations

Financial, Credit, and Liquidity Risks

1. 17Our credit facility contains covenants that restrict our business and financing activities, and the property that secures our obligations under the credit facility may be subject to foreclosure in the event of a defaultNew
2. 18Due to future changes in technology, changes in market demand, or changes in market expectations, portions of our inventory may become obsolete or excessive
3. 19Assets have become, and may become further, impaired, requiring us to record a significant charge to earnings
4. 20We may experience negative or unforeseen tax consequences