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RELATED PARTY TRANSACTIONS
 12 Months Ended
Oct. 31, 2011
RELATED PARTY TRANSACTIONS
9. 
RELATED PARTY TRANSACTIONS

As of October 31, 2011, we owned approximately 35% of the outstanding shares of a Taiwanese-based contract manufacturer, Hurco Automation, Ltd. (HAL).  HAL’s scope of activities includes the design, manufacture, sales and distribution of industrial automation products, software systems and related components, including control systems and components produced under contract for sale exclusively to us.  We are accounting for this investment using the equity method.  The investment of $2.1 million  at October 31, 2011 and 2010 is included in Investments and Other Assets, Net on the Consolidated Balance Sheets.  Purchases of product from HAL amounted to $9.1 million, $5.8 million and $2.9 million in 2011, 2010 and 2009, respectively.  Sales of product to HAL were $1.9 million, $1.2 million and $322,000 for the years ended October 31, 2011, 2010 and 2009, respectively.  Trade payables to HAL were $2.7 million and $1.7 million at October 31, 2011 and 2010, respectively.  Trade receivables from HAL were $373,000 and $381,000 at October 31, 2011 and 2010, respectively.

Summary unaudited financial information for HAL’s operations and financial conditions is as follows:

(in thousands)
  
2011
    
2010
    
2009
  
Net Sales
   $ 10,938     $ 7,057     $ 3,710  
Gross Profit
     1,284       816       488  
Operating Income (Loss)
     (97 )     (399 )     (689 )
Net Income (Loss)
     202       (337 )     (1,203 )
                         
Current Assets
   $ 8,201     $ 7,439     $ 6,110  
Non-current Assets
     2,133       1,846       1,742  
Current Liabilities
     3,298       2,529       1,211