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RELATED PARTY TRANSACTIONS
 12 Months Ended
Oct. 31, 2012
RELATED PARTY TRANSACTIONS [Abstract]  
RELATED PARTY TRANSACTIONS
  9. RELATED PARTY TRANSACTIONS

 

As of October 31, 2012, 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 $2.4 million and $2.1 million at October 31, 2012 and 2011 is included in Investments and Other Assets, Net on the Consolidated Balance Sheets. Purchases of product from HAL amounted to $10.2 million, $9.1 million and $5.8 million in 2012, 2011 and 2010, respectively. Sales of product to HAL were $1.8 million, $1.9 million and $1.2 million for the years ended October 31, 2012, 2011 and 2010, respectively. Trade payables to HAL were $1.2 million and $2.7 million at October 31, 2012 and 2011, respectively. Trade receivables from HAL were $146,000 and $373,000 at October 31, 2012 and 2011, respectively.

 

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

 

(in thousands)   2012     2011     2010  
Net Sales   $ 12,252     $ 10,938     $ 7,057  
Gross Profit     1,735       1,284       816  
Operating Income (Loss)     340       (97 )     (399 )
Net Income (Loss)     882       202       (337 )
                         
Current Assets   $ 7,091     $ 8,201     $ 7,439  
Non-current Assets     2,610       2,133       1,846  
Current Liabilities     1,702       3,298       2,529