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RELATED PARTY TRANSACTIONS
 12 Months Ended
Oct. 31, 2013
RELATED PARTY TRANSACTIONS [Abstract]  
RELATED PARTY TRANSACTIONS
  10. RELATED PARTY TRANSACTIONS

 

As of October 31, 2013, 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 $2.7 million and $2.4 million at October 31, 2013 and 2012 is included in Investments and other assets, net on the Consolidated Balance Sheets. Purchases of product from HAL amounted to $9.8 million, $10.2 million and $9.1 million in 2013, 2012 and 2011, respectively. Sales of product to HAL were $1.5 million, $1.8 million and $1.9 million for the years ended October 31, 2013, 2012 and 2011, respectively. Trade payables to HAL were $1.3 million and $1.2 million at October 31, 2013 and 2012, respectively. Trade receivables from HAL were $287,000 and $146,000 at October 31, 2013 and 2012, respectively.

 

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

 

(in thousands)   2013     2012     2011  
Net Sales   $ 12,312     $ 12,252     $ 10,938  
Gross Profit     1,949       1,735       1,284  
Operating Income (Loss)     544       340       (97 )
Net Income (Loss)     747       882       202  
                         
Current Assets   $ 8,755     $ 7,091     $ 8,201  
Non-current Assets     2,820       2,610       2,133  
Current Liabilities     2,846       1,702       3,298