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RELATED PARTY TRANSACTIONS
 12 Months Ended
Oct. 31, 2022
RELATED PARTY TRANSACTIONS  
RELATED PARTY TRANSACTIONS

9.     RELATED PARTY TRANSACTIONS

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As of October 31, 2022, 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 $5.0 million and $4.8 million at October 31, 2022 and 2021, respectively, is included in Investments and other assets, net on the Consolidated Balance Sheets. Purchases of controls from HAL amounted to $10.5 million, $8.7 million, and $6.2 million in fiscal years 2022, 2021, and 2020, respectively. Sales of control component parts to HAL were $321,000, $262,000, and $265,000 for the fiscal years ended October 31, 2022, 2021, and 2020, respectively. Trade payables to HAL were $1.9 million and $2.6 million at October 31, 2022 and 2021, respectively. Trade receivables from HAL were $34,000 and $74,000 at October 31, 2022 and 2021, respectively.

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Summary unaudited financial information for HAL’s operations and financial condition is as follows (in thousands):

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2022

    

2021

    

2020

Net Sales

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$

14,171

  

$

12,361

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$

10,096

Gross Profit

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2,397

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2,011

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1,418

Operating Income

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1,053

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216

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160

Net Income

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2,528

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802

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265

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Current Assets

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$

15,018

  

$

14,695

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$

12,436

Non–current Assets

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6,430

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6,850

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6,152

Current Liabilities

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4,998

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5,339

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3,708

Non-current Liabilities

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1,619

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1,850

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1,564

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