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RELATED PARTY TRANSACTIONS
 12 Months Ended
Oct. 31, 2024
RELATED PARTY TRANSACTIONS  
RELATED PARTY TRANSACTIONS

9.     RELATED PARTY TRANSACTIONS

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As of October 31, 2024, 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 $5.3 million and $5.1 million as of October 31, 2024 and 2023, respectively, is included in Investments and other assets, net on the Consolidated Balance Sheets. Purchases of control systems and components from HAL amounted to $6.6 million, $10.2 million, and $10.5 million in fiscal years 2024, 2023, and 2022, respectively. Sales of control component parts to HAL were less than $0.1 million, $0.1 million, and $0.3 million for the fiscal years ended October 31, 2024, 2023, and 2022, respectively. Trade payables to HAL were $0.7 million and $1.1 million as of October 31, 2024 and 2023, respectively. Trade receivables from HAL each were immaterial as of October 31, 2024 and 2023.

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

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2024

    

2023

    

2022

Net Sales

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$

10,065

  

$

13,025

  

$

14,171

Gross Profit

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1,915

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2,224

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2,397

Operating Income

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749

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1,025

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1,053

Net Income

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1,060

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2,007

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2,528

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Current Assets

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$

13,101

  

$

13,669

  

$

15,018

Non–current Assets

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8,389

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7,115

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6,430

Current Liabilities

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3,000

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3,385

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4,998

Non-current Liabilities

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2,509

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2,027

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1,619

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