Hurco Companies (HURC) 10-Q 3 Jun 16 2016 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Apr. 30, 2016	May. 31, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Apr. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Entity Registrant Name	HURCO COMPANIES INC
Entity Central Index Key	315,374
Current Fiscal Year End Date	--10-31
Entity Filer Category	Accelerated Filer
Trading Symbol	HURC
Entity Common Stock, Shares Outstanding		6,573,103

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2016	Apr. 30, 2015	Apr. 30, 2016	Apr. 30, 2015
Sales and service fees	$ 52,029	$ 50,183	$ 108,532	$ 101,155
Cost of sales and service	35,419	33,624	74,224	68,049
Gross profit	16,610	16,559	34,308	33,106
Selling, general and administrative expenses	11,943	10,850	23,904	21,304
Operating income	4,667	5,709	10,404	11,802
Interest expense	25	57	49	126
Interest income	7	22	22	43
Investment income (expense)	4	6	106	71
Other (income) expense, net	(246)	(159)	(20)	148
Income (loss) before taxes	4,899	5,839	10,503	11,642
Provision for income taxes	1,225	1,878	2,934	3,915
Net income (loss)	$ 3,674	$ 3,961	$ 7,569	$ 7,727
Income per common share
Basic	$ 0.56	$ 0.6	$ 1.15	$ 1.17
Diluted	$ 0.56	$ 0.6	$ 1.14	$ 1.17
Weighted average common shares outstanding
Basic	6,570	6,547	6,564	6,535
Diluted	6,641	6,589	6,630	6,578
Dividends paid per share	$ 0.09	$ 0.08	$ 0.17	$ 0.15

CONDENSED CONSOLIDATED STATEME3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2016	Apr. 30, 2015	Apr. 30, 2016	Apr. 30, 2015
Net income	$ 3,674	$ 3,961	$ 7,569	$ 7,727
Other comprehensive income (loss):
Translation of foreign currency financial statements	3,423	1,020	1,012	(4,036)
(Gain) / loss on derivative instruments reclassified into operations, net of tax $(301), $4, $(811) and $204, respectively	(546)	8	(1,474)	372
Gain / (loss) on derivative instruments, net of tax $(405), $163, $(312) and $1,019, respectively	(736)	296	(567)	1,852
Total other comprehensive income (loss)	2,141	1,324	(1,029)	(1,812)
Comprehensive income	$ 5,815	$ 5,285	$ 6,540	$ 5,915

CONDENSED CONSOLIDATED STATEME4

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2016	Apr. 30, 2015	Apr. 30, 2016	Apr. 30, 2015
Realized loss (gains) on derivative instruments reclassified into operations, tax	$ (301)	$ 4	$ (811)	$ 204
Unrealized (loss) gains on derivative instruments, tax	$ (405)	$ 163	$ (312)	$ 1,019

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Apr. 30, 2016	Oct. 31, 2015
Current assets:
Cash and cash equivalents	$ 45,325	$ 55,237
Accounts receivable, net	40,302	41,766
Inventories, net	122,736	106,308
Derivative assets	588	1,228
Prepaid assets	10,599	9,769
Other	1,695	1,804
Total current assets	221,245	216,112
Property and equipment:
Land	841	841
Building	7,352	7,314
Machinery and equipment	24,115	24,026
Leasehold improvements	3,404	3,323
Property and equipment, gross	35,712	35,504
Less accumulated depreciation and amortization	(22,808)	(22,362)
Total property and equipment	12,904	13,142
Non-current assets:
Software development costs, less accumulated amortization	4,419	3,905
Goodwill	2,403	2,319
Intangible assets, net	1,241	1,289
Deferred income taxes	4,724	4,721
Investments and other assets, net	7,572	7,089
Total non-current assets	20,359	19,323
Total assets	254,508	248,577
Current liabilities:
Accounts payable	46,073	43,458
Accrued expenses and other	14,105	16,788
Accrued warranty expenses	1,853	2,186
Derivative liabilities	2,258	1,071
Short-term debt	1,545	1,583
Total current liabilities	65,834	65,086
Non-current liabilities:
Deferred income taxes	2,848	3,998
Accrued tax liability	998	953
Deferred credits and other	4,081	3,972
Total non-current liabilities	7,927	8,923
Shareholders' equity:
Preferred stock: no par value per share, 1,000,000 shares authorized; no shares issued	0	0
Common stock: no par value, $.10 stated value per share, 12,500,000 shares authorized, 6,720,453 and 6,650,517 shares issued; and 6,573,103 and 6,551,718 shares outstanding, as of April 30, 2016 and October 31, 2015, respectively	657	655
Additional paid-in capital	58,296	57,539
Retained earnings	132,209	125,760
Accumulated other comprehensive loss	(10,415)	(9,386)
Total shareholders' equity	180,747	174,568
Total liabilities and shareholders' equity	$ 254,508	$ 248,577

CONDENSED CONSOLIDATED BALANCE6

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Apr. 30, 2016	Oct. 31, 2015
Preferred stock, no par value	$ 0	$ 0
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Common stock, stated value per share	$ 0.10	$ 0.10
Common stock, shares authorized	12,500,000	12,500,000
Common stock, shares issued	6,720,453	6,650,517
Common stock, shares outstanding	6,573,103	6,551,718

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2016	Apr. 30, 2015	Apr. 30, 2016	Apr. 30, 2015
Cash flows from operating activities:
Net income	$ 3,674	$ 3,961	$ 7,569	$ 7,727
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Provision for doubtful accounts	7	32	(45)	(20)
Deferred income taxes	440	(511)	909	(840)
Equity in income of affiliates	(108)	(47)	(258)	(90)
Depreciation and amortization	972	721	1,934	1,447
Foreign currency (gain) loss	(1,644)	494	(1,208)	3,306
Unrealized (gain) loss on derivatives	612	3,193	552	568
Stock-based compensation	425	312	759	569
Change in assets and liabilities:
(Increase) decrease in accounts receivable	(522)	1,814	1,961	7,509
(Increase) decrease in inventories	(10,017)	542	(16,273)	182
(Increase) decrease in prepaid expenses	(688)	585	(1,705)	(346)
Increase (decrease) in accounts payable	943	(3,932)	2,400	(3,696)
Increase (decrease) in accrued expenses	(288)	(960)	(3,175)	(2,986)
Net change in derivative assets and liabilities	374	(28)	707	72
Other	(365)	(178)	(1,047)	1,081
Net cash provided by (used for) operating activities	(6,185)	5,998	(6,920)	14,483
Cash flows from investing activities:
Purchase of property and equipment	(510)	(733)	(1,145)	(1,054)
Proceeds from sale of equipment	232	0	236	51
Software development costs	(645)	(358)	(1,122)	(561)
Other investments	0	(12)	0	(167)
Net cash provided by (used for) investing activities	(923)	(1,103)	(2,031)	(1,731)
Cash flows from financing activities:
Dividends paid	(595)	(525)	(1,120)	(982)
Proceeds of exercise of common stock options	0	66	0	257
Net cash provided by (used for) financing activities	(595)	(459)	(1,120)	(725)
Effect of exchange rate changes on cash	1,242	429	159	(1,153)
Net increase (decrease) in cash and cash equivalents	(6,461)	4,865	(9,912)	10,874
Cash and cash equivalents at beginning of period	51,786	59,855	55,237	53,846
Cash and cash equivalents at end of period	$ 45,325	$ 64,720	$ 45,325	$ 64,720

CONDENSED CONSOLIDATED STATEME8

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Balances at Oct. 31, 2014	$ 164,645	$ 651	$ 55,974	$ 111,580	$ (3,560)
Balances, Shares at Oct. 31, 2014		6,508,880
Net income	7,727	$ 0	0	7,727	0
Other comprehensive loss	(1,812)	0	0	0	(1,812)
Stock-based compensation	569	$ 3	566	0	0
Stock-based compensation, Shares		27,538
Exercise of common stock options	257	$ 1	256	0	0
Exercise of common stock options, Shares		15,300
Dividends paid	(982)	$ 0	0	(982)	0
Balances at Apr. 30, 2015	170,404	$ 655	56,796	118,325	(5,372)
Balances, Shares at Apr. 30, 2015		6,551,718
Balances at Oct. 31, 2015	174,568	$ 655	57,539	125,760	(9,386)
Balances, Shares at Oct. 31, 2015		6,551,718
Net income	7,569	$ 0	0	7,569	0
Other comprehensive loss	(1,029)	0	0	0	(1,029)
Stock-based compensation	$ 759	$ 2	757	0	0
Stock-based compensation, Shares		21,385
Exercise of common stock options, Shares	0
Dividends paid	$ (1,120)	$ 0	0	(1,120)	0
Balances at Apr. 30, 2016	$ 180,747	$ 657	$ 58,296	$ 132,209	$ (10,415)
Balances, Shares at Apr. 30, 2016		6,573,103

GENERAL

GENERAL	6 Months Ended
	Apr. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
GENERAL	1. GENERAL The unaudited Condensed Consolidated Financial Statements include the accounts of Hurco Companies, Inc. and its consolidated subsidiaries. As used in this report, unless the context indicates otherwise, the terms “we”, “us”, “our” and similar language refer to Hurco Companies, Inc. and its consolidated subsidiaries as a whole. We design, manufacture and sell computerized (i.e., Computer Numeric Control) machine tools, consisting primarily of vertical machining centers (mills) and turning centers (lathes), to companies in the metal cutting industry through a worldwide sales, service and distribution network. Although our computer control systems and software products are proprietary, they predominantly use industry standard personal computer components. Our computer control systems and software products are primarily sold as integral components of our computerized machine tool products. We also provide machine tool components, software options, control upgrades, accessories and replacement parts for our products, as well as customer service and training support. The condensed financial information as of April 30, 2016 and for the three and six months ended April 30, 2016 and April 30, 2015 is unaudited. However, in our opinion, the interim data includes all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our consolidated financial position, results of operations, changes in shareholders’ equity and cash flows for and at the end of the interim periods. We suggest that you read these condensed consolidated financial statements in conjunction with the financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended October 31, 2015.

DERIVATIVE INSTRUMENTS AND HEDG

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES	6 Months Ended
	Apr. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES	2. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES We are exposed to certain market risks relating to our ongoing business operations, including foreign currency risk, interest rate risk and credit risk. We manage our exposure to these and other market risks through regular operating and financing activities. Currently, the only risk that we manage through the use of derivative instruments is foreign currency risk in which we enter into derivative instruments in the form of foreign currency forward exchange contracts with a major financial institution. We enter into these forward exchange contracts to reduce the potential effects of foreign exchange rate movements on our net equity investment in one of our foreign subsidiaries, to reduce the impact on gross profit and net earnings from sales and purchases denominated in foreign currencies, and to reduce the impact on our net earnings of foreign currency fluctuations on receivables and payables denominated in foreign currencies which are different than the subsidiaries’ functional currency. We are primarily exposed to foreign currency exchange rate risk with respect to transactions and net assets denominated in Euros, Pounds Sterling, Indian Rupee, South African Rand, Singapore Dollars, Chinese Yuan, Polish Zloty, and New Taiwan Dollars. We record all derivative instruments as assets or liabilities at fair value. Derivatives Designated as Hedging Instruments We enter into foreign currency forward exchange contracts periodically to hedge certain forecasted inter-company sales and purchases denominated in foreign currencies (the Pound Sterling, Euro and New Taiwan Dollar). The purpose of these instruments is to mitigate the risk that the U.S. Dollar net cash inflows and outflows resulting from sales and purchases denominated in foreign currencies will be adversely affected by changes in exchange rates. These forward contracts have been designated as cash flow hedge instruments, and are recorded in the Condensed Consolidated Balance Sheets at fair value in Derivative assets and Derivative liabilities. The effective portion of the gains and losses resulting from the changes in the fair value of these hedge contracts are deferred in Accumulated other comprehensive loss and recognized as an adjustment to Cost of sales and service in the period that the corresponding inventory sold that is the subject of the related hedge contract is recognized, thereby providing an offsetting economic impact against the corresponding change in the U.S. Dollar value of the inter-company sale or purchase being hedged. The ineffective portion of gains and losses resulting from the changes in the fair value of these hedge contracts is reported in Other (income) expense, net immediately. We perform quarterly assessments of hedge effectiveness by verifying and documenting the critical terms of the hedge instrument and determining that forecasted transactions have not changed significantly. We also assess on a quarterly basis whether there have been adverse developments regarding the risk of a counterparty default. We had forward contracts outstanding as of April 30, 2016, denominated in Euros, Pounds Sterling and New Taiwan Dollars with set maturity dates ranging from May 2016 through April 2017. The contract amounts, expressed at forward rates in U.S. Dollars at April 30, 2016, were $ 36.6 9.0 24.1 550,000 606,000 We are exposed to foreign currency exchange risk related to our investment in net assets in foreign countries. To manage this risk, we entered into a forward contract with a notional amount of € 3.0 803,000 146,000 Derivatives Not Designated as Hedging Instruments We enter into foreign currency forward exchange contracts to protect against the effects of foreign currency fluctuations on receivables and payables denominated in foreign currencies. These derivative instruments are not designated as hedges under the FASB guidance and, as a result, changes in their fair value are reported currently as Other (income) expense, net in the Condensed Consolidated Statements of Income consistent with the transaction gain or loss on the related receivables and payables denominated in foreign currencies. We had forward contracts outstanding as of April 30, 2016, in Euros, Pounds Sterling, South African Rand, and New Taiwan Dollars with set maturity dates ranging from May 2016 through October 2016. The contract amounts at forward rates in U.S. Dollars at April 30, 2016 totaled $ 54.8 Fair Value of Derivative Instruments We recognize the fair value of derivative instruments as assets and liabilities on a gross basis on our Condensed Consolidated Balance Sheets. As of April 30, 2016 and October 31, 2015, all derivative instruments were recorded at fair value on the balance sheets as follows (in thousands): April 30, 2016 October 31, 2015 Balance Sheet Fair Balance Sheet Fair Derivatives Location Value Location Value Designated as Hedging Instruments: Foreign exchange forward contracts Derivative assets $ 510 Derivative assets $ 1,079 Foreign exchange forward contracts Derivative liabilities $ 1,639 Derivative liabilities $ 1,027 Not Designated as Hedging Instruments: Foreign exchange forward contracts Derivative assets $ 78 Derivative assets $ 149 Foreign exchange forward contracts Derivative liabilities $ 619 Derivative liabilities $ 44 Effect of Derivative Instruments on the Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Changes in Shareholders’ Equity and Condensed Consolidated Statements of Income Derivative instruments had the following effects on our Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Changes in Shareholders’ Equity and Condensed Consolidated Statements of Income, net of tax, during the three months ended April 30, 2016 and 2015 (in thousands): Derivatives Amount of Gain Location of Amount of Gain (Loss) Three Months Ended Three Months Ended 2016 2015 2016 2015 Designated as Hedging Instruments: (Effective portion) Foreign exchange forward contracts $ (736) $ 296 Cost of sales and service $ 546 $ (8) Foreign exchange forward contract $ (116) $ 9 We recognized a gain of $ 32,000 Derivatives Location of Gain Amount of Gain (Loss) Three Months Ended 2016 2015 Not Designated as Hedging Instruments: Foreign exchange forward contracts Other (income) expense, net $ (1,239) $ 333 The following table presents the changes in the components of Accumulated other comprehensive loss, net of tax, for the three months ended April 30, 2016 (in thousands): Foreign Cash Flow Total Balance, January 31, 2016 $ (13,295) $ 739 $ (12,556) Other comprehensive income (loss) before reclassifications 3,423 (736) 2,687 Reclassifications — (546) (546) Balance, April 30, 2016 $ (9,872) $ (543) $ (10,415) Derivative instruments had the following effects on our Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Changes in Shareholders’ Equity and Condensed Consolidated Statements of Income, net of tax, during the six months ended April 30, 2016 and 2015 (in thousands): Derivatives Amount of Gain Location of Amount of Gain Six Months Ended Six Months Ended 2016 2015 2016 2015 Designated as Hedging Instruments: (Effective portion) Foreign exchange forward contracts $ (567) $ 1,852 Cost of sales and service $ 1,474 $ (372) Foreign exchange forward contract $ (80) $ 248 We recognized a gain of $ 32,000 Derivatives Location of Gain Amount of Gain (Loss) Six Months Ended 2016 2015 Not Designated as Hedging Instruments: Foreign exchange forward contracts Other (income) expense, net $ (1,100) $ 3,045 The following table presents the changes in the components of Accumulated other comprehensive loss, net of tax, for the six months ended April 30, 2016 (in thousands): Foreign Cash Flow Total Balance, October 31, 2015 $ (10,884) $ 1,498 $ (9,386) Other comprehensive income (loss) before reclassifications 1,012 (567) 445 Reclassifications — (1,474) (1,474) Balance, April 30, 2016 $ (9,872) $ (543) $ (10,415)

EQUITY INCENTIVE PLAN

EQUITY INCENTIVE PLAN	6 Months Ended
	Apr. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
EQUITY INCENTIVE PLAN	3. EQUITY INCENTIVE PLAN In March 2016, we adopted the Hurco Companies, Inc. 2016 Equity Incentive Plan (the “2016 Equity Plan”), which allows us to grant awards of stock options, stock appreciation rights (“SARs”), restricted stock, stock units and other stock-based awards. The 2016 Equity Plan replaced the 2008 Equity Incentive Plan (the “2008 Plan”) and is the only active plan under which equity awards may be made to our employees and non-employee directors. No further awards will be made under our 2008 Plan. The total number of shares of our common stock that may be issued pursuant to awards under the 2016 Equity Plan is 856,048 386,048 The Compensation Committee of the Board of Directors has the authority to determine the officers, directors and key employees who will be granted awards; designate the number of shares subject to each award; determine the terms and conditions upon which awards will be granted; and prescribe the form and terms of award agreements. We have granted restricted shares under the 2016 Equity Plan which are currently outstanding, and we have granted stock options, restricted shares and performance shares under the 2008 Plan which are currently outstanding. No stock option may be exercised more than ten years after the date of grant or such shorter period as the Compensation Committee may determine at the date of grant. The market value of a share of our common stock, for purposes of the 2016 Equity Plan, is the closing sale price as reported by the Nasdaq Global Select Market on the date in question or, if not a trading day, on the last preceding trading date. A summary of stock option activity for the six-month period ended April 30, 2016, is as follows: Stock Weighted Outstanding at October 31, 2015 107,889 $ 20.25 Options granted — — Options exercised — — Options cancelled — — Outstanding at April 30, 2016 107,889 $ 20.25 Summarized information about outstanding stock options as of April 30, 2016, that have already vested and those that are expected to vest, as well as stock options that are currently exercisable, are as follows: Options Already Options Currently Number of outstanding options 107,889 107,889 Weighted average remaining contractual life (years) 4.87 4.87 Weighted average exercise price per share $ 20.25 $ 20.25 Intrinsic value of outstanding options $ 1,326,000 $ 1,326,000 The intrinsic value of an outstanding stock option is calculated as the difference between the stock price as of April 30, 2016 and the exercise price of the option. On January 4, 2016, the Compensation Committee approved a long-term incentive compensation arrangement for our executive officers in the form of restricted shares and performance shares awarded under the 2008 Plan. The awards were 25 75 On this date, the Compensation Committee granted a total of 17,684 26.04 The Compensation Committee also granted a total target number of 24,023 40 50 200 30.67 The Compensation Committee also granted a total target number of 24,759 35 50 200 26.04 On March 10, 2016, the Compensation Committee granted a total of 9,170 30.52 A reconciliation of the Company’s restricted stock activity and related information for the six-month period ended April 30, 2016 is as follows: Number of Weighted Average Unvested at October 31, 2015 98,799 $ 28.89 Shares granted 75,636 28.05 Shares vested (21,385) 27.63 Shares withheld (5,700) 25.29 Unvested at April 30, 2016 147,350 $ 28.78 During the first six months of fiscal 2016 and 2015, we recorded $ 759,000 569,000 2.9

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Apr. 30, 2016
Earnings Per Share [Abstract]
EARNINGS PER SHARE	4. EARNINGS PER SHARE Per share results have been computed based on the average number of common shares outstanding. Three Months Ended Six Months Ended April 30, April 30, 2016 2015 2016 2015 Basic Diluted Basic Diluted Basic Diluted Basic Diluted Net income $ 3,674 $ 3,674 $ 3,961 $ 3,961 $ 7,569 $ 7,569 $ 7,727 $ 7,727 Undistributed earnings allocated to participating shares (21) (21) (23) (23) (43) (43) (45) (45) Net income applicable to common shareholders $ 3,653 $ 3,653 $ 3,938 $ 3,938 $ 7,526 $ 7,526 $ 7,682 $ 7,682 Weighted average shares outstanding 6,570 6,570 6,547 6,547 6,564 6,564 6,535 6,535 Stock options and contingently issuable shares — 71 — 42 — 66 — 43 6,570 6,641 6,547 6,589 6,564 6,630 6,535 6,578 Income per share $ 0.56 $ 0.56 $ 0.60 $ 0.60 $ 1.15 $ 1.14 $ 1.17 $ 1.17

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE	6 Months Ended
	Apr. 30, 2016
Receivables [Abstract]
ACCOUNTS RECEIVABLE	5. ACCOUNTS RECEIVABLE Accounts receivable are net of allowances for doubtful accounts of $ 694,000 739,000

INVENTORIES

INVENTORIES	6 Months Ended
	Apr. 30, 2016
Inventory Disclosure [Abstract]
INVENTORIES	6. INVENTORIES Inventories, priced at the lower of cost (first-in, first-out method) or market, are summarized below (in thousands): April 30, October 31, Purchased parts and sub-assemblies $ 28,182 $ 25,914 Work-in-process 21,994 20,575 Finished goods 72,560 59,819 $ 122,736 $ 106,308

ACQUISITIONS OF BUSINESSES

ACQUISITIONS OF BUSINESSES	6 Months Ended
	Apr. 30, 2016
Business Combinations [Abstract]
ACQUISITIONS OF BUSINESSES	ACQUISITIONS OF BUSINESSES On July 14, 2015, we acquired the assets of the machine tool business of Milltronics Manufacturing Company, Inc., a U.S.-based manufacturer of CNC mills, lathes, and vertical and horizontal machining centers. We are operating this U.S. business through our wholly-owned subsidiary, Milltronics USA, Inc. (“Milltronics”). Also, on July 28, 2015, we acquired the assets of the machine tool business of Takumi Machinery Co., Ltd. (“Takumi”), a Taiwan-based designer and manufacturer of CNC vertical machining centers, double column machining centers, high speed bridge machines and other machine tools equipped with industrial controls. We are operating this Taiwan business through our wholly-owned subsidiary, Hurco Manufacturing Limited. These acquisitions contribute to our efforts to expand our consolidated product range, customer base and global platform, and accelerate emerging market penetration, particularly in strategic markets such as China and South America. The combined Hurco, Milltronics and Takumi businesses represent a comprehensive product portfolio with more than 150 different models. The combined machine tool product lines also provide benefits from the development of product enhancements, technologies and models due to leverage of shared resources and cross-utilization of proven engineering designs, allowing us to achieve manufacturing cost reductions from economies of scale and manufacturing efficiencies. The acquisitions were accounted for in accordance with Accounting Standards Codification (“ASC”) Topic 805, Business Combinations. Accordingly, the total purchase price was allocated on a provisional basis to assets acquired and net liabilities assumed in connection with the acquisitions based on their estimated fair values as of the completion of the acquisitions. These allocations reflected various provisional estimates that were available at the time and were subject to change during the purchase price allocation period as valuations were finalized. All valuations are now final. 17.7 12.5 5.1 (in thousands) Initial Adjustments Adjusted Current assets $ 22,091 $ 105 $ 22,196 Property plant and equipment 1,099 (105) 994 Total assets 23,190 — 23,190 Current liabilities 5,540 — 5,540 Total purchase price and cash expended $ 17,650 $ — $ 17,650 The results of operations of Milltronics and Takumi have been included in our condensed consolidated financial statements from the respective dates of acquisitions.

SEGMENT INFORMATION

SEGMENT INFORMATION	6 Months Ended
	Apr. 30, 2016
Segment Reporting [Abstract]
SEGMENT INFORMATION	SEGMENT INFORMATION We operate in a single segment: industrial automation equipment. We design, manufacture and sell computerized machine tools, consisting primarily of vertical machining centers (mills) and turning centers (lathes), to companies in the metal cutting industry through a worldwide sales, service and distribution network. Our computer control systems and software products are primarily sold as integral components of our computerized machine tool products. We also provide machine tool components, software options, control upgrades, accessories and replacement parts for our products, as well as customer service and training support.

GUARANTEES AND PRODUCT WARRANTI

GUARANTEES AND PRODUCT WARRANTIES	6 Months Ended
	Apr. 30, 2016
Standard Product Warranty Disclosure [Abstract]
GUARANTEES AND PRODUCT WARRANTIES	9. GUARANTEES AND PRODUCT WARRANTIES From time to time, our subsidiaries guarantee third party payment obligations in connection with the sale of machines to customers that use financing. We follow FASB guidance for accounting for guarantees (codified in ASC 460). As of April 30, 2016, we had 16 1.1 We provide warranties on our products with respect to defects in material and workmanship. The terms of these warranties are generally one year for machines and shorter periods for service parts. We recognize a reserve with respect to this obligation at the time of product sale, with subsequent warranty claims recorded against the reserve. The amount of the warranty reserve is determined based on historical trend experience and any known warranty issues that could cause future warranty costs to differ from historical experience. Six Months Ended 2016 2015 Balance, beginning of period $ 2,186 $ 2,048 Provision for warranties during the period 1,414 1,739 Charges to the reserve (1,755) (1,641) Impact of foreign currency translation 8 (56) Balance, end of period $ 1,853 $ 2,090 The year-over-year decrease in our warranty reserve was primarily due to a reduction in sales volume and average warranty cost per claim in the North American and Asian Pacific regions, net of the incremental $ 163,000

DEBT AGREEMENTS

DEBT AGREEMENTS	6 Months Ended
	Apr. 30, 2016
Debt Disclosure [Abstract]
DEBT AGREEMENTS	DEBT AGREEMENTS On December 7, 2012, we entered into an agreement (the “U.S. credit agreement”) with a financial institution that provided us with a $ 12.5 3.0 3.0 5.0 On December 5, 2014, we amended our U.S. credit agreement to increase the cash dividend allowance from $ 3.0 4.0 Borrowings under our U.S. credit agreement bear interest at a LIBOR-based rate or a floating rate of 1 1.00 0.50 0.05 The U.S. credit agreement contains customary financial covenants, including a covenant that permits us to make investments in subsidiaries of up to $ 5.0 90.0 120.0 4.0 We have a £ 1.0 1.5 40.0 6.2 1.5 1.6 4.9 5.6 All of our credit facilities are unsecured. At April 30, 2016, we were in compliance with all covenants contained in the related credit agreements and, as of that date, we had unutilized credit facilities of $ 20.3

INCOME TAXES

INCOME TAXES	6 Months Ended
	Apr. 30, 2016
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Our effective tax rate for the first six months of fiscal 2016 was 28 34 3.0 3.9 Our unrecognized tax benefits were $ 1.2 1.1 We recognize accrued interest and penalties related to unrecognized tax benefits as components of income tax expense. As of April 30, 2016, the gross amount of interest accrued, reported in Accrued expenses and other, was approximately $ 46,000 We file U.S. federal and state income tax returns, as well as tax returns in several foreign jurisdictions. The statutes of limitations with respect to unrecognized tax benefits will expire between July 2017 and July 2019

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS	6 Months Ended
	Apr. 30, 2016
Fair Value Disclosures [Abstract]
FINANCIAL INSTRUMENTS	FINANCIAL INSTRUMENTS FASB fair value guidance established a three-tier fair value hierarchy, which categorizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs, such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exist, therefore requiring an entity to develop its own assumptions. Assets Liabilities April 30, October 31, April 30, October 31, Level 1 Deferred Compensation $ 1,315 $ 1,310 $ - $ - Level 2 Derivatives $ 588 $ 1,228 $ 2,258 $ 1,071 Included in Level 1 assets are mutual fund investments under a nonqualified deferred compensation plan. We estimate the fair value of these investments on a recurring basis using market prices which are readily available. Included in Level 2 fair value measurements are derivative assets and liabilities related to gains and losses on foreign currency forward exchange contracts entered into with a third party. We estimate the fair value of these derivatives on a recurring basis using foreign currency exchange rates obtained from active markets. Derivative instruments are reported in the accompanying consolidated financial statements at fair value. We have derivative financial instruments in the form of foreign currency forward exchange contracts as described in Note 2 of Notes to the Condensed Consolidated Financial Statements in which the U.S. Dollar equivalent notional amounts of these contracts was $ 126.0 109.6 0.6 1.2 2.3 1.1 The fair value of our foreign currency forward exchange contracts and the related currency positions are subject to offsetting market risk resulting from foreign currency exchange rate volatility. The counterparty to the forward exchange contracts is a substantial and creditworthy financial institution. We do not consider either the risk of counterparty non-performance or the economic consequences of counterparty non-performance as material risks. Certain assets and liabilities are measured at fair value on a nonrecurring basis and are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment. Assets and liabilities acquired in business combinations are recorded at their fair value as of the date of acquisition and are recognized as Level 3 measurements due to the subjective nature of the unobservable inputs used to determine the fair values. Refer to Note 7 for the fair values of assets acquired and liabilities assumed in connection with the Milltronics and Takumi acquisitions.

CONTINGENCIES AND LITIGATION

CONTINGENCIES AND LITIGATION	6 Months Ended
	Apr. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES AND LITIGATION	CONTINGENCIES AND LITIGATION We are involved in various claims and lawsuits arising in the normal course of business. Pursuant to applicable accounting rules, we accrue the minimum liability for each known claim when the estimated outcome is a range of possible loss and no one amount within that range is more likely than another. We maintain insurance policies for such matters, and we record insurance recoveries when we determine such recovery to be probable. We do not expect any of these claims, individually or in the aggregate, to have a material adverse effect on our consolidated financial position or results of operations. We believe that the ultimate resolution of claims for any losses will not exceed our insurance policy coverages.

NEW ACCOUNTING PROUNOUNCEMENTS

NEW ACCOUNTING PROUNOUNCEMENTS	6 Months Ended
	Apr. 30, 2016
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
NEW ACCOUNTING PRONOUNCEMENTS	NEW ACCOUNTING PROUNOUNCEMENTS Recently Adopted Accounting Pronouncement: In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, 2.0 2.7 New Accounting Pronouncements: In January 2016, the FASB issued ASU 2016-01 Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), Revenue from Contracts with Customers (Topic 606) In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, Revenue from Contracts with Customers (Topic 606) In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, Revenue from Contracts with Customers (Topic 606)

DERIVATIVE INSTRUMENTS AND HE23

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)	6 Months Ended
	Apr. 30, 2016
Schedule of Fair Value of Derivative Instruments	April 30, 2016 October 31, 2015 Balance Sheet Fair Balance Sheet Fair Derivatives Location Value Location Value Designated as Hedging Instruments: Foreign exchange forward contracts Derivative assets $ 510 Derivative assets $ 1,079 Foreign exchange forward contracts Derivative liabilities $ 1,639 Derivative liabilities $ 1,027 Not Designated as Hedging Instruments: Foreign exchange forward contracts Derivative assets $ 78 Derivative assets $ 149 Foreign exchange forward contracts Derivative liabilities $ 619 Derivative liabilities $ 44
Period One [Member]
Schedule of Changes in Components of Accumulated Other Comprehensive Loss	Foreign Cash Flow Total Balance, January 31, 2016 $ (13,295) $ 739 $ (12,556) Other comprehensive income (loss) before reclassifications 3,423 (736) 2,687 Reclassifications — (546) (546) Balance, April 30, 2016 $ (9,872) $ (543) $ (10,415)
Period One [Member] | Designated as Hedging Instrument [Member]
Schedule of Effect of Derivative Instruments on the Balance Sheets, Statements of Changes in Shareholders' Equity and Statements of Operations	Derivatives Amount of Gain Location of Amount of Gain (Loss) Three Months Ended Three Months Ended 2016 2015 2016 2015 Designated as Hedging Instruments: (Effective portion) Foreign exchange forward contracts $ (736) $ 296 Cost of sales and service $ 546 $ (8) Foreign exchange forward contract $ (116) $ 9
Period One [Member] | Not Designated as Hedging Instrument [Member]
Schedule of Derivatives Not Designated as Hedging Instruments	Derivatives Location of Gain Amount of Gain (Loss) Three Months Ended 2016 2015 Not Designated as Hedging Instruments: Foreign exchange forward contracts Other (income) expense, net $ (1,239) $ 333
Period Two [Member]
Schedule of Changes in Components of Accumulated Other Comprehensive Loss	Foreign Cash Flow Total Balance, October 31, 2015 $ (10,884) $ 1,498 $ (9,386) Other comprehensive income (loss) before reclassifications 1,012 (567) 445 Reclassifications — (1,474) (1,474) Balance, April 30, 2016 $ (9,872) $ (543) $ (10,415)
Period Two [Member] | Designated as Hedging Instrument [Member]
Schedule of Effect of Derivative Instruments on the Balance Sheets, Statements of Changes in Shareholders' Equity and Statements of Operations	Derivatives Amount of Gain Location of Amount of Gain Six Months Ended Six Months Ended 2016 2015 2016 2015 Designated as Hedging Instruments: (Effective portion) Foreign exchange forward contracts $ (567) $ 1,852 Cost of sales and service $ 1,474 $ (372) Foreign exchange forward contract $ (80) $ 248
Period Two [Member] | Not Designated as Hedging Instrument [Member]
Schedule of Derivatives Not Designated as Hedging Instruments	Derivatives Location of Gain Amount of Gain (Loss) Six Months Ended 2016 2015 Not Designated as Hedging Instruments: Foreign exchange forward contracts Other (income) expense, net $ (1,100) $ 3,045

EQUITY INCENTIVE PLAN (Tables)

EQUITY INCENTIVE PLAN (Tables)	6 Months Ended
	Apr. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Stock Option Activity	Stock Weighted Outstanding at October 31, 2015 107,889 $ 20.25 Options granted — — Options exercised — — Options cancelled — — Outstanding at April 30, 2016 107,889 $ 20.25
Schedule of Information about Outstanding Stock Options that have Already Vested and those that are Expected to Vest	Options Already Options Currently Number of outstanding options 107,889 107,889 Weighted average remaining contractual life (years) 4.87 4.87 Weighted average exercise price per share $ 20.25 $ 20.25 Intrinsic value of outstanding options $ 1,326,000 $ 1,326,000
Reconciliation of Restricted Stock Activity and Related Information	Number of Weighted Average Unvested at October 31, 2015 98,799 $ 28.89 Shares granted 75,636 28.05 Shares vested (21,385) 27.63 Shares withheld (5,700) 25.29 Unvested at April 30, 2016 147,350 $ 28.78

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Apr. 30, 2016
Earnings Per Share [Abstract]
Reconciliation of Basic and Diluted Earnings Per Share	The computation of basic and diluted net income per share is determined using net income applicable to common shareholders as the numerator and the number of shares outstanding as the denominator as follows (in thousands, except per share amounts): Three Months Ended Six Months Ended April 30, April 30, 2016 2015 2016 2015 Basic Diluted Basic Diluted Basic Diluted Basic Diluted Net income $ 3,674 $ 3,674 $ 3,961 $ 3,961 $ 7,569 $ 7,569 $ 7,727 $ 7,727 Undistributed earnings allocated to participating shares (21) (21) (23) (23) (43) (43) (45) (45) Net income applicable to common shareholders $ 3,653 $ 3,653 $ 3,938 $ 3,938 $ 7,526 $ 7,526 $ 7,682 $ 7,682 Weighted average shares outstanding 6,570 6,570 6,547 6,547 6,564 6,564 6,535 6,535 Stock options and contingently issuable shares — 71 — 42 — 66 — 43 6,570 6,641 6,547 6,589 6,564 6,630 6,535 6,578 Income per share $ 0.56 $ 0.56 $ 0.60 $ 0.60 $ 1.15 $ 1.14 $ 1.17 $ 1.17

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Apr. 30, 2016
Inventory Disclosure [Abstract]
Schedule of Inventories	April 30, October 31, Purchased parts and sub-assemblies $ 28,182 $ 25,914 Work-in-process 21,994 20,575 Finished goods 72,560 59,819 $ 122,736 $ 106,308

ACQUISITIONS OF BUSINESSES (Tab

ACQUISITIONS OF BUSINESSES (Tables)	6 Months Ended
	Apr. 30, 2016
Business Combinations [Abstract]
Schedule of Opening Balance Sheet	(in thousands) Initial Adjustments Adjusted Current assets $ 22,091 $ 105 $ 22,196 Property plant and equipment 1,099 (105) 994 Total assets 23,190 — 23,190 Current liabilities 5,540 — 5,540 Total purchase price and cash expended $ 17,650 $ — $ 17,650

GUARANTEES AND PRODUCT WARRAN28

GUARANTEES AND PRODUCT WARRANTIES (Tables)	6 Months Ended
	Apr. 30, 2016
Standard Product Warranty Disclosure [Abstract]
Reconciliation of Warranty Reserve	Six Months Ended 2016 2015 Balance, beginning of period $ 2,186 $ 2,048 Provision for warranties during the period 1,414 1,739 Charges to the reserve (1,755) (1,641) Impact of foreign currency translation 8 (56) Balance, end of period $ 1,853 $ 2,090

FINANCIAL INSTRUMENTS (Tables)

FINANCIAL INSTRUMENTS (Tables)	6 Months Ended
	Apr. 30, 2016
Fair Value Disclosures [Abstract]
Schedule of Assets and Liabilities Fair Value	Assets Liabilities April 30, October 31, April 30, October 31, Level 1 Deferred Compensation $ 1,315 $ 1,310 $ - $ - Level 2 Derivatives $ 588 $ 1,228 $ 2,258 $ 1,071

DERIVATIVE INSTRUMENTS AND HE30

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Schedule of Fair Value of Derivative Instruments) (Details) - USD ($) $ in Thousands	Apr. 30, 2016	Oct. 31, 2015
Derivatives, Fair Value [Line Items]
Derivative assets	$ 588	$ 1,228
Derivative liabilities	2,258	1,071
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	510	1,079
Derivative liabilities	1,639	1,027
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	78	149
Derivative liabilities	$ 619	$ 44

DERIVATIVE INSTRUMENTS AND HE31

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Schedule of Effect of Derivative Instruments on Consolidated Balance Sheets, Statements of Changes in Shareholders' Equity and Statements of Operations) (Details) - Foreign Exchange Forward [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2016	Apr. 30, 2015	Apr. 30, 2016	Apr. 30, 2015
Designated as Hedging Instrument [Member] | Intercompany [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss)	$ (736)	$ 296	$ (567)	$ 1,852
Designated as Hedging Instrument [Member] | Cost of Sales [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Reclassified from Other Comprehensive Income (Loss)	546	(8)	1,474	(372)
Designated as Hedging Instrument [Member] | Net Investment Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss)	(116)	9	(80)	248
Not Designated as Hedging Instrument [Member] | Other Income And Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Operations	$ (1,239)	$ 333	$ (1,100)	$ 3,045

DERIVATIVE INSTRUMENTS AND HE32

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Schedule of Changes in Components of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2016	Apr. 30, 2015	Apr. 30, 2016	Apr. 30, 2015
Derivative [Line Items]
Beginning Balance	$ (12,556)		$ (9,386)
Other comprehensive income (loss) before reclassifications	2,687		445
Reclassifications	(546)	$ 8	(1,474)	$ 372
Ending Balance	(10,415)		(10,415)
Foreign Currency Translation [Member]
Derivative [Line Items]
Beginning Balance	(13,295)		(10,884)
Other comprehensive income (loss) before reclassifications	3,423		1,012
Reclassifications	0		0
Ending Balance	(9,872)		(9,872)
Cash Flow Hedges [Member]
Derivative [Line Items]
Beginning Balance	739		1,498
Other comprehensive income (loss) before reclassifications	(736)		(567)
Reclassifications	(546)		(1,474)
Ending Balance	$ (543)		$ (543)

DERIVATIVE INSTRUMENTS AND HE33

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Narrative) (Details) € in Millions	3 Months Ended	6 Months Ended
	Apr. 30, 2016USD ($)	Apr. 30, 2016USD ($)	Nov. 30, 2015EUR (€)	Oct. 31, 2015USD ($)
Derivative financial instruments:
Notional principal of foreign exchange contracts	$ 126,000,000	$ 126,000,000		$ 109,600,000
(Losses) gains, net of tax, related to cash flow hedges deferred in Accumulated Other Comprehensive Loss	(550,000)	(550,000)
Unrealized gain (loss), net of tax, to be reclassified in next 12 months	(606,000)	(606,000)
Gain (loss) on hedge ineffectiveness	32,000	32,000
Forward Contracts [Member] | Designated as Hedging Instrument [Member]
Derivative financial instruments:
Notional principal of foreign exchange contracts | €			€ 3
Realized gain on net investment hedge		803,000
Unrealized gain (loss), net of tax, recorded as cumulative translation adjustments in Accumulated Other Comprehensive Loss	(146,000)	(146,000)
Forward Contracts [Member] | Not Designated as Hedging Instrument [Member]
Derivative financial instruments:
Notional principal of foreign exchange contracts	54,800,000	54,800,000
Euros [Member] | Designated as Hedging Instrument [Member]
Derivative financial instruments:
Notional principal of foreign exchange contracts	36,600,000	36,600,000
Pounds Sterling [Member] | Designated as Hedging Instrument [Member]
Derivative financial instruments:
Notional principal of foreign exchange contracts	9,000,000	9,000,000
New Taiwan Dollars [Member] | Designated as Hedging Instrument [Member]
Derivative financial instruments:
Notional principal of foreign exchange contracts	$ 24,100,000	$ 24,100,000

EQUITY INCENTIVE PLAN (Summary

EQUITY INCENTIVE PLAN (Summary of Stock Option Activity and Related Information) (Details)	6 Months Ended
	Apr. 30, 2016$ / sharesshares
Shares Under Option
Outstanding | shares	107,889
Options granted | shares	0
Options exercised | shares	0
Options cancelled | shares	0
Outstanding | shares	107,889
Weighted Average Exercise Price
Outstanding | $ / shares	$ 20.25
Options granted | $ / shares	0
Options exercised | $ / shares	0
Options cancelled | $ / shares	0
Outstanding | $ / shares	$ 20.25

EQUITY INCENTIVE PLAN (Schedule

EQUITY INCENTIVE PLAN (Schedule of Information about Outstanding Stock Options Vested and Expected to Vest) (Details)	6 Months Ended
	Apr. 30, 2016USD ($)$ / sharesshares
Options Already Vested and Expected to Vest
Number of outstanding options | shares	107,889
Weighted average remaining contractual life (years)	4 years 10 months 13 days
Weighted average exercise price per share | $ / shares	$ 20.25
Intrinsic value of outstanding options | $	$ 1,326,000
Options Currently Exercisable
Number of outstanding options | shares	107,889
Weighted average remaining contractual life (years)	4 years 10 months 13 days
Weighted average exercise price per share | $ / shares	$ 20.25
Intrinsic value of outstanding options | $	$ 1,326,000

EQUITY INCENTIVE PLAN (Reconcil

EQUITY INCENTIVE PLAN (Reconciliation of Restricted Stock Activity and Related Information) (Details)	6 Months Ended
	Apr. 30, 2016$ / sharesshares
Number of Shares
Unvested at October 31, 2015 | shares	98,799
Shares granted | shares	75,636
Shares vested | shares	(21,385)
Shares withheld | shares	(5,700)
Unvested at April 30, 2016 | shares	147,350
Weighted Average Grant Date Fair Value
Unvested at October 31, 2015 | $ / shares	$ 28.89
Shares granted | $ / shares	28.05
Shares vested | $ / shares	27.63
Shares withheld | $ / shares	25.29
Unvested at April 30, 2016 | $ / shares	$ 28.78

EQUITY INCENTIVE PLAN (Narrativ

EQUITY INCENTIVE PLAN (Narrative) (Details) - USD ($)	Mar. 10, 2016	Jan. 04, 2016	Apr. 30, 2016	Apr. 30, 2015	Oct. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense			$ 759,000	$ 569,000
Unrecognized Stock-based compensation expense			$ 2,900,000
Restricted stock granted			75,636
Grant date fair value of restricted stock			$ 28.78		$ 28.89
2016 Equity Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total number of shares of common stock that may be issued as awards under 2016 Plan	856,048
2008 Equity Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	386,048
Time Based [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted		17,684
Grant date fair value of restricted stock		$ 26.04
Vesting period	3 years
Vesting percentage		25.00%
Time Based [Member] | 2016 Equity Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted	9,170
Grant date fair value of restricted stock	$ 30.52
Vesting period	1 year
Performance Based [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		3 years
Vesting percentage		75.00%
Performance Based [Member] | Performance Shares TSR [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted		24,023
Grant date fair value of restricted stock		$ 30.67
Percentage of incentive compensation arrangement		40.00%
Performance Based [Member] | Performance Shares TSR [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of target number of shares to be earned		200.00%
Performance Based [Member] | Performance Shares TSR [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of target number of shares to be earned		50.00%
Performance Based [Member] | Performance Shares ROIC [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted		24,759
Grant date fair value of restricted stock		$ 26.04
Percentage of incentive compensation arrangement		35.00%
Performance Based [Member] | Performance Shares ROIC [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of target number of shares to be earned		200.00%
Performance Based [Member] | Performance Shares ROIC [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of target number of shares to be earned		50.00%

EARNINGS PER SHARE (Reconciliat

EARNINGS PER SHARE (Reconciliation of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2016	Apr. 30, 2015	Apr. 30, 2016	Apr. 30, 2015
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income	$ 3,674	$ 3,961	$ 7,569	$ 7,727
Undistributed earnings allocated to participating shares	(21)	(23)	(43)	(45)
Net income applicable to common shareholders	$ 3,653	$ 3,938	$ 7,526	$ 7,682
Weighted Average Number of Shares Outstanding, Basic	6,570	6,547	6,564	6,535
Stock options and contingently issuable shares	71	42	66	43
Weighted Average Number of Shares Outstanding, Diluted	6,641	6,589	6,630	6,578
Income per share, Basic	$ 0.56	$ 0.6	$ 1.15	$ 1.17
Income per share, Diluted	$ 0.56	$ 0.6	$ 1.14	$ 1.17

ACCOUNTS RECEIVABLE (Narrative)

ACCOUNTS RECEIVABLE (Narrative) (Details) - USD ($)	Apr. 30, 2016	Oct. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for Doubtful Accounts Receivable	$ 694,000	$ 739,000

INVENTORIES (Schedule Of Invent

INVENTORIES (Schedule Of Inventory Current) (Details) - USD ($) $ in Thousands	Apr. 30, 2016	Oct. 31, 2015
Inventory [Line Items]
Purchased parts and sub-assemblies	$ 28,182	$ 25,914
Work-in-process	21,994	20,575
Finished goods	72,560	59,819
Inventories	$ 122,736	$ 106,308

ACQUISITIONS OF BUSINESSES (The

ACQUISITIONS OF BUSINESSES (The Fair Value of Assets Acquired and Liabilities Assumed As Of The Closing Dates) (Details) $ in Thousands	Apr. 30, 2016USD ($)
Business Acquisition [Line Items]
Total purchase price and cash expended, Adjusted Values	$ 17,700
Milltronics And Takumi [Member]
Business Acquisition [Line Items]
Current assets, Initial Valuation	22,091
Property plant and equipment, Initial Valuation	1,099
Total assets, Initial Valuation	23,190
Current liabilities, Initial Valuation	5,540
Total purchase price and cash expended, Initial Valuation	17,650
Current assets, Adjustments	105
Property plant and equipment, Adjustments	(105)
Total assets, Adjustments	0
Current liabilities, Adjustments	0
Total purchase price and cash expended, Adjustments	0
Current assets, Adjusted Values	22,196
Property plant and equipment, Adjusted Values	994
Total assets, Adjusted Values	23,190
Current liabilities, Adjusted Values	5,540
Total purchase price and cash expended, Adjusted Values	$ 17,650

ACQUISITIONS OF BUSINESSES (Nar

ACQUISITIONS OF BUSINESSES (Narrative) (Details) - USD ($) $ in Millions	Jul. 14, 2015	Jul. 28, 2015	Apr. 30, 2016
Business Acquisition [Line Items]
Acquired assets and assumed liabilities			$ 17.7
Milltronics Manufacturing Company [Member]
Business Acquisition [Line Items]
Total purchase price	$ 12.5
Takumi Machinery [Member]
Business Acquisition [Line Items]
Total purchase price		$ 5.1

GUARANTEES AND PRODUCT WARRAN43

GUARANTEES AND PRODUCT WARRANTIES (Reconciliation of the changes in our warranty reserve) (Details) - USD ($) $ in Thousands	6 Months Ended
	Apr. 30, 2016	Apr. 30, 2015
Product Warranty Liability [Line Items]
Balance, beginning of period	$ 2,186	$ 2,048
Provision for warranties during the period	1,414	1,739
Charges to the reserve	(1,755)	(1,641)
Impact of foreign currency translation	8	(56)
Balance, end of period	$ 1,853	$ 2,090

GUARANTEES AND PRODUCT WARRAN44

GUARANTEES AND PRODUCT WARRANTIES (Narrative) (Details)	6 Months Ended
	Apr. 30, 2016USD ($)
Product Warranty Liability [Line Items]
Number Of Guarantees	16
Guarantor Obligations, Maximum Exposure, Undiscounted	$ 1,100,000
Term of Product Warranty	1 year
Total Liability For Standard And Extended Product Warranties Related To Products Sold By The Recently Acquired Businesses	$ 163,000

DEBT AGREEMENTS (Narrative) (De

DEBT AGREEMENTS (Narrative) (Details) € in Millions, ¥ in Millions, £ in Millions, $ in Millions	Dec. 05, 2014USD ($)	Apr. 30, 2016USD ($)	Apr. 30, 2016EUR (€)	Apr. 30, 2016GBP (£)	Apr. 30, 2016CNY (¥)	Oct. 31, 2015USD ($)	Dec. 04, 2014USD ($)	May. 09, 2014USD ($)	May. 08, 2014USD ($)	Dec. 07, 2012USD ($)
Line of Credit Facility [Line Items]
Borrowings available under credit facility		$ 20.3
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of credit, maximum borrowing capacity										$ 12.5
Line of credit, maturity date	Dec. 7, 2016
Interest rate spread		1.00%
Percentage fee on portion that is not utilized		0.05%
Allowable investments in subsidiaries		$ 5
Minimum working capital requirement		90
Minimum tangible net worth requirement		120
Maximum dividends allowable	$ 4	$ 4					$ 3
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member]
Line of Credit Facility [Line Items]
Interest rate spread		1.00%
Revolving Credit Facility [Member] | Federal Funds Rate [Member]
Line of Credit Facility [Line Items]
Interest rate spread		0.50%
Revolving Credit Facility [Member] | United Kingdom [Member]
Line of Credit Facility [Line Items]
Line of credit, maximum borrowing capacity | £				£ 1
Revolving Credit Facility [Member] | Germany [Member]
Line of Credit Facility [Line Items]
Line of credit, maximum borrowing capacity | €			€ 1.5
Revolving Credit Facility [Member] | China [Member]
Line of Credit Facility [Line Items]
Line of credit, maximum borrowing capacity		$ 6.2			¥ 40
Line of credit, maturity date		Feb. 16, 2017
Line of credit amount outstanding		$ 1.5				$ 1.6
Interest rate		4.90%	4.90%	4.90%	4.90%	5.60%
Letter of Credit [Member]
Line of Credit Facility [Line Items]
Line of credit, maximum borrowing capacity								$ 5	$ 3	$ 3

INCOME TAXES (Narrative) (Detai

INCOME TAXES (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Apr. 30, 2016	Apr. 30, 2015	Apr. 30, 2016	Apr. 30, 2015	Oct. 31, 2015
Income Tax Contingency [Line Items]
Income Tax Examination, Interest Accrued	$ 46,000		$ 46,000
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent			28.00%	34.00%
Unrecognized Tax Benefits Expiration Term			expire between July 2017 and July 2019
Income Tax Expense (Benefit)	1,225,000	$ 1,878,000	$ 2,934,000	$ 3,915,000
Unrecognized Tax Benefits, Ending Balance	$ 1,200,000		$ 1,200,000		$ 1,100,000

FINANCIAL INSTRUMENTS (Fair val

FINANCIAL INSTRUMENTS (Fair value hierarchy) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Apr. 30, 2016	Oct. 31, 2015
Level 1 [Member]
Assets
Deferred compensation	$ 1,315	$ 1,310
Liabilities
Deferred compensation	0	0
Level 2 [Member]
Assets
Derivatives	588	1,228
Liabilities
Derivatives	$ 2,258	$ 1,071

FINANCIAL INSTRUMENTS (Narrativ

FINANCIAL INSTRUMENTS (Narrative) (Details) - USD ($) $ in Thousands	Apr. 30, 2016	Oct. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notional amount of contracts	$ 126,000	$ 109,600
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Assets
Derivatives	588	1,228
Liabilities
Derivatives	$ 2,258	$ 1,071

NEW ACCOUNTING PROUNOUNCEMENTS

NEW ACCOUNTING PROUNOUNCEMENTS (Narrative) (Details) $ in Millions	Oct. 31, 2015USD ($)
Effect in Total Assets [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets	$ 2
Effect in Total liabilities and Shareholders’ Equity [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets	$ 2.7