Hurco Companies (HURC) 10-Q 8 Jun 18 2018 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Apr. 30, 2018	May 31, 2018
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Apr. 30, 2018
Document Fiscal Year Focus	2,018
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		6,716,898

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017
Sales and service fees	$ 70,424	$ 58,222	$ 138,868	$ 106,966
Cost of sales and service	51,111	41,154	99,434	77,312
Gross profit	19,313	17,068	39,434	29,654
Selling, general and administrative expenses	13,320	11,714	26,286	22,881
Operating income	5,993	5,354	13,148	6,773
Interest expense	25	24	45	45
Interest income	12	7	30	18
Investment income	6	16	122	80
Other expense, net	579	240	411	291
Income before taxes	5,407	5,113	12,844	6,535
Provision for income taxes	1,656	1,467	6,156	2,010
Net income	$ 3,751	$ 3,646	$ 6,688	$ 4,525
Income per common share
Basic (in dollars per share)	$ 0.55	$ 0.55	$ 0.99	$ 0.68
Diluted (in dollars per share)	$ 0.55	$ 0.54	$ 0.98	$ 0.67
Weighted average common shares outstanding
Basic (in shares)	6,706	6,617	6,682	6,600
Diluted (in shares)	6,784	6,671	6,763	6,664
Dividends paid per share	$ 0.11	$ 0.10	$ 0.21	$ 0.19

CONDENSED CONSOLIDATED STATEME3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017
Net income	$ 3,751	$ 3,646	$ 6,688	$ 4,525
Other comprehensive income (loss):
Translation of foreign currency financial statements	(2,222)	2,259	2,843	2,156
(Gain) / loss on derivative instruments reclassified into operations, net of tax of $138, $(174), $64 and $(59), respectively	415	(317)	193	(108)
Gain / (loss) on derivative instruments, net of tax of $106, $52, $(276) and $233, respectively	316	95	(826)	424
Total other comprehensive income (loss)	(1,491)	2,037	2,210	2,472
Comprehensive income	$ 2,260	$ 5,683	$ 8,898	$ 6,997

CONDENSED CONSOLIDATED STATEME4

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017
Realized loss (gains) on derivative instruments reclassified into operations, tax	$ 138	$ (174)	$ 64	$ (59)
Unrealized (loss) gains on derivative instruments, tax	$ 106	$ 52	$ (276)	$ 233

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Apr. 30, 2018	Oct. 31, 2017
Current assets:
Cash and cash equivalents	$ 76,376	$ 66,307
Accounts receivable, net	42,308	50,094
Inventories, net	134,850	119,948
Derivative assets	959	596
Prepaid assets	8,766	7,913
Other	3,324	1,557
Total current assets	266,583	246,415
Property and equipment:
Land	868	841
Building	7,352	7,352
Machinery and equipment	26,857	25,652
Leasehold improvements	3,871	3,503
Property and equipment, gross	38,948	37,348
Less accumulated depreciation and amortization	(26,175)	(25,167)
Total property and equipment	12,773	12,181
Non-current assets:
Software development costs, less accumulated amortization	6,828	6,226
Goodwill	2,522	2,440
Intangible assets, net	1,041	1,076
Deferred income taxes	4,119	6,176
Investments and other assets, net	7,734	7,131
Total non-current assets	22,244	23,049
Total assets	301,600	281,645
Current liabilities:
Accounts payable	59,002	47,638
Accrued expenses and other	16,180	18,240
Accrued warranty expenses	2,253	1,772
Derivative liabilities	1,877	1,732
Short-term debt	1,579	1,507
Total current liabilities	80,891	70,889
Non-current liabilities:
Deferred income taxes	2,218	3,821
Accrued tax liability	2,453	133
Deferred credits and other	3,733	3,717
Total non-current liabilities	8,404	7,671
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, 6,880,246 and 6,799,006 shares issued and 6,711,898 and 6,641,197 shares outstanding, as of April 30, 2018 and October 31, 2017, respectively	671	664
Additional paid-in capital	63,069	61,344
Retained earnings	154,545	149,267
Accumulated other comprehensive loss	(5,980)	(8,190)
Total shareholders’ equity	212,305	203,085
Total liabilities and shareholders’ equity	$ 301,600	$ 281,645

CONDENSED CONSOLIDATED BALANCE6

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Apr. 30, 2018	Oct. 31, 2017
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, No Par Value	$ 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	6,880,246	6,799,006
Common stock, shares outstanding	6,711,898	6,641,197

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017
Cash flows from operating activities:
Net income	$ 3,751	$ 3,646	$ 6,688	$ 4,525
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Provision for doubtful accounts	(67)	(30)	91	(11)
Deferred income taxes	2	(170)	640	(547)
Equity in income (loss) of affiliates	(55)	31	(194)	(192)
Depreciation and amortization	1,023	823	1,911	1,782
Foreign currency (gain) loss	465	437	(1,049)	1,364
Unrealized (gain) loss on derivatives	(394)	156	491	(527)
Stock-based compensation	629	298	1,178	646
Taxes paid related to net settlement of restricted shares	43	0	545	473
Change in assets and liabilities:
(Increase) decrease in accounts receivable	(1,398)	(3,519)	9,039	12,975
(Increase) decrease in inventories	(5,978)	867	(12,925)	393
(Increase) decrease in prepaid expenses	(653)	886	(1,181)	227
Increase (decrease) in accounts payable	2,427	2,687	10,228	5,472
Increase (decrease) in accrued expenses	(294)	60	(1,974)	(4,634)
Net change in derivative assets and liabilities	(457)	173	(417)	367
Other	(49)	(131)	386	(103)
Net cash provided by (used for) operating activities	(1,005)	6,214	13,457	22,210
Cash flows from investing activities:
Purchase of property and equipment	(819)	(200)	(1,674)	(998)
Proceeds from sale of equipment	28	0	86	0
Software development costs	(597)	(626)	(1,222)	(1,108)
Net cash provided by (used for) investing activities	(1,388)	(826)	(2,810)	(2,106)
Cash flows from financing activities:
Dividends paid	(742)	(661)	(1,410)	(1,253)
Taxes paid related to net settlement of restricted shares	(43)	0	(545)	(473)
Proceeds from exercise of common stock options	62	269	554	269
Net cash provided by (used for) financing activities	(723)	(392)	(1,401)	(1,457)
Effect of exchange rate changes on cash	(744)	478	823	750
Net increase (decrease) in cash and cash equivalents	(3,860)	5,474	10,069	19,397
Cash and cash equivalents at beginning of period	80,236	55,140	66,307	41,217
Cash and cash equivalents at end of period	$ 76,376	$ 60,614	$ 76,376	$ 60,614

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, 2016	$ 185,475	$ 657	$ 59,119	$ 136,742	$ (11,043)
Balances (in shares) at Oct. 31, 2016		6,573,103
Net income	4,525	$ 0	0	4,525	0
Other comprehensive income (loss)	2,472	0	0	0	2,472
Exercise of common stock options	269	$ 1	268	0	0
Exercise of common stock options (in shares)		12,164
Stock-based compensation	646	$ 5	641	0	0
Stock-based compensation (in shares)		38,930
Dividends paid	(1,253)	$ 0	0	(1,253)	0
Balances at Apr. 30, 2017	192,134	$ 663	60,028	140,014	(8,571)
Balances (in shares) at Apr. 30, 2017		6,624,197
Balances at Oct. 31, 2017	203,085	$ 664	61,344	149,267	(8,190)
Balances (in shares) at Oct. 31, 2017		6,641,197
Net income	6,688	$ 0	0	6,688	0
Other comprehensive income (loss)	2,210	0	0	0	2,210
Exercise of common stock options	554	$ 3	551	0	0
Exercise of common stock options (in shares)		30,418
Stock-based compensation	1,178	$ 4	1,174	0	0
Stock-based compensation (in shares)		40,283
Dividends paid	(1,410)	$ 0	0	(1,410)	0
Balances at Apr. 30, 2018	$ 212,305	$ 671	$ 63,069	$ 154,545	$ (5,980)
Balances (in shares) at Apr. 30, 2018		6,711,898

GENERAL

GENERAL	6 Months Ended
	Apr. 30, 2018
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 the majority of 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, 2018 and for the three and six months ended April 30, 2018 and April 30, 2017 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, 2017.

DERIVATIVE INSTRUMENTS AND HEDG

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES	6 Months Ended
	Apr. 30, 2018
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, for 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 that 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 the following 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 is 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 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, 2018, denominated in Euros, Pounds Sterling and New Taiwan Dollars with set maturity dates ranging from May 2018 through April 2019. The contract amounts, expressed at forward rates in U.S. Dollars at April 30, 2018, were $ 41.0 10.9 41.8 1.4 339,000 We are also 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 € 3.0 637,000 39,000 Derivatives Not Designated as Hedging Instruments We also 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 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, 2018, denominated in Euros, Pounds Sterling, South African Rand, and New Taiwan Dollar with set maturity dates ranging from May 2018 through October 2018. The contract amounts, expressed at forward rates in U.S. Dollars at April 30, 2018, totaled $ 58.1 Fair Value of Derivative Instruments April 30, 2018 October 31, 2017 Balance Sheet Balance Sheet Fair Derivatives Location Fair Value Location Value Designated as Hedging Instruments: Foreign exchange forward contracts Derivative assets $ 593 Derivative assets $ 305 Foreign exchange forward contracts Derivative liabilities $ 1,139 Derivative liabilities $ 1,508 Not Designated as Hedging Instruments: Foreign exchange forward contracts Derivative assets $ 366 Derivative assets $ 291 Foreign exchange forward contracts Derivative liabilities $ 738 Derivative liabilities $ 224 Effect of Derivative Instruments on the Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Changes in Shareholders’ Equity and Condensed Consolidated Statements of Income Location of Gain (Loss) Amount of Gain Reclassified Amount of Gain (Loss) (Loss) Recognized in from Other Reclassified from Other Other Comprehensive Comprehensive Comprehensive Derivatives Income (Loss) Income (Loss) Income (Loss) Three Months Ended Three Months Ended 2018 2017 2018 2017 Designated as Hedging Instruments: (Effective portion) Foreign exchange forward contracts – Intercompany sales/purchases $ 316 $ 95 Cost of sales and service $ (415) $ 317 Foreign exchange forward contract – Net investment $ 89 $ (9) We did not recognize any gains or losses as a result of hedges deemed ineffective for the three months ended April 30, 2018. We recognized a gain of $ 32,000 Location of Gain (Loss) Recognized Amount of Gain (Loss) Derivatives in Operations Recognized in Operations Three Months Ended 2018 2017 Not Designated as Hedging Instruments: Foreign exchange forward contracts Other expense, net $ (12) $ 165 Foreign Currency Cash Flow Translation Hedges Total Balance, January 31, 2018 $ (2,344) $ (2,145) $ (4,489) Other comprehensive income (loss) before reclassifications (2,222) 316 (1,906) Reclassifications — 415 415 Balance, April 30, 2018 $ (4,566) $ (1,414) $ (5,980) Location of Gain (Loss) Amount of Gain Amount of Gain Reclassified (Loss) Reclassified (Loss) Recognized in from Other from Other Other Comprehensive Comprehensive Comprehensive Derivatives Income (Loss) Income (Loss) Income (Loss) Six Months Ended Six Months Ended April 30, April 30 2018 2017 2018 2017 Designated as Hedging Instruments: (Effective portion) Foreign exchange forward contracts – Intercompany sales/purchases $ (826) $ 424 Cost of sales and service $ (193) $ 108 Foreign exchange forward contract – Net investment $ (77) $ 30 We did not recognize any gains or losses as a result of hedges deemed ineffective for the six months ended April 30, 2018. We recognized a gain of $ 168,000 Location of Gain (Loss) Recognized Amount of Gain (Loss) Derivatives in Operations Recognized in Operations Six Months Ended 2018 2017 Not Designated as Hedging Instruments: Foreign exchange forward contracts Other expense, net $ (1,268) $ 955 Foreign Cash Currency Flow Translation Hedges Total Balance, October 31, 2017 $ (7,409) $ (781) $ (8,190) Other comprehensive income (loss) before reclassifications 2,843 (826) 2,017 Reclassifications — 193 193 Balance, April 30, 2018 $ (4,566) $ (1,414) $ (5,980)

EQUITY INCENTIVE PLAN

EQUITY INCENTIVE PLAN	6 Months Ended
	Apr. 30, 2018
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 Hurco Companies, Inc. 2008 Equity Incentive Plan (the “2008 Plan”) and is the only active plan under which equity awards may be made by us 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 our Board of Directors has the authority to determine the officers, directors and key employees who will be granted awards under the 2016 Equity Plan; 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 and performance units under the 2016 Equity Plan that are currently outstanding, and we have granted stock options, restricted shares and performance shares under the 2008 Plan that 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. Stock Weighted Average Options Exercise Price Outstanding at October 31, 2017 78,725 $ 20.97 Options granted — — Options exercised (30,418) 18.23 Options cancelled — — Outstanding at April 30, 2018 48,307 $ 22.69 The total intrinsic value of stock options exercised during the six months ended April 30, 2018 was approximately $ 790,000 Options Already Number of outstanding options 48,307 Weighted average remaining contractual life (years) 3.17 Weighted average exercise price per share $ 22.69 Intrinsic value of outstanding options $ 1,039,000 The intrinsic value of an outstanding stock option is calculated as the difference between the stock price as of April 30, 2018 and the exercise price of the option. On November 15, 2017, the Compensation Committee granted a total of 2,364 42.30 On January 3, 2018, the Compensation Committee determined the degree to which the long-term incentive compensation arrangement approved for the fiscal 2015-2017 performance period was attained, and the resulting payout level relative to the target amount for each of the metrics that were established by the Compensation Committee in 2015. As a result, the Compensation Committee determined that a total of 23,299 42.20 On January 3, 2018, the Compensation Committee also approved a long-term incentive compensation arrangement for our executive officers in the form of restricted shares and performance stock units (“PSUs”) under the 2016 Equity Plan, which will be payable in shares of our common stock if earned and vested. The awards were 25 75 On that date, the Compensation Committee granted a total of 14,810 42.20 On January 3, 2018, the Compensation Committee also granted a total target number of 20,734 40 50 200 45.68 On January 3, 2018, the Compensation Committee also granted a total target number of 21,891 42.20 On March 15, 2018, the Compensation Committee granted a total of 9,114 46.05 Number of Shares Weighted Average Unvested at October 31, 2017 157,809 $ 32.05 Shares or units granted 68,913 43.76 Shares or units vested (40,283) 30.20 Shares or units cancelled (6,385) 33.67 Shares withheld (11,706) 32.19 Unvested at April 30, 2018 168,348 $ 37.22 During the first six months of fiscal 2018 and 2017, we recorded $ 1.2 0.6 4.0

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Apr. 30, 2018
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 over the period in question. Three Months Ended Six Months Ended April 30, April 30, 2018 2017 2018 2017 Basic Diluted Basic Diluted Basic Diluted Basic Diluted Net income $ 3,751 $ 3,751 $ 3,646 $ 3,646 $ 6,688 $ 6,688 $ 4,525 $ 4,525 Undistributed earnings allocated to participating shares (23) (23) (24) (24) (41) (41) (30) (30) Net income applicable to common shareholders $ 3,728 $ 3,728 $ 3,622 $ 3,622 $ 6,647 $ 6,647 $ 4,495 $ 4,495 Weighted average shares outstanding 6,706 6,706 6,617 6,617 6,682 6,682 6,600 6,600 Stock options and contingently issuable shares — 78 — 54 — 81 — 64 6,706 6,784 6,617 6,671 6,682 6,763 6,600 6,664 Income per share $ 0.55 $ 0.55 $ 0.55 $ 0.54 $ 0.99 $ 0.98 $ 0.68 $ 0.67

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE	6 Months Ended
	Apr. 30, 2018
Receivables [Abstract]
ACCOUNTS RECEIVABLE	ACCOUNTS RECEIVABLE Accounts receivable are net of allowances for doubtful accounts of $ 730,000 639,000

INVENTORIES

INVENTORIES	6 Months Ended
	Apr. 30, 2018
Inventory Disclosure [Abstract]
INVENTORIES	6. INVENTORIES In July 2015, the FASB issued guidance on simplifying the measurement of inventory. The guidance, which applies to inventory that is measured using any method other than the last-in, first-out (“LIFO”) or retail inventory method, requires that entities measure inventory at the lower of cost or net realizable value. The Company adopted the provisions of this guidance prospectively in the first quarter of fiscal 2018. The adoption of this guidance did not have a material impact on the Company’s consolidated results of operations, financial position, or cash flows. Inventories, priced at the lower of cost (first-in, first-out method) or net realizable value, are summarized below (in thousands): April 30, October 31, 2018 2017 Purchased parts and sub-assemblies $ 41,738 $ 33,045 Work-in-process 23,103 20,008 Finished goods 70,009 66,895 $ 134,850 $ 119,948

SEGMENT INFORMATION

SEGMENT INFORMATION	6 Months Ended
	Apr. 30, 2018
Segment Reporting [Abstract]
SEGMENT INFORMATION	7. 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, 2018
Standard Product Warranty Disclosure [Abstract]
GUARANTEES AND PRODUCT WARRANTIES	8. 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 Accounting Standards Codification (“ASC”) 460). As of April 30, 2018, we had 27 0.9 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 certain components 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. A reconciliation of the changes in our warranty reserve is as follows (in thousands): Six Months Ended April 30, 2018 2017 Balance, beginning of period $ 1,772 $ 1,523 Provision for warranties during the period 2,205 1,614 Charges to the reserve (1,754) (1,605) Impact of foreign currency translation 30 9 Balance, end of period $ 2,253 $ 1,541 The year-over-year increase in our warranty reserve was primarily due to an increase in the number of machines under warranty resulting from increased sales volume, as well as an increase in average warranty cost per machine as our machines under warranty shifted to more complex, higher-performance machines.

DEBT AGREEMENTS

DEBT AGREEMENTS	6 Months Ended
	Apr. 30, 2018
Debt Disclosure [Abstract]
DEBT AGREEMENTS	9. DEBT AGREEMENTS On December 7, 2012, we entered into an agreement, which was subsequently amended on May 9, 2014, June 5, 2014, December 5, 2014 and December 6, 2016 (as amended, the “U.S. credit agreement”) with a financial institution that provided us with an unsecured revolving credit and letter of credit facility. The U.S. credit agreement contains customary financial covenants, including covenants (1) restricting us from making certain investments, loans, advances and acquisitions (but permitting us to make investments in subsidiaries of up to $ 5.0 Borrowings under our U.S. credit agreement bear interest either at a LIBOR-based rate or a floating rate, in each case with an interest rate floor of 0.00%. The floating rate equals the greatest of (a) a one month LIBOR-based rate plus 1.00% per annum, (b) the federal funds effective rate plus 0.50% per annum, (c) the prevailing prime rate and (d) 0.00%. The rate we must pay for that portion of the U.S. credit agreement which is not utilized is 0.05% per annum. On December 6, 2016, we entered into a fourth amendment to our U.S. credit agreement to, among other things, increase the unsecured revolving credit facility from $ 12.5 15.0 4.0 5.0 December 31, 2018 5.0 90.0 120.0 On February 16, 2017, we amended our credit facility in China to decrease the credit facility from 40.0 20.0 3.2 February 13, 2019 1.6 4.7 4.4 1.0 1.5 All of our credit facilities are unsecured. At April 30, 2018, we had unutilized credit facilities of $ 19.8

INCOME TAXES

INCOME TAXES	6 Months Ended
	Apr. 30, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	10. INCOME TAXES In December 2017, the Tax Cuts and Jobs Act (the “Tax Reform Act”) was enacted. The Tax Reform Act among other things, lowered the U.S. corporate tax rate from 35 21 Income Taxes We recorded income tax expense during the first six months of fiscal 2018 of $ 6.1 2.0 48 31 2.5 0.4 The $ 2.5 0.4 0.4 Both of these tax adjustments represent provisional amounts based upon our current interpretation of the Tax Reform Act and may change as we receive additional clarification and implementation guidance. We will continue to analyze the effects of the Tax Reform Act on our financial statements and operations. Any additional impacts from the enactment of the Tax Reform Act will be recorded as they are identified during the remainder of the measurement period as provided for in accordance with Staff Accounting Bulletin No. 118. During the second quarter of fiscal 2018, we did not record any additional amounts, or make any changes to provisional amounts previously recorded, related to the Tax Reform Act. 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, 2018, the gross amount of interest accrued, reported in Accrued expenses and other, was approximately $ 75,000 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 2018 and July 2020.

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS	6 Months Ended
	Apr. 30, 2018
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, 2018 2017 2018 2017 Level 1 Deferred Compensation $ 1,685 $ 1,638 $ - $ - Level 2 Derivatives $ 959 $ 596 $ 1,877 $ 1,732 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 that 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 condensed 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. The U.S. Dollar equivalent notional amounts of these contracts was $ 156.5 134.3 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 to be material risks.

CONTINGENCIES AND LITIGATION

CONTINGENCIES AND LITIGATION	6 Months Ended
	Apr. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES AND LITIGATION	12. CONTINGENCIES AND LITIGATION From time to time, we are involved in 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 PRONOUNCEMENTS

NEW ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Apr. 30, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
NEW ACCOUNTING PRONOUNCEMENTS	NEW ACCOUNTING PRONOUNCEMENTS Recently Adopted Accounting Pronouncements: In August 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments New Accounting Pronouncements: In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Deferral of the Effective Date Principal versus Agent Considerations (Reporting Revenue Gross versus Net), Identifying Performance Obligations and Licensing, Narrow-Scope Improvements and Practical Expedients Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815) Targeted Improvements to Accounting for Hedging Activities . In February 2018, FASB issued ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, FASB issued ASU No. 2018-03, Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, that clarifies the guidance in ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10) Financial Instruments – Overall (Subtopic 825-10)

DERIVATIVE INSTRUMENTS AND HE22

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)	6 Months Ended
	Apr. 30, 2018
Schedule of 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, 2018 and October 31, 2017, all derivative instruments were recorded at fair value on our Consolidated Balance Sheets as follows (in thousands): April 30, 2018 October 31, 2017 Balance Sheet Balance Sheet Fair Derivatives Location Fair Value Location Value Designated as Hedging Instruments: Foreign exchange forward contracts Derivative assets $ 593 Derivative assets $ 305 Foreign exchange forward contracts Derivative liabilities $ 1,139 Derivative liabilities $ 1,508 Not Designated as Hedging Instruments: Foreign exchange forward contracts Derivative assets $ 366 Derivative assets $ 291 Foreign exchange forward contracts Derivative liabilities $ 738 Derivative liabilities $ 224
Period One [Member]
Schedule of Changes in Components of Accumulated Other Comprehensive Loss	The following table presents the changes in the components of Accumulated other comprehensive loss, net of tax, for the three months ended April 30, 2018 (in thousands:) Foreign Currency Cash Flow Translation Hedges Total Balance, January 31, 2018 $ (2,344) $ (2,145) $ (4,489) Other comprehensive income (loss) before reclassifications (2,222) 316 (1,906) Reclassifications — 415 415 Balance, April 30, 2018 $ (4,566) $ (1,414) $ (5,980) The following table presents the changes in the components of Accumulated other comprehensive loss, net of tax, for the six months ended April 30, 2018 (in thousands:) Foreign Cash Currency Flow Translation Hedges Total Balance, October 31, 2017 $ (7,409) $ (781) $ (8,190) Other comprehensive income (loss) before reclassifications 2,843 (826) 2,017 Reclassifications — 193 193 Balance, April 30, 2018 $ (4,566) $ (1,414) $ (5,980)
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	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, 2018 and 2017 (in thousands): Location of Gain (Loss) Amount of Gain Reclassified Amount of Gain (Loss) (Loss) Recognized in from Other Reclassified from Other Other Comprehensive Comprehensive Comprehensive Derivatives Income (Loss) Income (Loss) Income (Loss) Three Months Ended Three Months Ended 2018 2017 2018 2017 Designated as Hedging Instruments: (Effective portion) Foreign exchange forward contracts – Intercompany sales/purchases $ 316 $ 95 Cost of sales and service $ (415) $ 317 Foreign exchange forward contract – Net investment $ 89 $ (9) 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, 2018 and 2017 (in thousands): Location of Gain (Loss) Amount of Gain Amount of Gain Reclassified (Loss) Reclassified (Loss) Recognized in from Other from Other Other Comprehensive Comprehensive Comprehensive Derivatives Income (Loss) Income (Loss) Income (Loss) Six Months Ended Six Months Ended April 30, April 30 2018 2017 2018 2017 Designated as Hedging Instruments: (Effective portion) Foreign exchange forward contracts – Intercompany sales/purchases $ (826) $ 424 Cost of sales and service $ (193) $ 108 Foreign exchange forward contract – Net investment $ (77) $ 30
Period One [Member] | Not Designated as Hedging Instrument [Member]
Schedule of Derivatives Not Designated as Hedging Instruments	We recognized the following gains and losses in our Condensed Consolidated Statements of Income during the three months ended April 30, 2018 and 2017 on derivative instruments not designated as hedging instruments (in thousands): Location of Gain (Loss) Recognized Amount of Gain (Loss) Derivatives in Operations Recognized in Operations Three Months Ended 2018 2017 Not Designated as Hedging Instruments: Foreign exchange forward contracts Other expense, net $ (12) $ 165 We recognized the following gains and losses in our Condensed Consolidated Statements of Income during the six months ended April 30, 2018 and 2017 on derivative instruments not designated as hedging instruments (in thousands): Location of Gain (Loss) Recognized Amount of Gain (Loss) Derivatives in Operations Recognized in Operations Six Months Ended 2018 2017 Not Designated as Hedging Instruments: Foreign exchange forward contracts Other expense, net $ (1,268) $ 955

EQUITY INCENTIVE PLAN (Tables)

EQUITY INCENTIVE PLAN (Tables)	6 Months Ended
	Apr. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Stock Option Activity	A summary of stock option activity for the six-month period ended April 30, 2018, is as follows: Stock Weighted Average Options Exercise Price Outstanding at October 31, 2017 78,725 $ 20.97 Options granted — — Options exercised (30,418) 18.23 Options cancelled — — Outstanding at April 30, 2018 48,307 $ 22.69
Schedule of Information about Outstanding Stock Options that have Already Vested and those that are Expected to Vest	Summarized information about outstanding stock options as of April 30, 2018, all of which are vested and currently exercisable, are as follows: Options Already Number of outstanding options 48,307 Weighted average remaining contractual life (years) 3.17 Weighted average exercise price per share $ 22.69 Intrinsic value of outstanding options $ 1,039,000
Reconciliation of Restricted Stock Activity and Related Information	A reconciliation of the Company’s restricted stock, performance shares, PSUs activities and related information for the six-month period ended April 30, 2018 is as follows: Number of Shares Weighted Average Unvested at October 31, 2017 157,809 $ 32.05 Shares or units granted 68,913 43.76 Shares or units vested (40,283) 30.20 Shares or units cancelled (6,385) 33.67 Shares withheld (11,706) 32.19 Unvested at April 30, 2018 168,348 $ 37.22

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Apr. 30, 2018
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, 2018 2017 2018 2017 Basic Diluted Basic Diluted Basic Diluted Basic Diluted Net income $ 3,751 $ 3,751 $ 3,646 $ 3,646 $ 6,688 $ 6,688 $ 4,525 $ 4,525 Undistributed earnings allocated to participating shares (23) (23) (24) (24) (41) (41) (30) (30) Net income applicable to common shareholders $ 3,728 $ 3,728 $ 3,622 $ 3,622 $ 6,647 $ 6,647 $ 4,495 $ 4,495 Weighted average shares outstanding 6,706 6,706 6,617 6,617 6,682 6,682 6,600 6,600 Stock options and contingently issuable shares — 78 — 54 — 81 — 64 6,706 6,784 6,617 6,671 6,682 6,763 6,600 6,664 Income per share $ 0.55 $ 0.55 $ 0.55 $ 0.54 $ 0.99 $ 0.98 $ 0.68 $ 0.67

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Apr. 30, 2018
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories, priced at the lower of cost (first-in, first-out method) or net realizable value, are summarized below (in thousands): April 30, October 31, 2018 2017 Purchased parts and sub-assemblies $ 41,738 $ 33,045 Work-in-process 23,103 20,008 Finished goods 70,009 66,895 $ 134,850 $ 119,948

GUARANTEES AND PRODUCT WARRAN26

GUARANTEES AND PRODUCT WARRANTIES (Tables)	6 Months Ended
	Apr. 30, 2018
Standard Product Warranty Disclosure [Abstract]
Reconciliation of Warranty Reserve	A reconciliation of the changes in our warranty reserve is as follows (in thousands): Six Months Ended April 30, 2018 2017 Balance, beginning of period $ 1,772 $ 1,523 Provision for warranties during the period 2,205 1,614 Charges to the reserve (1,754) (1,605) Impact of foreign currency translation 30 9 Balance, end of period $ 2,253 $ 1,541

FINANCIAL INSTRUMENTS (Tables)

FINANCIAL INSTRUMENTS (Tables)	6 Months Ended
	Apr. 30, 2018
Fair Value Disclosures [Abstract]
Schedule of Assets and Liabilities Fair Value	In accordance with this guidance, the following table represents the fair value hierarchy for our financial assets and liabilities measured at fair value as of April 30, 2018 and October 31, 2017 (in thousands): Assets Liabilities April 30, October 31, April 30, October 31, 2018 2017 2018 2017 Level 1 Deferred Compensation $ 1,685 $ 1,638 $ - $ - Level 2 Derivatives $ 959 $ 596 $ 1,877 $ 1,732

DERIVATIVE INSTRUMENTS AND HE28

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Schedule of Fair Value of Derivative Instruments) (Details) - USD ($) $ in Thousands	Apr. 30, 2018	Oct. 31, 2017
Derivatives, Fair Value [Line Items]
Derivative assets	$ 959	$ 596
Derivative liabilities	1,877	1,732
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	593	305
Derivative liabilities	1,139	1,508
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	366	291
Derivative liabilities	$ 738	$ 224

DERIVATIVE INSTRUMENTS AND HE29

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, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017
Designated as Hedging Instrument [Member] | Intercompany sales/purchases [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss)	$ 316	$ 95	$ (826)	$ 424
Amount of Gain (Loss) Reclassified from Other Comprehensive Income (Loss)			(193)	108
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)	(415)	317
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)	89	(9)	(77)	30
Not Designated as Hedging Instrument [Member] | Other Income And Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Operations	$ (12)	$ 165	$ (1,268)	$ 955

DERIVATIVE INSTRUMENTS AND HE30

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, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017
Derivative [Line Items]
Beginning Balance	$ (4,489)		$ (8,190)
Other comprehensive income (loss) before reclassifications	(1,906)		2,017
Reclassifications	415	$ (317)	193	$ (108)
Ending Balance	(5,980)		(5,980)
Foreign Currency Translation [Member]
Derivative [Line Items]
Beginning Balance	(2,344)		(7,409)
Other comprehensive income (loss) before reclassifications	(2,222)		2,843
Reclassifications	0		0
Ending Balance	(4,566)		(4,566)
Cash Flow Hedges [Member]
Derivative [Line Items]
Beginning Balance	(2,145)		(781)
Other comprehensive income (loss) before reclassifications	316		(826)
Reclassifications	415		193
Ending Balance	$ (1,414)		$ (1,414)

DERIVATIVE INSTRUMENTS AND HE31

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Narrative) (Details) € in Millions	1 Months Ended	3 Months Ended	6 Months Ended
	Nov. 30, 2017EUR (€)	Apr. 30, 2017USD ($)	Apr. 30, 2018USD ($)	Apr. 30, 2017USD ($)	Oct. 31, 2017USD ($)
Derivative financial instruments:
Notional principal of foreign exchange contracts			$ 156,500,000		$ 134,300,000
(Losses) gains, net of tax, related to cash flow hedges deferred in Accumulated Other Comprehensive Loss			(1,400,000)
Unrealized gain (loss), net of tax, to be reclassified in next 12 months			(339,000)
Gain (loss) on hedge ineffectiveness		$ 32,000		$ 168,000
Not Designated as Hedging Instrument [Member]
Derivative financial instruments:
Notional principal of foreign exchange contracts			58,100,000
Forward Contracts [Member] | Designated as Hedging Instrument [Member]
Derivative financial instruments:
Realized gain on net investment hedge			637,000
Notional amount of derivatives designated as net investment hedge | €	€ 3
Unrealized gain (loss), net of tax, recorded as cumulative translation adjustments in Accumulated Other Comprehensive Loss			39,000
Euros [Member] | Designated as Hedging Instrument [Member]
Derivative financial instruments:
Notional principal of foreign exchange contracts			41,000,000
Pounds Sterling [Member] | Designated as Hedging Instrument [Member]
Derivative financial instruments:
Notional principal of foreign exchange contracts			10,900,000
New Taiwan Dollars [Member] | Designated as Hedging Instrument [Member]
Derivative financial instruments:
Notional principal of foreign exchange contracts			$ 41,800,000

EQUITY INCENTIVE PLAN (Summary

EQUITY INCENTIVE PLAN (Summary of Stock Option Activity and Related Information) (Details) - Employee Stock Option [Member]	6 Months Ended
	Apr. 30, 2018$ / sharesshares
Stock Options
Outstanding at October 31, 2017 | shares	78,725
Options granted | shares	0
Options exercised | shares	(30,418)
Options cancelled | shares	0
Outstanding at April 30, 2018 | shares	48,307
Weighted Average Exercise Price
Outstanding at October 31, 2017 | $ / shares	$ 20.97
Options granted | $ / shares	0
Options exercised | $ / shares	18.23
Options cancelled | $ / shares	0
Outstanding at April 30, 2018 | $ / shares	$ 22.69

EQUITY INCENTIVE PLAN (Schedule

EQUITY INCENTIVE PLAN (Schedule of Information about Outstanding Stock Options Vested and Currently Exercisable) (Details)	6 Months Ended
	Apr. 30, 2018USD ($)$ / sharesshares
Options Currently Exercisable
Number of outstanding options | shares	48,307
Weighted average remaining contractual life (years)	3 years 2 months 1 day
Weighted average exercise price per share | $ / shares	$ 22.69
Intrinsic value of outstanding options | $	$ 1,039,000

EQUITY INCENTIVE PLAN (Reconcil

EQUITY INCENTIVE PLAN (Reconciliation of Restricted Stock Activity and Related Information) (Details)	6 Months Ended
	Apr. 30, 2018$ / sharesshares
Number of Shares
Unvested at October 31, 2017 | shares	157,809
Shares or units granted | shares	68,913
Shares or units vested | shares	(40,283)
Shares or units cancelled | shares	(6,385)
Shares withheld | shares	(11,706)
Unvested at April 30, 2018 | shares	168,348
Weighted Average Grant Date Fair Value
Unvested at October 31, 2017 | $ / shares	$ 32.05
Shares or units granted | $ / shares	43.76
Shares or units vested | $ / shares	30.2
Shares or units cancelled | $ / shares	33.67
Shares withheld | $ / shares	32.19
Unvested at April 30, 2018 | $ / shares	$ 37.22

EQUITY INCENTIVE PLAN (Narrativ

EQUITY INCENTIVE PLAN (Narrative) (Details) - USD ($)	Mar. 15, 2018	Jan. 03, 2018	Nov. 15, 2017	Apr. 30, 2018	Apr. 30, 2017	Oct. 31, 2017	Mar. 10, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense				$ 1,200,000	$ 600,000
Unrecognized Stock-based compensation expense				$ 4,000,000
Restricted stock granted				68,913
Grant date fair value of restricted stock				$ 37.22		$ 32.05
Total intrinsic value of stock options exercised				$ 790,000
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]
Number of Shares Available for Grant under the 2008 Plan							386,048
Non-Executive Employees [Member] | TwoThousandSixteenEquityIncentivePlan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted			2,364
Grant date fair value of restricted stock			$ 42.30
Time Based [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted	9,114	14,810
Grant date fair value of restricted stock	$ 46.05	$ 42.20
Percentage of incentive compensation arrangement		25.00%
Time Based [Member] | 2016 Equity Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted		21,891
Grant date fair value of restricted stock		$ 42.20
Performance Based [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted		23,299
Grant date fair value of restricted stock		$ 42.20
Percentage of incentive compensation arrangement		75.00%
Performance Based [Member] | PSU TSR [Member] | 2016 Equity Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date fair value of restricted stock		$ 45.68
Performance Based [Member] | PSU ROIC [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted		20,734
Percentage of incentive compensation arrangement		40.00%
Performance Based [Member] | PSU 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] | PSU 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, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income	$ 3,751	$ 3,646	$ 6,688	$ 4,525
Undistributed earnings allocated to participating shares	(23)	(24)	(41)	(30)
Net income applicable to common shareholders	$ 3,728	$ 3,622	$ 6,647	$ 4,495
Weighted average shares outstanding, Basic	6,706	6,617	6,682	6,600
Stock options and contingently issuable shares	78	54	81	64
Weighted average shares outstanding, Diluted	6,784	6,671	6,763	6,664
Income per share, Basic	$ 0.55	$ 0.55	$ 0.99	$ 0.68
Income per share, Diluted	$ 0.55	$ 0.54	$ 0.98	$ 0.67

ACCOUNTS RECEIVABLE (Narrative)

ACCOUNTS RECEIVABLE (Narrative) (Details) - USD ($)	Apr. 30, 2018	Oct. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for Doubtful Accounts Receivable	$ 730,000	$ 639,000

INVENTORIES (Schedule Of Invent

INVENTORIES (Schedule Of Inventory Current) (Details) - USD ($) $ in Thousands	Apr. 30, 2018	Oct. 31, 2017
Inventory [Line Items]
Purchased parts and sub-assemblies	$ 41,738	$ 33,045
Work-in-process	23,103	20,008
Finished goods	70,009	66,895
Inventories	$ 134,850	$ 119,948

GUARANTEES AND PRODUCT WARRAN39

GUARANTEES AND PRODUCT WARRANTIES (Reconciliation of the changes in our warranty reserve) (Details) - USD ($) $ in Thousands	6 Months Ended
	Apr. 30, 2018	Apr. 30, 2017
Product Warranty Liability [Line Items]
Balance, beginning of period	$ 1,772	$ 1,523
Provision for warranties during the period	2,205	1,614
Charges to the reserve	(1,754)	(1,605)
Impact of foreign currency translation	30	9
Balance, end of period	$ 2,253	$ 1,541

GUARANTEES AND PRODUCT WARRAN40

GUARANTEES AND PRODUCT WARRANTIES (Narrative) (Details) $ in Millions	6 Months Ended
	Apr. 30, 2018USD ($)
Product Warranty Liability [Line Items]
Number Of Guarantees	27
Guarantor Obligations, Maximum Exposure, Undiscounted	$ 0.9
Term of Product Warranty	1 year

DEBT AGREEMENTS (Narrative) (De

DEBT AGREEMENTS (Narrative) (Details) € in Millions, ¥ in Millions, £ in Millions, $ in Millions	Dec. 06, 2016USD ($)	Dec. 07, 2012USD ($)	Feb. 16, 2017USD ($)	Apr. 30, 2018USD ($)	Apr. 30, 2018EUR (€)	Apr. 30, 2018GBP (£)	Oct. 31, 2017USD ($)	Feb. 16, 2017CNY (¥)	Feb. 15, 2017CNY (¥)	Dec. 05, 2016USD ($)
Line of Credit Facility [Line Items]
Borrowings available under credit facility				$ 19.8
Letter of Credit [Member]
Line of Credit Facility [Line Items]
Line of credit, maximum borrowing capacity	$ 5
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of credit, maximum borrowing capacity	15									$ 12.5
Maximum dividends allowable	$ 5									4
Minimum working capital requirement										90
Minimum tangible net worth requirement										120
Line of Credit, interest rate description				Borrowings under our U.S. credit agreement bear interest either at a LIBOR-based rate or a floating rate, in each case with an interest rate floor of 0.00%. The floating rate equals the greatest of (a) a one month LIBOR-based rate plus 1.00% per annum, (b) the federal funds effective rate plus 0.50% per annum, (c) the prevailing prime rate and (d) 0.00%. The rate we must pay for that portion of the U.S. credit agreement which is not utilized is 0.05% per annum.
Line of credit, maturity date	Dec. 31, 2018
Allowable investments in subsidiaries		$ 5
Line Of Credit Facility Covenant Amount Maximum Working Capital										105
Line Of Credit Facility Covenant Amount Maximum Tangible Net Worth										$ 125
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			$ 3.2					¥ 20	¥ 40
Line of credit, maturity date			Feb. 13, 2019
Interest rate				4.70%	4.70%	4.70%	4.40%
Line of credit amount outstanding				$ 1.6			$ 1.5

INCOME TAXES (Narrative) (Detai

INCOME TAXES (Narrative) (Details) - USD ($)	3 Months Ended			6 Months Ended		12 Months Ended
	Apr. 30, 2018	Jan. 31, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017	Dec. 31, 2018	Dec. 31, 2017	Oct. 31, 2017
Income Tax Contingency [Line Items]
Unrecognized tax benefits, interest accrued	$ 75,000			$ 75,000
Effective Income Tax Rate Reconciliation, Percent, Total				48.00%	31.00%
Income Tax Expense (Benefit)	1,656,000		$ 1,467,000	$ 6,156,000	$ 2,010,000
Unrecognized Tax Benefits, Ending Balance	$ 1,200,000			1,200,000				$ 1,100,000
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent							35.00%
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount				2,500,000			$ 2,500,000
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount				$ 400,000
Increase (Decrease) in Income Taxes		$ 400,000
Increase Decrease In Net Deferred Tax Assets		$ 400,000
Scenario, Plan [Member]
Income Tax Contingency [Line Items]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent						21.00%

FINANCIAL INSTRUMENTS (Fair val

FINANCIAL INSTRUMENTS (Fair value hierarchy) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Apr. 30, 2018	Oct. 31, 2017
Level 1 [Member]
Assets
Deferred Compensation	$ 1,685	$ 1,638
Liabilities
Deferred Compensation	0	0
Level 2 [Member]
Assets
Derivatives	959	596
Liabilities
Derivatives	$ 1,877	$ 1,732

FINANCIAL INSTRUMENTS (Narrativ

FINANCIAL INSTRUMENTS (Narrative) (Details) - USD ($) $ in Millions	Apr. 30, 2018	Oct. 31, 2017
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notional amount of contracts	$ 156.5	$ 134.3