This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Hutchinson Technology Reports Fourth Quarter Loss On Reduced Volume

In the fiscal 2010 fourth quarter, the company's cash used by operations was $19.2 million, capital expenditures totaled $9.8 million and the company repaid the remaining $34 million balance on the loan obtained against its portfolio of auction rate securities. All of the company's remaining auction rate securities were put back to UBS at par value during the quarter, under the terms of a previous agreement. The company's cash and investments balance at quarter end totaled $104.5 million. The company said that it expects its fiscal 2011 capital expenditures to be $20 million to $25 million, compared to $32 million for fiscal 2010.

Disk Drive Components Division

The company shipped 110.4 million suspension assemblies in the fiscal 2010 fourth quarter, down from 116.6 million in the preceding quarter and 145.4 million in the fiscal 2009 fourth quarter. Compared with the preceding quarter, shipments for mobile and 3.5-inch ATA applications declined while shipments for enterprise applications increased.

The higher mix of shipments for enterprise applications mitigated continued pressure on prices. As a result, average selling price in the fourth quarter was 66 cents, up from 65 cents in the preceding quarter. Average selling price in the fiscal 2009 fourth quarter was 70 cents.

The company shipped 38 million TSA+ suspensions in the fiscal 2010 fourth quarter, up from 33 million in the preceding quarter and 18 million in the fiscal 2009 fourth quarter. Kathleen Skarvan, president of the Disk Drive Components Division, said that the cost burden of TSA+ flexure production in the fourth quarter remained about flat with the preceding quarter at $7.6 million primarily due to the costs of remediating the TSA+ defect. "However, due to a resumption of yield improvements and higher output, the cost burden decreased as we moved through the quarter," said Skarvan. "We are still targeting elimination of the cost burden in the first half of fiscal 2011, after which we will begin to realize a competitive cost advantage." The company's overall cost position is expected to further improve as its Thailand assembly operations ramp to higher volume.

2 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs