Hutchinson Technology CEO Discusses F4Q2010 Results - Earnings Call Transcript
These forward-looking statements involve risks and uncertainties as they are based on our current expectations. Our actual results could differ materially as a result of several factors that are described in our periodic reports on file with the SEC.
In connection with the adoption of SEC rules governing fair disclosure, the company provides financial information and projections only through means that are designed to provide broad distribution of the information to the public. The company will not make projections or provide material nonpublic information through any other means.
We issued our fourth quarter results announcement just after the market closed this afternoon, and it is now posted on our Web site at www.htch.com.
I’ll turn the call over to Wayne now for his opening remarks.Wayne Fortun Thanks, Chuck. Good afternoon, everyone and thank you for joining us today. Our shipments of suspension assemblies in fiscal fourth quarter declined about 5% compared with the preceding quarter, in line with our expectations. Inventory reductions at a certain customer reduced our shipments and as we have previously indicated would occur, our fourth quarter volume was negatively impacted by a defect that we encountered on some of our TSA+ products late in the third quarter. We have implemented and validated the solution for this defect and as a result, our TSA+ output and yield now exceed our previous highs. To return to a positive cash generation and profitability, we must increase revenues through volume growth in our Disk Drive Component Division. The growth will come through capturing overall market growth and through market share growth. To enhance our ability to compete for suspension assembly market share, we will build on the strengths of our vertically integrated model. It could be the industry’s lowest cost producer. To achieve that goal, we will continue to improve our TSA+ production efficiency while ramping up assembly operations at our facility in Thailand which is now shipping product for customer qualification.
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