This Day On The Street
Continue to site
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

Hutchinson Technology CEO Discusses F4Q2010 Results - Earnings Call Transcript

In our BioMeasurement Division planned cost reductions are nearly complete and we’ll substantially reduce the Division’s operating loss in fiscal 2011. The cost reductions in the BioMeasurement Division are part of our previously announced plan to further reduce our cost by $25 million on an annualized basis. These planned cost reductions are on track and will begin to benefit our results in the first quarter of fiscal 2011.

I’ll turn the call over to Kathleen now for an update on the Disk Drive Components Division.

Kathleen Skarvan

Thanks, Wayne. During our fiscal 2010 fourth quarter, we shipped 110.4 million suspensions, down 5% from 116.6 million in the preceding quarter and down 24% from $145.4 million in last year’s fourth quarter.

For the quarter our mix of product shipped was as follows. Suspensions for 3.5-inch ATA applications declined 5% sequentially and accounted for 53% of our shipments, flat from the preceding quarter.

Shipments for mobile applications declined 30% sequentially and accounted for 23% of our shipments, down from 31% of our shipments in the preceding quarter. Shipments for enterprise applications increased 43% and accounted for 24% of our shipments, up from 16% in the preceding quarter.

Average selling price in the fiscal 2010 fourth quarter was $0.66, up from $0.65 in the preceding quarter. The higher mix of shipments for enterprise applications offset continued pressure on prices. In last year’s fourth quarter, average selling price was $0.70.

Our fourth quarter suspension assembly shipments included $38 million TSA+ suspension assemblies or 34% of our volume. That’s up from $33 million or 28% of our volume in the preceding quarter and $18 million or 13% of our volume in the fiscal 2009 fourth quarter.

The cost burden related to TSA+ flexure production remained about flat at $7.6 million compared with $7.5 million in the preceding quarter. This is primarily due to the cost remediating the TSA+ defect; however, due to a resumption of yield improvements and higher output, the TSA+ cost burden decreased as we move through the quarter.

Read the rest of this transcript for free on

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.19 -1.04%
FB $118.06 0.54%
GOOG $695.70 0.48%
TSLA $222.56 -4.20%
YHOO $36.00 -0.03%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs