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
TheStreet Open House

Hutchinson Technology Reports First Quarter Net Loss

TSA+ Efficiency Improves Significantly

Volume Ramp of Thailand Operations on Schedule

HUTCHINSON, Minn., Jan. 25, 2011 (GLOBE NEWSWIRE) -- Hutchinson Technology Incorporated (Nasdaq:HTCH) today reported a net loss of $17.0 million, or $0.73 per share, on net sales of $68.2 million for its fiscal 2011 first quarter ended December 26, 2010. In the preceding quarter, the company reported a net loss of $27.1 million, or $1.16 per share, on net sales of $74.0 million. Results for both the fiscal 2011 first quarter and the preceding quarter included $2.2 million, or $0.10 per share, of non-cash interest expense resulting from the company's adoption, at the beginning of fiscal 2010, of Financial Accounting Standards Board guidance for accounting for convertible debt instruments.

"The benefits of prior cost reductions and significant improvements in our TSA+ yield and output enabled us to reduce our first quarter loss compared with the preceding quarter," said Wayne Fortun, Hutchinson Technology's president and chief executive officer. "Our TSA+ yield and output improvements and the ramp to higher volume at our Thailand assembly operation are moving us toward our goal of being the lowest cost producer of suspension assemblies. These initiatives, combined with increasing our revenue through growth in the overall suspension assembly market and higher market share, are essential to returning the company to positive cash flow and profitability." 

The company's first quarter suspension assembly shipments declined 3.5 percent compared with the preceding quarter, in line with its previous guidance. "We believe that the first quarter will be the low point for our quarterly suspension assembly volume in fiscal 2011 and expect to see modest market share growth in the balance of the fiscal year," said Fortun. 

Fiscal 2011 first quarter gross profit increased to $3.3 million, as the company realized the benefits of its 2010 cost reduction actions and reduced its TSA+ cost burden to $3.1 million. Gross profit also improved due to better utilization of its component manufacturing capacity, as the company increased its TSA+ flexure inventory to provide supply assurance for its customers and increased component inventory to support the production ramp at its Thailand assembly operation. 

1 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
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 16,369.52 -10.89 -0.07%
S&P 500 1,898.49 +11.73 0.62%
NASDAQ 4,300.1760 +41.7380 0.98%

Brokerage Partners

Rates from Bankrate.com

  • 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