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

Cautionary Note Regarding Forward-Looking Statements

This announcement contains forward-looking statements, including statements regarding demand for and shipments of the company's products, market position, pricing, production capability and costs, assembly operations in Thailand, capital expenditures, cost reductions, product commercialization and adoption, operating performance and financial results. Except as otherwise required by law, the company does not undertake to update its forward-looking statements for any reason. These statements involve risks and uncertainties. The company's actual results could differ materially from those anticipated in these forward-looking statements as a result of changes in market demand and market consumption of disk drives or suspension assemblies, changes in demand for our products, market acceptance of new products, the company's ability to produce suspension assemblies at levels of precision, quality, volume and cost its customers require, changes in product mix, changes in customers yields, changes in storage capacity requirements, changes in expected data density, changes in the company's ability to ramp an assembly operation in Thailand, changes in the company's ability to reduce costs and other factors described from time to time in the company's reports filed with the Securities and Exchange Commission.

     
Hutchinson Technology Incorporated
Condensed Consolidated Statements of Operations - Unaudited
(In thousands, except per share data)
     
  Thirteen Weeks Ended
  December 26, December 27,
  2010 2009
     
Net sales  $ 68,244  $ 108,256
     
Cost of sales 64,920 87,479
     
Gross profit 3,324 20,777
     
Research and development expenses 4,049 5,147
     
Selling, general and    
administrative expenses 13,634 12,501
     
(Loss) income from operations (14,359) 3,129
     
Interest expense (3,844) (4,197)
     
Interest income 55 409
     
Gain on extinguishment of debt  --   5
     
Other income, net 831 558
     
Gain on short- and long-term investments 364 64
     
Loss before income taxes (16,953) (32)
     
Benefit for income taxes (3) (2,252)
     
Net (loss) income  $ (16,950)  $ 2,220
     
Basic (loss) earnings per share  $ (0.73)  $ 0.10
     
Diluted (loss) earnings per share  $ (0.73)  $ 0.09
     
Weighted-average common    
shares outstanding 23,371 23,359
     
Weighted-average common    
and diluted shares outstanding 23,371 23,609
     
     
Hutchinson Technology Incorporated
Condensed Consolidated Balance Sheets - Unaudited
(In thousands, except shares data)
     
  December 26, September 26,
ASSETS 2010 2010
Current assets:    
Cash and cash equivalents  $ 64,904  $ 55,639
Short-term investments 36,278 48,899
Trade receivables, net 40,301 47,629
Other receivables 6,558 7,849
Inventories 60,841 53,568
Other current assets 1,815 2,353
Total current assets 210,697 215,937
Property, plant and equipment, net 250,032 258,233
Other assets 5,351 5,542
   $ 466,080  $ 479,712
     
LIABILITIES AND SHAREHOLDERS' INVESTMENT  
Current liabilities:    
Current maturities of long-term debt  $ 876  $ 1,280
Accounts payable 17,407 15,788
Accrued expenses 8,239 8,593
Accrued compensation 11,810 12,911
Total current liabilities 38,332 38,572
Long-term debt, less current maturities 190 271
Convertible subordinated notes 177,158 174,920
Other long-term liabilities 1,721 1,271
Shareholders' equity:    
Common stock $.01 par value, 100,000,000 shares  
 authorized, 23,371,000 and 23,371,000    
 issued and outstanding 234 234
Additional paid-in capital 422,839 422,089
Accumulated other comprehensive income 1,077 876
Accumulated loss (175,471) (158,521)
Total shareholders' equity 248,679 264,678
   $ 466,080  $ 479,712
     
     
Hutchinson Technology Incorporated
Condensed Consolidated Statements of Cash Flows - Unaudited
(Dollars in thousands)
     
  Thirteen Weeks Ended
  December 26, December 27,
  2010 2009
Operating activities:    
Net (loss) income  $ (16,950)  $ 2,220
Adjustments to reconcile net income (loss) to    
 cash provided by operating activities:    
Depreciation and amortization 11,797 14,836
Stock-based compensation 750 997
Non-cash interest expense  2,238  2,051
Gain on short- and long-term investments  (364)  (64)
Loss on disposal of assets 227 147
Severance and other expenses  290  --
Gain on extinguishment of debt  -- (5)
Changes in operating assets and liabilities 3,416 3,798
 Cash provided by operating activities 1,404 23,980
     
Investing activities:    
Capital expenditures (4,686) (4,098)
Purchases of marketable securities (5,700) (11,629)
Sales/maturities of marketable securities 18,732 9,077
 Cash provided by (used for) investing activities 8,346 (6,650)
     
Financing activities:    
Repayments of long-term debt  (485)  (5,260)
 Cash used for financing activities (485) (5,260)
     
Net increase in cash and cash equivalents 9,265 12,070
     
Cash and cash equivalents at beginning of period 55,639 106,391
     
Cash and cash equivalents at end of period  $ 64,904  $ 118,461
     
     
Hutchinson Technology Incorporated
Earnings Per Share Calculation - Unaudited
(In thousands, except per share data)
     
  Thirteen Weeks Ended
  December 26, December 27,
  2010 2009
     
Net (loss) income (A)  $ (16,950)  $ 2,220
     
Weighted average common shares outstanding (B) 23,371 23,359
Dilutive potential common shares  -- 250
Weighted average common and diluted shares    
outstanding (C) 23,371 23,609
     
Basic (loss) earnings per share [(A)/(B)]  $ (0.73)  $ 0.10
Diluted (loss) earnings per share [(A)/(C)]  $ (0.73)  $ 0.09
     
CONTACT: Investor Contact:
         Chuck Ives
         Hutchinson Technology Inc.
         320-587-1605
         
         Media Contact:
         Connie Pautz
         Hutchinson Technology Inc.
         320-587-1823

Hutchinson Technology Incorporated Logo

5 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 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7870 -13.6380 -0.30%

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