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Hutchinson Technology's CEO Discusses F2Q 2011 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 non-public information through any other means.

We issued our second quarter results announcement just after the market closed this afternoon and it is now posted on our website 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. As you know, in early March, we announced a manufacturing consolidation and restructuring plan. The actions we are taking under this plan combined with the cost reductions achieved through our TSA+ and Thailand assembly initiatives should position us as the industry’s lowest cost producer of suspension assemblies and strengthen our competitive position.

Under the plan, which we are implanting over the next nine months, we are consolidating our Hutchinson component operations into our Eau Claire operations and resizing the company to reduced costs and improved cash flow. Our Hutchinson site will remain our headquarters in center for research and development and other specialized operations. In addition to these structural changes in our business, operating efficiency improvements are contributing to the progress we’re making in reducing our cost structure.

For example, during our second quarter, we continued to improve both yields and outputs for our TSA+ suspension assemblies and to reduce our TSA+ cost per part. We are also steadily increasing volume at our assembly operation in Thailand, enabling us to lower our global cost structure. As a part of our restructuring plan, we are also minimizing the cost in our BioMeasurement Division, as we shift more of our sales to a distribution model and focus on two initiatives we believe can improve the Division’s revenue growth and shareholder value.

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