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's CEO Discusses F3Q2012 Results - Earnings Call Transcript

I’ll turn the call over to Rick now for a recap of the Disk Drive Components Division's third quarter.

Rick Penn

Thanks, Wayne. During our fiscal 2012 third quarter, we shipped 100.1 million suspension assemblies, an increase of 3% from 96.9 million suspension assemblies in the preceding quarter, but short of our initial expectations which were for shipment of about 105 million to 115 million.

All of the volume increase in the fiscal third quarter was attributable to growth in shipments of suspensions for 3.5-inch ATA applications. Shipments of suspensions for mobile and enterprise applications declined compared to the preceding quarter.

For the fiscal 2012 third quarter, our mix of products shipped was as follows. Suspensions for 3.5-inch ATA applications increased 31% sequentially and accounted for 42% of our shipments, up from 33% in the preceding quarter.

Shipments for mobile applications declined 9% sequentially and accounted for 37% of our shipments, compared with 42% in the preceding quarter. And then shipments for enterprise applications declined 13% sequentially and accounted for 21% of our shipments, compared with 25% in the preceding quarter.

Our average selling price in the third quarter was $0.58, down from $0.63 in the preceding quarter. The decline primarily reflects a comparison to a second quarter ASP that benefited from a higher volume of development products for new disk drive programs.

Also contributing to the decline in AFP was the shift in product mix towards suspension assemblies for 3.5-inch ATA applications. We had anticipated that this mix shift would occur, as the industry supply chain continue to recover from last year’s flooding.

TSA+ suspensions accounted for 70% of our third quarter shipments, up from 55% in the preceding quarter. As a result of this shift to a higher mix of TSA+ and our improving TSA+ costs, our variable cost per part declined. The migration towards TSA+ should continue and we expect TSA+ suspensions to account for more than 80% of our volume by the end of the fiscal year.

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 $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs