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Hutchinson Technology Reports First Quarter Results

Stocks in this article: HTCH

HUTCHINSON, Minn., Jan. 29, 2013 (GLOBE NEWSWIRE) -- Hutchinson Technology Incorporated (Nasdaq:HTCH) today reported a net loss of $6.5 million, or $0.27 per share, on net sales of $63.7 million for its fiscal 2013 first quarter ended December 30, 2012. Results for the quarter included $1.0 million of severance costs and $1.0 million of non-cash interest expense. Excluding these items, the company's first quarter net loss was $4.5 million, or $0.19 per share.

In the preceding quarter, the company reported a net loss of $14.7 million, or $0.62 per share, on net sales of $63.6 million. Excluding certain items, the non-GAAP net loss in the preceding quarter was $13.0 million, or $0.54 per share. A detailed reconciliation of GAAP to non-GAAP results is provided in the accompanying financial statements.

The company's suspension assembly shipments totaled 103.6 million in the 13-week fiscal 2013 first quarter, up 6% on a weekly shipment basis compared with 105.2 million in the 14-week fiscal 2012 fourth quarter.  "As in the preceding quarter, our shipments benefited from our market share positions on both existing and new customer programs even as worldwide disk drive and suspension assembly demand remained soft," said Rick Penn, Hutchinson Technology's president and chief executive officer.  

Average selling price in the fiscal 2013 first quarter was $0.60, up from $0.58 in the preceding quarter, due to a higher mix of both development and high volume dual-stage actuated (DSA) suspensions and suspensions for enterprise applications. DSA suspensions, which carry a higher selling price and cost more to manufacture, increased to 9% of the company's first quarter product mix from 5% in the preceding quarter.  The company expects its product mix to continue to shift toward DSA suspensions throughout fiscal 2013.

Gross profit in the fiscal 2013 first quarter was $7.4 million, or 11.6% of net sales, compared with a gross loss of $0.2 million in the preceding quarter.  Compared with the fiscal 2012 fourth quarter, gross profit benefited from improved absorption of fixed costs due to higher weekly volume, continued efforts to reduce costs, increased shipments of higher-priced development products and increased scrap recoveries.

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