Hutchinson Technology Reports Preliminary Second Quarter Results
April 01 2015 - 4:01PM
Hutchinson Technology Incorporated (Nasdaq:HTCH) today reported
preliminary results for its fiscal 2015 second quarter ended March
29, 2015. The company shipped approximately 101 million suspension
assemblies in the fiscal 2015 second quarter, down 17% from 121.7
million in the preceding quarter. Rick Penn, Hutchinson
Technology's president and chief executive officer, said that
demand was below the company's expectations due to weakness in the
personal computer market. "Cloud and hyperscale applications are
expected to provide future growth for suspension assembly demand,
but our current demand is still heavily weighted to PC
applications," said Penn. Net sales for the quarter totaled
approximately $62 million, compared with $72.4 million in the
preceding quarter. Average selling price was $0.59, compared to
$0.58 in the preceding quarter.
Regarding the company's optical image stabilization (OIS)
actuator, Penn said that the company continues to focus on
optimizing manufacturing processes and refining product designs.
"As we work to win new programs, customer interest in our shape
memory alloy (SMA) technology is encouraging," said Penn. "The
smartphone camera market is in the early phases of adopting OIS
technology, and as we've stated previously, we are still in the
initial stages of developing this new opportunity."
Unrestricted cash totaled $42.6 million at the end of the fiscal
2015 second quarter, compared to $33.6 million at the end of the
preceding quarter. During the second quarter, $7.5 million of
cash that was previously restricted in use became available to the
company as unrestricted cash after the expiration of a 120-day put
option for certain holders of its 8.50% Convertible Senior Notes
due 2019.
The company will provide further details in its second quarter
results announcement and conference call.
About Hutchinson Technology
Hutchinson Technology is a global supplier of critical precision
component technologies. As a key supplier of suspension
assemblies for disk drives, we help customers improve overall disk
drive performance and meet the demands of an ever-expanding digital
universe. Through our new business development initiatives, we
focus on leveraging our unique precision manufacturing capabilities
in new markets to improve product performance, reduce size, lower
cost, and reduce time to market.
Cautionary Note Regarding Forward-Looking
Statements
This announcement contains forward-looking statements regarding
demand for and shipments of suspension assemblies and market
adoption and production of OIS actuators. The company does not
undertake to update its forward-looking statements. 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 customers yields, changes in storage capacity
requirements, changes in expected data density, changes in the
company's ability to operate its assembly operation in Thailand and
other factors described from time to time in the company's reports
filed with the Securities and Exchange Commission.
CONTACT: INVESTOR CONTACT:
Chuck Ives
Hutchinson Technology Inc.
320-587-1605
MEDIA CONTACT:
Connie Pautz
Hutchinson Technology Inc.
320-587-1823
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