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Technology Stocks : Hutchinson Technology, Inc.

HTCH 4.000

0.0%

Oct 6 5:00 PM EST

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To: Tom Simpson who wrote (1415)	12/5/1999 9:47:00 AM
From: Z Analyzer	Read Replies (1) of 1487

<<If you look at what they reported re 2nd half 98 vs 1st half 99 they went from an ASP of .96 to 1.30.>> If you read the statement in the earnings press release you, suspensions as a percent of total revenue (they also do metal stamping) is down significantly which is what is throwing off your numbers. They also mention price erosion in suspensions. So no evidence here of wireless and nobody seems to believe they have qualified anywhere. "5. Review of the performance of the company and its principal subsidiaries Compared to the previous corresponding period, Group turnover at S$45.3 million was lower by 33.4% due primarily to a 51% decrease in the volume of suspension assemblies shipped, from 71 million to 35 million units. Net profit after tax and minority interest decreased 71.9% from S$15.6 million to S$4.4 million. The decline in Group turnover and pre-tax profit was due primarily to a weaker-than-anticipated demand and price erosion for conventional suspension. This softness could have been counter balanced by a greater demand for wireless suspensions. The industry, however, has slowed down the transition to wireless suspensions as a result of cost cutting measures associated with serving the lower cost segments of Hard Disk Drives. The Company's first quarter volumes were particularly hard hit due to the impact of a major customer building suspensions internally. This customer has since discontinued these operations. Second quarter volumes showed an improvement of 39% over the first quarter, but not enough to make up the difference and push volumes above the first half of 1998. The Group is currently in a positive net cash position."

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