Tom et al: Here is the HTCH release. Note that they are presenting at the Needham Growth Conference this afternoon.
Live webcast link at their homepage.
FOR IMMEDIATE RELEASE
MEDIA CONTACT: INVESTOR CONTACT:
Connie Pautz Darlene
Polzin
Corporate Communications Director Investor
Relations Director
Hutchinson Technology Hutchinson
Technology
320-587-1823 320-587-1605
HUTCHINSON TECHNOLOGY EXPECTS FIRST QUARTER EARNINGS
TO REACH HIGH END OF PRIOR GUIDANCE
Company Now Expects Similar Unit Volume in Fiscal Second Quarter
HUTCHINSON, Minn., January 6, 2003 --- Hutchinson Technology Incorporated
(Nasdaq/NMS: HTCH) today stated that it now expects net income per diluted
share to reach the high end of the $0.50 to $0.65 range the company
previously forecast for its fiscal 2003 first quarter, which ended
December 29, 2002. The company also said that based on recent order
trends, it currently expects its shipments of suspension assemblies during
its fiscal second quarter will be similar to the fiscal first quarter
volume of approximately 135 million units. This should result in fiscal
2003 second quarter financial performance similar to fiscal 2003's first
quarter. The company noted that its outlook for the second half of fiscal
2003 has also recently improved. Suspension assembly shipments for the
second half are now expected to total 240 to 250 million units. This
forecasted volume assumes that recent levels of demand and market share
continue, but that customers improve their yields from current rates. Some
customers are experiencing lower yields as they transition to higher
density recording heads resulting in temporarily high levels of suspension
assembly consumption. Hutchinson Technology plans to report results for
its fiscal 2003 first quarter on Tuesday, January 21, after market close
and will provide further information on its outlook for the second quarter
and full year at that time.
Wayne M. Fortun, Hutchinson Technology's president and chief
executive officer, attributed the recent increases in volume to an overall
increase in demand, market share gains and the previously mentioned
temporarily high levels of suspension assembly consumption resulting from
the lower yields some customers are experiencing. "Our customers cannot
fully test a recording head's functionality until it is affixed to a
suspension assembly. If the recording head does not function properly, it
may not be possible to salvage and reuse the suspension assembly," Fortun
explained.
The company estimated that its market share in the fiscal 2003
first quarter was approximately 65 percent, up from an estimated 50
percent in the fiscal 2002 first quarter. Fortun said the market share
gains result from the broadening use of the company's TSA suspension
assembly platform in the disk drive industry and to Hutchinson
Technology's ability to produce TSA suspensions at levels of precision,
quality, volume and cost that the company's competitors find difficult to
match. "TSA suspensions have become the industry's preferred suspension
assembly technology and we are the leading provider," said Fortun.
Hutchinson Technology is the leading worldwide supplier of suspension
assemblies for disk drives. Hutchinson Technology's BioMeasurement
Division provides health professionals with simple, accurate methods to
measure the oxygen in tissue.
This announcement contains forward-looking statements regarding the
company's execution on program ramps and volume production, results of
operations and expected volume levels. 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 demand, fluctuating order rates, its ability to produce
suspension assemblies at higher demand levels, difficulties in managing
capacity, changes in manufacturing efficiencies and other factors
described from time to time in the company's reports filed with the
Securities and Exchange Commission.
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