The earning report:
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FREMONT, CALIF.--(BUSINESS WIRE)--Oct. 21, 1996-- HMT Technology Corp announced
financial results for the second quarter of fiscal 1997 ended Sept. 30, 1996.
Net sales for the second quarter of fiscal 1997 were $62.1 million, up 40 percent from the $44.4
million reported in the same quarter a year ago and compared with $76.4 million in the first quarter
of fiscal 1997. Gross margins improved to 43.0 percent compared with 38.8 percent in the second
quarter of fiscal 1996 and 42.4 percent in the first quarter of fiscal 1997, reflecting continuing
manufacturing efficiencies and improved cost reduction measures.
Net income available for common stockholders for the second quarter of fiscal 1997 was $16.6
million, or $0.38 per share on 44.2 million shares outstanding, up 35 percent from the $12.3 million
reported in the second quarter of fiscal 1996, and compared with $15.9 million in the first quarter of
fiscal 1997. Net income in the second quarter of fiscal 1997 reflects a long-term reduction of 8
percent in the company's effective tax rate as well as a one-time tax benefit of approximately $2.6
million or $0.06 per share.
For the six months ended September 30, 1996, net sales, net income available for common
stockholders and net income available for common stockholders per share were $138.5 million,
$32.5 million and $0.74 per share on 44.1 million shares outstanding, respectively. This compares
with net sales, net income available for common stockholders and net income available for common
stockholders per share of $73.0 million, $14.9 million and $0.43 per share on 34.8 million shares
outstanding, respectively, for the six months ended September 30, 1995.
"We are very proud of the leadership that we have demonstrated in the industry for technology,
quality and cost," said Ronald Schauer, HMT's chairman and chief executive officer. "We expect to
continue expanding our manufacturing facilities throughout fiscal 1997 to meet our customers'
demand for high performance thin-film media, in particular, our 2200 Oe media supporting greater
than 1 GB capacity per platter for Proximity inductive and MR technologies."
The statements in this news release, other than the historical financial information, may contain
forward-looking statements that involve risks and uncertainties that could cause actual results to
differ from predicted results. Further information on factors that could affect the company's results
is detailed in the company's report on Form 10-K for the year ended March 31, 1996 and report on
Form 10-Q for the period ended June 30, 1996, as filed with the Securities and Exchange
Commission. The company undertakes no obligation to publicly release the result of any revisions to
these forward-looking statements.
HMT Technology Corporation independently designs, develops, manufactures and markets
high-performance thin-film disks. The company's products are used in high-capacity hard disk
drives for a variety of high-end applications including personal computers, network servers and
workstations. The disks currently being shipped by HMT all have coercivity levels of 1900 to 2200
Oersted, a measure of storage capacity, and glide heights of 1.5 to 1.2 microinches. The company's
shares are traded on the Nasdaq National Market under the symbol HMTT.
HMT Technology Corporation
Consolidated Statement of Operations
(in thousands, except per share amounts and percentages)
(Unaudited)
Three Months Ended Six Months Ended
Sept. 30, Sept. 30,
1996 1995 1996 1995
Net sales $62,080 $44,422 $138,500 $73,011
Cost of sales 35,363 27,207 79,377 49,178
Gross profit 26,717 17,215 59,123 23,833
Gross profit
percentage 43.0% 38.8% 42.7% 32.6%
Operating expenses:
Research and
Development 1,405 898 2,665 1,686
Selling, General and
Administrative 2,604 1,520 5,640 2,921
Total operating
expenses 4,009 2,418 8,305 4,607
Operating income (loss) 22,708 14,797 50,818 19,226
Interest expense and
other, net 1,365 1,840 2,413 3,579
Income (loss) before
income tax provision 21,343 12,957 48,405 15,647
Income tax provision 3,842 637 14,126 760
Net income 17,501 12,320 34,279 14,887
Accretion for dividends on
Mandatorily Redeemable
Series A Preferred Stock (896) -- (1,779) --
Net income (loss) available
for common stockholders $16,605 $12,320 $32,500 $14,887
Net income (loss) available
for common stockholders
per share $ 0.38 $ 0.35 $ 0.74 $ 0.43
Shares used in computing
net income (loss)
per share 44,205 34,822 44,110 34,822
HMT Technology Corporation
Consolidated Balance Sheet
(in thousands)
Sept. 30, March 31,
1996 (a) 1996 (b)
ASSETS
Cash and cash equivalents $5,156 $35,843
Accounts receivable 48,093 31,427
Inventories 14,624 7,129
Other current assets 5,766 5,907
Property, plant & equipment, net 126,755 79,128
Other assets 6,157 6,352
TOTAL ASSETS $206,551 $165,786
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 29,291 $34,407
Subordinated promissory notes
payable to stockholders 47,000 47,000
Obligations under capital leases,
net of current portion 3,932 4,698
Mandatorily Redeemable Series A
Preferred Stock 61,936 60,157
Total stockholders' equity 64,392 19,524
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $206,551 $165,786
(a) Unaudited
(b) The Balance Sheet as of March 31, 1996 has been derived from
the Audited Financial Statements. |
