Here it is:
Company Press Release
SOURCE: Hutchinson Technology, Inc.
Hutchinson Technology Reports Third Quarter Results
HUTCHINSON, Minn., July 20 /PRNewswire/ -- Hutchinson Technology Incorporated (Nasdaq: HTCH - news) today reported a net loss of $5,494,000, or $.22 per diluted share, on net sales of $131,257,000 for its fiscal third quarter ended June 27, 1999. In the comparable fiscal 1998 period, the company reported a net loss of $9,250,000 or $.47 per diluted share, on net sales of $107,127,000.
For the nine months ended June 27, 1999, Hutchinson Technology reported net income of $19,787,000 or $.88 per diluted share, on net sales of $438,898,000. In the comparable fiscal 1998 period, the company reported a net loss of $35,149,000, or $1.79 per diluted share, on net sales of $291,237,000.
Wayne M. Fortun, Hutchinson Technology president and chief executive officer, attributed the third quarter loss to an anticipated reduction in average selling prices for the company's suspension assemblies compounded by lower TSA shipments as a result of a temporary decline in TSA demand during the quarter. ''As we noted in late June, while demand began to improve in the latter part of the quarter, the increases did not materialize as quickly as we had expected,'' said Fortun. ''We continue to expect TSA suspensions to account for an increasingly greater share of our shipments based on recent design wins and ongoing development programs with current customers.''
Fortun noted that while fiscal third quarter shipments of suspension assemblies were nearly equal to the fiscal 1999 second quarter shipments (147 million compared to 149 million), the overall average selling price of the company's products was considerably lower in the third quarter than in the second. ''The decline in third quarter average selling prices resulted from anticipated reductions in TSA prices coupled with a lower than expected percentage of TSA products in total suspensions shipped during the quarter,'' said Fortun. The company shipped 56 million TSA suspensions in its fiscal 1999 third quarter, representing 60% of net sales, compared to 60 million TSA suspensions in the fiscal 1999 second quarter and 25 million in the fiscal 1998 third quarter.
Looking ahead, Fortun said suspension assembly demand remains soft, with limited visibility. ''We currently expect fourth quarter shipment levels to be up slightly from the 1999 third quarter,'' said Fortun. Fortun added that the company currently expects to reduce its planned fiscal 1999 capital spending from $150 million to $115 million as a result of TSA productivity improvements and the temporary decline in TSA demand.
Hutchinson Technology is the leading worldwide supplier of suspension assemblies for disk drives.
This announcement contains forward-looking statements regarding demand for the company's products, manufacturing capacity and capital spending. 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 fluctuating order rates, slower or faster customer acceptance of its new products, difficulties in expanding capacity, changes in manufacturing efficiencies and the other factors described from time to time in the company's reports filed with the Securities and Exchange Commission.
- financial data follows -
Hutchinson Technology Incorporated
(Nasdaq/NMS: HTCH - news)
Third Quarter Ended
June 27, 1999 June 28, 1998
Net sales $131,257,000 $107,127,000
Gross profit (loss) $9,393,000 $1,655,000
Income (loss) from operations $(7,520,000) $(12,586,000)
Net income (loss) $(5,494,000) $(9,250,000)
Net income (loss) per share $(.22) $(.47)
Net income (loss) per share -
assuming dilution $(.22) $(.47)
Weighted average common and common
equivalent shares outstanding 24,650,000 19,755,000
assuming dilution 24,650,000 19,755,000
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