Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Hutchinson Technology, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Z Analyzer who wrote (1416)	12/5/1999 5:04:00 PM
From: Tom Simpson	Read Replies (2) \| Respond to of 1487

Z..... Following is the text in the lower half of their release that I was trying to decipher. In 5 they imply that price erosion was LIMITED to conventional and they just didn't have demand for enough wireless units to offset that. Then the further complaint about the "lower cost" segment suggests to me that their conventional ASP is likely down below 50 cents. Be nicer if they just gave the units like HTCH does so we can dispense with tea leave reading :o) I don't see where they give suspensions as a percent of total revenue....??? Tom PS....is that 18% for NHK units or revenue? 5. Review of the performance of the company and its principal subsidiaries 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. 6. Commentary on current year prospects Quarter to quarter volumes continue to improve, but overall volumes for 1999 are likely to be below original expectations as demand continues to be soft. Price erosion and the conventional/wireless product mix will continue to add to this uncertainty. For these reasons, the Directors expect that the full year 1999 results will be below those of 1998.