Storage Technology

Hutchinson Technology Incorporated

The Company

Hutchinson Technology is the world's leading supplier of suspension assemblies for rigid disk drives, with approximately 70% of the market for these devices. Suspension assemblies are essentially very precise metal springs that hold the recording head at a microscopic distance above the drives spinning magnetic disk. HTCH shipped 539 million suspension assemblies in 1996 to almost all the major disk drive and recording head manufacturers. Significant customers include the big three: Seagate, Quantum & Western Digital, as well as Applied Magnetics, Read-Rite, IBM & Toshiba. Revenue and Earnings accelerated into the first quarter of 1997 (more than doubling Street expectations) after a strong fiscal 1996 showing.

Latest Financials

Hutchinson Technology reported net income of $16,683,000, or $.91 per share, on net sales of $124,259,000 for its fiscal second quarter ended March 30, 1997. In the comparable fiscal 1996 quarter, the company reported net income of $4,332,000, or $.26 per share, on net sales of $86,546,000. For the six months ended March 30, 1997, the company reported net income of $27,800,000, or $1.57 per share, on net sales of $231,165,000 compared to net income of $7,194,000, or $.43 per share, on net sales of $169,878,000 in the comparable fiscal 1996 period. Results for the first six months of the prior fiscal year include a $.23 per share charge against earnings reflecting recognition of fixed commitments to IBM under a technology sharing agreement. 
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