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Hutchinson Technology Inc. Reports Operating Results (10-Q)

January 27, 2012 | About:

10qk

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Hutchinson Technology Inc. (HTCH) filed Quarterly Report for the period ended 2011-12-25.

Hutchinson Technology Inc. has a market cap of $34.1 million; its shares were traded at around $1.57 with and P/S ratio of 0.1.

Highlight of Business Operations:

We expect gross profit to improve as our shipment volume increases. We expect cost of goods sold to include quarterly costs of approximately $2,000,000, compared to approximately $1,000,000 in the first quarter of 2012, while we are reliant on our U.S. assembly operations for the majority of our production. These costs will continue until our Thailand operation resumes production and will then decrease as production ramps to pre-flood output levels, expected by the middle of 2013.

Net sales for the thirteen weeks ended December 25, 2011, were $58,475,000, compared to $68,244,000 for the thirteen weeks ended December 26, 2010, a decrease of $9,769,000. Suspension assembly sales decreased $12,229,000 from the thirteen weeks ended December 26, 2010, primarily as a result of the flood-related capacity constraints at our customers. Our average selling price decreased to $0.60, compared to $0.62 for the first quarter of 2011, due to competitive pressures that were partially offset by a favorable change in our product mix as a result of the flood-related capacity constraints at our customers. Net sales in our BioMeasurement Division for the thirteen weeks ended December 25, 2011 were $416,000, compared to $542,000 for the thirteen weeks ended December 26, 2010.

Gross profit for the thirteen weeks ended December 25, 2011, was $2,301,000, compared to gross profit of $3,324,000 for the thirteen weeks ended December 26, 2010, a decrease of $1,023,000. Gross profit as a percent of net sales was four percent and five percent for the thirteen weeks ended December 25, 2011, and December 26, 2010, respectively. The lower gross profit was primarily due to reduced net sales, as well as a lower mix of TSA+ products and approximately $1,000,000 of incremental costs of manufacturing in our U.S. assembly operations instead of in Thailand, partially offset by cost savings as a result of our 2011 consolidation and restructuring plan.

Read the The complete Report

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