Hutchinson Technology Inc. (HTCH, Financial) filed Quarterly Report for the period ended 2010-03-28.
Hutchinson Technology Inc. has a market cap of $131.1 million; its shares were traded at around $5.61 with and P/S ratio of 0.3. HTCH is in the portfolios of Arnold Van Den Berg of Century Management, Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates, Steven Cohen of SAC Capital Advisors.
Gross profit for the thirteen weeks ended March 28, 2010, was $7,315,000, compared to gross loss of $11,774,000 for the thirteen weeks ended March 29, 2009, an improvement of $19,089,000. Gross profit as a percent of net sales was positive 8 percent and negative 15 percent, for the thirteen weeks ended March 28, 2010 and March 29, 2009, respectively. The higher gross profit was primarily due to the benefits of our 2009 restructuring and cost reduction actions. The TSA+ cost burden reduced gross profit by $7,900,000 for the thirteen weeks ended March 28, 2010, compared to $7,800,000 for the thirteen weeks ended March 29, 2009.
Net sales for the twenty-six weeks ended March 28, 2010, were $195,870,000, compared to $198,675,000 for the twenty-six weeks ended March 29, 2009, a decrease of $2,805,000. Suspension assembly sales decreased $2,521,000 from the twenty-six weeks ended March 29, 2009, primarily due to a decrease in our average selling price from $0.74 to $0.67 due to a competitive pricing environment. Net sales in our BioMeasurement Division for the twenty-six weeks ended March 28, 2010 were $1,196,000, compared to $723,000 for the twenty-six weeks ended March 29, 2009.
Our principal sources of liquidity are cash and cash equivalents, short-term investments, cash flow from operations and additional financing capacity, if available given current credit market conditions and our operating performance. Our cash and cash equivalents decreased from $106,391,000 at September 27, 2009, to $96,500,000 at March 28, 2010. Our short- and long-term investments decreased from $120,632,000 to $100,275,000 during the same period. In total, our cash and cash equivalents and short- and long-term investments decreased by $30,248,000. This decrease was primarily due to $47,477,000 used for the repayment of short- and long-term debt and $11,785,000 for capital expenditures. This decrease was partially offset by $31,356,000 of cash generated from operations.
Our ARS portfolio had an aggregate par value of $91,325,000 at September 27, 2009 and $65,025,000 at March 28, 2010. The reduction in par value was due to the sales and redemptions of portions of the ARS portfolio that we held. We determine the estimated fair value of our ARS portfolio each quarter. At September 27, 2009, we estimated the fair value of our ARS portfolio to be $90,244,000. At March 28, 2010, we estimated the fair value of our ARS portfolio to be $64,988,000. The decrease in fair value from September 27, 2009 to March 28, 2010, was primarily due to sales and redemptions for an aggregate of $26,300,000 par value of our ARS for $22,731,000 in cash. Our ARS portfolio consists primarily of AAA/Aaa-rated securities that are collateralized by student loans that are primarily 97% guaranteed by the U.S. government under the Federal Family Education Loan Program. None of our ARS portfolio consists of mortgage-backed obligations.
During the fourth quarter of 2009, we spent $19,987,000 to repurchase $27,500,000 par value of our 3.25% Notes on the open market using our available cash and cash equivalents, at an average discount to face value of approximately 27 percent. At the time of repurchase the notes had a book value of $23,139,000, which includes the par value of the notes, offset by the remaining debt discount of $4,361,000. We have $197,500,000 par value of the 3.25% Notes outstanding. Upon completion of the repurchases, the repurchased 3.25% Notes were cancelled. The resulting gain of $2,792,000 was included in our condensed consolidated financial statements unaudited.
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Hutchinson Technology Inc. has a market cap of $131.1 million; its shares were traded at around $5.61 with and P/S ratio of 0.3. HTCH is in the portfolios of Arnold Van Den Berg of Century Management, Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
Net sales for the thirteen weeks ended March 28, 2010, were $87,614,000, compared to $79,004,000 for the thirteen weeks ended March 29, 2009, an increase of $8,610,000. Suspension assembly sales increased $9,146,000 from the thirteen weeks ended March 29, 2009, primarily due to higher shipment volumes that were partially offset by a decrease in our average selling price from $0.71 to $0.66 due to a competitive pricing environment. Net sales in our BioMeasurement Division for the thirteen weeks ended March 28, 2010 were $687,000, compared to $458,000 for the thirteen weeks ended March 29, 2009.Gross profit for the thirteen weeks ended March 28, 2010, was $7,315,000, compared to gross loss of $11,774,000 for the thirteen weeks ended March 29, 2009, an improvement of $19,089,000. Gross profit as a percent of net sales was positive 8 percent and negative 15 percent, for the thirteen weeks ended March 28, 2010 and March 29, 2009, respectively. The higher gross profit was primarily due to the benefits of our 2009 restructuring and cost reduction actions. The TSA+ cost burden reduced gross profit by $7,900,000 for the thirteen weeks ended March 28, 2010, compared to $7,800,000 for the thirteen weeks ended March 29, 2009.
Net sales for the twenty-six weeks ended March 28, 2010, were $195,870,000, compared to $198,675,000 for the twenty-six weeks ended March 29, 2009, a decrease of $2,805,000. Suspension assembly sales decreased $2,521,000 from the twenty-six weeks ended March 29, 2009, primarily due to a decrease in our average selling price from $0.74 to $0.67 due to a competitive pricing environment. Net sales in our BioMeasurement Division for the twenty-six weeks ended March 28, 2010 were $1,196,000, compared to $723,000 for the twenty-six weeks ended March 29, 2009.
Our principal sources of liquidity are cash and cash equivalents, short-term investments, cash flow from operations and additional financing capacity, if available given current credit market conditions and our operating performance. Our cash and cash equivalents decreased from $106,391,000 at September 27, 2009, to $96,500,000 at March 28, 2010. Our short- and long-term investments decreased from $120,632,000 to $100,275,000 during the same period. In total, our cash and cash equivalents and short- and long-term investments decreased by $30,248,000. This decrease was primarily due to $47,477,000 used for the repayment of short- and long-term debt and $11,785,000 for capital expenditures. This decrease was partially offset by $31,356,000 of cash generated from operations.
Our ARS portfolio had an aggregate par value of $91,325,000 at September 27, 2009 and $65,025,000 at March 28, 2010. The reduction in par value was due to the sales and redemptions of portions of the ARS portfolio that we held. We determine the estimated fair value of our ARS portfolio each quarter. At September 27, 2009, we estimated the fair value of our ARS portfolio to be $90,244,000. At March 28, 2010, we estimated the fair value of our ARS portfolio to be $64,988,000. The decrease in fair value from September 27, 2009 to March 28, 2010, was primarily due to sales and redemptions for an aggregate of $26,300,000 par value of our ARS for $22,731,000 in cash. Our ARS portfolio consists primarily of AAA/Aaa-rated securities that are collateralized by student loans that are primarily 97% guaranteed by the U.S. government under the Federal Family Education Loan Program. None of our ARS portfolio consists of mortgage-backed obligations.
During the fourth quarter of 2009, we spent $19,987,000 to repurchase $27,500,000 par value of our 3.25% Notes on the open market using our available cash and cash equivalents, at an average discount to face value of approximately 27 percent. At the time of repurchase the notes had a book value of $23,139,000, which includes the par value of the notes, offset by the remaining debt discount of $4,361,000. We have $197,500,000 par value of the 3.25% Notes outstanding. Upon completion of the repurchases, the repurchased 3.25% Notes were cancelled. The resulting gain of $2,792,000 was included in our condensed consolidated financial statements unaudited.
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