Financial Snapshot- Report on Hutchinson Technology Inc.

Jul 30, 2015, 09:40 ET from

NEW YORK, July 30, 2015 /PRNewswire/ --

ACI Association has initiated research coverage on Hutchinson Technology Inc. (NASDAQ: HTCH). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.

Today, membership is open to readers on a complementary basis at the following URL:

Highlights from our HTCH Report include:

  • Consensus Estimates - On July 16, 2015 Hutchinson Technology Inc., announced that the Company will be reporting its third quarter financial results on July 30, 2015, after the market close. Zacks puts the consensus estimate for Q3 FY15 EPS at ($0.31). The Wall Street Journal also has a consensus estimate showing that the Company would suffer a loss of 31 cents per share for Q3 FY15 with the estimate trend remaining unchanged for the past month and widening from the estimated loss of 21 cents per share three months back. During Q3 FY14, the Company had reported losses of 32 cents per share.  
  • Management Outlook - When the Company had announced its Q2 results on April 30, 2015, Rick Penn, the President and CEO of Hutchinson Technology had said that he sees the seasonal weakness experienced by the Company in the March quarter to continue in the June quarter. He had observed that the start to the June quarter had been extremely slow as customers had reacted to lower disk drive demand by reducing their build plans and their levels of suspension inventory. He had added that the Company thus expects, Q3 FY15, suspension assembly shipments to be down approximately 10% sequentially with the ASP at 58 to 59 cents per part and a sequential drop in the Company's gross margins on the back of drop in volumes.
  • Summary of the Previous Quarter Numbers - For Q2 FY15, the Company had reported a net loss of $9.7 million or a loss of 29 cents per share with the figure for net sales coming in at $62.4 million. The net loss included a non-cash interest expense of $0.43 million as well as a $0.14 million foreign currency gain. Gross profit for the second quarter was $6.3 million and amounted to 10% of sales.
  • Management Commentary on the Road Ahead: On the previous quarter results, Rick Penn had said that, the weakness in demand was disappointing, but consistent with seasonal demand and production in the disk drive industry. Outlining his view for the second half of the year he had commented that the Company expects higher volume due to increased worldwide suspension assembly demand and an improving position on customers' disk drive programs.

To find out how this influences our rating on Hutchinson Technology Inc. read the full report in its entirely here:

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