Financial Snapshot- Report on Hutchinson Technology Inc.

Jul 30, 2015, 09:40 ET from www.aciassociation.com

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: http://www.aciassociation.com/?c=HTCH

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: http://www.aciassociation.com/?c=HTCH

About ACI Association: 

Active Charter Investors Association ("ACI Association") produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. ACI Association has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

ACI Association has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:  

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer"). Rohit Tuli, a CFA® charter holder (the "CFA®"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on sound investment judgment and publicly available information which is believed to be reliable. The Reviewer and the CFA® have not performed any independent investigations or forensic audits to validate the information herein. Unless otherwise noted, any content outside of this document has no association with the Author, the Reviewer, or the CFA® (collectively referred to as the "Production Team") in any way. The Production Team is compensated on a fixed monthly basis and do not hold any positions of interest in any of the securities mentioned herein.

NO WARRANTY 

ACI Association, the Author, the Reviewer and the CFA® (collectively referred to as the "Publishers") are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted by the Publishers whatsoever for any direct, indirect or consequential loss arising from the use of this document. The Publishers expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, the Publishers do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING 

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither ACI Association nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.aciassociation.com/.

RESTRICTIONS 

ACI Association is not available to residents of Belarus, Cuba, Canada, Iran, North Korea, Sudan, Syria or Somalia. Do not send email to robottrap (at) aciassociation.com.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

 

SOURCE www.aciassociation.com