<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 21, 1998
Hutchinson Technology Incorporated
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(Exact name of registrant as specified in its charter)
Minnesota 0-14709 41-0901840
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(State or other jurisdiction of (Commission File (I.R.S. Employer
incorporation or organization) Number) Identification No.)
40 West Highland Park
Hutchinson, Minnesota 55350 (320) 587-3797
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(Address of principal (Zip Code) (Registrant's telephone
executive offices) number, including area code)
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Item 7. FINANCIAL STATEMENTS AND EXHIBITS
Exhibits:
99.1 Press release relating to second fiscal quarter earnings.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: April 30, 1998
HUTCHINSON TECHNOLOGY INCORPORATED
Registrant
By /s/ John A. Ingleman
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Its Chief Financial Officer
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<PAGE>
INDEX TO EXHIBITS
Exhibit Description Method of Filing
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99.1 Press release relating to second fiscal Electronic Transmission
quarter earnings
<PAGE>
EXHIBIT 99.1
FOR: MEDIA CONTACT:
John Ingleman Todd Bradley
Chief Financial Officer Investor Relations
320-587-3797 320-587-1605
HUTCHINSON TECHNOLOGY REPORTS
SECOND QUARTER RESULTS
HUTCHINSON, Minn., April 21, 1998-Hutchinson Technology Incorporated
(Nasdaq/NMS: HTCH) today reported a net loss of $14,425,000, or $.73 per
diluted share, on net sales of $95,128,000 for its fiscal second quarter ended
March 29, 1998. In its fiscal 1997 second quarter, the company reported net
income of $16,683,000, or $.91 per diluted share, on net sales of $124,259,000.
For the six months ended March 29, 1998, Hutchinson Technology reported a
net loss of $25,899,000, or $1.32 per diluted share, on net sales of
$184,110,000 compared to net income of $27,800,000, or $1.57 per diluted share,
on net sales of $231,165,000 in the first six months of the prior fiscal year.
Wayne M. Fortun, Hutchinson Technology's president and chief executive
officer, said the company shipped 127 million suspension assemblies during the
fiscal 1998 second quarter, compared to 201 million in the fiscal 1997 second
quarter. He attributed the decline in shipments to weaker demand for
conventional suspensions as a result of inventory reduction among the major disk
drive makers. The company shipped approximately 113 million conventional
suspensions during the fiscal 1998 second quarter compared to 200 million in the
comparable fiscal 1997 period.
"Demand for conventional suspension assemblies began to recover in the last
weeks of the quarter," said Fortun. "However, our shipments of conventional
suspensions will continue to trail prior year levels as customer demand shifts
toward TSA suspensions."
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2 -- Hutchinson Technology Reports Second Quarter Results
Fortun said stronger demand and continuing cost management efforts should
result in an improvement in the company's financial performance in the third
quarter. He added, however, that TSA production inefficiencies continue to
adversely affect results. "As a result, we expect to report a net loss for the
third quarter," said Fortun.
TSA ACCEPTANCE AND SHIPMENTS INCREASE, COMPONENTS SOLD TO OTHER SUSPENSION
MANUFACTURERS
Hutchinson Technology shipped approximately 14 million TSA suspensions
during the fiscal 1998 second quarter, up from 7 million in the fiscal 1998
first quarter and 800,000 in the fiscal 1997 second quarter. TSA suspensions
are suspension assemblies incorporating integrated electrical leads. "Our TSA
suspensions are now in use on seven disk drives currently in production and
accounted for 33 percent of second quarter net sales and 11 percent of second
quarter unit shipments, up from 17 percent of net sales and 5 percent of unit
shipments in the fiscal 1998 first quarter. We expect this industry adoption of
TSA suspensions to continue and that TSA suspensions will account for half or
more of our fiscal 1999 unit shipments," said Fortun.
During the fiscal 1998 second quarter, the company began shipping TSA
component-level parts to other suspension assembly manufacturers. "By offering
TSA components to other suspension manufacturers, we are encouraging
industry-wide adoption of the TSA platform," said Fortun.
Hutchinson Technology is the leading worldwide supplier of suspension
assemblies for disk drives. Further information about the company is available
on the World Wide Web at WWW.HTCH.COM.
This announcement contains forward-looking statements regarding demand for
and shipments of the company's products, the company's manufacturing capacity
and the results of operations of the company. These statements involve risks
and uncertainties. The company's actual results could differ materially from
those anticipated in these forward-looking statements as a result of fluctuating
order rates and product mix, slower or faster customer acceptance of its new
products, difficulties in producing its TSA suspensions, difficulties in
financing and
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3 -- Hutchinson Technology Reports Second Quarter Results
expanding capacity, changes in manufacturing efficiencies and the other factors
described from time to time in documents filed with the Securities and Exchange
Commission, including but not limited to the company's Registration Statement on
Form S-3, filed on April 15, 1998.
Hutchinson Technology Incorporated
(Nasdaq/NMS: HTCH)
<TABLE>
<CAPTION>
Second Quarter Ended
March 29, 1998 March 30, 1997
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<S> <C> <C>
Net sales $ 95,128,000 $ 124,259,000
Gross profit (loss) $ (2,697,000) $ 38,680,000
Income (loss) from operations $ (19,639,000) $ 21,885,000
Net income (loss) $ (14,425,000) $ 16,683,000
Net income (loss) per common share $ (.73) $ .95
Net income (loss) per common share --
assuming dilution $ (.73) $ .91
Weighted average common and common
equivalent shares outstanding:
Common shares 19,673,000 17,610,000
Common shares -- assuming dilution 19,673,000 18,415,000
<CAPTION>
Six Months Ended
March 29, 1998 March 30, 1997
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<S> <C> <C>
Net sales $ 184,110,000 $ 231,165,000
Gross profit (loss) $ (3,193,000) $ 69,792,000
Income (loss) from operations $ (35,565,000) $ 36,340,000
Net income (loss) $ (25,899,000) $ 27,800,000
Net income (loss) per common share $ (1.32) $ 1.64
Net income (loss) per common share --
assuming dilution $ (1.32) $ 1.57
Weighted average common and common
equivalent shares outstanding:
Common shares 19,651,000 16,985,000
Common shares -- assuming dilution 19,651,000 17,651,000
<CAPTION>
At March 29, 1998 At Sept. 28, 1997
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<S> <C> <C>
Total assets $ 602,875,000 $ 429,839,000
Cash and cash equivalents $ 160,549,000 $ 98,340,000
Total shareholders' investment $ 258,060,000 $ 282,958,000
</TABLE>
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