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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): February 27, 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 executive (Zip Code) (Registrant's telephone
offices) number, including area code)
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Item 7. FINANCIAL STATEMENTS AND EXHIBITS
Exhibits:
99.1 Press release relating to operating results.
99.2 Press release relating to proposed private offering of notes.
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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: March 5, 1998
HUTCHINSON TECHNOLOGY INCORPORATED
Registrant
By /s/ John A. Ingleman
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Its Chief Financial Officer
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EXHIBIT 99.1
FOR IMMEDIATE RELEASE:
FOR: CONTACT:
John A. Ingleman Todd Bradley
Chief Financial Officer Investor Relations
320-597-3797 320-587-1605
or
Chris Malacek
Shandwick
612-841-6181
HUTCHINSON TECHNOLOGY AT $.56 PER SHARE NET LOSS THROUGH FIRST EIGHT WEEKS OF
FISCAL SECOND QUARTER
HUTCHINSON, Minn., Feb. 26, 1998 - Hutchinson Technology Incorporated
(Nasdaq/NMS: HTCH) said today that through the first eight weeks of its fiscal
1998 second quarter it has recorded a net loss of $.56 per share basic and
diluted on net sales of $52 million. The company's second quarter is the
thirteen-week period ending March 29, 1998. Hutchinson Technology expects to
report its results for the second quarter on April 21, 1998.
Wayne M. Fortun, Hutchinson Technology's president and chief executive
officer, said that shipments of the company's suspension assemblies have
remained below prior quarter levels as a result of continued weak demand. He
attributed the weak demand for its conventional suspension assemblies to
inventory reduction efforts among the major disk drive manufacturers. For the
first eight weeks of the second quarter of 1998, the company shipped a total of
64 million suspensions compared to a total of 135 million for the entire fiscal
1998 first quarter.
Fortun said the company continues to invest in expanding its capacity to
produce TSA suspension assemblies, which the company expects will account for
half or more of its output in fiscal 1999. For the first eight weeks of the
second quarter of fiscal 1998, the company shipped 7 million TSA suspensions
compared to 7 million for the entire first quarter of 1998.
For the fiscal 1998 first quarter, Hutchinson Technology reported a net
loss of $11.5 million, or $.58 per share diluted, on net sales of $89 million.
For the fiscal 1997 second quarter, the company reported net income of $16.7
million, or $.91 per share diluted, on net sales of $124 million.
Hutchinson Technology is the leading worldwide supplier of suspension
assemblies for disk drives.
(more)
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2 - Hutchinson Technology...
This announcement contains forward-looking statements that 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 financing and expanding capacity, changes in
manufacturing efficiencies and other factors described from time to time in the
company's reports filed with the Securities and Exchange Commission, including
but not limited to its Annual Report on Form 10-K for the fiscal year ended
September 28, 1997.
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EXHIBIT 99.2
FOR IMMEDIATE RELEASE:
FOR: CONTACT:
John A. Ingleman Todd Bradley
Chief Financial Officer Investor Relations
320-597-3797 320-587-1605
or
Chris Malacek
Shandwick
612-841-6181
HUTCHINSON TECHNOLOGY SETS CONVERTIBLE NOTE OFFERING
HUTCHINSON, Minn., March 5, 1998 - Hutchinson Technology Incorporated
(Nasdaq/NMS: HTCH) today announced that it plans to raise $140 million in an
offering of convertible subordinated notes due 2005 in March 1998 through a
private placement under Rule 144A to qualified institutional buyers and
institutional accredited investors.
The company intends to use the proceeds of this offering to fund its
immediate short-term operating and capital expenditure requirements primarily
related to the roll-out of the company's TSA suspension technology, and to repay
certain indebtedness.
The company's operating results have been adversely affected by excess
inventory held by disk drive and recording head manufacturers and continued
inefficiencies in producing its TSA suspensions. Due to the combination of
these factors, the company's operating results have not provided the cash needed
to help fund planned capital expenditures that are necessary to meet rising
demand for the company's TSA suspension assemblies. The company recently signed
a commitment for a proposed credit facility for $25 million, subject to
completion of the underlying documentation and certain other conditions. The
company believes the net proceeds from the offering, plus anticipated future
revenue and cash flow from operations, will be sufficient to meet its operating
expenses, debt service and capital expenditure requirements through fiscal 1999,
but there can be no assurances in this regard. The company anticipates that
continued significant capital expenditures will be necessary in fiscal 1999 and
2000 for continued expansion of its TSA suspension production capacity as the
company transitions from conventional suspension assembly production to high
volume TSA suspension assembly production, and to accommodate anticipated market
growth.
The notes and the common stock into which the notes are convertible have
not been and will not be registered under the Securities Act of 1933, as
amended, or applicable state or foreign securities laws, and may not be offered
or sold in the United States absent registration under federal and applicable
state securities laws or an available exemption from such registration
requirements.
(more)
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2 - Hutchinson Technology . . .
Hutchinson Technology is the leading worldwide supplier of suspension
assemblies for disk drives.
This announcement contains forward-looking statements that 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 financing and expanding capacity, changes in
manufacturing efficiencies and other factors described from time to time in the
company's reports filed with the Securities and Exchange Commission, including
but not limited to its Annual Report on Form 10-K for the fiscal year ended
September 28, 1997.
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