Hutchinson Technology Expects Fiscal Fourth Quarter EPS of $0.15 to $0.20; Earnings Improving on Higher Volumes Resulting from Market Share Gains.Business Editors/High-Tech Writers HUTCHINSON Hutchinson, city (1990 pop. 39,308), seat of Reno co., S central Kans., on the Arkansas River; inc. 1872. It is a commercial and industrial center in a grain (especially wheat), livestock, and oil region. , Minn.--(BUSINESS WIRE)--Sept. 12, 2002 Hutchinson Technology ''This article or section is being rewritten at Hutchinson Technology is an acknowledged world leader in precision manufacturing. Specializing in design and manufacture of close-tolerance products that require chemical, mechanical and electronic technologies. Incorporated (Nasdaq:HTCH) said today that it currently expects to report net income per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share of $0.15 to $0.20 on net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of $105 to $110 million for its fiscal fourth quarter ending September 29, 2002. In guidance given in late July, the company had said it expected to report net income per diluted share of up to $0.10 on net sales of $90 to $100 million for its fiscal 2002 fourth quarter. Wayne M. Fortun, Hutchinson Technology's president and chief executive officer, said the company's fourth quarter performance is benefiting from higher volumes. "Through the first ten weeks of the fourth quarter, our shipments of suspension assemblies averaged 8.3 million units per week and we currently expect weekly shipment volumes to trend upward for the balance of the quarter," said Fortun. In the fiscal 2002 third quarter, the company shipped approximately 100 million suspensions. "We believe this volume growth is primarily the result of market share gains reflecting the increasingly broad adoption of our TSA TSA See tax-sheltered annuity (TSA). platform within the disk drive industry." The company's expected earnings per share for the fiscal fourth quarter include a net charge of $1.0 million, or $0.04 per share, related to its prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. in the quarter of approximately $26.6 million of long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . Prepayment of this portion of the company's long-term debt will generate a cumulative reduction in interest expense primarily benefiting fiscal 2003 of approximately $1.5 million. At the end of its fiscal 2002 third quarter, the company's cash and cash equivalents and securities available for sale totaled $236.6 million. Hutchinson Technology currently plans to report its results for the fourth quarter and fiscal year on November 4, 2002, after market close, and will provide further information on its fourth quarter performance and fiscal 2003 first quarter outlook at that time. In its fiscal 2001 fourth quarter, the company reported a net loss of $32,570,000, or $1.30 per diluted share, on net sales of $95,078,000. The net loss for the period included a pre-tax charge to earnings of $25,511,000, or $.87 per diluted share, related to write-downs of certain assets and severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when costs. Hutchinson Technology, founded in 1965, is the leading worldwide supplier of suspension assemblies for disk drives. Hutchinson Technology's BioMeasurement Division provides health professionals with simple, accurate methods to measure the oxygen in tissue. This announcement contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. regarding the company's results of operations and improved operating performance. The company does not undertake to update its forward-looking statements. 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 changes in demand, our ability to produce suspension assemblies at higher demand levels and other factors described from time to time in the company's reports filed with the Securities and Exchange Commission. |
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