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HUTCHINSON TECHNOLOGY REPORTS FIRST QUARTER RESULTS

 HUTCHINSON, Minn., Jan. 17 /PRNewswire/ -- Hutchinson Technology Incorporated (NASDAQ-NMS: HTCH) today reported a net loss of $2,341,000, or $.44 per share, on net sales of $46,957,000, for the first quarter ended Dec. 26, 1993, compared to net income of $5,723,000, or $1.08 per share, on net sales of $50,395,000, for the fiscal 1993 first quarter.
 Jeffrey W. Green, Hutchinson Technology's chairman and chief executive officer, attributed the 7 percent decline in first quarter net sales primarily to decreased shipments of damped suspensions as demand shifted during the last two quarters toward newer suspension types for smaller, "nano"-sized read/write heads. "While our output of nano suspensions has been rising, the increase was not sufficient to offset the decrease in shipments of the higher-priced damped suspensions," said Green. "This decrease in net sales, combined with increased labor and depreciation expenses and lower manufacturing yields and efficiencies on new suspension types, produced a net loss for the quarter."
 Green said that demand for nano suspensions continued to exceed capacity during the quarter. "During the quarter, disk drive manufacturers increased production, especially of newer models, and head manufacturers accelerated production of nano-sized heads. As a result, demand for our nano suspensions was especially strong, reflecting both the continued transition to smaller read/write heads and the lower yields experienced by some customers during this transition," said Green. Lower head yields result in increased demand for suspension assemblies because suspensions cannot be re-used after removal of a read/write head, Green explained.
 "While the rapid transition to nano suspensions continues to cause inefficiencies in manufacturing, our output of these products rose approximately 33 percent during the quarter," said Green. "By the end of the quarter, nano suspensions accounted for one-third of our unit volume. We continue to focus on improving our production processes for nano suspensions and increasing manufacturing yields and efficiencies."
 Hutchinson Technology is the leading worldwide supplier of suspension assemblies for disk drives.
 HUTCHINSON TECHNOLOGY INCORPORATED
 FINANCIAL STATEMENT
 First Quarter Ended
 12/26/93 12/27/92
 Net sales $46,957,000 $50,395,000
 Income (loss) from operations $(3,403,000) $7,529,000
 Income (loss) before income taxes $(3,039,000) $7,630,000
 Net income (loss) $(2,341,000) $5,723,000
 Nec?ome (loss) per share $(.44) $1.08
 Weighted average common and common
 equivalent shares outstanding 5,331,000 5,322,000
 -0- 1/17/94
 /CONTACT: John A. Ingleman, chief financial officer of Hutchinson Technology, 612-587-3797; or Chris Malecek of Mona, Meyer, McGrath & Gavin, 612-832-5000, for Hutchinson Technology/
 (HTCH)


CO: Hutchinson Technology Incorporated ST: Minnesota IN: CPR SU: ERN

DB-CP -- MN003 -- 2337 01/17/94 06:45 EST
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Publication:PR Newswire
Date:Jan 17, 1994
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