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HUTCHINSON TECHNOLOGY REPORTS FOURTH QUARTER AND YEAR END RESULTS

 HUTCHINSON, Minn., Nov. 1 /PRNewswire/ -- Hutchinson Technology Incorporated (NASDAQ-NMS: HTCH) today reported a net loss of $2,663,000, or $.49 per share, on net sales of $43,567,000 for the fourth quarter ended Sept. 26, 1993, compared to net income of $6,670,000, or $1.25 per share, on net sales of $45,312,000 for the fiscal 1992 fourth quarter. The prior year quarter included a gain of $1,800,000 or $.34 per share, resulting from a one-time reduction of income tax reserves following completion of an Internal Revenue Service examination. The company had previously announced that it expected to report a loss for the quarter.
 For the fiscal year ended Sept. 26, 1993, the company reported net income of $8,554,000, or $1.58 per share, on net sales of $198,734,000 compared to net income of $12,849,000, or $2.72 per share, on net sales of $160,340,000 for fiscal 1992.
 Jeffrey W. Green, Hutchinson Technology's chairman and chief executive officer, said that the net loss for the quarter resulted from the previously reported reduced and fluctuating demand for older types of suspension assemblies and a rapid shift in demand toward newer suspension types. Factors contributing to the reduction and shift in demand included changes in the types of read/write heads used by disk drive makers, decreases in head flying heights and the adoption of smaller heads, according to Green. "These shifts were extraordinarily rapid and reduced our efficiencies," said Green.
 Green said that efficiencies have been improving with increased production volumes for newer types of suspensions and that demand for the newer types exceeds current capacity. "In addition, some disk drive makers appear to have reduced their inventories of older models. As a result, they are resuming or increasing production of some of these models. This has generated increased demand for some older types of suspensions in recent weeks," said Green.
 Hutchinson Technology is the leading worldwide supplier of suspension assemblies for disk drives.
 HUTCHINSON TECHNOLOGY INCORPORATED
 Fourth Quarter Ended
 9/26/93 9/27/92
 Net sales $43,567,000 $45,312,000
 Income (loss) from
 operations $(3,824,000) $5,745,000
 Income (loss) before
 income taxes (3,458,000) 6,113,000
 Net income (loss) $(2,663,000) $6,670,000
 Net income (loss)
 per share $(.49) $1.25(a)
 Weighted average
 common and common
 equivalent shares
 outstanding 5,420,000 5,326,000
 Year Ended
 9/26/93 9/27/92
 Net sales $198,734,000 $160,340,000
 Income (loss) from
 operations $9,961,000 $13,581,000
 Income (loss) before
 income taxes 11,110,000 13,830,000
 Net income (loss) $8,554,000 $12,849,000
 Net income (loss)
 per share $1.58 $2.72
 Weighted average
 common and common
 equivalent shares
 outstanding 5,409,000 4,721,000
 (a) Net income for the fiscal 1992 fourth quarter included a gain of $1,800,000, or $.34 per share, resulting from a one-time reduction of income tax reserves following completion of an Internal Revenue Service examination.
 -0- 11/1/93
 /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-DS -- MN004 -- 8909 11/01/93 06:45 EST
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Publication:PR Newswire
Date:Nov 1, 1993
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