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Hutchinson Technology Q1 2016 net sales $63.9 million

Staff writer |
Hutchinson Technology Incorporated reported net sales of $63.9 million for its fiscal 2016 first quarter ended December 27, 2015.

Suspension assembly shipments for the quarter totaled 106.6 million, compared with 105.4 million in the preceding quarter.

Gross profit totaled $11.7 million, or 18.3% of net sales, up from $7.5 million, or 11.8% of net sales, in the preceding quarter.

Rick Penn, Hutchinson Technology’s president and chief executive officer, said that shipments were within the company’s expectations even as demand weakened near the end of the quarter.

He attributed the sequential increase in gross profit to the company’s continued efforts to improve costs and a favorable product mix including suspensions using lower cost, internally-produced TSA+ flexures.

The company’s operating loss in the fiscal 2016 first quarter declined to $2.8 million from $3.9 million in the preceding quarter.

The sequential improvement resulted from the increase in gross profit, partially offset by expenses of $3.4 million related to the company’s pending merger with TDK Corporation and higher research and development expenses of $5.9 million, up from $3.8 million in the preceding quarter.

The company reported a fiscal 2016 first quarter net loss of $5.3 million, or $0.16 per share.

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