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Hutchinson Technology Q4 net sales $63.4 million

Staff writer |
Hutchinson Technology Incorporated reported net sales of $63.4 million for its fiscal fourth quarter ended September 27, 2015.




Suspension assembly shipments for the quarter totaled 105.4 million, up 22% from 86.6 million in the preceding quarter.

Gross profit in the fiscal 2015 fourth quarter totaled $7.5 million, or 11.8% of net sales, up from $4.8 million, or 8.8% of net sales, in the fiscal third quarter.

The improvement resulted from the higher volume in the quarter and the resulting increase in operating leverage. The company continued to optimize costs by shifting assembly production to its Thailand assembly operation, which accounted for 92% of the fourth quarter's assembly production, up from 89% in the preceding quarter.

The company's operating loss in the fiscal fourth quarter declined to $3.9 million from $6.1 million in the preceding quarter.

The improvement resulted from the increase in gross profit and lower research and development expenses, which declined to $3.8 million from $5.2 million in the preceding quarter due primarily to the recognition of $1.5 million of previously deferred income.

Research and development expenses are expected to return to $5 million to $6 million in the fiscal 2016 first quarter.


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