Hutchinson Technology Posts Narrower Than Expected Loss In Q3

(RTTNews) - Hutchinson Technology Inc. (HTCH) Friday reported third-quarter net loss of $11.2 million or $0.40 per share, narrower than loss of $15.86 million or $0.59 per share a year ago. The net loss included $1.5 million of severance and site consolidation costs, $800 thousand of non-cash interest expense, and a $100 thousand foreign currency gain. Excluding these items, net loss was $8.9 million or $0.32 per share. On average, 3 analysts polled by Thomson Reuters expected loss per share of $0.34 for the quarter. Analysts' estimates typically exclude one-time items. Net sales for the period was down to $59.77 million from $61.30 million last year, whereas analysts' revenue consensus was $60.32 million.

Looking forward, the company expects fourth quarter gross profit to increase on a sequential basis as higher shipments and the benefits of cost reductions are partially offset by a reduction in finished goods inventories.