Hutchinson Technology Q1 Loss Narrows, Beats View - Quick Facts

(RTTNews) - Hutchinson Technology Inc. (HTCH), a supplier of critical precision component technologies, reported a loss for the first quarter that narrowed from last year despite lower revenues. Adjusted loss per share was narrower than analysts' expectations, while revenues missed their estimates.

The company noted that suspension assembly shipments for the first quarter totaled 106.6 million, up from 105.4 million in the preceding quarter.

Looking ahead to the second quarter, Hutchinson Technology expects its suspension assembly shipments to range from 85 million to 95 million.

Rick Penn, Hutchinson Technology's president and chief executive officer, said, "Demand softened as we exited the December quarter and the March quarter is typically a seasonally weaker quarter for the disk drive industry and its supply chain."

The company expects average selling price for the second quarter to be about flat with the $0.57 average selling price in the preceding fiscal 2016 first quarter. Gross profit for the quarter is expected to decline on the lower expected volume.

The company's net loss for the first quarter was $5.30 million or $0.16 per share, narrower than loss of $9.90 million or $0.32 per share in the year-ago period.

The latest quarter's results include $3.4 million of merger-related expenses, among others.

Excluding items, adjusted net loss for the quarter was $2.13 million or $0.06 per share, compared to loss of $3.92 million or $0.13 per share last year. On average, analysts polled by Thomson Reuters expected the company to report loss of $0.16 per share. Analysts' estimates typically exclude special items.

Net sales for the quarter declined 12 percent to $63.93 million from $72.42 million in the prior-year period. Analysts had a consensus revenue estimate of $66.00 million for the quarter.