Hutchinson Technology Q4 Loss Widens, But Results Beat View - Quick Facts

(RTTNews) - Hutchinson Technology Inc. (HTCH), a supplier of critical precision component technologies, reported a wider loss for the fourth quarter compared to the prior year, on lower revenues and one-time charges. However, adjusted loss per share was narrower than analysts' expectations, while revenues beat their estimates.

The company noted that suspension assembly shipments for the fourth quarter totaled 105.4 million, up 22 percent from 86.6 million in the preceding quarter.

Looking ahead to the fiscal 2016 first quarter, the company currently expects its suspension assembly shipments to be flat to up 5 percent sequentially with an average selling price of $0.57, flat with the fiscal 2015 fourth quarter. Gross profit is currently expected to be flat to up slightly on a sequential basis.

The company's net loss for the fourth quarter was $9.34 million or $0.28 per share, wider than loss of $5.16 million or $0.18 per share in the year-ago period. The latest quarter's results include a $2.4 million foreign currency loss and a $1.6 million asset impairment charge, among others.

Excluding these items, net loss for the quarter was $6.54 million or $0.20 per share, compared to loss of $4.74 million or $0.17 per share last year. On average, analysts polled by Thomson Reuters expected the company to report loss of $0.24 per share. Analysts' estimates typically exclude special items.

Net sales for the quarter declined 9.9 percent to $63.37 million from $70.30 million in the prior-year period. Analysts had a consensus revenue estimate of $60.90 million for the quarter.

TDK Corp. (TTDKF.PK, TTDKY.PK) and Hutchinson Technology Inc. (HTCH) also said they have entered into a definitive merger agreement for TDK to acquire all outstanding shares of common stock of Hutchinson for base consideration of $3.62 per share, plus additional consideration of up to $0.38 per share.