- Given a backdrop of weak PC sales and soft guidance from Seagate/Western Digital, Hutchinson's (NASDAQ:HTCH) forecast for hard drive suspension assembly shipments to rise 10%-20% Q/Q in (seasonally stronger) FQ4 is going over well. ASP is expected to slip to $0.57-$0.58 from FQ3's $0.59.
- Also: Hutchinson has unveiled an SMA optical image stabilization (OIS) actuator said to be 70% thinner than its original offering, as well as much cheaper to produce. CEO Rick Penn: "We believe this new design has fundamental advantages that bring superior value and capability to the marketplace and that the product is well aligned with the needs of camera module and smartphone manufacturers."
-
Key numbers: Helping FQ3 EPS beat estimates in spite of a revenue miss: Gross margin was 8.8%, down from 10% in FQ2 but up from 6% a year ago. R&D spend rose by ~$1M Y/Y to $5.17M,; SG&A spend rose by ~$500K to $5.73M. Hutchinson ended FQ3 with $36.3M in cash/investments, and $128.6M in debt.
-
FQ3 results, PR