Hutchinson Technology Incorporated (HTCH) Tuesday reported a narrower loss of $12.5 million, or $0.53 per share for the fiscal first quarter ended December 25, 2011, compared to loss of $16.9 million, or $0.73 per share in the prior-year quarter.
The first quarter results include flood related costs of $13.7 million, flood insurance recoveries of $13.7 million, non-cash interest expense of $1.7 million and $0.9 million reversal of previously accrued severance expenses. Excluding these items, the company's adjusted loss was $11.5 million, or $0.49 per share, in the quarter. In the prior-year quarter, adjusted loss was $14.7 million or $0.63 per share.
On average, 4 analysts polled by Thomson Reuters expected the company to report loss of $0.76 per share for the quarter.
Net sales for the quarter were $58.5 million, down from last year's $68.2 million. The Street expected revenues of $57.9 million.
Wayne Fortun, chief executive officer of Hutchinson, said, "After review of the flood mitigation plans of the Thai government and those of the industrial park where our plant is located, we are proceeding with plans to restore our Thai operation and expect to resume production by the end of June."
Fortun said the company expects that it will take until the middle of fiscal 2013 to return to pre-flood output levels.
The company expects its fiscal 2012 second quarter suspension assembly shipments will total 90 million to 100 million, compared with 89.3 million in the first quarter. The company expects its shipments to further increase in its fiscal third and fourth quarters as the disk drive supply chain continues to recover
The company estimates that it will spend $25 million to $30 million in fiscal 2012 and an additional $5 million in fiscal 2013 to restore its assembly operation in Thailand and bring it back to pre-flood capacity levels and to cover the incremental costs of manufacturing in the U.S.
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