================================================================================

                UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                 ---------------
                                    FORM 10-Q

              (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                    OF THE SECURITIES EXCHANGE ACT OF 1934.
                 For the quarterly period ended December 31, 1997

                                       OR
              ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                    OF THE SECURITIES EXCHANGE ACT OF 1934.
                  For the transition period from ____ to _____


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                        COMMISSION FILE NUMBER: 000-27586

                           HMT TECHNOLOGY CORPORATION
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

          DELAWARE                                    94-3084354
(STATE OR OTHER JURISDICTION OF          (I.R.S. EMPLOYER IDENTIFICATION NUMBER)
 INCORPORATION OR ORGANIZATION)                                


                       1055 PAGE AVENUE, FREMONT, CA 94538
               (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)

       Registrant's telephone number, including area code: (510) 490-3100

================================================================================

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes  X    No
                                       ---      --- 

As of January 26, 1998, 43,030,928 shares of the registrant's common stock,
par value $0.001 per share, which is the only class of common stock of the
registrant, were outstanding.

================================================================================



PART I FINANCIAL INFORMATION
ITEM 1. Financial Statements
                           HMT TECHNOLOGY CORPORATION
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (in thousands)
<TABLE>
<CAPTION>
                                                    December 31, March 31,
                                                    1997         1997
                                                    ------------ ----------
                                                    (Unaudited)  (Audited)
<S>                                                 <C>          <C>
                                   ASSETS
Current assets:
  Cash and cash equivalents........................     $46,682    $44,225
  Short-term investments...........................       --        10,833
  Receivables, net.................................      50,634     35,794
  Inventories......................................      16,796     11,837
  Deposits, prepaid expenses and other assets......       1,053        474
  Deferred income taxes............................       6,532      6,532
                                                    ------------ ----------
          Total current assets.....................     121,697    109,695
Construction in progress...........................      67,591     76,433
Property, plant and equipment, net.................     264,454    178,875
Other assets.......................................       7,822      8,386
                                                    ------------ ----------
       Total assets................................    $461,564   $373,389
                                                    ============ ==========
                LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Accounts payable.................................     $25,547    $26,424
  Accrued liabilities..............................      22,110      8,765
  Obligations under capital leases --
    current portion................................       3,013      2,679
                                                    ------------ ----------
          Total current liabilities................      50,670     37,868
Long-term liabilities..............................       8,315      3,562
Convertible subordinated promissory notes..........     230,000    230,000
Obligations under capital leases, net
    of current portion.............................         697      3,172
Deferred tax liability, long term..................       3,345      3,345
                                                    ------------ ----------
          Total liabilities........................     293,027    277,947

Stockholders' equity:
  Common Stock.....................................          43         41
  Additional paid-in capital.......................     110,271     92,084
  Retained earnings ...............................     134,872     79,966
  Distribution in excess of basis..................     (76,649)   (76,649)
                                                    ------------ ----------
          Total stockholders' equity...............     168,537     95,442
                                                    ------------ ----------
       Total liabilities and stockholders' equity..    $461,564   $373,389
                                                    ============ ==========
</TABLE>
                             See accompanying notes
<PAGE>

                           HMT TECHNOLOGY CORPORATION
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                      (in thousands, except per share data)

<TABLE>
<CAPTION>
                                                    Three Months Ended     Nine Months Ended
                                                       December 31,           December 31,
                                                   ---------------------  ---------------------
                                                   1997       1996        1997       1996
                                                   ---------- ----------  ---------- ----------
                                                        (Unaudited)            (Unaudited)
<S>                                                <C>        <C>         <C>        <C>
Net sales ........................................   $98,556    $61,243    $265,839   $199,743
Cost of sales ....................................    61,538     36,371     164,764    115,748
                                                   ---------- ----------  ---------- ----------
  Gross profit ...................................    37,018     24,872     101,075     83,995
                                                   ---------- ----------  ---------- ----------
Operating expenses:
  Research and development .......................     2,229      1,527       6,411      4,192
  Selling, general and administrative ............     3,408      3,020      10,519      8,660
                                                   ---------- ----------  ---------- ----------
     Total operating expenses ....................     5,637      4,547      16,930     12,852
                                                   ---------- ----------  ---------- ----------
Operating income .................................    31,381     20,325      84,145     71,143
Interest expense, net ............................     2,138        349       5,711      2,762
                                                   ---------- ----------  ---------- ----------
Income before income tax provision ...............    29,243     19,976      78,434     68,381
Income tax provision .............................     8,773      5,993      23,531     20,119
                                                   ---------- ----------  ---------- ----------
     Net income ..................................   $20,470    $13,983     $54,903    $48,262

Accretion for dividends on Mandatorily
  Redeemable Series A Preferred Stock ............       --        (909)        --      (2,688)
                                                   ---------- ----------  ---------- ----------
Net income available for common stockholders .....   $20,470    $13,074     $54,903    $45,574
                                                   ========== ==========  ========== ==========
Net income available for common
  stockholders per share:
     Basic .......................................     $0.48      $0.30       $1.31      $1.03
                                                   ========== ==========  ========== ==========
     Diluted .....................................     $0.40      $0.30       $1.09      $1.03
                                                   ========== ==========  ========== ==========
Shares used in computing per share amounts:
     Basic .......................................    42,768     44,229      41,912     44,150
                                                   ========== ==========  ========== ==========
     Diluted .....................................    55,099     44,229      54,481     44,150
                                                   ========== ==========  ========== ==========
</TABLE>
                             See accompanying notes

<PAGE>


                           HMT TECHNOLOGY CORPORATION
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (in thousands)
<TABLE>
<CAPTION>
                                                      Nine Months Ended
                                                         December 31,
                                                     -------------------
                                                     1997      1996
                                                     --------- ---------
                                                         (Unaudited)
<S>                                                  <C>       <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income .......................................  $54,903   $48,262
  Adjustments to reconcile net income to net
     cash used in operations:
     Depreciation and amortization .................   28,846    14,709
     Deferred income taxes .........................      --     3,703
     Loss on disposal of assets ....................      --     2,988
     Changes in operating assets and liabilities:
       Receivables..................................  (14,840)  (11,669)
       Inventories..................................   (4,959)   (4,874)
       Deoposis, prepaid expenses and other assets..     (579)      115
       Accounts payable.............................     (877)    3,209
       Accrued liabilities..........................   13,346    (4,837)
       Lomg term liabilities........................    4,753       --
                                                     --------- ---------
          Net cash provided by operating activities.   80,593    51,606
                                                     --------- ---------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Expenditures for property, plant and equipment ... (105,538) (126,155)
  Decrease in other assets .........................      519       323
                                                     --------- ---------
          Net cash used in investing activities .... (105,019) (125,832)
                                                     --------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Principal payments on obligations under capital
     leases ........................................   (2,141)   (2,460)
  Other.............................................      --      1,184
  Repayments on short-term borrowings...............      --        --
  Net proceeds from long-term borrowings ...........      --     31,000
  Proceeds from issuance of Common Stock ...........   18,191    12,817
                                                     --------- ---------
          Net cash provided by financing activities.   16,050    42,541
                                                     --------- ---------
  Net increase (decrease) in cash and cash
   equivalents ......................................  (8,376)  (31,685)
  Cash and cash equivalents at beginning of period ..  55,058    35,843
                                                     --------- ---------
  Cash and cash equivalents at end of period ........ $46,682    $4,158
                                                     ========= =========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
  Cash paid for interest during the period .........   $6,392    $3,646
  Cash paid for income taxes during the period .....  $13,050   $24,820

SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND
  FINANCING ACTIVITIES:
  Accretion for dividends on Mandatorily Redeemable
     Series A Preferred Stock ......................   $  --     $2,688
</TABLE>
                             See accompanying notes

<PAGE>
                           HMT TECHNOLOGY CORPORATION
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying consolidated financial statements have been 
prepared by the Company without audit in accordance with generally 
accepted accounting principles for interim financial information 
and pursuant to rules and regulations of the Securities and 
Exchange Commission.  In the opinion of management, all adjustments 
(consisting only of normal recurring adjustments) considered 
necessary for a fair representation have been included.  These 
financial statements should be read in conjunction with the 
Company's consolidated financial statements and notes thereto 
contained in the Company's Annual Report on Form 10-K for the 
fiscal year ended March 31, 1997.

Operating results for the quarter ended December 31, 1997 may not 
necessarily be indicative of the results to be expected for any 
other interim period or for the full year.

Fiscal Year

The Company uses a 52-week fiscal year ending on March 31 and 
thirteen- to fourteen-week quarters that end on the Sunday closest 
to the calendar quarter end.

Inventories

Inventories are stated at the lower of cost or market, and are 
reported net of reserves. Cost is determined using the first-in, 
first-out basis.

<TABLE>
                                         ------------  ------------
                                              (in thousands)
<S>                                      <C>           <C>
Raw materials.....................            $3,849        $4,307
Work-in-process...................             5,276         5,843
Finished goods....................             7,671         1,687
                                         ------------  ------------
                                             $16,796       $11,837
                                         ============  ============
</TABLE>

Recent Accounting Pronouncements

      In February 1997, the Financial Accounting Standards Board 
issued Statement of Financial Accounting Standards No. 128 ("SFAS 
No. 128"), "Earnings per Share," which specifies the computation, 
presentation and disclosure requirements for earnings per share.  
SFAS No. 128 supersedes Accounting Principles Board Opinion No. 15, 
is effective for financial statements issued for periods ending 
after December 15, 1997, and requires that prior periods be 
restated.   The provisions of SFAS No. 128 have been adopted in the 
quarter ended December 31, 1997.

     In June 1997, the Financial Accounting Standards Board issued 
Statement of Financial Accounting Standards No. 130 ("SFAS No. 
130"), "Reporting Comprehensive Income," which will require the 
reporting of additional financial information in a complete set of 
financial statements.  SFAS No. 130 is effective for fiscal years 
beginning after December 15, 1997 and will require earlier periods 
to be restated to reflect application of the provisions of SFAS No. 
130.  The impact of the adoption of SFAS No. 130 on the financial 
statements of the Company has not yet been determined.

     In June 1997, the Financial Accounting Standards Board issued 
Statement of Financial Accounting Standards No. 131 ("SFAS No. 
131,") "Disclosures About Segments of an Enterprise and Related 
Information," which specifies disclosure requirements for segment 
reporting.  SFAS No. 131 supersedes SFAS No. 14 and SFAS No. 18 and 
is effective for fiscal years beginning after December 15, 1997, 
and requires earlier years to be restated if practicable.  The 
impact of the adoption of SFAS No. 131 on the financial statements 
of the Company has not yet been determined.






<PAGE>


Item 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS
            OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS


This Discussion contains forward looking statements, which are 
subject to certain risks and uncertainties, including without 
limitation those described in the Company's Annual Report on 
Form 10-K, which has been filed with the Securities and Exchange 
Commission.  Actual results may differ materially from the 
results discussed in the forward-looking statements.

Overview

HMT Technology Corporation is an independent supplier of high-
performance thin film disks for high-end, high-capacity hard disk 
drives, which in turn are used in high-end PCs, network servers and 
work-stations.  The Company also supplies high-performance thin 
film disks for removable hard disk drives.

The Company derives substantially all of its sales from the sale 
of thin film disks to a small number of customers.  Loss of or a 
reduction in orders from one or more of the Company's customers 
could result in a substantial reduction in net sales.  Because many 
of the Company's expense levels are based, in part, on its 
expectations as to future revenues, decreases in net sales may 
result in a disproportionately greater negative impact on operating 
results.  Due to the rapid technological change and frequent 
development of new disk drive products, it is common in the 
industry for the relative mix of customers and products to change 
rapidly, even from quarter to quarter.  At any one time the Company 
typically supplies disks in volume for fewer than twelve disk drive 
products.

Results of Operations

Net Sales.  Net sales increased 60.9% in the third quarter of 
fiscal 1998 to $98.6 million, up $37.4 million over the third 
quarter of fiscal 1997.  For the first nine months of fiscal 1998 
net sales of  $265.8 million were $66.1 million or 33.1% higher 
than the same period in fiscal 1997.  The increase in net sales 
during the three and nine month periods ending December 31, 1997 
was primarily attributable to an increase in manufacturing capacity 
from continued expansion of the Company's production facilities, 
including the addition of two new sputtering lines during the third 
fiscal quarter of 1998.  Substantially all of the Company's net 
sales consist of products delivered to customers in Asia, primarily 
foreign subsidiaries of U.S. companies. 

Gross Profit.  Gross margin was 37.6 % and 38.0 % for the three 
and nine months ended December 31, 1997, respectively, compared 
with 40.6 % and 42.1 % for the three and nine months ended December 
31, 1996, respectively.  The decrease in gross margin for the three 
and nine months ended December 31, 1997 was primarily a result of a 
decline in average selling prices versus the comparable periods in 
the prior year, partially offset by decreased unit production 
costs, a result of the absorption of fixed costs over higher unit 
production volume, improved utilization of manufacturing capacity, 
and improved manufacturing processes.

Operating Expenses. Research and development expenses increased 
$702,000 and $2.2 million in the three- and nine-month periods 
ending December 31, 1997, respectively, compared to the same 
periods in 1996.  Research and development expenses increased due 
to an increase in headcount related to the Company's new product 
introductions.  Selling, general and administrative expenses 
increased $0.4 million and $1.9 million in the third quarter and 
first nine months of fiscal 1998, respectively, compared to same 
periods in the prior year. The increase in selling, general and 
administrative expenses reflected the increased headcount necessary 
to support higher production volume and unit shipments. 

The Company anticipates that operating expenses will continue to 
increase in absolute dollars as headcount is increased to support 
new product introductions, and anticipated higher levels of 
production volume and unit shipments, although as a percentage of 
net sales, operating expenses may fluctuate from period to period.

Provision for Income Taxes.  For the nine months ended December 
31, 1997 and 1996, the Company recorded income taxes at its 
estimated annual effective tax rate of 30%.

The Company's operating results historically have been, and may 
continue to be, subject to significant quarterly and annual 
fluctuations.  As a result, the Company's operating results in any 
quarter may not be indicative of its future performance.  Factors 
affecting operating results include: market acceptance of new 
products; timing of significant orders; changes in pricing by the 
Company or its competitors; timing of product announcements by the 
Company, its customers or its competitors; order cancellations, 
modifications and quantity adjustments and shipment reschedulings; 
changes in product mix; manufacturing yields; the level of 
utilization of the Company's production capacity; increases in 
production and engineering costs associated with initial 
manufacture of new products; and changes in the cost of or 
limitations on the availability of materials.  The impact of these 
and other factors on the Company's revenues and operating results 
in any future period cannot be forecasted with certainty.  The 
Company's expense levels are based, in part, on its expectations as 
to future revenues.  Because the Company's sales are generally made 
pursuant to purchase orders that are subject to cancellation, 
modification, quantity reduction or rescheduling on short notice 
and without significant penalties, the Company's backlog as of any 
particular date may not be indicative of sales for any future 
period, and such changes could cause the Company's net sales to 
fall below expected levels.  If revenue levels are below 
expectations, operating results are likely to be materially 
adversely affected.  Net income, if any, and gross margins may be 
disproportionately affected by a reduction in net sales because a 
proportionately smaller amount of the Company's expenses varies 
with its revenues.  


Liquidity and Capital Resources

Cash and cash equivalents decreased by $8.4 million to $46.7 
million at December 31, 1997 from the end of the prior fiscal year.  
Cash flows from operations were $80.6 million for the nine-month 
period ended December 31, 1997 as compared to $51.6 million in the 
same period of 1996.  Cash generated during the first nine months 
of fiscal 1998 reflected net income plus depreciation and 
amortization, as well as an increase in accrued liabilities, 
partially offset by increases in receivables and inventories and a 
decrease in accounts payable.  Increased sales contributed to the 
increase in positive cash flow provided by operations during the 
first nine months of fiscal 1998. 

The Company invested $105.5 million and $126.2 million in 
property, plant and equipment during the first nine months of 
fiscal 1998 and 1997, respectively.  The Company expects to spend 
in excess of $150.0 million on capital expenditures directed toward 
expansion of production capacity over the next twelve months, 
although there can be no assurance regarding the timing and amounts 
of such expenditures.

Cash provided by financing activities for the first nine months 
of fiscal 1998 reflected the $13.9 million generated from a public 
offering of  the Company's common stock during the second quarter 
of fiscal 1998.

As of December 31, 1997, the Company's principal sources of 
liquidity consisted of cash and cash equivalents, and an unsecured 
$100.0 million revolving credit facility under which there were no 
borrowings. 

The Company believes existing cash balances, cash generated from 
operations, and funds available under its credit facilities, will 
provide adequate cash to fund its operations and ongoing  facility 
expansion at least through fiscal 1999. Further expansion of the 
Company's manufacturing capacity may require the Company to obtain 
additional sources of financing.  There can be no assurance that 
the Company will be able to obtain any needed alternative sources 
of financing on favorable terms, if at all, at such time or times 
as the Company may require such capital.


<PAGE>

PART II OTHER INFORMATION



Item 6.   EXHIBITS AND REPORTS ON FORM 8-K

(a) Exhibits:

<TABLE>
<CAPTION>
Exhibit No.
- - -----------
<S>            <C>                                              
11.1           Statement Regarding Computation of Net Income per Share.

27.1           Financial Data Schedule.
</TABLE>



(b) Reports on Form 8-K:

        No reports on Form 8-K were filed by the Company during the 
quarter ended December 31, 1997.























<PAGE>








                                   SIGNATURES


        Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                           HMT TECHNOLOGY CORPORATION
                                  (Registrant)


Date: February 10, 1998      BY:  /s/ Peter S. Norris
      -----------------          ------------------------------------    
                                            Peter S. Norris
                                            Vice President, Finance and
                                            Chief Financial Officer


Date: February 10, 1998      BY:  /s/ Ronald L. Schauer
      -----------------          ------------------------------------    
                                            Ronald L. Schauer
                                            President and
                                            Chief Executive Officer






























<PAGE>

                                 EXHIBIT INDEX


<TABLE>
<CAPTION>
Exhibit No.           Description
- - -----------           -----------

<S>                 <C>                                                  
  11.1              Statement Regarding Computation of Net Income per Share.

  27.1              Financial Data Schedule
</TABLE>