##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-Q
  þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended June 27, 2010
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to
 Commission File Number 1-34838
 Hutchinson Technology Incorporated
  Minnesota
    
    41-0901840(State or other jurisdiction of 
incorporation or organization)
    
    (I.R.S. Employer
Identification No.)40 West Highland Park Drive N.E.Hutchinson, Minnesota
    
    55350(Address of principal executive offices)
    
    (Zip Code)
 (320) 587-3797
 
 
  þ o
  o o
  Large accelerated filer o
Accelerated filer þ
Non-accelerated filer o(Do not check if a smaller reporting company)
Smaller reporting company o  o þ




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TABLE OF CONTENTS  PART I. FINANCIAL INFORMATIONITEM 1. FINANCIAL STATEMENTSITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKITEM 4. CONTROLS AND PROCEDURESPART II. OTHER INFORMATIONITEM 1A. RISK FACTORSITEM 6. EXHIBITSSIGNATURESINDEX TO EXHIBITSEX-31.1EX-31.2EX-32    Table of Contents  
 PART I. FINANCIAL INFORMATION
 
  HUTCHINSON TECHNOLOGY INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS



  UNAUDITED
 June 27,
    
    
    September 27,2010
    
    
    2009ASSETSCurrent assets:Cash and cash equivalents
    
    $
    53,596
    
    
    $
    106,391Short-term investments, including $4,172 and $3,031 restricted (Note 4)
    
    
    114,336
    
    
    
    96,316Trade receivables, net
    
    
    46,051
    
    
    
    63,448Other receivables
    
    
    7,845
    
    
    
    8,445Inventories
    
    
    55,620
    
    
    
    46,878Other current assets
    
    
    2,602
    
    
    
    4,932Total current assets
    
    
    280,050
    
    
    
    326,410Long-term investments (Note 4)
    
    
    
    
    
    
    24,316Property, plant and equipment, net
    
    
    261,139
    
    
    
    279,336Other assets
    
    
    4,635
    
    
    
    5,425$
    545,824
    
    
    $
    635,487LIABILITIES AND SHAREHOLDERS INVESTMENTCurrent liabilities:Current maturities of long-term debt
    
    $
    35,224
    
    
    $
    102,804Accounts payable
    
    
    21,491
    
    
    
    17,536Accrued expenses
    
    
    9,873
    
    
    
    11,183Accrued compensation and benefits
    
    
    14,326
    
    
    
    13,139Total current liabilities
    
    
    80,914
    
    
    
    144,662Convertible subordinated notes
    
    
    172,755
    
    
    
    166,464Long-term debt, less current maturities
    
    
    
    
    
    
    946Other long-term liabilities
    
    
    1,165
    
    
    
    1,705Shareholders investment:Common stock, $.01 par value, 100,000,000 shares authorized, 23,362,000
and 23,359,000 issued and outstanding
    
    
    234
    
    
    
    234Additional paid-in capital
    
    
    421,638
    
    
    
    418,572Accumulated other comprehensive income
    
    
    587
    
    
    
    2,503Accumulated loss
    
    
    (131,469
    )
    
    
    (99,599
    )Total shareholders investment
    
    
    290,990
    
    
    
    321,710$
    545,824
    
    
    $
    635,487
  2




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##### Table of Contents



HUTCHINSON TECHNOLOGY INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS



  UNAUDITED
 Thirteen Weeks Ended
    
    
    Thirty-Nine Weeks EndedJune 27,
    
    
    June 28,
    
    
    June 27,
    
    
    June 28,2010
    
    
    2009 (1)
    
    
    2010
    
    
    2009 (1)(as adjusted)
    
    
    
    
    
    
    (as adjusted)Net sales
    
    $
    77,293
    
    
    $
    106,105
    
    
    $
    273,163
    
    
    $
    304,780Cost of sales (Note 9)
    
    
    72,386
    
    
    
    104,128
    
    
    
    240,164
    
    
    
    314,710Gross profit (loss)
    
    
    4,907
    
    
    
    1,977
    
    
    
    32,999
    
    
    
    (9,930
    )Research and development expenses
(Note 9)
    
    
    5,553
    
    
    
    5,723
    
    
    
    16,136
    
    
    
    22,060Selling, general and administrative
expenses (Note 9)
    
    
    14,686
    
    
    
    13,302
    
    
    
    40,386
    
    
    
    44,652Severance and other expenses (Note 8)
    
    
    
    
    
    
    4,894
    
    
    
    
    
    
    
    29,208Asset impairment charge (Note 9)
    
    
    
    
    
    
    20,841
    
    
    
    
    
    
    
    71,809Loss from operations
    
    
    (15,332
    )
    
    
    (42,783
    )
    
    
    (23,523
    )
    
    
    (177,659
    )Other income, net
    
    
    437
    
    
    
    433
    
    
    
    1,257
    
    
    
    1,043Interest income
    
    
    304
    
    
    
    689
    
    
    
    1,241
    
    
    
    2,876Gain on extinguishment of debt
    
    
    
    
    
    
    1,923
    
    
    
    6
    
    
    
    14,098Interest expense
    
    
    (3,865
    )
    
    
    (5,033
    )
    
    
    (12,224
    )
    
    
    (15,109
    )Gain (loss) on short- and long-term
investments
    
    
    37
    
    
    
    223
    
    
    
    (319
    )
    
    
    4,133Loss before income taxes
    
    
    (18,419
    )
    
    
    (44,548
    )
    
    $
    (33,562
    )
    
    $
    (170,618
    )Provision (benefit) for income taxes
    
    
    81
    
    
    
    (215
    )
    
    $
    (1,692
    )
    
    $
    (154
    )Net loss
    
    $
    (18,500
    )
    
    $
    (44,333
    )
    
    $
    (31,870
    )
    
    $
    (170,464
    )Basic loss per share
    
    $
    (0.79
    )
    
    $
    (1.90
    )
    
    $
    (1.36
    )
    
    $
    (7.36
    )Diluted loss per share
    
    $
    (0.79
    )
    
    $
    (1.90
    )
    
    $
    (1.36
    )
    
    $
    (7.36
    )Weighted-average common shares
outstanding
    
    
    23,362
    
    
    
    23,346
    
    
    
    23,360
    
    
    
    23,167Weighted-average common and diluted
shares outstanding
    
    
    23,362
    
    
    
    23,346
    
    
    
    23,360
    
    
    
    23,167
 
 (1)
    
    Adjusted due to required retrospective
adoption of the authoritative guidance for accounting for convertible debt
instruments (Note 2).  3




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HUTCHINSON TECHNOLOGY INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS



  UNAUDITED
 Thirty-Nine Weeks EndedJune 27,
    
    
    June 28,2010
    
    
    2009(1)(as adjusted)OPERATING ACTIVITIES:Net loss
    
    $
    (31,870
    )
    
    $
    (170,464
    )Adjustments to reconcile net loss to cash provided by operating activities:Depreciation and amortization
    
    
    41,457
    
    
    
    61,515Stock-based compensation
    
    
    3,039
    
    
    
    4,054Benefit for deferred tax assets
    
    
    
    
    
    
    (67
    )Loss (gain) on short- and long-term investments
    
    
    319
    
    
    
    (4,134
    )Loss (gain) on disposal of assets
    
    
    11
    
    
    
    (355
    )Severance and other expenses (Note 8)
    
    
    
    
    
    
    2,155Asset impairment charge (Note 9)
    
    
    2,294
    
    
    
    71,669Non-cash interest expense
    
    
    6,290
    
    
    
    6,570Gain on extinguishment of debt
    
    
    (6
    )
    
    
    (14,098
    )Changes in operating assets and liabilities
    
    
    12,696
    
    
    
    55,339Cash provided by operating activities
    
    
    34,230
    
    
    
    12,184INVESTING ACTIVITIES:Capital expenditures
    
    
    (22,690
    )
    
    
    (18,728
    )Purchases of marketable securities
    
    
    (71,739
    )
    
    
    (19,783
    )Sales/maturities of marketable securities
    
    
    75,811
    
    
    
    124,663Cash (used for) provided by investing activities
    
    
    (18,618
    )
    
    
    86,152FINANCING ACTIVITIES:Proceeds from issuance of common stock
    
    
    27
    
    
    
    1,458Repayments of long-term debt
    
    
    (68,513
    )
    
    
    (71,910
    )Repayments of capital lease
    
    
    79
    
    
    
    Proceeds from loan
    
    
    
    
    
    
    59,161Cash used for financing activities
    
    
    (68,407
    )
    
    
    (11,291
    )Net (decrease) increase in cash and cash equivalents
    
    
    (52,795
    )
    
    
    87,045Cash and cash equivalents at beginning of period
    
    
    106,391
    
    
    
    62,309Cash and cash equivalents at end of period
    
    $
    53,596
    
    
    $
    149,354Supplemental cash flow disclosure:Cash interest paid (net of amount capitalized)
    
    $
    3,794
    
    
    $
    5,284Income taxes paid
    
    $
    411
    
    
    $
    173
 
 (1)
    
    Adjusted due to required retrospective adoption of the
authoritative guidance for accounting for convertible debt instruments (Note
2).  4




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HUTCHINSON TECHNOLOGY INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS  UNAUDITED
 When we refer to we, our, us, the company or HTI, we mean Hutchinson Technology
Incorporated and its subsidiaries. Unless otherwise indicated, references to 2011 mean our fiscal
year ending September 25, 2011, references to 2010 mean our fiscal year ending September 26,
2010, references to 2009 mean our fiscal year ended September 27, 2009, and references to 2008
mean our fiscal year ended September 28, 2008.
 (1) BASIS OF PRESENTATION
 Form 10-K.
 (2) ACCOUNTING PRONOUNCEMENTS
   5




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##### Table of Contents



June 27,
    
    
    September 27,2010
    
    
    2009Principal balance
    
    $
    197,500
    
    
    $
    197,500Debt discount
    
    
    (24,745
    )
    
    
    (31,036
    )Convertible subordinated notes, net
    
    $
    172,755
    
    
    $
    166,464
  Thirteen Weeks Ended
    
    
    Thirty-Nine Weeks EndedJune 27,
    
    
    June 28,
    
    
    June 27,
    
    
    June 28,2010
    
    
    2009
    
    
    2010
    
    
    2009Coupon rate of interest (cash interest)
    
    $
    1,587
    
    
    $
    1,807
    
    
    $
    4,814
    
    
    $
    5,484Debt discount amortization (non-cash
interest)
    
    
    2,119
    
    
    
    2,214
    
    
    
    6,291
    
    
    
    6,571Total interest expense for the 3.25% Notes
    
    $
    3,706
    
    
    $
    4,021
    
    
    $
    11,105
    
    
    $
    12,055
  Thirteen Weeks Ended
    
    Thirty-Nine Weeks EndedJune 28, 2009
    
    June 28, 2009Convertible
    
    
    
    
    
    
    
    
    
    ConvertibleAs Originally
    
    Debt
    
    
    
    
    
    As Originally
    
    DebtReported
    
    Adjustments
    
    As Adjusted
    
    Reported
    
    Adjustments
    
    As AdjustedInterest expense
    
    $
    (2,819
    )
    
    $
    (2,214
    )
    
    $
    (5,033
    )
    
    $
    (8,539
    )
    
    $
    (6,570
    )
    
    $
    (15,109
    )Loss before income
taxes
    
    
    (42,334
    )
    
    
    (2,214
    )
    
    
    (44,548
    )
    
    
    (164,048
    )
    
    
    (6,570
    )
    
    
    (170,618
    )Benefit for income
taxes
    
    
    (215
    )
    
    
    
    
    
    
    (215
    )
    
    
    (154
    )
    
    
    
    
    
    
    (154
    )Net loss
    
    
    (42,119
    )
    
    
    (2,214
    )
    
    
    (44,333
    )
    
    
    (163,894
    )
    
    
    (6,570
    )
    
    
    (170,464
    )Basic and diluted
loss per share
    
    
    (1.80
    )
    
    
    (0.10
    )
    
    
    (1.90
    )
    
    
    (7.07
    )
    
    
    (0.29
    )
    
    
    (7.36
    )
  (3) FAIR VALUE MEASUREMENTS
   6




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Level 1 
    
    Unadjusted quoted prices in an active market for the identical assets or liabilities at the measurement date.
 Level 2 
    
    Other observable inputs available at the measurement date, other than quoted prices included in Level 1,
either directly or indirectly, including:
 
    
    Quoted prices for similar assets or liabilities in active markets;
    
    Quoted prices for identical or similar assets in nonactive markets;
    
    Inputs other than quoted prices that are observable for the asset or liability; and
    
    Inputs that are derived principally from or corroborated by other observable market data.
 Level 3 
    
    Unobservable inputs that reflect the use of significant management judgment. These values are generally
determined using pricing models for which assumptions utilize managements estimates of market participant
assumptions.
  Fair Value Measurements atJune 27, 2010Level 1
    
    
    Level 2
    
    
    Level 3AssetsTrading securitiesMarketable
securities  auction rate securities (ARS)
    
    $
    
    
    
    $
    
    
    
    $
    42,267Available-for-saleMarketable securities
    
    
    69,786
    
    
    
    
    
    
    
    Rights Offering (described in Note 4 below)
    
    
    
    
    
    
    
    
    
    
    2,283Total assets
    
    $
    69,786
    
    
    $
    
    
    
    $
    44,550
  ARS
    
    
    Rights 
Offering
    
    
    TotalBalances at September 27, 2009
    
    $
    86,207
    
    
    $
    4,037
    
    
    $
    90,244Net realized gain (loss) included in other income
    
    
    1,435
    
    
    
    
    
    
    
    1,435Unrealized loss included in other comprehensive income
    
    
    (2,169
    )
    
    
    
    
    
    
    (2,169
    )Sales and redemptions
    
    
    (43,206
    )
    
    
    (1,754
    )
    
    
    (44,960
    )Balances at June 27, 2010
    
    $
    42,267
    
    
    $
    2,283
    
    
    $
    44,550
  (4) INVESTMENTS
  7




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Cost
    
    
    Gross Realized
    
    
    Gross Unrealized
    
    
    RecordedBasis
    
    
    Gains
    
    
    Losses
    
    
    Gains
    
    
    Losses
    
    
    BasisAvailable-for-sale securitiesShort-term investmentsDebt securities
    
    $
    69,477
    
    
    $
    
    
    
    $
    
    
    
    $
    309
    
    
    $
    
    
    
    $
    69,786Trading securitiesShort-term investmentsARS  secured
    
    
    44,550
    
    
    
    
    
    
    
    2,283
    
    
    
    
    
    
    
    
    
    
    
    42,267OtherRights Offering
    
    
    
    
    
    
    2,283
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,283$
    114,027
    
    
    $
    2,283
    
    
    $
    2,283
    
    
    $
    309
    
    
    $
    
    
    
    $
    114,336
  Cost
    
    
    Gross Realized
    
    
    Gross Unrealized
    
    
    RecordedBasis
    
    
    Gains
    
    
    Losses
    
    
    Gains
    
    
    Losses
    
    
    BasisAvailable-for-sale
securitiesShort-term investmentsDebt securities
    
    $
    30,320
    
    
    $
    
    
    
    $
    
    
    
    $
    68
    
    
    $
    
    
    
    $
    30,388Long-term investmentsARS
    
    
    25,200
    
    
    
    
    
    
    
    3,053
    
    
    
    2,169
    
    
    
    
    
    
    
    24,316Total available-for-sale
securities
    
    
    55,520
    
    
    
    
    
    
    
    3,053
    
    
    
    2,237
    
    
    
    
    
    
    
    54,704Trading securitiesShort-term investmentsARS  secured
    
    
    66,125
    
    
    
    
    
    
    
    4,234
    
    
    
    
    
    
    
    
    
    
    
    61,891OtherRights Offering
    
    
    
    
    
    
    4,037
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,037$
    121,645
    
    
    $
    4,037
    
    
    $
    7,287
    
    
    $
    2,237
    
    
    $
    
    
    
    $
    120,632
  8




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9




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(5) TRADE RECEIVABLES
   Increases in the
    
    Reductions in theAllowance
    
    Allowance forRelated to
    
    Returns UnderSeptember 27, 2009
    
    Warranties Issued
    
    Warranties
    
    June 27, 2010$275
    
    $664
    
    ($706)
    
    $233
 (6) INVENTORIES
  June 27,
    
    
    September 27,2010
    
    
    2009Raw materials
    
    $
    22,681
    
    
    $
    21,069Work in process
    
    
    10,253
    
    
    
    9,990Finished goods
    
    
    22,686
    
    
    
    15,819$
    55,620
    
    
    $
    46,878
 10




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(7) EARNINGS (LOSS) PER SHARE
  Thirteen Weeks Ended
    
    
    Thirty-Nine Weeks EndedJune 27,
    
    
    June 28,
    
    
    June 27,
    
    
    June 28,2010
    
    
    2009
    
    
    2010
    
    
    2009(as adjusted)
    
    
    
    
    
    
    (as adjusted)Net loss
    
    $
    (18,500
    )
    
    $
    (44,333
    )
    
    $
    (31,870
    )
    
    $
    (170,464
    )Plus: interest expense on
convertible subordinated notes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Less: additional profit-sharing
expense and income tax
provision
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Net loss available to common
shareholders
    
    $
    (18,500
    )
    
    $
    (44,333
    )
    
    $
    (31,870
    )
    
    $
    (170,464
    )Weighted-average common shares
outstanding
    
    
    23,362
    
    
    
    23,346
    
    
    
    23,360
    
    
    
    23,167Dilutive potential common shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Weighted-average common and
diluted shares outstanding
    
    
    23,362
    
    
    
    23,346
    
    
    
    23,360
    
    
    
    23,167Basic loss per share
    
    $
    (0.79
    )
    
    $
    (1.90
    )
    
    $
    (1.36
    )
    
    $
    (7.36
    )Diluted loss per share
    
    $
    (0.79
    )
    
    $
    (1.90
    )
    
    $
    (1.36
    )
    
    $
    (7.36
    )
  (8) SEVERANCE AND OTHER EXPENSES
   11




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(9) ASSET IMPAIRMENT
     InSpectra ®
StO 2 2
 Cost of sales
    
    $
    1,110,000Research and development expenses
    
    
    394,000Selling, general and administrative expenses
    
    
    790,000Total
    
    $
    2,294,000
 12




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(10) INCOME TAXES
     13




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(11) SHORT- AND LONG-TERM DEBT
  June 27,
    
    
    September 27,2010
    
    
    20093.25% Notes
    
    $
    197,500
    
    
    $
    197,500Debt discount
    
    
    (24,745
    )
    
    
    (31,036
    )2.25% Notes
    
    
    
    
    
    
    45,554Eau Claire building mortgage
    
    
    1,344
    
    
    
    2,497UBS Credit Line
    
    
    33,880
    
    
    
    55,699Total debt
    
    
    207,979
    
    
    
    270,214Less: Current maturities
    
    
    (35,224
    )
    
    
    (102,804
    )Total long-term debt
    
    $
    172,755
    
    
    $
    167,410
       14




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(12) DERIVATIVES
       15




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Thirteen Weeks Ended
    
    
    Thirty-Nine Weeks EndedJune 27,
    
    
    June 28,
    
    
    June 27,
    
    
    June 28,2010
    
    
    2009
    
    
    2010
    
    
    2009Beginning of period unrealized gain in
accumulated OCI
    
    $
    29
    
    
    $
    (112
    )
    
    $
    267
    
    
    $
    (1,037
    )Decrease in fair value of derivative instruments
    
    
    
    
    
    
    24
    
    
    
    (196
    )
    
    
    504(Loss) gain reclassified from OCI into cost of
sales
    
    
    (29
    )
    
    
    306
    
    
    
    (372
    )
    
    
    1,815Loss on dedesignated derivative instruments
reclassified from OCI into cost of sales
    
    
    
    
    
    
    147
    
    
    
    
    
    
    
    617Settlements
    
    
    
    
    
    
    (147
    )
    
    
    301
    
    
    
    (1,681
    )End of period unrealized gain in accumulated OCI
    
    $
    
    
    
    $
    218
    
    
    $
    
    
    
    $
    218
 (13) STOCK-BASED COMPENSATION
    Thirty-Nine Weeks EndedJune 27,
    
    June 28,2010
    
    2009Risk-free interest rate
    
    
    2.7
    %
    
    
    1.9
    %Expected volatility
    
    
    80.0
    %
    
    
    60.0
    %Expected life (in years)
    
    
    7.4
    
    
    
    7.7Dividend yield
    
    
    
    
    
    
    
  16




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Weighted-AverageWeighted-Average
    
    Remaining
    
    AggregateNumber of Shares
    
    Exercise Price ($)
    
    Contractual Life (yrs.)
    
    Intrinsic Value ($)Outstanding at September 27, 2009
    
    
    3,570,323
    
    
    
    21.08
    
    
    
    5.5
    
    
    
    2,601,000Granted
    
    
    1,042,211
    
    
    
    7.36Exercised
    
    
    
    
    
    
    Expired/Canceled
    
    
    (322,330
    )
    
    
    18.47Outstanding at June 27, 2010
    
    
    4,290,204
    
    
    
    17.94
    
    
    
    6.2
    
    
    
    1,002,000Options vested or expected to vest
at June 27, 2010
    
    
    4,215,319
    
    
    
    18.13
    
    
    
    6.1
    
    
    
    1,008,000Options exercisable at June 27, 2010
    
    
    2,394,993
    
    
    
    25.74
    
    
    
    4.1
    
    
    
    
  Options Outstanding
    
    Options ExercisableWeighted-AverageRemainingRange of
    
    Number
    
    Contractual
    
    Weighted-Average
    
    Number
    
    Weighted-AverageExercise Prices ($)
    
    Outstanding
    
    Life (yrs.)
    
    Exercise Price ($)
    
    Exercisable
    
    Exercise Price ($)3.03-5.00
    
    
    638,150
    
    
    
    8.4
    
    
    
    3.03
    
    
    
    
    
    
    
    5.01-10.00
    
    
    1,028,611
    
    
    
    9.5
    
    
    
    7.36
    
    
    
    
    
    
    
    10.01-20.00
    
    
    273,960
    
    
    
    1.2
    
    
    
    18.63
    
    
    
    258,960
    
    
    
    18.7820.01-25.00
    
    
    1,026,192
    
    
    
    3.8
    
    
    
    23.19
    
    
    
    1,026,192
    
    
    
    23.1925.01-30.00
    
    
    776,166
    
    
    
    6.5
    
    
    
    26.78
    
    
    
    562,716
    
    
    
    27.0030.01-45.06
    
    
    547,125
    
    
    
    3.9
    
    
    
    32.53
    
    
    
    547,125
    
    
    
    32.53Total
    
    
    4,290,204
    
    
    
    6.2
    
    
    
    17.94
    
    
    
    2,394,993
    
    
    
    25.74
 (14) SEGMENT REPORTING
   17




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Thirteen Weeks Ended
    
    
    Thirty-Nine Weeks EndedJune 27,
    
    
    June 28,
    
    
    June 27,
    
    
    June 28,2010
    
    
    2009
    
    
    2010
    
    
    2009Net sales:Disk Drive Components Division:Suspension assemblies
    
    $
    75,113
    
    
    $
    103,234
    
    
    $
    266,057
    
    
    $
    296,699Other products
    
    
    1,644
    
    
    
    2,463
    
    
    
    5,374
    
    
    
    6,950Total Disk Drive Components Division
    
    
    76,757
    
    
    
    105,697
    
    
    
    271,431
    
    
    
    303,649BioMeasurement Division
    
    
    536
    
    
    
    408
    
    
    
    1,732
    
    
    
    1,131$
    77,293
    
    
    $
    106,105
    
    
    $
    273,163
    
    
    $
    304,780Loss from operations:Disk Drive Components Division
    
    $
    (7,559
    )
    
    $
    (37,127
    )
    
    $
    (5,583
    )
    
    $
    (159,116
    )BioMeasurement Division
    
    
    (7,773
    )
    
    
    (5,656
    )
    
    
    (17,940
    )
    
    
    (18,543
    )$
    (15,332
    )
    
    $
    (42,783
    )
    
    $
    (23,523
    )
    
    $
    (177,659
    )
 (15) SUBSEQUENT EVENTS
     18




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When we refer to we, our, us, the company or HTI, we mean Hutchinson Technology
Incorporated and its subsidiaries. Unless otherwise indicated, references to 2011 mean our fiscal
year ending September 25, 2011, references to 2010 mean our fiscal year ending September 26,
2010, references to 2009 mean our fiscal year ended September 27, 2009, and references to 2008
mean our fiscal year ended September 28, 2008.
  GENERAL
   InSpectra ® StO 2 2 2 2
    19




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##### Table of Contents



Suspension Assembly Shipments by Quarter2009
    
    2010First
    
    Second
    
    Third
    
    Fourth
    
    First
    
    Second
    
    ThirdSuspension
assembly shipment
quantities
    
    
    155
    
    
    
    107
    
    
    
    146
    
    
    
    145
    
    
    
    155
    
    
    
    130
    
    
    
    117
     20




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RESULTS OF OPERATIONS
 Thirteen Weeks Ended June 27, 2010 vs. Thirteen Weeks Ended June 28, 2009
 June 28, 2009, June 27, 2010
  21




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Thirty-Nine Weeks Ended June 27, 2010 vs. Thirty-Nine Weeks Ended June 28, 2009
   22




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23




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LIQUIDITY AND CAPITAL RESOURCES
    24




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25




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26




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2
    CRITICAL ACCOUNTING POLICIES
  RECENT ACCOUNTING PRONOUNCEMENTS
  27




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FORWARD-LOOKING STATEMENTS
  28




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EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES
  CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING
  29




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PART II. OTHER INFORMATION
 
   We may
be unable to achieve our financial and strategic goals in connection with investments in new
manufacturing locations.
  Healthcare reform legislation could adversely affect our revenue and financial condition.
  30




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(a) Exhibits :
 Unless otherwise indicated, all documents incorporated herein by reference to a document filed with
the SEC pursuant to the Exchange Act, are located under SEC file number 1-34838.
 3.1
    
    Amended and Restated Articles of Incorporation of HTI (incorporated
by reference to Exhibit 3.1 to HTIs Quarterly Report on Form 10-Q
for the quarter ended 12/29/02; File No. 0-14709).3.2
    
    Restated By-Laws of HTI, as amended December 3, 2008 (incorporated by
reference to Exhibit 3.1 to HTIs Current Report on Form 8-K filed
12/9/08; File No. 0-14709).4.1
    
    Rights Agreement, dated as of July 29, 2010, between Hutchinson
Technology Incorporated and Wells Fargo Bank, N.A., as Rights Agent
(incorporated by reference to Exhibit 1 to HTIs Registration
Statement on Form 8-A filed 7/30/10).31.1
    
    Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer.31.2
    
    Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer.32
    
    Section 1350 Certifications.
 31




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SIGNATURES
  HUTCHINSON TECHNOLOGY INCORPORATEDDate: August 6, 2010
    By
    /s/ Wayne M. FortunWayne M. FortunPresident and Chief Executive OfficerDate: August 6, 2010
    By
    /s/ Steven L. PolacekSteven L. PolacekSenior Vice President and Chief Financial Officer




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INDEX TO EXHIBITS
 Exhibit No.
    
    
    
    
    
    Page3.1
    
    Amended and Restated Articles of Incorporation of HTI.
    
    Incorporated by Reference3.2
    
    Restated By-Laws of HTI, as amended December 3, 2008.
    
    Incorporated by Reference4.1
    
    Rights Agreement, dated as of July 29, 2010, between Hutchinson
    
    Incorporated by ReferenceTechnology Incorporated and Wells Fargo Bank, N.A., as RightsAgent (incorporated by reference to Exhibit 1 to HTIsRegistration Statement on Form 8-A filed 7/30/10).31.1
    
    Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer.
    
    Filed Electronically31.2
    
    Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer.
    
    Filed Electronically32
    
    Section 1350 Certifications.
    
    Filed Electronically