##### 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 28, 2009
 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 0-14709
 Hutchinson Technology Incorporated
  Minnesota
    
    41-0901840(State or other jurisdiction of
    
    (I.R.S. Employerincorporation or organization)
    
    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 oAccelerated filer þNon-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 STATEMENTSTEM 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 1. LEGAL PROCEEDINGSITEM 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 28,
    
    
    September 28,2009
    
    
    2008ASSETSCurrent assets:Cash and cash equivalents
    
    $
    149,354
    
    
    $
    62,309Short-term
investments, including $3,031 and $1,690 restricted in use (Note 4)
    
    
    8,930
    
    
    
    108,944Trade receivables, net
    
    
    62,704
    
    
    
    100,928Other receivables
    
    
    7,787
    
    
    
    8,847Inventories
    
    
    48,288
    
    
    
    76,459Assets held for sale (Note 7)
    
    
    9,904
    
    
    
    Other current assets
    
    
    5,703
    
    
    
    7,326Total current assets
    
    
    292,670
    
    
    
    364,813Long-term investments (Note 4)
    
    
    93,087
    
    
    
    92,166Property, plant and equipment, net
    
    
    293,375
    
    
    
    415,088Other assets
    
    
    6,115
    
    
    
    9,220$
    685,247
    
    
    $
    881,287LIABILITIES AND SHAREHOLDERS INVESTMENTCurrent liabilities:Current maturities of long-term debt
    
    $
    66,589
    
    
    $
    1,444Accounts payable
    
    
    19,716
    
    
    
    26,519Accrued expenses
    
    
    13,096
    
    
    
    14,537Accrued compensation
    
    
    16,927
    
    
    
    21,178Total current liabilities
    
    
    116,328
    
    
    
    63,678Convertible subordinated notes
    
    
    225,000
    
    
    
    375,000Long-term debt, less current maturities
    
    
    60,506
    
    
    
    2,498Other long-term liabilities
    
    
    1,785
    
    
    
    3,009Shareholders investment:Common stock, $.01 par value, 100,000,000
shares authorized, 23,348,000 and 22,941,000
issued and outstanding
    
    
    233
    
    
    
    229Additional paid-in capital
    
    
    377,473
    
    
    
    371,965Accumulated other comprehensive loss (income)
    
    
    2,039
    
    
    
    (869
    )Accumulated (loss) earnings
    
    
    (98,117
    )
    
    
    65,777Total shareholders investment
    
    
    281,628
    
    
    
    437,102$
    685,247
    
    
    $
    881,287
  2




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HUTCHINSON TECHNOLOGY INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  UNAUDITED
 Thirteen Weeks Ended
    
    
    Thirty-Nine Weeks EndedJune 28,
    
    
    June 29,
    
    
    June 28,
    
    
    June 29,2009
    
    
    2008
    
    
    2009
    
    
    2008Net sales
    
    $
    106,105
    
    
    $
    150,398
    
    
    $
    304,780
    
    
    $
    467,319Cost of sales
    
    
    104,128
    
    
    
    133,886
    
    
    
    314,710
    
    
    
    398,949Gross profit (loss)
    
    
    1,977
    
    
    
    16,512
    
    
    
    (9,930
    )
    
    
    68,370Research and development expenses
    
    
    5,723
    
    
    
    9,697
    
    
    
    22,060
    
    
    
    30,367Selling, general and
administrative expenses
    
    
    13,302
    
    
    
    17,791
    
    
    
    44,652
    
    
    
    54,590Severance and other expenses
(Note 9)
    
    
    4,894
    
    
    
    1,061
    
    
    
    29,208
    
    
    
    1,061Asset impairment and other
charges (Note 10)
    
    
    20,841
    
    
    
    
    
    
    
    71,809
    
    
    
    Litigation charge (Note 15)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,494Loss from operations
    
    
    (42,783
    )
    
    
    (12,037
    )
    
    
    (177,659
    )
    
    
    (20,142
    )Other income, net
    
    
    656
    
    
    
    526
    
    
    
    5,176
    
    
    
    1,855Interest income
    
    
    689
    
    
    
    1,390
    
    
    
    2,876
    
    
    
    9,305Interest expense
    
    
    (2,819
    )
    
    
    (2,906
    )
    
    
    (8,539
    )
    
    
    (8,778
    )Gain on extinguishment of debt
    
    
    1,923
    
    
    
    
    
    
    
    14,098
    
    
    
    Loss before income taxes
    
    
    (42,334
    )
    
    
    (13,027
    )
    
    
    (164,048
    )
    
    
    (17,760
    )Benefit for income taxes
    
    
    (215
    )
    
    
    (4,642
    )
    
    
    (154
    )
    
    
    (5,428
    )Net loss
    
    $
    (42,119
    )
    
    $
    (8,385
    )
    
    $
    (163,894
    )
    
    $
    (12,332
    )Basic loss per share
    
    $
    (1.80
    )
    
    $
    (0.36
    )
    
    $
    (7.07
    )
    
    $
    (0.50
    )Diluted loss per share
    
    $
    (1.80
    )
    
    $
    (0.36
    )
    
    $
    (7.07
    )
    
    $
    (0.50
    )Weighted-average common shares
outstanding
    
    
    23,346
    
    
    
    23,212
    
    
    
    23,167
    
    
    
    24,902Weighted-average common and
diluted shares outstanding
    
    
    23,346
    
    
    
    23,212
    
    
    
    23,167
    
    
    
    24,902
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HUTCHINSON TECHNOLOGY INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  UNAUDITED
 Thirty-Nine Weeks EndedJune 28,
    
    
    June 29,2009
    
    
    2008OPERATING ACTIVITIES:Net loss
    
    $
    (163,894
    )
    
    $
    (12,332
    )Adjustments to reconcile net loss to cash provided
by operating activities:Depreciation and amortization
    
    
    61,515
    
    
    
    83,814Stock-based compensation
    
    
    4,054
    
    
    
    4,541Benefit for deferred taxes (Note 11)
    
    
    (67
    )
    
    
    (6,147
    )Severance and other expenses (Note 9)
    
    
    2,155
    
    
    
    Asset impairment charge (Note 10)
    
    
    71,669
    
    
    
    Gain on long-term investments
    
    
    (4,134
    )
    
    
    Gain on extinguishment of debt, net
    
    
    (14,098
    )
    
    
    (Gain) loss on disposal of assets
    
    
    (355
    )
    
    
    670Litigation charge (Note 15)
    
    
    
    
    
    
    2,494Changes in operating assets and liabilities
    
    
    55,339
    
    
    
    15,157Cash provided by operating activities
    
    
    12,184
    
    
    
    88,197INVESTING ACTIVITIES:Capital expenditures
    
    
    (18,728
    )
    
    
    (53,838
    )Purchases of marketable securities
    
    
    (19,783
    )
    
    
    (852,866
    )Sales/maturities of marketable securities
    
    
    124,663
    
    
    
    838,836Cash provided by (used for) investing activities
    
    
    86,152
    
    
    
    (67,868
    )FINANCING ACTIVITIES:Net proceeds from issuance of common stock
    
    
    1,458
    
    
    
    7,928Net proceeds from loan
    
    
    59,161
    
    
    
    Repayment of long-term debt
    
    
    (71,910
    )
    
    
    (1,001
    )Repurchase of common stock
    
    
    
    
    
    
    (57,721
    )Cash used for financing activities
    
    
    (11,291
    )
    
    
    (50,794
    )Net increase (decrease) in cash and cash equivalents
    
    
    87,045
    
    
    
    (30,465
    )Cash and cash equivalents at beginning of period
    
    
    62,309
    
    
    
    64,509Cash and cash equivalents at end of period
    
    $
    149,354
    
    
    $
    34,044Supplemental cash flow disclosure:Interest (net of amount capitalized)
    
    $
    5,284
    
    
    $
    5,092Income taxes
    
    $
    173
    
    
    $
    56
  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 2010 mean our fiscal
year ending September 26, 2010, references to 2009 mean our fiscal year ending September 27,
2009, references to 2008 mean our fiscal year ended September 28, 2008, references to 2007 mean
our fiscal year ended September 30, 2007, and references to 2006 mean our fiscal year ended
September 24, 2006.
 (1) BASIS OF PRESENTATION
  (2) ACCOUNTING PRONOUNCEMENTS
    5




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(3) FAIR VALUE MEASUREMENTS
   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.
 6




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Fair Value Measurements atJune 28, 2009Level 1
    
    Level 2
    
    Level 3AssetsTrading securitiesMarketable securities  ARS
    
    $
    
    
    
    $
    
    
    
    $
    63,682Available-for-saleMarketable securities
    
    
    8,930Marketable securities  ARS
    
    
    
    
    
    
    
    
    
    
    23,966Rights Offering (described in Note 4 below)
    
    
    
    
    
    
    
    
    
    
    5,439Derivatives
    
    $
    
    
    
    $
    307
    
    
    $
  RightsARS
    
    
    Offering
    
    
    TotalBalances at September 28, 2008
    
    $
    92,166
    
    
    $
    
    
    
    $
    92,166Net realized (loss) gain included in other income
    
    
    (1,305
    )
    
    
    5,439
    
    
    
    4,134Unrealized gain included in other comprehensive
income (OCI)
    
    
    1,818
    
    
    
    
    
    
    
    1,818Sales and redemptions
    
    
    (5,031
    )
    
    
    
    
    
    
    (5,031
    )Balances at June 28, 2009
    
    $
    87,648
    
    
    $
    5,439
    
    
    $
    93,087
 (4)   INVESTMENTS
  7




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Cost
    
    
    Realized
    
    
    Gross Unrealized
    
    
    RecordedBasis
    
    
    Gains
    
    
    Losses
    
    
    Gains
    
    
    Losses
    
    
    BasisAvailable-for-sale securitiesShort-term investmentsDebt securities
    
    $
    8,928
    
    
    $
    
    
    
    $
    
    
    
    $
    2
    
    
    $
    
    
    
    $
    8,930Long-term investmentsARS
    
    
    25,200
    
    
    
    
    
    
    
    1,630
    
    
    
    396
    
    
    
    
    
    
    
    23,966Total available-for-sale
securities
    
    
    34,128
    
    
    
    
    
    
    
    1,630
    
    
    
    398
    
    
    
    
    
    
    
    32,896Trading securitiesLong-term investmentsARS  secured
    
    
    69,575
    
    
    
    
    
    
    
    5,893
    
    
    
    
    
    
    
    
    
    
    
    63,682OtherRights Offering
    
    
    
    
    
    
    5,439
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,439$
    103,703
    
    
    $
    5,439
    
    
    $
    7,523
    
    
    $
    398
    
    
    $
    
    
    
    $
    102,017
     8




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(5) TRADE RECEIVABLES
  9




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Increases in the
    
    Reductions in theAllowance Related
    
    Allowance forto Warranties
    
    Returns UnderSeptember 28, 2008
    
    Issued
    
    Warranties
    

June 28, 2009$699
    
    $1,135
    
    ($1,569)
    
    $265
 (6) INVENTORIES
  June 28,
    
    
    September 28,2009
    
    
    2008Raw materials
    
    $
    19,727
    
    
    $
    26,290Work in process
    
    
    10,870
    
    
    
    15,847Finished goods
    
    
    17,691
    
    
    
    34,322$
    48,288
    
    
    $
    76,459
 (7) ASSETS HELD FOR SALE
  (8) EARNINGS PER SHARE
  10




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Thirteen Weeks Ended
    
    
    Thirty-Nine Weeks EndedJune 28,
    
    
    June 29,
    
    
    June 28,
    
    
    June 29,2009
    
    
    2008
    
    
    2009
    
    
    2008Net loss
    
    $
    (42,119
    )
    
    $
    (8,385
    )
    
    $
    (163,894
    )
    
    $
    (12,332
    )Plus: interest expense on convertible
subordinated notes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Less: additional profit-sharing expense
and income tax provision
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Net loss available to common shareholders
    
    $
    (42,119
    )
    
    $
    (8,385
    )
    
    $
    (163,894
    )
    
    $
    (12,332
    )Weighted-average common shares
outstanding
    
    
    23,346
    
    
    
    23,212
    
    
    
    23,167
    
    
    
    24,902Dilutive potential common shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Weighted-average common and diluted
shares outstanding
    
    
    23,346
    
    
    
    23,212
    
    
    
    23,167
    
    
    
    24,902Basic loss per share
    
    $
    (1.80
    )
    
    $
    (0.36
    )
    
    $
    (7.07
    )
    
    $
    (0.50
    )Diluted loss per share
    
    $
    (1.80
    )
    
    $
    (0.36
    )
    
    $
    (7.07
    )
    
    $
    (0.50
    )
  (9) SEVERANCE AND OTHER EXPENSES
  Severance and
    
    
    OtherBenefits
    
    
    Expenses
    
    
    TotalAccrual balances, September 28, 2008
    
    $
    
    
    
    $
    
    
    
    $
    Restructuring charges (1)
    
    
    19,527
    
    
    
    
    
    
    
    19,527Accrual balances, December 28, 2008
    
    $
    19,527
    
    
    $
    
    
    
    $
    19,527Restructuring charges
    
    
    4,662
    
    
    
    125
    
    
    
    4,787Cash payments
    
    
    (11,676
    )
    
    
    (125
    )
    
    
    (11,801
    )Accrual balances, March 29, 2009
    
    $
    12,513
    
    
    $
    
    
    
    $
    12,513Restructuring charges (2)
    
    
    4,542
    
    
    
    352
    
    
    
    4,894Cash payments
    
    
    (14,900
    )
    
    
    (352
    )
    
    
    (15,252
    )Accrual balances, June 28, 2009
    
    $
    2,155
    
    
    $
    
    
    
    $
    2,155
 
 (1)
    
    Includes $551,000 of expenses specific to our BioMeasurement Division(2)
    
    Includes $281,000 of expenses specific to our BioMeasurement Division.  11




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(10) ASSET IMPAIRMENT
     12




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(11) INCOME TAXES
     (12) LONG-TERM DEBT
  June 28, 2009
    
    September 28, 2008Carrying
    
    
    
    
    
    CarryingAmount
    
    Fair Value
    
    Amount
    
    Fair Value2.25% Notes
    
    $
    65,066
    
    
    $
    61,243
    
    
    $
    150,000
    
    
    $
    132,0143.25% Notes
    
    $
    225,000
    
    
    $
    98,156
    
    
    $
    225,000
    
    
    $
    132,390
  13




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14




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(13) DERIVATIVES
      15




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Asset Derivatives
    
    
    Liability Derivatives2009
    
    
    2009Balance
    
    
    
    
    
    
    BalanceSheet
    
    
    Fair
    
    
    Sheet
    
    
    FairLocation
    
    
    Value
    
    
    Location
    
    
    ValueDerivatives
designated as hedging
instruments under
SFAS No. 133
(commodity contracts)
    
    Other current assets
    
    $
    238
    
    
    Accrued expenses
    
    $
    Derivatives not
designated as hedging
instruments under
SFAS No. 133
(commodity contracts)
    
    Other current assets
    
    $
    69
    
    
    Accrued expenses
    
    $
    Total derivatives
    
    
    
    
    
    $
    307
    
    
    
    
    
    
    $
    
  Location of Gain or(Loss)Derivatives in SFAS
    
    
    
    
    
    
    
    
    
    Reclassified fromNo. 133 Cash Flow
    
    Amount of Gain or (Loss)
    
    Accumulated OCI
    
    Amount of Gain or (Loss)Value Hedging
    
    Recognized in OCI on Derivative
    
    into Income
    
    Reclassified from AccumulatedRelationships
    
    (Effective Portion)
    
    (Effective Portion)
    
    OCI into Income (Effective Portion)Thirteen
    
    Thirty-Nine
    
    
    
    
    
    Thirteen
    
    Thirty-NineWeeks Ended
    
    Weeks Ended
    
    
    
    
    
    Weeks Ended
    
    Weeks EndedJune 28, 
2009
    
    June 28, 
2009
    
    
    
    
    
    June 28, 2009
    
    June 28, 2009Commodity contracts
    
    $
    329

    
    $
    1,255

    
    Cost of sales
    
    $
    306

    
    $
    1,815
 Location of Gain or (Loss)Recognized in Income on
    
    Amount of Gain or (Loss)Derivatives in SFAS
    
    Derivative (Ineffective
    
    Recognized in IncomeNo. 133 Cash Flow
    
    Portion and Amount
    
    on Derivative (Ineffective Portion andValue Hedging
    
    Excluded from
    
    Amount Excluded fromRelationships
    
    Effectiveness Testing)
    
    Effectiveness Testing)Thirteen Weeks
    
    Thirty-NineEnded
    
    Weeks EndedJune 28, 2009
    
    June 28, 2009Commodity contracts
    
    Cost of sales
    
    $
    

    
    $
    (41)
 16




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##### Table of Contents



Derivatives Not
Designated as
    
    Location of Gain or 
(Loss) Recognized
    
    Amount of Gain or (Loss)Hedging Instruments
    
    in Income on
    
    Recognized in Income onunder SFAS No. 133
    

Derivative
    
    DerivativeThirteen Weeks
    
    Thirty-Nine WeeksEnded June 28,
    
    Ended June 28,2009
    
    2009Commodity contracts
    
    Cost of sales
    
    $
    158

    
    $
    69
  Thirteen Weeks Ended
    
    
    Thirty-Nine Weeks EndedJune 28,
    
    
    June 29,
    
    
    June 28,
    
    
    June 29,2009
    
    
    2008
    
    
    2009
    
    
    2008Beginning of period
unrealized loss in
accumulated OCI
    
    $
    (112
    )
    
    $
    (451
    )
    
    $
    (1,037
    )
    
    $
    Decrease (Increase)
in fair value of
derivative
instruments
    
    
    24
    
    
    
    191
    
    
    
    504
    
    
    
    (267
    )Gains (Losses)
reclassified from
OCI into cost of
sales
    
    
    306
    
    
    
    (18
    )
    
    
    1,815
    
    
    
    (18
    )Gains of
dedesignated
derivative
instruments
reclassified from
OCI into cost of
sales
    
    
    147
    
    
    
    
    
    
    
    617
    
    
    
    Settlements
    
    
    (147
    )
    
    
    (299
    )
    
    
    (1681
    )
    
    
    (292
    )End of period
unrealized gain
(loss) in
accumulated OCI
    
    $
    218
    
    
    $
    (577
    )
    
    $
    218
    
    
    $
    (577
    )
 (14) STOCK-BASED COMPENSATION
     17




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##### Table of Contents



Thirty-Nine Weeks EndedJune 28, 
2009
    
    June 29, 
2008Risk-free interest rate
    
    
    1.9
    %
    
    
    3.6
    %Expected volatility
    
    
    60.0
    %
    
    
    40.0
    %Expected life (in years)
    
    
    7.7
    
    
    
    7.8Dividend yield
    
    
    
    
    
    
    
   Weighted-AverageRemainingWeighted-Average
    
    Contractual
    
    AggregateNumber of Shares
    
    Exercise Price ($)
    
    Life (yrs.)
    
    Intrinsic Value ($)Outstanding at September 28, 2008
    
    
    3,394,388
    
    
    
    25.37
    
    
    
    5.4
    
    
    
    Granted
    
    
    726,650
    
    
    
    3.03Exercised
    
    
    Expired
    
    
    (468,817
    )
    
    
    24.04Outstanding at June 28, 2009
    
    
    3,652,221
    
    
    
    21.09
    
    
    
    6.0
    
    
    
    Options vested or expected to vest
at June 28, 2009
    
    
    3,651,958
    
    
    
    21.09
    
    
    
    6.0
    
    
    
    Options exercisable at June 28, 2009
    
    
    2,298,587
    
    
    
    25.20
    
    
    
    4.2
    
    
    
    
  Options Outstanding
    
    Options ExercisableWeighted-AverageRemainingRange of
    
    Number
    
    Contractual
    
    Weighted-Average
    
    Number
    
    Weighted-AverageExercise Prices ($)
    
    Outstanding
    
    Life (yrs.)
    
    Exercise Price ($)
    
    Exercisable
    
    Exercise Price ($)3.03-20.00
    
    
    1,219,690
    
    
    
    6.0
    
    
    
    10.20
    
    
    
    524,290
    
    
    
    18.8420.01-25.00
    
    
    1,061,650
    
    
    
    5.1
    
    
    
    23.20
    
    
    
    840,816
    
    
    
    23.2525.01-30.00
    
    
    805,966
    
    
    
    7.7
    
    
    
    26.79
    
    
    
    370,066
    
    
    
    27.4830.01-45.06
    
    
    564,915
    
    
    
    5.1
    
    
    
    32.53
    
    
    
    563,415
    
    
    
    32.53Total
    
    
    3,652,221
    
    
    
    6.0
    
    
    
    21.09
    
    
    
    2,298,587
    
    
    
    25.20
 (15) LEGAL CONTINGENCIES
 Other Litigation and Proceedings
  18




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(16) SEGMENT REPORTING
   19




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Thirteen Weeks Ended
    
    
    Thirty-Nine Weeks EndedJune 28,
    
    
    June 29,
    
    
    June 28,
    
    
    June 29,2009
    
    
    2008
    
    
    2009
    
    
    2008Net sales:Disk Drive Components Division:Suspension assemblies
    
    $
    103,234
    
    
    $
    147,707
    
    
    $
    296,699
    
    
    $
    460,610Other products
    
    
    2,463
    
    
    
    2,461
    
    
    
    6,950
    
    
    
    6,111Total Disk Drive Components Division
    
    
    105,697
    
    
    
    150,168
    
    
    
    303,649
    
    
    
    466,721BioMeasurement Division
    
    
    408
    
    
    
    230
    
    
    
    1,131
    
    
    
    598$
    106,105
    
    
    $
    150,398
    
    
    $
    304,780
    
    
    $
    467,319(Loss) income from operations:Disk Drive Components Division
    
    $
    (37,127
    )
    
    $
    (6,421
    )
    
    $
    (159,116
    )
    
    $
    (3,585
    )BioMeasurement Division
    
    
    (5,656
    )
    
    
    (5,616
    )
    
    
    (18,543
    )
    
    
    (16,557
    )$
    (42,783
    )
    
    $
    (12,037
    )
    
    $
    (177,659
    )
    
    $
    (20,142
    )
  (17) SUBSEQUENT EVENT
   20




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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 2010 mean our fiscal
year ending September 26, 2010, references to 2009 mean our fiscal year ending September 27,
2009, references to 2008 mean our fiscal year ended September 28, 2008, and references to 2007
mean our fiscal year ended September 30, 2007.
  GENERAL
   InSpectra ® StO 2 2 2
   21




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Percentage ofCustomer
    
    Net SalesSAE Magnetics, Ltd./TDK Corporation
    
    
    40
    %Western Digital Corporation
    
    
    34
    %Seagate Technology
    
    
    18
    %Fujitsu
    
    
    5
    %Hitachi
    
    
    3
    %
   Suspension Assembly Shipments by Quarter2008
    
    2009First
    
    Second
    
    Third
    
    Fourth
    
    First
    
    Second
    
    ThirdSuspension assembly
shipment quantities
    
    
    213
    
    
    
    179
    
    
    
    189
    
    
    
    209
    
    
    
    155
    
    
    
    107
    
    
    
    146
     22




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23




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RESULTS OF OPERATIONS
 Thirteen Weeks Ended June 28, 2009, vs. Thirteen Weeks Ended June 29, 2008
   24




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25




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Thirty-Nine Weeks Ended June 28, 2009, vs. Thirty-Nine Weeks Ended June 29, 2008
         26




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27




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LIQUIDITY AND CAPITAL RESOURCES
      28




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29




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CRITICAL ACCOUNTING POLICIES
  RECENT ACCOUNTING PRONOUNCEMENTS
  FORWARD-LOOKING STATEMENTS
  30




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31




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32




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EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES
  CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING
  33




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PART II. OTHER INFORMATION
 
   
  We may not be able to generate enough cash or secure enough capital to service our existing debt
obligations or execute our current and future business plans.
      Current and future disruptions in the global credit and financial markets and termination of our
credit facility will limit our access to credit, which could negatively impact our business.
  34




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##### Table of Contents



(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 0-14709.
 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).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).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.
 35




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SIGNATURES
  HUTCHINSON TECHNOLOGY INCORPORATEDDate:      August 5, 2009
    By
    /s/ Wayne M. FortunWayne M. FortunPresident and Chief Executive OfficerDate:      August 5, 2009
    By
    /s/ John A. InglemanJohn A. InglemanSenior Vice President and Chief Financial Officer 36




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INDEX TO EXHIBITS
 Exhibit No.
    
    
    
    Page3.1
    
    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).
    
    Incorporated by Reference3.2
    
    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).
    
    Incorporated by Reference31.1
    
    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
 37