##### 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 December 27, 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 
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 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 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-10.3EX-31.1EX-31.2EX-32    Table of Contents  
 PART I. FINANCIAL INFORMATION
 
  HUTCHINSON TECHNOLOGY INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS  UNAUDITED
 December 27,
    
    
    September 27,2009
    
    
    2009 (1)(2)(as adjusted)ASSETSCurrent assets:Cash and cash equivalents
    
    $
    118,461
    
    
    $
    106,391Short-term investments including
$4,884 and $3,031 restricted in
cash (Note 4)
    
    
    101,024
    
    
    
    96,316Trade receivables, net
    
    
    59,812
    
    
    
    63,448Other receivables
    
    
    11,851
    
    
    
    8,445Inventories
    
    
    48,055
    
    
    
    46,878Other current assets
    
    
    3,177
    
    
    
    4,932Total current assets
    
    
    342,380
    
    
    
    326,410Long-term investments (Note 11)
    
    
    22,176
    
    
    
    24,316Property, plant and equipment, net
    
    
    268,883
    
    
    
    279,336Other assets
    
    
    5,064
    
    
    
    5,425$
    638,503
    
    
    $
    635,487LIABILITIES AND SHAREHOLDERS INVESTMENTCurrent liabilities:Current maturities of long-term debt
    
    $
    97,941
    
    
    $
    102,804Accounts payable
    
    
    20,750
    
    
    
    17,536Accrued expenses
    
    
    10,701
    
    
    
    11,183Accrued compensation
    
    
    13,800
    
    
    
    13,139Total current liabilities
    
    
    143,192
    
    
    
    144,662Convertible subordinated notes
    
    
    168,515
    
    
    
    166,464Long-term debt, less current maturities
    
    
    540
    
    
    
    946Other long-term liabilities
    
    
    1,361
    
    
    
    1,705Shareholders investment:Common stock, $.01 par value,
100,000,000 shares authorized,
23,359,000 and 23,359,000 issued and
outstanding
    
    
    234
    
    
    
    234Additional paid-in capital
    
    
    419,569
    
    
    
    418,572Accumulated other comprehensive income
    
    
    2,471
    
    
    
    2,503Accumulated loss
    
    
    (97,379
    )
    
    
    (99,599
    )Total shareholders investment
    
    
    324,895
    
    
    
    321,710$
    638,503
    
    
    $
    635,487
 
 (1)
    
    Derived from our 2009 audited consolidated financial
statements.(2)
    
    Adjusted due to required retrospective adoption of the
authoritative guidance for accounting for convertible debt instruments (Note
2).  2




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##### Table of Contents



HUTCHINSON TECHNOLOGY INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  UNAUDITED
 Thirteen Weeks EndedDecember 27,
    
    
    December 28,2009
    
    
    2008 (1)(as adjusted)Net sales
    
    $
    108,256
    
    
    $
    119,671Cost of sales
    
    
    87,479
    
    
    
    119,804Gross profit (loss)
    
    
    20,777
    
    
    
    (133
    )Research and development expenses
    
    
    5,147
    
    
    
    8,883Selling, general and administrative expenses
    
    
    12,501
    
    
    
    16,416Severance and other expenses (Note 8)
    
    
    
    
    
    
    19,527Asset impairment charge (Note 9)
    
    
    
    
    
    
    32,280Income (loss) from operations
    
    
    3,129
    
    
    
    (77,239
    )Other income, net
    
    
    558
    
    
    
    323Interest income
    
    
    409
    
    
    
    1,259Gain on extinguishment of debt
    
    
    5
    
    
    
    12,175Interest expense
    
    
    (4,197
    )
    
    
    (4,876
    )Gain on short- and long-term investments
    
    
    64
    
    
    
    2,404Loss before income taxes
    
    
    (32
    )
    
    
    (65,954
    )(Benefit) provision for income taxes
    
    
    (2,252
    )
    
    
    265Net income (loss)
    
    $
    2,220
    
    
    $
    (66,219
    )Basic earnings (loss) per share
    
    $
    0.10
    
    
    $
    (2.88
    )Diluted earnings (loss) per share
    
    $
    0.09
    
    
    $
    (2.88
    )Weighted-average common shares outstanding
    
    
    23,359
    
    
    
    22,996Weighted-average common and diluted shares outstanding
    
    
    23,609
    
    
    
    22,996
 
 (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
 Thirteen Weeks EndedDecember 27,
    
    
    December 28,2009
    
    
    2008 (1)(as adjusted)OPERATING ACTIVITIES:Net income (loss)
    
    $
    2,220
    
    
    $
    (66,219
    )Adjustments to reconcile net income (loss) to cash
provided by operating activities:Depreciation and amortization
    
    
    14,836
    
    
    
    23,698Stock-based compensation
    
    
    997
    
    
    
    1,557Gain on short- and long-term investments
    
    
    (64
    )
    
    
    (2,404
    )Loss on disposal of assets
    
    
    147
    
    
    
    47Severance and other expenses (Note 8)
    
    
    
    
    
    
    19,527Asset impairment charge (Note 9)
    
    
    
    
    
    
    32,280Non-cash interest expense
    
    
    2,051
    
    
    
    2,142Gain on extinguishment of debt
    
    
    (5
    )
    
    
    (12,175
    )Changes in operating assets and liabilities
    
    
    3,798
    
    
    
    35,178Cash provided by operating activities
    
    
    23,980
    
    
    
    33,631INVESTING ACTIVITIES:Capital expenditures
    
    
    (4,098
    )
    
    
    (11,846
    )Purchases of marketable securities
    
    
    (11,629
    )
    
    
    (1,652
    )Sales/maturities of marketable securities
    
    
    9,077
    
    
    
    81,811Cash (used for) provided by investing activities
    
    
    (6,650
    )
    
    
    68,313FINANCING ACTIVITIES:Net proceeds from issuance of common stock
    
    
    
    
    
    
    541Borrowings on credit line
    
    
    
    
    
    
    59,532Repayment of short- and long-term debt
    
    
    (5,260
    )
    
    
    (48,110
    )Cash provided by financing activities
    
    
    (5,260
    )
    
    
    11,963Net increase in cash and cash equivalents
    
    
    12,070
    
    
    
    113,907Cash and cash equivalents at beginning of period
    
    
    106,391
    
    
    
    62,309Cash and cash equivalents at end of period
    
    $
    118,461
    
    
    $
    176,216Supplemental cash flow disclosure:Interest (net of amount capitalized)
    
    $
    48
    
    
    $
    127Income taxes
    
    $
    123
    
    
    $
    
 
 (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 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
  (2) ACCOUNTING PRONOUNCEMENTS
   5




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December 27,
    
    
    September 27,2009
    
    
    2009(as adjusted)Principal balance
    
    $
    197,500
    
    
    $
    197,500Debt discount
    
    
    (28,985
    )
    
    
    (31,036
    )Convertible subordinated notes, net
    
    $
    168,515
    
    
    $
    166,464
  Thirteen Weeks EndedDecember 27,
    
    
    December 28,2009
    
    
    2008(as adjusted)Coupon rate of interest (cash interest)
    
    $
    1,605
    
    
    $
    1,828Debt discount amortization (non-cash
interest)
    
    
    2,051
    
    
    
    2,142Net interest expense for the 3.25% Notes
    
    $
    3,656
    
    
    $
    3,970
   ConvertibleAs Originally
    
    DebtReported
    
    Adjustments
    
    As AdjustedConvertible subordinated notes
    
    $
    197,500
    
    
    $
    (31,036
    )
    
    $
    166,464Additional paid-in capital
    
    
    377,713
    
    
    
    40,859
    
    
    
    418,572Accumulated loss
    
    
    (89,776
    )
    
    
    (9,823
    )
    
    
    (99,599
    )Total shareholders investment
    
    
    290,674
    
    
    
    31,036
    
    
    
    321,710Total liabilities and
shareholders investment
    
    
    635,487
    
    
    
    
    
    
    
    635,487Condensed consolidated statement of operations  unaudited for the thirteen weeks ended December
28, 2008:ConvertibleAs Originally
    
    DebtReported
    
    Adjustments
    
    As AdjustedInterest expense
    
    $
    (2,734
    )
    
    $
    (2,142
    )
    
    $
    (4,876
    )Loss before income taxes
    
    
    (63,812
    )
    
    
    (2,142
    )
    
    
    (65,954
    )Provision for income taxes
    
    
    265
    
    
    
    
    
    
    
    265Net loss
    
    
    (64,077
    )
    
    
    (2,142
    )
    
    
    (66,219
    )Basic and diluted loss per share
    
    
    (2.79
    )
    
    
    (0.09
    )
    
    
    (2.88
    )
  (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 atDecember 27, 2009Level 1
    
    
    Level 2
    
    
    Level 3AssetsTrading securitiesMarketable securities  ARS
    
    $
    
    
    
    $
    
    
    
    $
    61,977Available-for-saleMarketable securities
    
    
    35,410
    
    
    
    
    
    
    
    Marketable securities  ARS
    
    
    
    
    
    
    
    
    
    
    22,176Rights Offering (described in Note 4 below)
    
    
    
    
    
    
    
    
    
    
    3,637Derivatives
    
    
    
    
    
    
    64
    
    
    
    Total Assets
    
    $
    35,410
    
    
    $
    64
    
    
    $
    87,790
  RightsARS
    
    
    Offering
    
    
    TotalBalances at September 27, 2009
    
    $
    86,207
    
    
    $
    4,037
    
    
    $
    90,244Net realized gain (loss) included in other income
    
    
    464
    
    
    
    (400
    )
    
    
    64Unrealized loss included in other comprehensive
income
    
    
    (100
    )
    
    
    


    
    
    
    (100
    )Sales and redemptions
    
    
    (2,418
    )
    
    
    
    
    
    
    (2,418
    )Balances at December 27, 2009
    
    $
    84,153
    
    
    $
    3,637
    
    
    $
    87,790
 7




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(4) INVESTMENTS
   Cost
    
    
    Gross Realized
    
    
    Gross Unrealized
    
    
    RecordedBasis
    
    
    Gains
    
    
    Losses
    
    
    Gains
    
    
    Losses
    
    
    BasisAvailable-for-sale securitiesShort-term investmentsDebt securities
    
    $
    35,259
    
    
    $
    
    
    
    $
    
    
    
    $
    151
    
    
    $
    
    
    
    $
    35,410Long-term investmentsARS
    
    
    22,900
    
    
    
    
    
    
    
    2,793
    
    
    
    2,069
    
    
    
    
    
    
    
    22,176Total available-for-sale
securities
    
    
    58,159
    
    
    
    
    
    
    
    2,793
    
    
    
    2,220
    
    
    
    
    
    
    
    57,586Trading securitiesShort-term investmentsARS  secured
    
    
    65,725
    
    
    
    
    
    
    
    3,748
    
    
    
    
    
    
    
    
    
    
    
    61,977OtherRights Offering
    
    
    
    
    
    
    3,637
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,637$
    123,884
    
    
    $
    3,637
    
    
    $
    6,541
    
    
    $
    2,220
    
    
    $
    
    
    
    $
    123,200
 8




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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
     9




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(5) TRADE RECEIVABLES
  10




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Reductions in theAllowance forReturns UnderSeptember 27, 2009
    
    Warranties
    
    December 27, 2009$275
    
    $(226)
    
    $49
 (6) INVENTORIES
  December 27,
    
    
    September 27,2009
    
    
    2009Raw materials
    
    $
    21,361
    
    
    $
    21,069Work in process
    
    
    9,191
    
    
    
    9,990Finished goods
    
    
    17,503
    
    
    
    15,819$
    48,055
    
    
    $
    46,878
 (7) EARNINGS (LOSS) PER SHARE
  Thirteen Weeks EndedDecember 27,
    
    
    December 28,2009
    
    
    2008(as adjusted)Net income (loss)
    
    $
    2,220
    
    
    $
    (66,219
    )Plus: interest expense on convertible subordinated notes
    
    
    
    
    
    
    Less: additional profit-sharing expense and income tax provision
    
    
    
    
    
    
    Net income (loss) available to common shareholders
    
    $
    2,220
    
    
    $
    (66,219
    )Weighted-average common shares outstanding
    
    
    23,359
    
    
    
    22,996Dilutive potential common shares
    
    
    250
    
    
    
    Weighted-average common and diluted shares outstanding
    
    
    23,609
    
    
    
    22,996Basic earnings (loss) per share
    
    $
    0.10
    
    
    $
    (2.88
    )Diluted earnings (loss) per share
    
    $
    0.09
    
    
    $
    (2.88
    )
  11




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(8) SEVERANCE AND OTHER EXPENSES
  (9) ASSET IMPAIRMENT
  (10) INCOME TAXES
    12




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(11) SHORT- AND LONG-TERM DEBT
  December 27,
    
    
    September 27,2009
    
    
    2009(as adjusted)3.25% Notes
    
    $
    197,500
    
    
    $
    197,500Debt discount
    
    
    (28,985
    )
    
    
    (31,036
    )2.25% Notes
    
    
    41,054
    
    
    
    45,554Eau Claire building mortgage
    
    
    2,118
    
    
    
    2,497UBS Credit Line
    
    
    55,309
    
    
    
    55,699Total debt
    
    
    266,996
    
    
    
    270,214Less: Current maturities
    
    
    (97,941
    )
    
    
    (102,804
    )$
    169,055
    
    
    $
    167,410
      13




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(12) DERIVATIVES
      14




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Asset Derivatives
    
    
    Liability DerivativesBalance
    
    
    
    
    
    
    BalanceSheet
    
    
    Fair
    
    
    Sheet
    
    
    FairLocation
    
    
    Value
    
    
    Location
    
    
    ValueDerivatives designated as hedging instruments (commodity contracts)
    
    Other current assets
    
    $
    64
    
    
    Accrued expenses
    
    $
    Derivatives not designated as hedging instruments (commodity contracts)
    
    Other current assets
    
    
    
    
    
    Accrued expenses
    
    
    Total derivatives
    
    
    
    
    
    $
    64
    
    
    
    
    
    
    $
    
  Location of Gain or(Loss)Reclassified fromDerivatives in Cash
    
    Amount of Gain or (Loss)
    
    
    Accumulated OCI
    
    
    Amount of Gain or (Loss)Flow Value Hedging
    
    Recognized in OCI on Derivative
    
    
    into Income
    
    
    Reclassified from AccumulatedRelationships
    
    (Effective Portion)
    
    
    (Effective Portion)
    
    

    OCI into Income (Effective Portion)Thirteen
    
    
    Thirteen
    
    
    
    
    
    
    Thirteen
    
    
    ThirteenWeeks Ended
    
    
    Weeks Ended
    
    
    
    
    
    
    Weeks Ended
    
    
    Weeks EndedDecember 27,
    
    
    December 28,
    
    
    
    
    
    
    December 27,
    
    
    December 28,2009
    
    
    2008
    
    
    
    
    
    
    2009
    
    
    2008Commodity contracts
    
    $
    (149
    )
    
    $
    (443
    )
    
    Cost of sales
    
    $
    (242
    )
    
    $
    831
 Location of Gain or (Loss)Recognized in Income on
    
    
    Amount of Gain or (Loss)Derivative (Ineffective
    
    
    Recognized in IncomeDerivatives in Cash
    
    Portion and Amount
    
    
    on Derivative (Ineffective Portion andFlow Value Hedging
    
    Excluded from
    
    
    Amount Excluded fromRelationships
    
    Effectiveness Testing)
    
    
    Effectiveness Testing)Thirteen
    
    
    ThirteenWeeks Ended
    
    
    Weeks EndedDecember 27,
 2009
    
    
    December 28,
 2008Commodity contracts
    
    Cost of sales
    
    $
    
    
    
    $
    9
 Location of Gain orDerivatives Not
    

    (Loss) Recognized
    
    
    Amount of Gain or (Loss)Designated as
    
    in Income on
    
    
    Recognized in Income onHedging Instruments
    
    Derivative
    
    
    DerivativeThirteen Weeks
    
    
    Thirteen WeeksEnded 
December 27,
    
    
    Ended 
December 28,2009
    
    
    2008Commodity contracts
    
    Cost of sales
    
    $
    
    
    
    $
    (400
    )
 15




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Thirteen Weeks EndedDecember 27,
    
    
    December 28,2009
    
    
    2008Beginning of period unrealized gain (loss) in
accumulated OCI
    
    $
    266
    
    
    $
    (1,037
    )Increase in fair value of derivative instruments
    
    
    (131
    )
    
    
    (228
    )(Loss) gain reclassified from OCI into cost of sales
    
    
    (242
    )
    
    
    831Loss on dedesignated derivative instruments
reclassified from OCI into cost of sales
    
    
    
    
    
    
    (89
    )Settlements
    
    
    225
    
    
    
    (958
    )End of period unrealized gain (loss) in accumulated OCI
    
    $
    118
    
    
    $
    (1,481
    )
 (13) STOCK-BASED COMPENSATION
    Thirteen Weeks EndedDecember 27,
    
    December 28,2009
    
    2008Risk-free interest rate
    
    
    2.6
    %
    
    
    1.8
    %Expected volatility
    
    
    80.0
    %
    
    
    60.0
    %Expected life (in years)
    
    
    7.3
    
    
    
    7.6Dividend yield
    
    
    
    
    
    
    
  16




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Weighted-AverageRemainingWeighted-Average
    
    Contractual
    
    AggregateNumber of Shares
    
    Exercise Price ($)
    
    Life (yrs.)
    
    Intrinsic Value ($)Outstanding at September 27, 2009
    
    
    3,570,323
    
    
    
    21.08
    
    
    
    5.5
    
    
    
    2,601,000Granted
    
    
    944,711
    
    
    
    7.36Exercised
    
    
    
    
    
    
    Expired/Canceled
    
    
    (288,590
    )
    
    
    19.06Outstanding at December 27, 2009
    
    
    4,226,444
    
    
    
    18.15
    
    
    
    6.6
    
    
    
    6,966,000Options vested or expected to vest
at December 27, 2009
    
    
    4,126,199
    
    
    
    18.41
    
    
    
    6.5
    
    
    
    6,706,000Options exercisable at December 27, 2009
    
    
    2,378,133
    
    
    
    25.82
    
    
    
    4.5
    
    
    
    
  Options Outstanding
    
    Options ExercisableWeighted-AverageRemainingRange of
    
    Number
    
    Contractual
    
    Weighted-Average
    
    Number
    
    Weighted-AverageExercise Prices ($)
    
    Outstanding
    
    Life (yrs.)
    
    Exercise Price ($)
    
    Exercisable
    
    Exercise Price ($)3.03-10.00
    
    
    1,589,261
    
    
    
    9.5
    
    
    
    5.60
    
    
    
    
    
    
    
    10.01-20.00
    
    
    276,960
    
    
    
    1.7
    
    
    
    18.61
    
    
    
    246,960
    
    
    
    18.9420.01-25.00
    
    
    1,028,892
    
    
    
    4.3
    
    
    
    23.19
    
    
    
    1,015,142
    
    
    
    23.2025.01-30.00
    
    
    782,116
    
    
    
    7.0
    
    
    
    26.78
    
    
    
    566,816
    
    
    
    27.0030.01-45.06
    
    
    549,215
    
    
    
    4.4
    
    
    
    32.53
    
    
    
    549,215
    
    
    
    32.53Total
    
    
    4,226,444
    
    
    
    6.6
    
    
    
    18.15
    
    
    
    2,378,133
    
    
    
    25.82
 (14) SEGMENT REPORTING
   17




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Thirteen Weeks EndedDecember 27,
    
    
    December 28,2009
    
    
    2008Net sales:Disk Drive Components Division:Suspension assemblies
    
    $
    105,600
    
    
    $
    117,267Other products
    
    
    2,147
    
    
    
    2,139Total Disk Drive Components Division
    
    
    107,747
    
    
    
    119,406BioMeasurement Division
    
    
    509
    
    
    
    265$
    108,256
    
    
    $
    119,671Income (loss) from operations:Disk Drive Components Division
    
    $
    8,020
    
    
    $
    (70,601
    )BioMeasurement Division
    
    
    (4,891
    )
    
    
    (6,638
    )$
    3,129
    
    
    $
    (77,239
    )
 (15) SUBSEQUENT EVENTS
  18




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##### Table of Contents



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 ended September 27, 2009,
and references to 2008 mean our fiscal year ended September 28, 2008.
  GENERAL
   InSpectra ® StO 2 2 2
    19




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




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RESULTS OF OPERATIONS
 Thirteen Weeks Ended December 27, 2009 vs. Thirteen Weeks Ended December 28, 2008
          21




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LIQUIDITY AND CAPITAL RESOURCES
      22




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23




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24




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InSpectra ® StO 2
    CRITICAL ACCOUNTING POLICIES
  RECENT ACCOUNTING PRONOUNCEMENTS
  25




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FORWARD-LOOKING STATEMENTS
  26




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27




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EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES
  CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING
  28




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PART II. OTHER INFORMATION
 
   
  (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).#10.1
    
    Description of Fiscal Year 2010 Disk Drive Components Division
Management Bonus Plan of Hutchinson Technology Incorporated
(incorporated by reference to Exhibit 10.1 to HTIs Current Report on
Form 8-K filed 10/15/09).#10.2
    
    Description of Fiscal Year 2010 BioMeasurement Division Management
Bonus Plan of Hutchinson Technology Incorporated (incorporated by
reference to Exhibit 10.2 to HTIs Current Report on Form 8-K filed
10/15/09).#10.3
    
    Hutchinson Technology Incorporated Non-Employee Directors Equity Plan.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.
 
 #
    
    Management contract or compensatory plan, contract or arrangement required to be filed as an exhibit to this Quarterly Report or Form 10-Q. 29




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SIGNATURES
  HUTCHINSON TECHNOLOGY INCORPORATEDDate:      February 4, 2010
    By
    /s/ Wayne M. FortunWayne M. FortunPresident and Chief Executive OfficerDate:      February 4, 2010
    By
    /s/ John A. InglemanJohn A. InglemanSenior 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 Reference10.1
    
    Description of Fiscal Year 2010 Disk Drive Components Division
Management Bonus Plan of Hutchinson Technology Incorporated.
    
    Incorporated by Reference10.2
    
    Description of Fiscal Year 2010 BioMeasurement Division
Management Bonus Plan of Hutchinson Technology Incorporated.
    
    Incorporated by Reference10.3
    
    Hutchinson Technology Incorporated
Non-Employee Directors Equity Plan.
    
    Filed Electronically31.1
    
    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