##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-Q
 Mark One)
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended JUNE 24, 2007
 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  (Registrants telephone number, including area code)
 (Former name, address or fiscal year, if changed since last report)
  þ o
  þ o 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 1. LEGAL PROCEEDINGSITEM 1A. RISK FACTORSITEM 6. EXHIBITSSIGNATURESINDEX TO EXHIBITSCertifications of Chief Executive OfficerCertifications of Chief Financial OfficerSection 1350 Certifications    Table of Contents  
 PART I. FINANCIAL INFORMATION
 
  HUTCHINSON TECHNOLOGY INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS  UNAUDITED
 June 24,
    
    
    September 24,2007
    
    
    2006ASSETSCurrent assets:Cash and cash equivalents
    
    $
    29,601
    
    
    $
    40,331Securities available for sale
    
    
    261,563
    
    
    
    250,110Trade receivables, net
    
    
    88,835
    
    
    
    95,391Other receivables
    
    
    16,426
    
    
    
    14,409Inventories
    
    
    74,714
    
    
    
    81,298Deferred tax assets (Note 8)
    
    
    8,941
    
    
    
    8,021Other current assets (Note 9)
    
    
    5,551
    
    
    
    7,161Total current assets
    
    
    485,631
    
    
    
    496,721Property, plant and equipment, net
    
    
    471,963
    
    
    
    472,163Deferred tax assets (Note 8)
    
    
    65,616
    
    
    
    57,867Other assets (Note 9)
    
    
    17,524
    
    
    
    18,333$
    1,040,734
    
    
    $
    1,045,084LIABILITIES AND SHAREHOLDERS INVESTMENTCurrent liabilities:Current maturities of long-term debt
    
    $
    1,321
    
    
    $
    1,252Accounts payable
    
    
    34,066
    
    
    
    45,090Accrued expenses
    
    
    16,354
    
    
    
    14,819Accrued compensation
    
    
    28,366
    
    
    
    21,338Total current liabilities
    
    
    80,107
    
    
    
    82,499Convertible subordinated notes
    
    
    375,000
    
    
    
    375,000Long-term debt, less current maturities
    
    
    4,290
    
    
    
    5,291Other long-term liabilities
    
    
    2,492
    
    
    
    3,570Shareholders investment:Common stock, $.01 par value,
100,000,000 shares authorized,
26,029,000 and 25,638,000 issued and
outstanding
    
    
    260
    
    
    
    256Additional paid-in capital
    
    
    409,381
    
    
    
    398,047Accumulated other comprehensive loss
    
    
    (126
    )
    
    
    (222
    )Accumulated earnings
    
    
    169,330
    
    
    
    180,643Total shareholders investment
    
    
    578,845
    
    
    
    578,724$
    1,040,734
    
    
    $
    1,045,084
  2




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##### Table of Contents



HUTCHINSON TECHNOLOGY INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  UNAUDITED
 Thirteen Weeks Ended
    
    
    Thirty-Nine Weeks EndedJune 24,
    
    
    June 25,
    
    
    June 24,
    
    
    June 25,2007
    
    
    2006
    
    
    2007
    
    
    2006Net sales
    
    $
    156,686
    
    
    $
    169,979
    
    
    $
    516,249
    
    
    $
    540,934Cost of sales
    
    
    135,707
    
    
    
    137,488
    
    
    
    429,699
    
    
    
    426,880Gross profit
    
    
    20,979
    
    
    
    32,491
    
    
    
    86,550
    
    
    
    114,054Research and development expenses
    
    
    14,524
    
    
    
    13,906
    
    
    
    44,830
    
    
    
    40,023Selling, general and administrative expenses
    
    
    19,096
    
    
    
    20,263
    
    
    
    57,627
    
    
    
    64,120Severance and other expenses (Note 7)
    
    
    8,728
    
    
    
    
    
    
    
    8,728
    
    
    
    Dispute settlement
    
    
    
    
    
    
    (5,000
    )
    
    
    
    
    
    
    (5,000
    )Income (loss) from operations
    
    
    (21,369
    )
    
    
    3,322
    
    
    
    (24,635
    )
    
    
    14,911Other income, net
    
    
    648
    
    
    
    1,352
    
    
    
    3,418
    
    
    
    3,859Interest income
    
    
    3,748
    
    
    
    3,903
    
    
    
    11,316
    
    
    
    9,138Interest expense
    
    
    (2,606
    )
    
    
    (2,522
    )
    
    
    (7,452
    )
    
    
    (4,995
    )Income (loss) before income taxes
    
    
    (19,579
    )
    
    
    6,055
    
    
    
    (17,353
    )
    
    
    22,913Provision (benefit) for income taxes
    
    
    (6,099
    )
    
    
    (141
    )
    
    
    (6,040
    )
    
    
    2,459Net income (loss)
    
    $
    (13,480
    )
    
    $
    6,196
    
    
    $
    (11,313
    )
    
    $
    20,454Basic earnings (loss) per share
    
    $
    (0.52
    )
    
    $
    0.24
    
    
    $
    (0.44
    )
    
    $
    0.79Diluted earnings (loss) per share
    
    $
    (0.52
    )
    
    $
    0.23
    
    
    $
    (0.44
    )
    
    $
    0.74Weighted-average common shares outstanding
    
    
    26,027
    
    
    
    25,648
    
    
    
    25,961
    
    
    
    25,598Weighted-average common and diluted shares
outstanding
    
    
    26,027
    
    
    
    30,872
    
    
    
    25,961
    
    
    
    30,869
  3




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##### Table of Contents



HUTCHINSON TECHNOLOGY INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  UNAUDITED
 Thirty-Nine Weeks EndedJune 24,
    
    
    June 25,2007
    
    
    2006OPERATING ACTIVITIES:Net income (loss)
    
    $
    (11,313
    )
    
    $
    20,454Adjustments to reconcile net income (loss) to cash
provided by operating activities:Depreciation and amortization
    
    
    85,596
    
    
    
    87,463Stock-based compensation
    
    
    3,461
    
    
    
    2,688Provision (benefit) for deferred taxes (Note 8)
    
    
    (8,724
    )
    
    
    2,340Loss on disposal of assets
    
    
    2
    
    
    
    231Severance and other expenses (Note 7)
    
    
    8,728
    
    
    
    Changes in operating assets and liabilities (Note 12)
    
    
    3,935
    
    
    
    (26,463
    )Cash provided by operating activities
    
    
    81,685
    
    
    
    86,713INVESTING ACTIVITIES:Capital expenditures
    
    
    (87,026
    )
    
    
    (191,705
    )Purchases of marketable securities
    
    
    (1,333,665
    )
    
    
    (1,428,247
    )Sales/maturities of marketable securities
    
    
    1,322,253
    
    
    
    1,355,990Cash used for investing activities
    
    
    (98,438
    )
    
    
    (263,962
    )FINANCING ACTIVITIES:Net proceeds from issuance of common stock
    
    
    6,955
    
    
    
    3,993Net proceeds from issuance of convertible subordinated notes
    
    
    
    
    
    
    218,971Repayment of long-term debt
    
    
    (932
    )
    
    
    (1,012
    )Cash provided by financing activities
    
    
    6,023
    
    
    
    221,952Net increase (decrease) in cash and cash equivalents
    
    
    (10,730
    )
    
    
    44,703Cash and cash equivalents at beginning of period
    
    
    40,331
    
    
    
    33,733Cash and cash equivalents at end of period
    
    $
    29,601
    
    
    $
    78,436
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HUTCHINSON TECHNOLOGY INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS  UNAUDITED
 When we refer to we, us, the company or HTI, we mean Hutchinson Technology Incorporated and
its subsidiaries. Unless otherwise indicated, references to 2007 mean our fiscal year ending
September 30, 2007, references to 2006 mean our fiscal year ended September 24, 2006, references
to 2005 mean our fiscal year ended September 25, 2005, references to 2004 mean our fiscal year
ended September 26, 2004, references to 2003 mean our fiscal year ended September 28, 2003, and
references to 2002 mean our fiscal year ended September 29, 2002.
 (1) BASIS OF PRESENTATION
 
 (2) ACCOUNTING PRONOUNCEMENTS
    5




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Thirteen Weeks Ended December 25, 2005As Reported
    
    
    Adjustment
    
    
    As AdjustedNet sales
    
    $
    184,627
    
    
    $
    (67
    )
    
    $
    184,560Provision for income taxes
    
    
    1,177
    
    
    
    (11
    )
    
    
    1,166Net income
    
    
    6,046
    
    
    
    (56
    )
    
    
    5,990Earnings per share:Basic
    
    
    0.24
    
    
    
    0.00
    
    
    
    0.24Diluted
    
    
    0.22
    
    
    
    0.00
    
    
    
    0.22
 Thirteen Weeks Ended March 26, 2006
    
    
    Twenty-Six Weeks Ended March 26, 2006As Reported
    
    
    Adjustment
    
    
    As Adjusted
    
    
    As Reported
    
    
    Adjustment
    
    
    As AdjustedNet sales
    
    $
    185,926
    
    
    $
    469
    
    
    $
    186,395
    
    
    $
    370,553
    
    
    $
    402
    
    
    $
    370,955Provision for income taxes
    
    
    1,361
    
    
    
    73
    
    
    
    1,434
    
    
    
    2,538
    
    
    
    62
    
    
    
    2,600Net income
    
    
    7,873
    
    
    
    396
    
    
    
    8,269
    
    
    
    13,919
    
    
    
    340
    
    
    
    14,259Earnings per share:Basic
    
    
    0.31
    
    
    
    0.01
    
    
    
    0.32
    
    
    
    0.54
    
    
    
    0.01
    
    
    
    0.55Diluted
    
    
    0.28
    
    
    
    0.01
    
    
    
    0.29
    
    
    
    0.50
    
    
    
    0.01
    
    
    
    0.51
 Thirteen Weeks Ended June 25, 2006
    
    
    Thirty-Nine Weeks Ended June 25, 2006As Reported
    
    
    Adjustment
    
    
    As Adjusted
    
    
    As Reported
    
    
    Adjustment
    
    
    As AdjustedNet sales
    
    $
    169,599
    
    
    $
    380
    
    
    $
    169,979
    
    
    $
    540,152
    
    
    $
    782
    
    
    $
    540,934Provision (benefit) for
income taxes
    
    
    (163
    )
    
    
    22
    
    
    
    (141
    )
    
    
    2,375
    
    
    
    84
    
    
    
    2,459Net income
    
    
    5,838
    
    
    
    358
    
    
    
    6,196
    
    
    
    19,756
    
    
    
    698
    
    
    
    20,454Earnings per share:Basic
    
    
    0.23
    
    
    
    0.01
    
    
    
    0.24
    
    
    
    0.77
    
    
    
    0.02
    
    
    
    0.79Diluted
    
    
    0.22
    
    
    
    0.01
    
    
    
    0.23
    
    
    
    0.72
    
    
    
    0.02
    
    
    
    0.74
  (3) BUSINESS AND CUSTOMERS
  6




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Percentage of Net SalesThirteen Weeks Ended
    
    Thirty-Nine Weeks EndedJune 24,
    
    June 25,
    
    June 24,
    
    June 25,2007
    
    2006
    
    2007
    
    2006Five largest customers
    
    
    92
    %
    
    
    88
    %
    
    
    87
    %
    
    
    87
    %Sales to major customers:SAE Magnetics, Ltd./TDK
    
    
    31
    %
    
    
    24
    %
    
    
    28
    %
    
    
    27
    %Seagate Technology LLC
    
    
    26
    
    
    
    17
    
    
    
    26
    
    
    
    14Western Digital Corporation
    
    
    20
    
    
    
    17
    
    
    
    17
    
    
    
    16Alps Electric Co., Ltd.
    
    
    9
    
    
    
    22
    
    
    
    10
    
    
    
    22Fujitsu
    
    
    6
    
    
    
    5
    
    
    
    6
    
    
    
    5Innovex, Inc.
    
    
    4
    
    
    
    8
    
    
    
    4
    
    
    
    8
 (4) TRADE RECEIVABLES
   Increases in the
    
    Reductions in theAllowance Related
    
    Allowance forSeptember 24,
    
    to Warranties
    
    Returns Under
    
    June 24,2006
    
    Issued
    
    Warranties
    
    2007$1,065
    
    $1,335
    
    $(1,886)
    
    $514
 (5) INVENTORIES
  7




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June 24,
    
    
    September 24,2007
    
    
    2006Raw materials
    
    $
    21,497
    
    
    $
    21,868Work in process
    
    
    13,519
    
    
    
    17,698Finished goods
    
    
    39,698
    
    
    
    41,732$
    74,714
    
    
    $
    81,298
 (6) EARNINGS (LOSS) PER SHARE
  Thirteen Weeks Ended
    
    
    Thirty-Nine Weeks EndedJune 24,
    
    
    June 25,
    
    
    June 24,
    
    
    June 25,2007
    
    
    2006
    
    
    2007
    
    
    2006Net income (loss)
    
    $
    (13,480
    )
    
    $
    6,196
    
    
    $
    (11,313
    )
    
    $
    20,454Plus: interest expense on convertible
subordinated notes
    
    
    
    
    
    
    1,008
    
    
    
    
    
    
    
    3,025Less: additional profit-sharing expense
and income tax provisions
    
    
    
    
    
    
    75
    
    
    
    
    
    
    
    687Net income (loss) available to common
shareholders
    
    $
    (13,480
    )
    
    $
    7,129
    
    
    $
    (11,313
    )
    
    $
    22,792Weighted-average common shares outstanding
    
    
    26,027
    
    
    
    25,648
    
    
    
    25,961
    
    
    
    25,598Dilutive potential common shares
    
    
    
    
    
    
    5,224
    
    
    
    
    
    
    
    5,271Weighted-average common and diluted
shares outstanding
    
    
    26,027
    
    
    
    30,872
    
    
    
    25,961
    
    
    
    30,869Basic earnings (loss) per share
    
    $
    (0.52
    )
    
    $
    0.24
    
    
    $
    (0.44
    )
    
    $
    0.79Diluted earnings (loss) per share
    
    $
    (0.52
    )
    
    $
    0.23
    
    
    $
    (0.44
    )
    
    $
    0.74
  8




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(7) SEVERANCE AND OTHER
  (8) INCOME TAXES
  June 24,
    
    
    September 24,2007
    
    
    2006Current deferred tax assets:Receivable allowance
    
    $
    280
    
    
    $
    592Inventories
    
    
    4,496
    
    
    
    3,722Accruals and other reserves
    
    
    4,165
    
    
    
    3,707Total current deferred tax assets
    
    
    8,941
    
    
    
    8,021Long-term deferred tax assets:Property, plant and equipment
    
    
    33,295
    
    
    
    28,860Deferred income
    
    
    2,661
    
    
    
    1,317Tax credits
    
    
    23,390
    
    
    
    19,957Net operating loss carryforwards
    
    
    11,537
    
    
    
    13,000Valuation allowance
    
    
    (5,267
    )
    
    
    (5,267
    )Total long-term deferred tax assets
    
    
    65,616
    
    
    
    57,867Total deferred tax assets
    
    $
    74,557
    
    
    $
    65,888
   9




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(9) OTHER ASSETS
  (10) LONG-TERM DEBT
     10




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(11) SHAREHOLDERS EQUITY
  (12) SUPPLEMENTARY CASH FLOW INFORMATION
 Thirty-Nine Weeks EndedJune 24,
    
    
    June 25,2007
    
    
    2006Changes in operating assets and liabilities:Receivables, net
    
    $
    4,539
    
    
    $
    (7,162
    )Inventories
    
    
    6,584
    
    
    
    (32,011
    )Other assets
    
    
    (1,426
    )
    
    
    (4,364
    )Accounts payable and accrued expenses
    
    
    (4,684
    )
    
    
    17,649Other long-term liabilities
    
    
    (1,078
    )
    
    
    (575
    )$
    3,935
    
    
    $
    (26,463
    )Cash paid for:Interest (net of amount capitalized)
    
    $
    3,583
    
    
    $
    1,750Income taxes
    
    
    828
    
    
    
    511Non-cash investing activities:Capital expenditures in accounts payable
    
    
    4,469
    
    
    
    10,718
  11




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(13) STOCK-BASED COMPENSATION
       Thirty-Nine Weeks EndedJune 24,
    
    June 25,2007
    
    2006Risk-free interest rate
    
    
    4.7
    %
    
    
    4.5
    %Expected volatility
    
    
    45.0
    %
    
    
    45.0
    %Expected life (in years)
    
    
    7.7
    
    
    
    7.4Dividend yield
    
    
    
    
    
    
    
  12




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##### Table of Contents



Weighted-AverageRemainingNumber of
    
    Weighted-Average
    
    Contractual
    
    AggregateShares
    
    Exercise Price ($)
    
    Life (yrs.)
    
    Intrinsic Value ($)Outstanding at September 24, 2006
    
    
    3,109,546
    
    
    
    25.08
    
    
    
    5.3Granted
    
    
    539,600
    
    
    
    23.01Exercised
    
    
    (269,700
    )
    
    
    17.39Expired
    
    
    (50,520
    )
    
    
    30.31Outstanding at June 24, 2007
    
    
    3,328,926
    
    
    
    25.29
    
    
    
    5.7
    
    
    
    Vested or expected to vest at June 24, 2007
    
    
    3,298,813
    
    
    
    25.30
    
    
    
    5.7
    
    
    
    Options exercisable at June 24, 2007
    
    
    2,356,176
    
    
    
    25.39
    
    
    
    4.4
    
    
    
    
  Options Outstanding
    
    Options ExercisableWeighted-AverageRemainingRange of
    
    Number
    
    Contractual
    
    Weighted-Average
    
    Number
    
    Weighted-AverageExercise Prices ($)
    
    Outstanding
    
    Life (yrs.)
    
    Exercise Price ($)
    
    Exercisable
    
    Exercise Price ($)14.81-20.00
    
    
    608,690
    
    
    
    2.9
    
    
    
    18.85
    
    
    
    608,690
    
    
    
    18.8520.01-25.00
    
    
    1,435,867
    
    
    
    6.1
    
    
    
    23.39
    
    
    
    902,517
    
    
    
    23.6125.01-30.00
    
    
    608,804
    
    
    
    6.5
    
    
    
    28.08
    
    
    
    172,404
    
    
    
    29.5830.01-45.06
    
    
    675,565
    
    
    
    6.9
    
    
    
    32.63
    
    
    
    672,565
    
    
    
    32.64Total
    
    
    3,328,926
    
    
    
    5.7
    
    
    
    25.29
    
    
    
    2,356,176
    
    
    
    25.39
 (14) LEGAL CONTINGENCIES
 Securities Litigation
   13




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Derivative Litigation
  Other Litigation and Proceedings
    14




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(15) OTHER MATTERS
   (16) SEGMENT REPORTING
    Thirteen Weeks Ended
    
    
    Thirty-Nine Weeks EndedJune 24,
    
    
    June 25,
    
    
    June 24,
    
    
    June 25,2007
    
    
    2006
    
    
    2007
    
    
    2006Net sales:Disk Drive Components Division
    
    $
    156,543
    
    
    $
    169,879
    
    
    $
    515,890
    
    
    $
    540,701BioMeasurement Division
    
    
    143
    
    
    
    100
    
    
    
    359
    
    
    
    233$
    156,686
    
    
    $
    169,979
    
    
    $
    516,249
    
    
    $
    540,934Income (loss) from operations:Disk Drive Components Division
    
    $
    (16,471
    )
    
    $
    6,849
    
    
    $
    (12,701
    )
    
    $
    24,694BioMeasurement Division
    
    
    (4,898
    )
    
    
    (3,527
    )
    
    
    (11,934
    )
    
    
    (9,783
    )$
    (21,369
    )
    
    $
    3,322
    
    
    $
    (24,635
    )
    
    $
    14,911
  15




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When we refer to we, us, HTI or the company, we mean Hutchinson Technology Incorporated and
its subsidiaries. Unless otherwise indicated, references to 2008 mean our fiscal year ending
September 28, 2008, references to 2007 mean our fiscal year ending September 30, 2007, references
to 2006 mean our fiscal year ended September 24, 2006, references to 2005 mean our fiscal year
ended September 25, 2005, references to 2004 mean our fiscal year ended September 26, 2004,
references to 2003 mean our fiscal year ended September 28, 2003, and references to 2002 mean
our fiscal year ended September 29, 2002.
 GENERAL
     2006 by Quarter
    
    2007 by QuarterFirst
    
    Second
    
    Third
    
    Fourth
    
    First
    
    Second
    
    ThirdSuspension assembly shipment quantities
    
    
    207
    
    
    
    205
    
    
    
    192
    
    
    
    201
    
    
    
    225
    
    
    
    205
    
    
    
    190
  16




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
    
    demand or customer requirements;
    
    utilization of existing or newly added production capacity;
    
    manufacturing yields or efficiencies;
 17




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
    
    product and feature mix;
    
    selling prices;
    
    production and engineering costs associated with production of new products and features; and
    
    costs of materials.
      18




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19




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RESULTS OF OPERATIONS
 Thirteen Weeks Ended June 24, 2007 vs. Thirteen Weeks Ended June 25, 2006
      20




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Thirty-Nine Weeks Ended June 24, 2007 vs. Thirty-Nine Weeks Ended June 25, 2006
  21




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22




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LIQUIDITY AND CAPITAL RESOURCES
    23




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24




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CRITICAL ACCOUNTING POLICIES
  Revenue Recognition
   25




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Accounts Receivable
   Inventory Valuation
   Long-Lived Assets
  Income Taxes
  26




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RECENT ACCOUNTING PRONOUNCEMENTS
      Thirteen Weeks Ended December 25, 2005As Reported
    
    
    Adjustment
    
    
    As AdjustedNet sales
    
    $
    184,627
    
    
    $
    (67
    )
    
    $
    184,560Provision for income taxes
    
    
    1,177
    
    
    
    (11
    )
    
    
    1,166Net income
    
    
    6,046
    
    
    
    (56
    )
    
    
    5,990Earnings per share:Basic
    
    
    0.24
    
    
    
    0.00
    
    
    
    0.24Diluted
    
    
    0.22
    
    
    
    0.00
    
    
    
    0.22
 27




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Thirteen Weeks Ended March 26, 2006
    
    
    Twenty-Six Weeks Ended March 26, 2006As Reported
    
    
    Adjustment
    
    
    As Adjusted
    
    
    As Reported
    
    
    Adjustment
    
    
    As AdjustedNet sales
    
    $
    185,926
    
    
    $
    469
    
    
    $
    186,395
    
    
    $
    370,553
    
    
    $
    402
    
    
    $
    370,955Provision for income taxes
    
    
    1,361
    
    
    
    73
    
    
    
    1,434
    
    
    
    2,538
    
    
    
    62
    
    
    
    2,600Net income
    
    
    7,873
    
    
    
    396
    
    
    
    8,269
    
    
    
    13,919
    
    
    
    340
    
    
    
    14,259Earnings per share:Basic
    
    
    0.31
    
    
    
    0.01
    
    
    
    0.32
    
    
    
    0.54
    
    
    
    0.01
    
    
    
    0.55Diluted
    
    
    0.28
    
    
    
    0.01
    
    
    
    0.29
    
    
    
    0.50
    
    
    
    0.01
    
    
    
    0.51
 Thirteen Weeks Ended June 25, 2006
    
    
    Thirty-Nine Weeks Ended June 25, 2006As Reported
    
    
    Adjustment
    
    
    As Adjusted
    
    
    As Reported
    
    
    Adjustment
    
    
    As AdjustedNet sales
    
    $
    169,599
    
    
    $
    380
    
    
    $
    169,979
    
    
    $
    540,152
    
    
    $
    782
    
    
    $
    540,934Provision (benefit) for
income taxes
    
    
    (163
    )
    
    
    22
    
    
    
    (141
    )
    
    
    2,375
    
    
    
    84
    
    
    
    2,459Net income
    
    
    5,838
    
    
    
    358
    
    
    
    6,196
    
    
    
    19,756
    
    
    
    698
    
    
    
    20,454Earnings per share:Basic
    
    
    0.23
    
    
    
    0.01
    
    
    
    0.24
    
    
    
    0.77
    
    
    
    0.02
    
    
    
    0.79Diluted
    
    
    0.22
    
    
    
    0.01
    
    
    
    0.23
    
    
    
    0.72
    
    
    
    0.02
    
    
    
    0.74
 MARKET TRENDS
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OTHER MATTERS
   FORWARD-LOOKING STATEMENTS
  29




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EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES
  CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING
  31




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PART II. OTHER INFORMATION
 
  SECURITIES LITIGATION
   DERIVATIVE LITIGATION
  OTHER LITIGATION AND PROCEEDINGS
  32




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We have been named as a defendant in, and are the subject of, certain legal proceedings which may
result in substantial costs and divert managements attention and resources.
    34




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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 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 (incorporated by reference to Exhibit 3.2 to HTIs Quarterly Report
on Form 10-Q for the quarter ended 6/27/04).31.1
    
    Rule 13a-14(a)/15d-14(a) Certifications of Chief Executive Officer.31.2
    
    Rule 13a-14(a)/15d-14(a) Certifications of Chief Financial Officer.32
    
    Section 1350 Certifications.
 35




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SIGNATURES
  HUTCHINSON TECHNOLOGY INCORPORATEDDate: August 2, 2007
    By
    /s/ Wayne M. FortunWayne M. FortunPresident and Chief Executive OfficerDate: August 2, 2007
    By
    /s/ John A. InglemanJohn A. InglemanSenior Vice President and Chief Financial Officer 36




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INDEX TO EXHIBITS
 ExhibitNo.
    
    
    
    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
(incorporated by reference to
Exhibit 3.2 to HTIs Quarterly
Report on Form 10-Q for the quarter
ended 6/27/04).
    
    Incorporated by Reference31.1
    
    Rule 13a-14(a)/15d-14(a)
Certifications of Chief Executive
Officer.
    
    Filed Electronically31.2
    
    Rule 13a-14(a)/15d-14(a)
Certifications of Chief Financial
Officer.
    
    Filed Electronically32
    
    Section 1350 Certifications.
    
    Filed Electronically
 37