##### 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 MARCH 25, 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
 (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
 March 25,
    
    
    September 24,2007
    
    
    2006ASSETSCurrent assets:Cash and cash equivalents
    
    $
    31,436
    
    
    $
    40,331Securities available for sale
    
    
    265,456
    
    
    
    250,110Trade receivables, net
    
    
    87,057
    
    
    
    95,391Other receivables
    
    
    14,525
    
    
    
    14,409Inventories
    
    
    85,655
    
    
    
    81,298Deferred tax assets (Note 7)
    
    
    8,287
    
    
    
    8,021Other current assets (Note 8)
    
    
    6,381
    
    
    
    7,161Total current assets
    
    
    498,797
    
    
    
    496,721Property, plant and equipment, net
    
    
    480,929
    
    
    
    472,163Deferred tax assets (Note 7)
    
    
    65,208
    
    
    
    57,867Other assets (Note 8)
    
    
    15,601
    
    
    
    18,333$
    1,060,535
    
    
    $
    1,045,084LIABILITIES AND SHAREHOLDERS INVESTMENTCurrent liabilities:Current maturities of long-term debt
    
    $
    1,297
    
    
    $
    1,252Accounts payable
    
    
    42,572
    
    
    
    45,090Accrued expenses
    
    
    19,698
    
    
    
    14,819Accrued compensation
    
    
    23,967
    
    
    
    21,338Total current liabilities
    
    
    87,534
    
    
    
    82,499Convertible subordinated notes
    
    
    375,000
    
    
    
    375,000Long-term debt, less current portion
    
    
    4,629
    
    
    
    5,291Other long-term liabilities
    
    
    3,190
    
    
    
    3,570Shareholders investment:Common stock, $.01 par value,
100,000,000 shares authorized,
25,989,000 and 25,638,000 issued and
outstanding
    
    
    260
    
    
    
    256Additional paid-in capital
    
    
    407,262
    
    
    
    398,047Accumulated other comprehensive loss
    
    
    (150
    )
    
    
    (222
    )Accumulated earnings
    
    
    182,810
    
    
    
    180,643Total shareholders investment
    
    
    590,182
    
    
    
    578,724$
    1,060,535
    
    
    $
    1,045,084
  2




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HUTCHINSON TECHNOLOGY INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  UNAUDITED
 Thirteen Weeks Ended
    
    
    Twenty-Six Weeks EndedMarch 25,
    
    
    March 26,
    
    
    March 25,
    
    
    March 26,2007
    
    
    2006
    
    
    2007
    
    
    2006Net sales
    
    $
    170,681
    
    
    $
    186,395
    
    
    $
    359,563
    
    
    $
    370,955Cost of sales
    
    
    140,720
    
    
    
    144,431
    
    
    
    293,992
    
    
    
    289,391Gross profit
    
    
    29,961
    
    
    
    41,964
    
    
    
    65,571
    
    
    
    81,564Research and development expenses
    
    
    16,197
    
    
    
    13,370
    
    
    
    30,306
    
    
    
    26,117Selling, general and administrative expenses
    
    
    19,014
    
    
    
    21,344
    
    
    
    38,531
    
    
    
    43,857Income (loss) from operations
    
    
    (5,250
    )
    
    
    7,250
    
    
    
    (3,266
    )
    
    
    11,590Other income, net
    
    
    960
    
    
    
    1,255
    
    
    
    2,770
    
    
    
    2,507Interest income
    
    
    3,879
    
    
    
    3,170
    
    
    
    7,568
    
    
    
    5,235Interest expense
    
    
    (2,537
    )
    
    
    (1,972
    )
    
    
    (4,846
    )
    
    
    (2,473
    )Income (loss) before income taxes
    
    
    (2,948
    )
    
    
    9,703
    
    
    
    2,226
    
    
    
    16,859Provision for income taxes
    
    
    698
    
    
    
    1,434
    
    
    
    59
    
    
    
    2,600Net income (loss)
    
    $
    (3,646
    )
    
    $
    8,269
    
    
    $
    2,167
    
    
    $
    14,259Basic earnings (loss) per share
    
    $
    (0.14
    )
    
    $
    0.32
    
    
    $
    0.08
    
    
    $
    0.55Diluted earnings (loss) per share
    
    $
    (0.14
    )
    
    $
    0.29
    
    
    $
    0.08
    
    
    $
    0.51Weighted average common shares outstanding
    
    
    25,986
    
    
    
    25,612
    
    
    
    25,927
    
    
    
    25,573Weighted average common and diluted shares
outstanding
    
    
    25,986
    
    
    
    30,939
    
    
    
    26,002
    
    
    
    30,866
  3




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HUTCHINSON TECHNOLOGY INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  UNAUDITED
 Twenty-Six Weeks EndedMarch 25,
    
    
    March 26,2007
    
    
    2006OPERATING ACTIVITIES:Net income
    
    $
    2,167
    
    
    $
    14,259Adjustments to reconcile net income to cash
provided by operating activities:Depreciation and amortization
    
    
    56,734
    
    
    
    56,537Stock-based compensation
    
    
    2,184
    
    
    
    1,926Provision (benefit) for deferred taxes (Note 7)
    
    
    (7,646
    )
    
    
    2,369Loss on disposal of assets
    
    
    33
    
    
    
    196Changes in operating assets and liabilities (Note 11)
    
    
    10,340
    
    
    
    (445
    )Cash provided by operating activities
    
    
    63,812
    
    
    
    74,842INVESTING ACTIVITIES:Capital expenditures
    
    
    (62,927
    )
    
    
    (131,962
    )Purchases of marketable securities
    
    
    (819,066
    )
    
    
    (713,483
    )Sales/maturities of marketable securities
    
    
    803,749
    
    
    
    564,735Cash used for investing activities
    
    
    (78,244
    )
    
    
    (280,710
    )FINANCING ACTIVITIES:Net proceeds from issuance of common stock
    
    
    6,154
    
    
    
    3,170Net proceeds from issuance of convertible subordinated notes
    
    
    
    
    
    
    218,971Repayment of long-term debt
    
    
    (617
    )
    
    
    (719
    )Cash provided by financing activities
    
    
    5,537
    
    
    
    221,422Net increase (decrease) in cash and cash equivalents
    
    
    (8,895
    )
    
    
    15,554Cash and cash equivalents at beginning of period
    
    
    40,331
    
    
    
    33,733Cash and cash equivalents at end of period
    
    $
    31,436
    
    
    $
    49,287
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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
    
    Twenty-Six Weeks EndedMarch 25,
    
    March 26,
    
    March 25,
    
    March 26,2007
    
    2006
    
    2007
    
    2006Five Largest Customers
    
    
    87
    %
    
    
    87
    %
    
    
    86
    %
    
    
    88
    %Sales to Major Customers:Seagate Technology LLC
    
    
    29
    %
    
    
    13
    %
    
    
    26
    %
    
    
    13
    %SAE Magnetics, Ltd./TDK
    
    
    26
    %
    
    
    28
    %
    
    
    27
    %
    
    
    28
    %Western Digital Corporation
    
    
    16
    %
    
    
    14
    %
    
    
    16
    %
    
    
    16
    %Alps Electric Co., Ltd.
    
    
    9
    %
    
    
    23
    %
    
    
    10
    %
    
    
    22
    %Fujitsu Limited
    
    
    7
    %
    
    
    5
    %
    
    
    7
    %
    
    
    5
    %Hitachi Global Storage Technologies
    
    
    5
    %
    
    
    3
    %
    
    
    5
    %
    
    
    2
    %Innovex, Inc.
    
    
    4
    %
    
    
    9
    %
    
    
    5
    %
    
    
    9
    %
 (4) TRADE RECEIVABLES
   Increases in the
    
    Reductions in theAllowance Related
    
    Allowance forSeptember 24,
    
    to Warranties
    
    Returns Under
    
    March 25,2006
    
    Issued
    
    Warranties
    
    2007$1,065
    
    $1,034
    
    $(1,413)
    
    $686
 7




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(5) INVENTORIES
  March 25,
    
    
    September 24,2007
    
    
    2006Raw materials
    
    $
    24,059
    
    
    $
    21,868Work in process
    
    
    15,052
    
    
    
    17,698Finished goods
    
    
    46,544
    
    
    
    41,732$
    85,655
    
    
    $
    81,298
 (6) EARNINGS (LOSS) PER SHARE
  Thirteen Weeks Ended
    
    
    Twenty-Six Weeks EndedMarch 25,
    
    
    March 26,
    
    
    March 25,
    
    
    March 26,2007
    
    
    2006
    
    
    2007
    
    
    2006Net income (loss)
    
    $
    (3,646
    )
    
    $
    8,269
    
    
    $
    2,167
    
    
    $
    14,259Plus: interest expense on
convertible subordinated notes
    
    
    
    
    
    
    1,008
    
    
    
    
    
    
    
    2,017Less: additional profit-sharing
expense and income tax
provisions
    
    
    
    
    
    
    235
    
    
    
    
    
    
    
    565Net income (loss) available to
common shareholders
    
    $
    (3,646
    )
    
    $
    9,042
    
    
    $
    2,167
    
    
    $
    15,711Weighted-average common shares
outstanding
    
    
    25,986
    
    
    
    25,612
    
    
    
    25,927
    
    
    
    25,573Dilutive potential common shares
    
    
    
    
    
    
    5,327
    
    
    
    75
    
    
    
    5,293Weighted-average common and
diluted shares outstanding
    
    
    25,986
    
    
    
    30,939
    
    
    
    26,002
    
    
    
    30,866Basic earnings (loss) per share
    
    $
    (0.14
    )
    
    $
    0.32
    
    
    $
    0.08
    
    
    $
    0.55Diluted earnings (loss) per share
    
    $
    (0.14
    )
    
    $
    0.29
    
    
    $
    0.08
    
    
    $
    0.51
  8




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(7) INCOME TAXES
  March 25,
    
    
    September 24,2007
    
    

2006Current deferred tax assets:Receivable allowance
    
    $
    387
    
    
    $
    592Inventories
    
    
    4,766
    
    
    
    3,722Accruals and other reserves
    
    
    3,134
    
    
    
    3,707Total current deferred tax assets
    
    
    8,287
    
    
    
    8,021Long-term deferred tax assets:Property, plant and equipment
    
    
    34,143
    
    
    
    28,860Deferred income
    
    
    3,210
    
    
    
    1,317Tax credits
    
    
    23,104
    
    
    
    19,957Net operating loss carryforwards
    
    
    10,018
    
    
    
    13,000Valuation allowance
    
    
    (5,267
    )
    
    
    (5,267
    )Total long-term deferred tax assets
    
    
    65,208
    
    
    
    57,867Total deferred tax assets
    
    $
    73,495
    
    
    $
    65,888
    9




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




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(10) SHAREHOLDERS EQUITY
  (11) SUPPLEMENTARY CASH FLOW INFORMATION
 Twenty-Six Weeks EndedMarch 25,
    
    
    March 26,2007
    
    
    2006Changes in operating assets and liabilities:Receivables, net
    
    $
    8,218
    
    
    $
    (850
    )Inventories
    
    
    (4,357
    )
    
    
    (19,767
    )Other assets
    
    
    1,043
    
    
    
    (1,609
    )Accounts payable and accrued expenses
    
    
    5,816
    
    
    
    22,076Other non-current liabilities
    
    
    (380
    )
    
    
    (295
    )$
    10,340
    
    
    $
    (445
    )Cash paid for:Interest (net of amount capitalized)
    
    $
    4,032
    
    
    $
    1,688Income taxes
    
    
    826
    
    
    
    401Non-cash investing activities:Capital expenditures in accounts payable
    
    $
    7,502
    
    
    $
    17,906
  (12) STOCK-BASED COMPENSATION
   11




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Twenty-Six Weeks EndedMarch 25,
    
    March 26,2007
    
    2006Risk-free interest rate
    
    
    4.7
    %
    
    
    4.5
    %Expected volatility
    
    
    45.0
    %
    
    
    45.0
    %Expected life (in years)
    
    
    7.7
    
    
    
    7.4Dividend yield
    
    
    
    
    
    
    
   Weighted-AverageRemainingNumber of
    
    Weighted-Average
    
    Contractual
    
    AggregateShares
    
    Exercise Price ($)
    
    Life (yrs.)
    
    Intrinsic Value ($)Outstanding at September 24, 2006
    
    
    3,109,546
    
    
    
    25.08
    
    
    
    5.3
    
    
    
    Granted
    
    
    539,600
    
    
    
    23.01Exercised
    
    
    (269,700
    )
    
    
    17.39Expired
    
    
    (30,150
    )
    
    
    31.95Outstanding at March 25, 2007
    
    
    3,349,296
    
    
    
    25.31
    
    
    
    6.0
    
    
    
    Vested or expected to vest at March 25, 2007
    
    
    3,312,383
    
    
    
    25.31
    
    
    
    5.9
    
    
    
    Options exercisable at March 25, 2007
    
    
    2,369,746
    
    
    
    25.42
    
    
    
    4.6
    
    
    
    
 12




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Options Outstanding
    
    Options ExercisableWeighted-AverageRemainingRange of
    
    
    
    
    
    Contractual
    
    Weighted-Average
    
    
    
    
    
    Weighted-AverageExercise Prices ($)
    
    Number Outstanding
    
    Life (yrs.)
    
    Exercise Price ($)
    
    Number Exercisable
    
    Exercise Price ($)14.81-20.00
    
    
    
    608,690
    
    
    
    3.2
    
    
    
    18.85
    
    
    
    608,690
    
    
    
    18.8520.01-25.00
    
    
    
    1,443,897
    
    
    
    6.3
    
    
    
    23.39
    
    
    
    906,797
    
    
    
    23.6225.01-30.00
    
    
    
    615,144
    
    
    
    6.7
    
    
    
    28.08
    
    
    
    175,694
    
    
    
    29.5830.01-45.06
    
    
    
    681,565
    
    
    
    7.1
    
    
    
    32.62
    
    
    
    678,565
    
    
    
    32.64Total
    
    
    3,349,296
    
    
    
    6.0
    
    
    
    25.31
    
    
    
    2,369,746
    
    
    
    25.42
 (13) LEGAL CONTINGENCIES
 Securities Litigation
   Derivative Litigation
  13




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Other Litigation and Proceedings
     (14) OTHER MATTERS
   (15) SEGMENT REPORTING
   14




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Thirteen Weeks Ended
    
    
    Twenty-Six Weeks EndedMarch 25,
    
    
    March 26,
    
    
    March 25,
    
    
    March 26,2007
    
    
    2006
    
    
    2007
    
    
    2006Net sales:Disk Drive Components Division
    
    $
    170,548
    
    
    $
    186,315
    
    
    $
    359,348
    
    
    $
    370,822BioMeasurement Division
    
    
    133
    
    
    
    80
    
    
    
    215
    
    
    
    133$
    170,681
    
    
    $
    186,395
    
    
    $
    359,563
    
    
    $
    370,955Income (loss) from operations:Disk Drive Components Division
    
    $
    (1,895
    )
    
    $
    10,670
    
    
    $
    3,770
    
    
    $
    17,846BioMeasurement Division
    
    
    (3,355
    )
    
    
    (3,420
    )
    
    
    (7,036
    )
    
    
    (6,256
    )$
    (5,250
    )
    
    $
    7,250
    
    
    $
    (3,266
    )
    
    $
    11,590
  15




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##### Table of Contents



When we refer to we, us, HTI or the company, 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.
 GENERAL
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
    
    demand or customer requirements;
    
    utilization of existing or newly added production capacity;
    
    manufacturing yields or efficiencies;
    
    product and feature mix;
    
    selling prices;
    
    production and engineering costs associated with production of new products and features; and
    
    costs of materials.
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RESULTS OF OPERATIONS
 Thirteen Weeks Ended March 25, 2007 vs. Thirteen Weeks Ended March 26, 2006
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Twenty-Six Weeks Ended March 25, 2007 vs. Twenty-Six Weeks Ended March 26, 2006
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LIQUIDITY AND CAPITAL RESOURCES
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CRITICAL ACCOUNTING POLICIES
  Revenue Recognition
     Accounts Receivable
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Inventory Valuation
   Long-Lived Assets
  Income Taxes
   RECENT ACCOUNTING PRONOUNCEMENTS
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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
 MARKET TRENDS
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OTHER MATTERS
   FORWARD-LOOKING STATEMENTS
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EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES
  CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING
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PART II. OTHER INFORMATION
 
  SECURITIES LITIGATION
   DERIVATIVE LITIGATION
  OTHER LITIGATION AND PROCEEDINGS
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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.
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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.
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SIGNATURES
  HUTCHINSON TECHNOLOGY INCORPORATEDDate: May 3, 2007
    By /s/ Wayne M. FortunWayne M. FortunPresident and Chief Executive OfficerDate: May 3, 2007
    By /s/ John A. InglemanJohn A. InglemanSenior Vice President and Chief Financial Officer 35




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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
 36