During the corresponding time, Hutchinson Technology Inc saw a revenue deteriorated by -2.71 % year on year, sequentially revenue fell by -1.78 %. While revenue at the Hutchinson Technology Inc's corporate clients
Hutchinson Technology Inc's Comment on Sales, Marketing and Customers
We believe that the principal factors of competition in the suspension assembly
market include price, reliability of volume supply, time to market, product performance,
quality, and customer service. Disk drive manufacturers seek low cost designs
and as the disk drive industry has matured and consolidated, cost competitiveness,
and thus suspension assembly pricing, has become an increasingly important factor
to our customers. Our customers’ operating results also depend on being
the first-to-market and first-to-volume with new products at a low cost. Our development
efforts typically have enabled us to shorten development cycles and achieve reliable
high-volume output per manufacturing unit quickly.
Our principal competitors are Nihon Hatsujo Kabusikigaisha (“NHK”),
Magnecomp Precision Technology Public Company Limited (“MPT”), a subsidiary
of TDK Corporation, and NAT Peripheral (H.K.) Co., Ltd., (a joint venture of NHK
and TDK Corporation). The NAT Peripheral joint venture has provided our customer,
SAE Magnetics, the capability to produce suspension assemblies since calendar
2005. We believe that consolidation in the disk drive industry, including the
affiliation between our competitor MPT and our customer SAE Magnetics, has resulted
in shifts in certain industry supply chain alignments that have negatively impacted
our competitive position since 2008. Our principal competitors in producing suspension
flexures are Nitto Denko Corporation and Dai Nippon Corporation. Although we cannot
be sure that the number of competitors will not increase in the future or that
users of suspension assemblies will not develop internal capabilities to manufacture
suspension assemblies or suspension assembly components, we believe that the number
of entities that have the technical capability and capacity for producing precision
suspension assemblies or components in large volumes will remain small.
We continually monitor technological developments in and potential threats to
the disk drive storage market and we believe disk drives will remain the primary
data storage technology for the foreseeable future. However, other types of data
storage technology, such as solid state storage or flash (semiconductor) memory,
have become competitive with certain disk drive applications, and therefore negatively
affect the demand for our products. As an example, emerging applications requiring
digital storage, particularly consumer electronics products that require lower
storage capacity, are using flash memory, which has and may continue to limit
growth opportunities for disk drive-based data storage.
Sources:
Hutchinson Technology Incorporated’s official press releases and regulatory filings; CSIMarket.com’s market research; and the financial filings and press releases of other companies cited in this report.
Updated on:
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