Hutchinson Technology Incorporated: Company Profile and SWOT Analysis by ICDResearch

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									Hutchinson Technology Incorporated

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Hutchinson Technology                                                               Financial Snapshot

Incorporated                                                                        Operating Performance

Fast Facts                                                                          The company reported revenues of US$347.19 million
                                                                                    during 2010, with a CARC of -16.71% during 2006–
                                       40 West Highland Park Drive NE,              2010. Its revenue declined at an annual rate of
Headquarters Address
                                       Hutchinson, 55350,United States of America   14.91% over the previous fiscal year. In 2010, the
                                                                                    company recorded an operating margin of -13.82%,
Telephone                              + 1 320 5873797
                                                                                    as against -38.79% in 2009.
Fax                                    + 1 320 5871810
                                                                                    Revenue and Margins
Website                                www.htch.com

Ticker Symbol, Stock Exchange          HTCH, NASDAQ

Number of Employees                    2,448

Fiscal Year End                        September

Revenue (in US$ million)               347.19




SWOT Analysis                                                                       Return on Equity

Strengths                              Weaknesses                                   The company recorded a return on equity (ROE) of -
                                                                                    22.26% for 2010, as compared to its peers, Integra
Focus on Research and Development Declining Operating Margin                        LifeSciences Holdings Corporation (Ticker: IART),
                                                                                    Nitto Denko Corporation (Ticker: 6988) and OSI
                                                                                    Systems, Inc. (Ticker: OSIS), which recorded ROEs
Global Presence                        Limited Customer Base                        of 13.13%, 9.69% and 7.51% respectively. The
                                                                                    company reported an operating margin of -13.82% in
                                       Limited Liquidity Position                   2010.

                                       Low Return on Equity                         Return on Equity

Opportunities                          Threats

Market Growth in Emerging Economies Healthcare Reform Bill

Rising Healthcare Expenditure in the
                                       Rapid Technological Change
US

Trauma Market                          Stringent Government Regulations




                                                                                    Liquidity Position

                                                                                    The company reported a current ratio of 5.60 in 2010,
                                                                                    as compared to its peers, Integra LifeSciences
                                                                                    Holdings Corporation, Nitto Denko Corporation and
                                                                                    OSI Systems, Inc., which recorded current ratios of
                                                                                    2.22, 2.55 and 2.42 respectively. As of September
                                                                                    2010, the company recorded cash and short-term
                                                                                    investments of worth US$100.36 million, against
                                                                                    US$1.28 million current debt. The company reported
                                                                                    a debt to equity ratio of 0.67 in 2010 as compared to
                                                                                    its peers, Integra LifeSciences Holdings Corporation,
                                                                                    Nitto Denko Corporation and OSI Systems, Inc.,
                                                                                    which recorded debt to equity ratios of 0.81, 0.19 and
                                                                                    0.12 respectively.




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Hutchinson Technology Incorporated - SWOT Profile                                                                           Page 1
Hutchinson Technology Incorporated

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................6
2     Analysis of Key Performance Indicators ............................................................................................... 7
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
    2.2       Key Financial Performance Indicators .................................................................................................................10
      2.2.1       Revenue and Operating Profit .........................................................................................................................10
      2.2.2       Asset, Liabilities and Capex .............................................................................................................................11
      2.2.3       Net Debt vs. Gearing Ratio ..............................................................................................................................12
      2.2.4       Operational Efficiency ......................................................................................................................................13
      2.2.5       Solvency ..........................................................................................................................................................14
    2.3       Competitive Benchmarking ..................................................................................................................................15
      2.3.1       Market Capitalization .......................................................................................................................................15
      2.3.2       Efficiency ..........................................................................................................................................................16
      2.3.3       Capital Expenditure ..........................................................................................................................................17
      2.3.4       Turnover – Inventory and Asset .......................................................................................................................18
      2.3.5       Liquidity ............................................................................................................................................................19
3     SWOT Analysis ...................................................................................................................................... 20
    3.1       SWOT Analysis - Overview ..................................................................................................................................20
    3.2       Strengths .......................................................
								
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