Hutchinson Technology Incorporated today (Tuesday) reported a net loss of $6.2 million, or $0.25 per share, on net sales of $143.8 million for its fiscal second quarter, which ended March 30.

The net loss included a charge of approximately $900,000, or three cents per share, related to an increase in the valuation allowances on certain deferred tax assets. In the comparable fiscal 2007 period, the company reported a net loss of $3.6 million, or 14 cents per share, on net sales of $170.7 million.

As of result of the quarter’s results, the company plans to reduce expenses by $10 million to $12 million on an annualized basis. To achieve that, HTI officials plan to reduce costs by eliminating up to 80 jobs company-wide during the next several weeks. Other cost-cutting efforts also will be made.

"These cost reductions will contribute to improving our financial performance without jeopardizing our longer-term opportunities, but our return to profitability will ultimately be driven by revenue growth and by leveraging our investments in our TSA+ processes and our BioMeasurement Division," President and CEO Wayne Fortun said.

The company shipped approximately 179 million suspension assemblies in the 2008 second quarter, compared with approximately 213 million in the preceding quarter and approximately 205 million in 2007’s second quarter.

Fortun added that while 2008 will be a challenging year, he remains confident in the company's long-term growth opportunities.

Read more in the May 1 print edition of the Leader.