UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
HUTCHINSON TECHNOLOGY, INC.
-------------------------------------------------------------------------------
(Name of issuer)
COMMON STOCK
-------------------------------------------------------------------------------
(Title of class of securities)
448407106
--------------------------------------------------------
(CUSIP number)
TIMOTHY J. STABOSZ, 1307 MONROE STREET, LAPORTE, IN 46350 (219) 324-5087
-------------------------------------------------------------------------------
(Name, address and telephone number of person authorized to receive notices and
communications)
NOVEMBER 1, 2012
--------------------------------------------------------
(Date of event which requires filing of this statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Sections 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check
the following box. [_]
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
CUSIP No. 448407106
--------------------------------------------------------------------------------
1. Name of Reporting Person
TIMOTHY JOHN STABOSZ
--------------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group (See Instructions) (a) [_]
NOT APPLICABLE (b) [_]
--------------------------------------------------------------------------------
3. SEC Use Only
--------------------------------------------------------------------------------
4. Source of Funds (See Instructions) PF
--------------------------------------------------------------------------------
5. Check Box If Disclosure of Legal Proceedings Is Required Pursuant to
Items 2(d) or 2(e) [_]
--------------------------------------------------------------------------------
6. Citizenship or Place of Organization UNITED STATES
--------------------------------------------------------------------------------
Number of (7) Sole Voting Power 1,323,075
Shares ____________________________________________
Beneficially (8) Shared Voting Power 0
Owned by ____________________________________________
Each (9) Sole Dispositive Power 1,323,075
Reporting ____________________________________________
Person With (10) Shared Dispositive Power 0
--------------------------------------------------------------------------------
11. Aggregate Amount Beneficially Owned 1,323,075
by each Reporting Person
--------------------------------------------------------------------------------
12. Check if the Aggregate Amount in Row (11) Excludes [_]
Certain Shares
--------------------------------------------------------------------------------
13. Percent of Class Represented by Amount in Row (11) 5.5%
--------------------------------------------------------------------------------
14. Type of Reporting Person (See Instructions) IN
--------------------------------------------------------------------------------
ITEM 1. Security and Issuer
Common stock of Hutchinson Technology, Inc. ("the company"), 40 West
Highland Park Drive N.E., Hutchinson, MN 55350.
ITEM 2. Identity and Background
The reporting person, Timothy J. Stabosz, 1307 Monroe Street, LaPorte, IN
46350, a natural person and United States citizen, is engaged as a private
investor. He has not been convicted in a criminal proceeding (excluding
traffic violations or other similar misdemeanors) in the last 5 years, and has
not been a party to any proceedings, or subject to any judgements, enjoinments,
decrees, et al., related to violations of state or federal securities laws, in
his lifetime.
ITEM 3. Source and Amount of Funds or Other Consideration
Personal funds in the aggregate amount of $2,832,522.95 have been used to
effect the purchases. No part of the purchase price represents borrowed funds.
ITEM 4. Purpose of Transaction
The reporting person has acquired the shares for investment purposes. The
reporting person characterizes himself as a "deep value" investor, and often
looks for investment opportunities in what he sees as the most "unloved,"
neglected, and distressed areas of the marketplace. The reporting person
considers himself a "contrarian" investor. He believes Hutchinson's stock
price is significantly undervalued based primarily upon, as he sees it:
1) a misunderstanding in the marketplace about the very real potential for
growth in unit volumes, for years to come, in hard disk drives/HDDs (based
primarily upon expansion of "the cloud"), and the potential for suspension
assembly unit growth to exceed that of the HDD market (based primarily upon
the expectation of an ever increasing number of heads per drive). Such growth
is expected, by many industry observers, to materially exceed the growth in
the broader economy.
2) the expectation that Hutchinson will regain considerable market share over
the fiscal year that just recently began, and that the volumes associated with
those market share gains will allow the company to better cover its fixed
costs, dramatically improving the company's gross margins
3) the expectation that Hutchinson will achieve improved financial results, as
the market makes a major shift to the dual stage actuated (DSA) suspension
assembly (a higher value-added offering, in which the company maintains a
notable competitive edge), and the company gradually restores output at its
lower cost Thai facility (which flooded in Sept. 2011)
4) the belief that the company has sufficient financial strength to provide
the "runway" that will allow it to ramp up item #'s 2 and 3 above, allowing
for the funding of current operating losses, in the mean time, as the company
works toward profitability
5) the belief in management's long repeated statement that the company expects
to be the lowest cost producer, globally, of suspension assemblies, with its
strategic and operational moves of the last few years (Thai facility, TSA+,
significant cost reductions)
6) the common stock's steep trading discount to: 1) book value, 2) historical
earnings, and 3) historical trading prices...along with the reporting person's
specifically anticipated timing of the current "new product" and "new program"
cycle ramp up
7) the quality, caliber, continuity, and stability of the company's executive
management, the intellectual and intangible assets of the company, its
proprietary "know-how"...and a nearly 50 year history of being the technology
leader in its field. (The reporting person believes that the company would be
very difficult for a third party to recreate, from "whole cloth," which
provides significant "barriers to entry.")
8) the broad based insider open market buying of common stock over the last
year or so, including two key management figures who increased their holdings
by a factor of roughly 3 or 4 times over.
The reporting person believes Hutchinson is in a position where the
significant losses of the last several years could be staunched, before long,
and the company could realize a major turnaround. The reporting person
believes that the next 4 or so quarters will be a "major test" for the
company, and its management. That is, while the reporting person has a high
level of confidence in management, and wishes to see its plans for the
suspension assembly division unfold...should the outsized improvements that
the reporting person expects somehow NOT materialize, average selling prices
(ASPs) for suspension assemblies NOT materially increase, and the company NOT
return to a bottom line quarterly profit by no later than the 4th quarter of
fiscal 2013, the reporting person believes the company will need to, at that
time, explore any and all alternatives for maximizing shareholder value.
Finally, the reporting person believes the company should explore a sale
of the BioMeasurement division. He believes that the division would be more
valuable to a firm specializing in marketing developmental stage medical
products. The reporting person believes that the division damages the
company's overall image in the investment community, because, 1) the company
has been trying to market the division's InSpectra product for 10 years now,
with sales aggregating a miniscule $11.4 million over that entire time period,
2) the division has lost a staggering $154 million from operations, in
aggregate, since 2000, and, even with recent cost reductions, still lost an
unacceptable $5 million in fiscal 2012, 3) rightly or wrongly, the impression
is created on "the Street" that management doesn't know how to "let go of its
baby," and 4) the division has been a distraction from management's need to
focus on the company's core suspension assembly business, in which it has lost
a significant amount of market share, over the last decade or more.
The reporting person intends to review his investment in the company on a
continual basis and engage in discussions with management and the Board of
Directors concerning the business, operations, and future plans of the company.
Depending on various factors, including, without limitation, the company's
financial position and investment strategy, the price levels of the common
stock, conditions in the securities markets, and general economic and industry
conditions, the reporting person may, in the future, take such actions with
respect to his investment in the company as he deems appropriate including,
without limitation, communicating with other stockholders, seeking Board
representation, making proposals to the company concerning the capitalization
and operations of the issuer, purchasing additional shares of common stock or
selling some or all of his shares, or changing his intention with respect to
any and all matters referred to in Item 4.
Other than as indicated above, the reporting person has no plans or
proposals which relate to, or could result in, any matters referred to in
subsections (a) through (j) of Item 4 of Schedule 13D.
ITEM 5. Interest in Securities of the Issuer
As of the close of business on November 12, 2012, the reporting person has
sole voting and dispositive power over 1,323,075 shares of the company's common
stock. According to the company's most recently filed Form 10-Q, as of July
30, 2012, there were 23,868,499 common shares outstanding. The reporting
person is therefore deemed to own 5.5% of the company's common stock.
Transactions effected by the reporting person, in the 60 days prior to the
November 1, 2012 "trigger" date, were performed in ordinary brokerage
transactions, and are indicated as follows:
09/04/12 bought 5000 shares @ $1.63
09/04/12 sold 5000 shares @ $1.68
09/05/12 bought 200 shares @ $1.63
09/06/12 bought 25,000 shares @ $1.70
09/10/12 bought 10,000 shares @ $1.675
09/11/12 bought 45,399 shares @ $1.70
09/12/12 bought 14,300 shares @ $1.733
09/13/12 bought 11,800 shares @ $1.719
09/14/12 bought 50,243 shares @ $1.716
09/18/12 bought 91,985 shares @ $1.628
09/20/12 bought 5000 shares @ $1.63
09/21/12 bought 7100 shares @ $1.649
09/24/12 bought 900 shares @ $1.64
09/25/12 bought 6152 shares @ $1.64
09/26/12 bought 3717 shares @ $1.637
09/27/12 bought 9008 shares @ $1.63
09/28/12 sold 20,200 shares @ $1.763
10/02/12 bought 25,000 shares @ $1.709
10/03/12 bought 6800 shares @ $1.716
10/05/12 bought 11,935 shares @ $1.71
10/08/12 bought 15,000 shares @ $1.739
10/09/12 bought 14,800 shares @ $1.737
10/10/12 bought 24,320 shares @ $1.654
10/11/12 bought 10,000 shares @ $1.615
10/12/12 bought 21,620 shares @ $1.537
10/15/12 bought 600 shares @ $1.52
10/16/12 bought 47,230 shares @ $1.514
10/17/12 bought 8400 shares @ $1.541
10/18/12 bought 26,339 shares @ $1.551
10/19/12 bought 25,400 shares @ $1.536
10/22/12 sold 5000 shares @ $1.479*
*trade placed in error--was meant to be placed as a buy order
10/25/12 bought 13,800 shares @ $1.451
10/26/12 bought 5000 shares @ $1.41
10/31/12 bought 5000 shares @ $1.37
11/01/12 bought 39,750 shares @ $1.445
11/02/12 bought 38,600 shares @ $1.464
11/06/12 bought 44,164 shares @ $1.449
11/12/12 bought 11,100 shares @ $1.488
ITEM 6. Contracts, Arrangements, Understandings or Relationships
with Respect to Securities of the Issuer
Not Applicable
ITEM 7. Material to be Filed as Exhibits
Exhibit #1: Letter dated November 12, 2012 to the Board of Directors.
SIGNATURES
After reasonable inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.
Date 11/12/12
Signature Timothy J. Stabosz
Name/Title Timothy J. Stabosz, Private Investor