Form 10-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-K

ANNUAL REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934


þ		ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Fiscal Year Ended June 30, 2009


o		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 0-11250

DIONEX CORPORATION

(Exact name of registrant as specified in its charter)


Delaware		94-2647429
(State or other jurisdiction of		(I.R.S. Employer
Incorporation or organization)		Identification No.)


1228 Titan Way,
Sunnyvale, California		94085
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code
(408) 737-0700

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class		Name of Each Exchange on Which Registered

Common Stock, par value $.001 per share		The Nasdaq Stock Market LLC

Securities registered pursuant to Section 12(g) of the Act:
None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. YES þ NO o

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. YES o NO þ

Indicate by check market whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES þ NO o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o No o

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. þ

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definition of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer þ	Accelerated filer o	Non-Accelerated filer o	Smaller reporting company o
		(do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No þ

The aggregate market value of the registrant’s Common Stock held by non-affiliates on December 31, 2008 (based upon the closing price of such stock as of such date) was $790,213,047.

As of August 27, 2009, 17,703,735 shares of the registrant’s Common Stock were outstanding.

Portions of the registrant’s definitive Proxy Statement for the Annual Meeting of Stockholders to be held on October 26, 2009 are incorporated by reference in Part III of this Annual Report.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Certain statements set forth or incorporated by reference in this Form 10-K, as well as in the Dionex Annual Report to Stockholders for the year ended June 30, 2009, constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), and the Private Securities Litigation Reform Act of 1995, and are made under the safe harbor provisions thereof. Such statements are subject to certain risks, uncertainties and other factors that may cause actual results, performance or achievements, or industry conditions, to be materially different from any future results, performance or achievements, or industry results, expressed or implied by such forward-looking statements. Such risks and uncertainties include: general economic conditions, foreign currency fluctuations, the risks associated with international sales and operations, fluctuation in worldwide demand for analytical instrumentation, fluctuations in quarterly operating results, competition from other products, existing product obsolescence, new product development, including market receptiveness, the ability to manufacture products on an efficient and timely basis and at a reasonable cost and in sufficient volume, the ability to attract and retain talented employees and other risks as set forth under “Item 1A. “Risk Factors” and elsewhere in this Form 10-K. Readers are cautioned not to place undue reliance on these forward-looking statements that reflect management’s analysis only as of the date hereof. Dionex undertakes no obligation to update these forward-looking statements.

PART I


Item 1.		*BUSINESS*

OVERVIEW

Dionex Corporation designs, manufactures, markets, and services analytical instrumentation, related accessories, and chemicals. Our products are used to analyze chemical substances in the environment and in a broad range of industrial and scientific applications.

We have evaluated those business activities that are regularly reviewed by our senior management and have determined that we have two operating segments that are aggregated into one reportable segment. Financial information for our one reportable segment is provided in Item 8 of this Form 10-K.

Unless the context otherwise requires, the terms “Dionex,” “we,” “our” and “us” and words of similar import as used in this report include Dionex Corporation and its consolidated subsidiaries. Dionex Corporation was incorporated as a California corporation in 1980 and reincorporated in Delaware in 1986.

PRODUCTS AND SERVICES

We design, manufacture, market, and service a range of liquid chromatography systems, sample preparation devices, and related products used by chemists to separate and quantify the individual components of complex chemical mixtures relevant to many major industrial, research, and laboratory markets.

Our liquid chromatography systems are currently focused in two product areas: ion chromatography (IC) and high performance liquid chromatography (HPLC). We offer a mass spectrometer detector coupled with either IC or HPLC systems. For sample preparation, we provide accelerated solvent extraction (ASE^®) systems and AutoTrace^® instruments. In addition, we develop and manufacture consumables, detectors, automation, and analysis systems for use in or with liquid chromatography systems. Each of these product areas is described below.

Ion Chromatography

Ion chromatography is a form of chromatography that separates ionic (charged) molecules, usually found in water-based solutions, and typically detects them based on their electrical conductivity. The sale of our IC systems and related columns, suppressors, detectors, automation, and other products accounted for over 60% of our net sales in each of fiscal 2009, 2008 and 2007.

Our IC products are used in a wide range of analytical applications, including environmental monitoring, quality control of pharmaceuticals, corrosion monitoring, and evaluation of raw materials, quality control of industrial processes and products, research and development, and regulation of the chemical composition of food, beverage, and cosmetic products. Major customers include environmental testing laboratories, life science and food companies, chemical/petrochemical firms, power generation facilities, electronics manufacturers, government agencies, and academic institutions.

In fiscal 2003, we introduced the industry’s first Reagent-Free^™ IC (RFIC^™) systems by combining eluent generation and advanced eluent suppression technologies, eliminating the need for manual preparation of eluents and reagents. Eluents are solvents used to separate materials in the chromatography process. Reagents are substances used in a chemical reaction to detect, measure, examine, or produce other substances. RFIC systems simplify ion chromatography while increasing its sensitivity and reproducibility. RFIC systems also eliminate errors associated with manual reagent preparation. In fiscal 2005, we further expanded our RFIC capabilities by offering dual RFIC capabilities. In fiscal 2006, we expanded this powerful technology further by introducing RFIC for carbonate/bicarbonate eluents, and continued this expansion in fiscal 2007 by introducing RFIC systems with Eluent Regeneration (RFIC-ER^™ systems). Using this technology, our customers are able to regenerate eluent, thus saving time and money on eluent preparation while providing greater consistency of results.

We offer a wide range of systems for IC:

Our ICS-3000 RFIC system — introduced in fiscal 2005 — is a modular system that expands our RFIC systems to a wider range of eluents. This premier product in our IC family is expandable from a single to a dual system in one footprint; one system can be configured to do the work of two systems. The ICS-3000 features the latest advancements in IC, including dual eluent generation capabilities, continuously regenerated trap column capabilities, and the SRS^® Self-Regenerating Suppressor. The ICS-3000 delivers flow rates ranging from microbore to semipreparative for isocratic as well as extended gradient applications. Flexible analytical capability is offered by interfacing with several detectors including conductivity, electrochemical, UV-vis, photodiode array, and mass spectrometry. For sample introduction, the system is available with the AS Autosampler, capable of sample preparation functions, preconcentration, and matrix elimination for removal of interfering analytes and enhancing detection abilities. One AS Autosampler can be shared between two systems, for advantages in applications and cost. The ICS-3000 RFIC system allows customers to run parallel or two dimension (2-D) chromatography analysis for maximizing productivity or running different types of challenging applications. Chromeleon^® Chromatography Data System (Chromeleon) software, available with the ICS-3000, provides powerful data processing, automation and control features, audit trail, intuitive database management, and full client-server capabilities using an easy to navigate graphical user interface. Together, the hardware and software offer System Wellness, a feature that automatically schedules calibration, validation, and routine maintenance on each module. Built-in diagnostics can be prompted from the software to help troubleshoot and track useful parameters such as absorbance detector lamp life and column usage. For customers that do not require the full capabilities of our Chromeleon software, we offer Chromeleon Xpress for stand-alone control of the ICS-3000.

Our ICS-2100 RFIC system, introduced in fiscal 2009, adds eluent regeneration controls and sample-preparation capabilities while maintaining the advantages of its predecessor, the ICS-2000 system introduced in fiscal 2003. The ICS-2100 is totally integrated and preconfigured RFIC system designed to perform with all types of electrolytically generated eluents for isocratic and gradient IC separations using suppressed conductivity detection. The system is controlled from an LCD touch pad front panel or using Chromeleon software. The ICS-2100 occupies minimal space and delivers all the advantages of an RFIC system, including ease-of use, consistency and superior performance compared to systems using manually prepared eluents.

Our ICS-1600 system, introduced in fiscal 2009, adds integrated eluent regeneration control to the capabilities of its predecessor, the ICS-1500. The ICS 1600 is a fully integrated and preconfigured system designed to perform IC separations using suppressed conductivity detection. The system is available with a dual-piston pump, thermally controlled conductivity cell, column heater, and optional in-line vacuum degassing. The system is controlled from an LCD touch pad front panel or using Chromeleon software.

Our ICS-1100, introduced in fiscal 2009, improves upon its predecessor, the ICS-1000 by including controls for eluent regeneration. The ICS-1100 is an integrated and preconfigured system that performs IC separations using conductivity detection. The system features a dual-piston pump, LED status front panel, and is controlled by our Chromeleon software. Options include column heating and in-line vacuum degassing. The ICS-1100 provides built-in control for electrolytic suppression technology to provide high performance and ease of use.

Our ICS-900 integrated IC system, introduced in fiscal 2008, is designed for routine ion analysis and provides easy operation and stable performance. The system features a dual-piston pump and MMS^™ 300 suppression with DCR technology that provides low noise and fast startup. It occupies minimal bench space, making it an attractive solution for small laboratories.

Introduced in fiscal 2009, the AS-DV Autosampler (AS-DV) is a low-cost, rugged, metal-free automated sample loading device designed especially for ion chromatography applications. Random access, optional sample filtration integrated into the vials, an optional high-pressure switching valve, and Chromeleon software make this autosampler highly flexible, and improve results when used with our IC systems. For more complex needs, we offer the AS Autosampler (AS). The AS is a high-performance, random vial access autosampler with automated sample injection used primarily with high-end RFIC systems. We also provide the simultaneous injection AS Autosampler for concurrent injection of a sample onto two analytical systems or one ICS-3000 Dual RFIC System for running unique or similar applications.

In fiscal 2007, we introduced the AS-HV Autosampler (AS-HV). The AS-HV allows customers to inject volumes up to 250 mL, and is designed for customers performing trace analysis.

High Performance Liquid Chromatography

HPLC is a form of chromatography that separates a wide range of small and large molecules, such as pharmaceuticals, metabolites, and biologics. HPLC typically quantifies the components by measuring the amount of light that the molecules absorb or emit when exposed to a light source. Our HPLC customers include life science companies active in biological research, biotechnology, pharmaceutical drug discovery, development, and manufacturing, as well as other industrial sectors, such as the food and beverage, chemical/petrochemical, and environmental markets. Sales of our HPLC products and related columns, suppressors, detectors, automation, and other products accounted for approximately 30% of our net sales in each of fiscal 2009, 2008 and 2007.

Analytical HPLC — We offer the following products for traditional and analytical HPLC:

Our UltiMate^® 3000 HPLC system is designed for analytical, micro, semipreparative, nano, and capillary flow rates. Introduced in fiscal 2006, the system consists of single or dual-high precision pumps providing accurate, highly reproducible isocratic or gradient separations from 0.001 mL/min (nano LC) to 100 mL/min (semipreparative) depending on the configuration. The UltiMate 3000 system allows advanced chromatography techniques such as tandem, two-dimensional, on-line SPE, and parallel applications. Chromeleon software, available with the UltiMate 3000, provides powerful data processing, automation and control features, audit trail, intuitive database management, and full client-server capabilities using an easy-to-navigate graphical user interface. Chromeleon software offers System Wellness, a feature that automatically schedules calibration, validation, and routine maintenance on each module. Built-in diagnostics can be prompted from the software to help troubleshoot and track useful parameters such as absorbance detector lamp life and column usage. Advanced system startup, shutdown, control and applications are delivered using a combination of unique hardware and software interaction known as Intelligent LC (LCi) capabilities.

Ultrafast HPLC — UHPLC features high pressures, high flow rates and small particles in columns to accelerate separations. We offer the following products for UHPLC:

Our UltiMate 3000 Rapid Separation LC (RSLC) system provides ultrafast, ultrahigh-resolution LC separations using high flow rates for increased throughput. Its unique combination of extensive pressure range, high flow rates, and ultrafast data collection facilitates high peak capacity in the shortest run times, such as separations of 10 peaks in 10 seconds. The system features precision-engineered parts and robust operation to maximize reliability and instrument uptime. As well as supporting UHPLC methods, the UltiMate 3000 RSLC also runs conventional LC methods with its flexible components. The RS Wellplate Autosampler’s patented injection valve can inject 100 µL at 800 bar pressure robustly. It works with a multitude of different sample formats, supporting a maximum of 1,167 samples. Column compartments are available with integrated column switching valves to use up to six columns of up to 30 cm length at the same time. UV detectors come with a selection of micro and analytical flow cells, available in stainless steel or bioinert PEEK^™. Each component stacks and operates together seamlessly, with full support by Chromeleon software. LCi provides advanced capabilities and Chromeleon features that interact with hardware. The system is designed for use with Acclaim RSLC columns, which feature small particle sizes for efficiently resolving peaks, thus optimizing fast LC applications. Any module of the UltiMate 3000 product line may be integrated into the RSLC system.

Bioinert HPLC — For optimal analysis of proteins and other biomolecules it is necessary to prevent chemical interaction with the system flow path. Bioanalysis using traditional stainless steel HPLC systems can compromise both the results and the limited, precious sample. Our approach to the analysis of biomolecules is as follows:

Our UltiMate 3000 Titanium system, introduced in fiscal 2008, features a bioinert, titanium pump and bioinert flow path to preserve chemically unstable biomolecules. The system provides high-performance dual-piston pumps, and includes a choice of absorbance and photodiode array detectors. These options allow for a wide range of large-molecule applications including quantification of proteins and peptides, nucleic acids, and other biomolecules. The system easily performs semiprep, standard, microbore, capillary, and nano gradient applications with flow rates ranging from 0.001 to 6 mL/min. Isocratic separations are supported with an even wider flow rate range (up to 10 mL/min). The UltiMate 3000 Titanium system is available with Chromeleon software. As with other UltiMate 3000 systems, the unique interaction of software and hardware delivers advanced LCi capabilities.

Capillary/nano LC — Capillary/nano LC is a form of HPLC that uses low flow rates for analyzing sample volumes much smaller than those analyzed using traditional analytical HPLC. We offer the following system for capillary/nano HPLC:

Our UltiMate 3000 Proteomics Multidimensional LC (MDLC) system is a unique x2 dual-gradient nano HPLC that enables ion-exchange and reversed-phase separations on one system. The advanced WPS-3000 Wellplate sampler delivers both injection and fractionation. This allows the UltiMate Proteomics MDLC system to provide fully automated off-line LC and protein prefractionation with nanoflow capabilities for the final analytical stage. Accurate, precise flow deliveries down to 50 nL/min can be achieved. The system reduces solvent consumption without compromising application flexibility. On-line fraction collection on Matrix-assisted laser description ionization (MALDI) targets is possible. System fractionation control and visualization of 2-D retention maps are delivered by the Chromeleon software. The interaction between hardware and software features LCi techniques, including advanced column switching, parallel LC, and other applications. The UltiMate Proteomics MDLC simplifies separation processes, leading to higher sample throughput, more reliable results, and improved laboratory productivity.

Our UltiMate 3000 Capillary-/Nano-LC system, introduced in fiscal 2005, is a dedicated microseparation system consisting of single or dual high-precision pumps coupled with patented flow control capabilities utilizing a proprietary method of flow splitting to provide accurate, reproducible isocratic and gradient separations from 50 nL/min to 2.5 mL/min, depending on the configuration. The UltiMate Capillary-/Nano-LC system also has a specially developed UV detector. This detector, coupled with our proprietary capillary flow cells, allows the most sensitive UV detection in microcolumn separations. Accessories for the UltiMate Capillary-/Nano-LC system system include the WPS-3000 Wellplate autosampler and the FLM-3100 Flow Control module for flow control in a thermostated column compartment that also allows column switching. The system delivers advanced techniques and intelligent startup and shutdown features as part of its LCi solutions with Chromeleon.

We offer the Probot^™ microfraction collector for the micro-analysis market. The Probot allows collection or dispensation of micro-fractions and is also used for precision spotting of MALDI — Time of flight mass spectrometer target plates.

Basic HPLC — Some laboratories require a simple, compact, low-cost solution to their liquid chromatography needs. Our product in this category is as follows:

In fiscal 2008, we introduced the UltiMate 3000 Basic LC system, featuring the ACC-3000 Autosampler Column Compartment. The basic system features excellent retention time precision, detector sensitivity, linearity, drift, and a rugged design. Designed as a cost-effective solution for routine LC analysis in pharmaceutical, food and beverage, and environmental laboratories, the system supports a wide variety of sample formats. The ACC-3000 features industry-leading sample capacity. Its integrated wash port cleans both inner and outer needle surfaces to eliminate carryover. The basic system is configurable with Chromeleon software, for some features of the more advanced UltiMate 3000 systems.

HPLC Autosamplers — For sample injection and preparation, autosamplers are an important component of any HPLC system.

For HPLC applications, we offer the WPS-3000 series of autosamplers with optional thermal control for temperature-sensitive samples. The WPS-3000 series provides speed, simplicity, reliability, and precision with either pull-loop or in-line split-loop injection technology. The removable carousels and programmable needle depth allow the WPS to accommodate a variety of sample vials and sizes, including wellplates.

For capillary and nano LC flow rates, we offer the WPS-3000 micro autosampler, a fully automated micro autosampler for sample injections from up to three 96 or 384 well plates or conventional 1.5 mL vials. The unique design allows for automated injection of volumes down to 20 nL. The WPS-3000 has a proprietary injection technique that ensures high performance and virtually no sample dispersion.

Sample Preparation

In fiscal 2008, we introduced the ASE 150 and ASE 350 systems, for samples ranging in size from 1 mL to 100 mL. The ASE 150 system is a single-sample automated extractor. The ASE 350 system can automatically extract up to 24 samples without user intervention. Each ASE system extracts components of interest from solid and semisolid samples using common solvents (the same used in traditional Soxhlet techniques) at elevated temperatures and pressures. The extraction using ASE offers advantages in speed and other benefits over competitive techniques, including Soxhlet, sonication, microwave extraction and supercritical fluid extraction. The ASE 150 and 350 systems offer several advantages over other solvent-based extraction techniques including lower solvent consumption, reduced extraction time, higher throughput, automation and ease of use. Both of these systems contain pH-hardened flow pathways featuring Dionium^™ components allowing the extraction of samples that have been pretreated with strong acids or bases. This greatly expands the application range and applicable markets for the ASE sample preparation technology. The ASE 350 also features built-in solvent mixing capability that allows sampling from three different bottles to allow the customer to perform extractions using an infinite variety of solvents.

Along with these new ASE products, we added a new adsorbent material to facilitate the extraction of samples that have been pretreated with strong acids. ASE Prep CR NA⁺ and ASE Prep CR H⁺ adsorbents neutralize strong acids or bases so samples can be extracted with organic or aqueous solvents to remove analytes of interest as part of the ASE process. The introduction of these adsorbents and the new ASE 150 and 350 systems allow unattended extraction of these samples. Both new systems provide customers with flexibility, capability, productivity, and value in sample preparation technology that is not available with other techniques.

In fiscal 2009, we acquired from Caliper Life Sciences the AutoTrace^® line of products. The AutoTrace SPE workstation automates the extraction of large volume aqueous samples prior to analysis. It is a globally-established platform with EPA approved methods and applications, such as the US EPA 500 and 600 series for environmental testing of drinking water.

Detectors

Detectors are used to measure the quantity of various sample components after they have been separated in a chromatography column. We currently offer several detector modules that can detect conductivity, electrochemistry, absorbance (including the PDA-3000 photodiode array detector), fluorescence, and refractive index absorbance. This range of detectors is designed to meet customer requirements for analysis of organics, inorganics, metals, biological compounds and pharmaceuticals.

Mass Spectrometry

Mass spectrometry (MS) is used to identify the molecular weight of compounds within a sample substance and renders structural molecular information. Through an agreement with Thermo Fisher Scientific, we offer the MSQ Plus^™ mass spectrometer together with the UltiMate 3000 HPLC and ICS-3000 systems. LC/MS and IC/MS systems using the MSQ Plus are used worldwide, particularly in the pharmaceutical market, but also for environmental testing, drug, food and beverage quality control, and many other applications. The MSQ Plus mass spectrometer is a compact, benchtop, single quadrupole mass detector. The standard system is supplied with both Electrospray (ESI) and Atmospheric Pressure Chemical Ionization (APCI) for maximum analytical flexibility. The agreement with Thermo Fisher Scientific, Inc. enables us to reach chemists desiring mass selective detector capabilities.

In addition, in fiscal 2006, we introduced the Dionex Chromatography Mass Spectrometry Link (DCMS^Link™) software. This software package provides an interface for controlling a wide range of our chromatography instruments from third-party mass spectrometry software (MS software) such as Analyst^® from Applied Biosystems/MDS Sciex, Xcalibur^® from Thermo Fisher Scientific Inc., and HyStar^™ from Bruker Corporation. In fiscal 2009, we introduced version 2.7 of DCMS^Link to deliver many new features, including a unique graphical control interface for Dionex instruments. The interface provides real-time modification of instrument parameters. The new version also supports digital acquisition of 3-D data from the UltiMate 3000 photodiode array detector, for assessing peak purities, spectral matching and peak tracking. When using DCMS^Link, all instruments are controlled and all data is stored, reviewed, quantitated and reported by the MS software. DCMS^Link enables us to expand to additional potential markets for our chromatography systems to customers who desire the quality and features of our chromatography with higher-end mass spectrometers.

Process Instrumentation

In fiscal 2009 we introduced the Integral^™ Process Analyzer for continuous on-line monitoring necessary in a variety of industrial applications. The Integral systems combine the Dionex ICS and UltiMate systems with advanced sample handling and preparation modules and industrial enclosures to automate a wide variety of in-process analyses. Major applications for Integral are in the power generation industry for the continuous monitoring of corrosive contaminants in boiler water, the semiconductor industry for continuous monitoring of contaminants in high purity water, and the pharmaceutical and chemical industries for continuous monitoring of biological and chemical synthesis processes. Integral uses our Chromeleon PA software for automation, data acquisition, reporting, and security. The software allows the user to view analyzer status, handle alarms, and interface with the computing and control systems in place at the enterprise where Integral is installed. The Integral Process Analyzer replaces the DX-800 Process Analyzer.

Automation Products

As part of our efforts to make chemical analyses simpler, faster, and more reliable, we offer a family of products that automate sample handling, system operation, and data analysis for chromatography systems. These products include Chromeleon software for IC and HPLC that enables interaction between hardware and software for such features as system wellness and smart startup and shutdown. Our advanced LC automation capabilities support applications such as discovery processes, quality control, and advanced research like proteomics and biomarker discovery. Specifically, the automation capabilities deliver advanced techniques, including parallel and tandem analysis, LC analysis, on-line SPE-LC analysis, automated application switching, and automated method scouting.

Chromeleon Software — In fiscal 2009, Dionex Corporation introduced Chromeleon^® 7 Chromatography Data System, a next-generation chromatography data system that provides the fastest, easiest path from samples to results, boosting productivity and improving user experience. Described as Simply Intelligent, the software combines intelligent functionality with a new easier to use design. Operational Simplicity provides the user with a variety of electronic work flows that simplify the chromatography process. In addition, Chromeleon 7 includes capabilities to speed up data evaluation by providing an intuitive way to access all information for an experiment. Also, Chromeleon 7 includes new methods to identify peaks and save time in analysis.

In fiscal 2006, we introduced the Chromeleon 6.8 version of our chromatography data management system. From a single user interface, Chromeleon 6.8 provides full control of over 250 LC and Gas Chromatography (GC) instruments from more than 25 vendors of liquid and GC systems. It is an easy-to-use, adaptable data management system with scalable client/server architecture for customers requiring a single workstation to lab- or campus-wide deployment. Data is organized by instrument, user, project or product. All data is stored locally on a personal computer, centrally on a network server, or both. Chromeleon features a flexible graphical user interface and report generator which can be adapted to dedicated applications. Chromeleon also offers a complete suite of features for regulatory compliance: security, validation, audit trails and electronic signatures. Chromeleon provides all the features that laboratories need to comply with GLP, GMP and 21 CFR Part 11 without losing productivity.

In fiscal 2008, we further expanded the capabilities of Chromeleon software by adding Service Pack 3 for release 6.8. The service pack provides Chromeleon support for Microsoft Windows^® Vista operating system. Windows Vista, which is being pre-loaded by many computer manufacturers, provides a superior security infrastructure and supports new user interface and multimedia capabilities. The updated Chromeleon software continues Windows XP support and adds support for RFIC-ER, the new Dionex eluent regeneration technology that simplifies ion chromatography. New drivers for Agilent 1200 HPLCs, Agilent G1888 Headspace autosamplers, Thermo Accela HPLC systems, and Thermo TriPlus autosamplers are also provided, allowing broader third-party control for Chromeleon to excel in laboratory applications.

Consumables

We offer a number of consumables for IC and HPLC customers. Our primary consumable items are columns, suppressors, and RFIC eluent generation cartridges. These consumables are replaced at regular intervals depending on the volume of use and sample composition.

Columns — A chromatography column consists of a hollow cylinder packed with a unique separation material. The column’s function is to separate various chemical components in a sample. We develop and manufacture separation materials such as ion-exchange resins, silica-based bonded phases, and monolithic phases using proprietary processes. We currently manufacture and market a wide range of column types designed and tested for specific applications in the HPLC and IC markets. We offer polymer-based ion-exchange and reversed-phase columns supporting capillary, analytical, preparative, and semi-preparative scale applications.

Recent column introductions augment a continuing program of product launches geared to address developing market requirements. For IC, in the last 3 years, we introduced the IonPac^® AS17-C anion-exchange column for determination of key anions in high-purity water matrices. The column provides low sulfate blanks and fast equilibration time for the analysis of trace anions in high purity water matrices. We also introduced the IonPac AS24, a hydroxide-selective anion-exchange column designed for the separation of haloacetic acids in drinking water prior to MS or MS/MS detection. The capacity and selectivity of the AS24 allows for the analysis of haloacetic acids in drinking water at low µg/L concentrations.

New HPLC columns introduced in fiscal 2009 include the Acclaim^® Trinity™ P1 column. This is a unique, high-efficiency, tri-mode silica-based column, specifically designed for simultaneous separation of pharmaceutical drug substances and counterions, as well as mixtures of acidic, basic, and neutral drugs. This novel column, Acclaim Trinity P1, provides anion-exchange, cation-exchange, and reversed-phase properties, allowing easier, straightforward method development because selectivity can be easily optimized by adjusting the mobile phase ionic strength, pH, and organic solvent—independently or concurrently. In fiscal 2007 and 2008, a number of new dual-mode columns were introduced. These columns were designed to address the expanding needs of our customers for greater selectivity control. The Acclaim Mixed-Mode HILIC-1, a silica-based column that allows chromatographers to control the elution of both highly polar and nonpolar molecules to optimize resolution of polar compounds that are otherwise unretained by reversed-phase chromatography. Other new dual-mode columns include the Acclaim Mixed-Mode WCX-1 and WAX-1 silica-based columns, which allow the chromatographer to control the elution of acids, bases and neutral molecules with one column.

In fiscal 2009, we continued to expand the Acclaim^® RSLC column line, used for UHPLC separations. More 3-µm and 2.2-µm particle size columns were introduced, for faster LC separations used for a broad range of customer application needs. These columns, coupled with our UltiMate 3000 system, provide 15-fold faster separations than conventional HPLC. The Acclaim RSLC columns are designed for faster throughput while maintaining robustness and ease of use.

Dionex has also continued to expand the ProSwift^® monolith column line, designed for the life sciences market. These columns provide increased resolution, speed, and capacity for protein separations. Both ion exchange monoliths (ProSwift SAX-1S, WAX-1S, SCX-1S, and WCX-1S) and reversed-phase monoliths (ProSwift RP-1S, RP-2H, RP-3U) are all available in 4.6 mm. In fiscal year 2008, the ProSwift SAX, WAX and SCX were made available in a 1-mm internal diameter format, for the analysis of very small samples where increased mass sensitivity is required. In fiscal 2009, we introduced two reversed-phase 1-mm columns; the ProSwift RP-4H monolith and the RP-10R columns for high-resolution, high mass sensitivity, and LC/MS protein separations. The DNASwift™ monolith column was also introduced in fiscal year 2009, designed for laboratory-scale oligonucleotide purification.

We also offer a variety of micro, capillary and nano LC columns in varying formats packed with a variety of “stationary phase” materials.

Eluent Suppressors — In fiscal 2008, the company introduced the SRS 300 family of Self-Regenerating Suppressors to enhance detection and sensitivity in ion chromatography. These eluent suppressors provide a high backpressure tolerance for improved operation, with a maximum leak tolerance up to 300 psi. Their innovative regenerant sweep-out design provides low noise and fast startup. The new shape is designed to fit all Dionex chromatography enclosures.

This new generation of suppressors is available for anionic separations (ASRS^® 300) using hydroxide and carbonate/bicarbonate eluents, or cationic separations (CSRS^® 300) using methanesulfonic acid and sulfuric acid eluents. Eluents containing no solvent can be recycled for use as regenerant, or, for eluents containing low concentrations of solvents, the suppressors can be run in external water mode. Chemical suppression can also be used with these suppressors for eluents with higher solvent concentrations. SRS 300 suppressors are available in a 4 mm format (for use with 4 and 5 mm columns) and a 2 mm format (for use with 2 and 3 mm columns). Our suppressors deliver low background conductivity and support a wide range of ion-exchange column separations, including separations using high-capacity columns and more concentrated eluents. We offer an array of suppressors that include the Self Regenerating Suppressor (SRS 300), the Atlas^® Electrolytic Suppressor, and the MicroMembrane^™ Suppressor (MMS III).

To further enhance our IC capabilities in fiscal 2008, we introduced the CRD 300 Carbonate Removal Device. This device removes carbonate ions from suppressed carbonate eluents; reducing background conductivity to levels similar to those achieved using suppressed hydroxide eluents. The lower backgrounds ensure lower detection limits and more consistent, reproducible results.

RFIC Eluent Generation Cartridges — Dionex manufactures eluent generation cartridges used with RFIC systems for the automatic production of high-purity eluents. We offer cartridges for generation of hydroxide, methanesulfonic acid, and carbonate/bicarbonate eluents.

SERVICE AND OTHER

We also provide services and service products through our customer service organization. These services include maintenance contracts, spare part sales, customer training and sales of other products and valued-added services. (See “Technical Support, Installation and Service” below.)

CUSTOMERS, MARKETING, AND SALES

Our products are used extensively in the environmental, life science, and industrial markets using chromatography and extraction technologies. The environmental market is characterized by water analysis, safety and security applications, and pollution testing, with chemists from private and governmental laboratories being our primary customers in this field. The life science markets we serve include the pharmaceutical segment, biosciences, and medical sciences, with customers from industrial, academic, and governmental accounts. Industrial markets include the electronics and power industries, with a demand for analyzing the high-purity water quality in their production facilities. We serve a number of the world’s largest industrial companies within the chemical industry market, which produce specialty chemicals/petrochemicals, consumer products, and more, and the food and beverage market, which test for product quality assurance, purity, and contamination byproducts.

One of our key marketing strategies is to target all market segments mentioned above to increase demand for our chromatography solutions. This strategy is accomplished by approaching all existing and potential customers through direct marketing activities including direct sales calls, mailings, advertising, electronic marketing, seminars, and workshops. In addition, we build visibility and branding for our global presence through scientific conferences and exhibitions. Continuous growth in all these markets results from identifying new customers in existing sales regions, extending geographic penetration, and increasing demand for our products and technical support capabilities.

The second component of our marketing strategy is to explore and develop new application fields in close collaboration with existing and potential customers, and to leverage this competence into other market areas. A prerequisite to establishing this process is the availability of highly skilled technical and support staff working to also assist customers in solution definition and development. To meet and exceed customer expectations in our developing commercial markets, our goal is to optimize and diversify our technology interests in the chromatography market, including sample preparation, purification, analysis, testing, and data management.

Geographically, we market and distribute our products and services through our sales force in Austria, Australia, Brazil, Canada, China, Denmark, France, Germany, India, Ireland, Italy, Japan, Korea, the Netherlands, Singapore, Sweden, Switzerland, Taiwan, the United Kingdom, and the United States. In each of these countries other than Canada, we maintain one or more local sales offices in order to support and service our customers in the regions. In other international locations where we do not have a direct sales force, we have developed a network of distributors and sales agents. In fiscal 2009, our net sales by geographic region were approximately 26% in North America, 41% in Europe and 33% in Asia/Pacific and other. In fiscal 2008, our net sales by geographic region were approximately 28% in North America, 43% in Europe and 29% in Asia/Pacific and other. In fiscal 2007, our net sales by geographic region were approximately 29% in North America, 44% in Europe and 27% in Asia/Pacific and other.

We manufacture our products based upon our forecast of customer demand and maintain adequate inventories of completed modules or finished goods in advance of receipt of firm orders. System or instrument orders are generally placed by the customer on an as-needed basis, and instruments are usually shipped within four to six weeks after receipt of an order. We do not maintain a substantial backlog, and backlog as of any particular date may not be indicative of our actual sales in any succeeding period. The level of backlog at June 30, 2009 was $55.2 million and at June 30, 2008 was $57.9 million.

FINANCIAL INFORMATION ABOUT GEOGRAPHIC AREAS

For financial information by geographic area, refer to Note 14 of the Notes to Consolidated Financial Statements in Item 8 of this Form 10-K.

COMPETITION

Competition in our industry is based upon the performance capabilities of the analytical instruments, technical support and after-market services, the manufacturer’s reputation as a technological leader and selling prices. Management believes that performance capabilities are the most important of these criteria. Customers measure system performance based on sensitivity (the ability to discern minute quantities of a particular sample component), selectivity (the ability to distinguish between similar components), speed and throughput of analysis, and the range of chemical and biological samples the system can effectively analyze. Management believes that we enjoy a favorable reputation in terms of performance capabilities.

Companies competing with us in the analytical instruments market include Agilent Technologies, Inc., Shimadzu Corporation, Thermo Fisher Scientific Inc., Varian, Inc., Waters Corporation and Metrohm Ltd.

We believe we have a substantial market share in the IC market, which is a segment of the LC market. Our IC systems generally compete with a number of analytical techniques used in identifying and quantifying ionic and polar compounds. The primary source of competition are conventional manual and automated wet chemistry procedures and certain possibly modified liquid chromatography systems using a single column method without or including an ion suppression device. Companies competing with us in the IC market include such vendors as Metrohm AG, Shimadzu Corporation, Waters Corporation and other smaller companies.

We believe we have a smaller but growing market share in the combined high pressure, analytical and capillary/nano-LC HPLC portions of the LC market. Our UltiMate 3000 systems compete directly with other manufacturers’ HPLC systems in high pressure, traditional and capillary-/nano- HPLC applications. We believe that the UltiMate HPLC system has certain benefits over competing systems, including advanced pump and dual pump technology, thermostatted temperature control, high performance auto sampling capabilities, all technologies designed for intelligent LC. In addition, the UltiMate 3000 offer many benefits over competing systems including the ability to analyze minute contents of sample at very low flow rates or analyze samples at higher pressure at varying flow rates. We also believe that our Chromeleon software package not only provides competitive advantages over our competitors’ software offerings but is respected as the most advanced chromatography data management system in the market. Our competitors in the HPLC market include such vendors as Agilent Technologies, Inc., Shimadzu Corporation, Thermo Fisher Scientific, Varian, Inc., Waters Corporation and various smaller companies.

Our Accelerated Solvent Extraction systems compete directly with standard Soxhlet, sonication, supercritical fluid extraction and microwave extraction techniques provided by other companies. Management believes that our ASE systems have certain benefits compared to competing techniques, including faster extraction time, reduced solvent usage, built-in automation and ease of use.

PATENTS AND LICENSES

We have a patent portfolio covering certain technologies of our products. These technologies include but are not limited to those used in our suppressors, eluent generators, columns, sample preparation devices, pumps, autosamplers, and detectors. The portfolio includes both apparatus and method of use patents. Our patents are presently issued in the United States and number of foreign countries including those in North America, Europe and Asia. As a matter of company policy, we vigorously protect our intellectual property rights and seek patent coverage on developments that we regard as strategic, material and patentable. Our portfolio includes licenses of technologies that we view as strategic. Our patents, including those licensed from others, expire between 2009 and 2029. We believe that, while our patent portfolio has value, no single patent or patent application is in itself essential and that the invalidity or expiration of any single patent would not have a material adverse effect on our business.

We regard our Chromeleon software as proprietary and we rely on a combination of copyrights, trademarks, trade secret laws and other proprietary rights, laws, license agreements and other restrictions on disclosure, copying and transferring title to protect our rights to our software products. We have no issued patents covering our software, and existing copyright laws afford only limited protection. In addition, the laws of some foreign countries do not protect our proprietary rights to the same extent as do the laws of the United States.

INTERNATIONAL OPERATIONS

Financial information about foreign and domestic operations and export sales is provided in Note 14 of the Notes to Consolidated Financial Statements found elsewhere in this report.

We have subsidiaries in Austria, Australia, Brazil, Canada, China, Denmark, France, Germany, India, Ireland, Italy, Japan, Korea, the Netherlands, New Zealand, Singapore, Sweden, Switzerland, Taiwan, the United Kingdom and the United States. Our foreign sales are affected by fluctuations in currency exchange rates and by regulation adopted by foreign governments. Such fluctuations have materially affected, both positively and negatively, our results of operation in past periods and will likely materially affect our results of operations in the future. Export sales are subject to certain controls and restrictions, but we have not experienced any material difficulties related to these limitations.

MANUFACTURING AND SUPPLIERS

We produce most of our consumables, including columns and suppressors, and assemble our IC systems and modules in our California manufacturing facilities. We assemble the systems and modules for our UltiMate 3000 systems in our manufacturing facility in Germany. We have developed proprietary processes for the manufacture of polystyrene-based resins and for packing columns with these resins. We believe that our resins, columns and suppressor manufacturing know-how are critical to the performance and reliability of our chromatography systems. We require each employee and consultant to sign a nondisclosure agreement to protect our proprietary processes. However, there can be no assurances that these agreements will provide meaningful protection or adequate remedies for our proprietary processes in the event of unauthorized use or disclosure.

We have emphasized a modular design for the principal subsystems of our pumping and flow systems, sample injection systems, chromatography modules, detectors, and control and data analysis systems. We believe that this modular approach has enabled us to meet the wide range of system configurations required by our customers. Manufacturing has transitioned into flow-line production for our major systems while maintaining subassembly cell production for our integrated modules. These practices have enhanced our ability to effectively manage our inventory levels.

We manufacture many subassemblies used in our products. Components, including formed-plastic and sheet-metal packaging materials, machine-metal parts, integrated circuits, microprocessors, microcomputers and certain detector and data analysis modules, are purchased from other manufacturers. Most of the raw materials, components and supplies purchased by us are available from a number of different suppliers, although a number of items are purchased from limited or single source of supply.

TECHNICAL SUPPORT, INSTALLATION AND SERVICE

Users of our chromatography systems may require technical support before and after a system sale. Services provided before the sale are recorded in operating expenses as incurred. Chromatography systems sold by us generally include a one-year warranty. These costs are accrued for at the time of the system sale. Installation and certain basic user training are provided to the customer, with revenues for these services recognized at the time the services are provided. Maintenance contracts may be purchased by customers to cover equipment no longer under warranty. Maintenance work not performed under warranty or maintenance contracts is performed on a time and materials basis. We offer training courses and periodically send our customers information on applications development. We install and service our products through our own field service organizations in Austria, Australia, Brazil, Canada, China, Denmark, France, Germany, India, Italy, Ireland, Japan, Korea, the Netherlands, Singapore, Sweden, Switzerland, Taiwan the United Kingdom and the United States. Installation and service in other foreign countries are typically provided by our distributors or agents.

RESEARCH AND PRODUCT DEVELOPMENT

Our research and product development efforts are focused on increasing the performance of our chromatography and other products and expanding the number of chemical and biological compounds that can be analyzed efficiently with our products. Research and product development expenditures were $29.0 million, $28.9 million, and $24.7 million in fiscal 2009, 2008 and 2007, respectively. We pursue active development programs in the areas of system hardware, applications, computer software, suppressors, and resin and column technologies. There can be no assurances that our product development efforts will be successful or that the products developed will be accepted by the marketplace.

EMPLOYEES

We had approximately 1,400 employees at June 30, 2009 and 1,351 at June 30, 2008.

AVAILABLE INFORMATION

We maintain a website at www.dionex.com; however, information found on our website is not incorporated by reference into this report. We make available free of charge on or through our website our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or proxy statement, furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after we electronically file such material with, or furnish it to, the Securities and Exchange Commission (the “SEC”). Our Board of Directors has adopted charters for the Audit, Compensation, and Nominating and Corporate Governance Committees of our Board of Directors and a Code of Business Ethics and Values applicable to all of our officers and employees. These charters and our Code of Business Ethics and Values are available on our website at http://investor.dionex.com/governance-PDFs.cfm and a printed copy of this information is available without charge by sending a written request to: Investor Relations, Dionex Corporation, 1228 Titan Way, Sunnyvale, California 94085. The public may read and copy any materials we file with the SEC at the SEC’s Public Reference Room at 100 F Street, N.E., Room 1580, Washington, DC 20549, and may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC at http://www.sec.gov.


Item 1A.		*RISK FACTORS.*

You should consider carefully the following risk factors as well as other information in this report before investing in any of our securities. If any of the following risks actually occur, our business operating results and financial condition could be adversely affected. This could cause the market price for our common stock to decline, and you may lose all or part of your investment. These risk factors include any material changes to, and supersede, the risk factors previously disclosed in our most recent annual report on Form 10-K and subsequently filed quarterly reports on Form 10-Q.

A downturn in economic conditions could affect our operating results.

Our business, financial condition and results of operations have been affected by weaker global economic conditions. These conditions resulted in reduced sales of our products in the last two quarters of fiscal 2009. In a continued economic recession or under other adverse economic conditions, our customers may be less likely to purchase our products and vendors may be more likely to fail to meet contractual terms. A further downturn in economic conditions may make it more difficult for us to maintain and continue our revenue growth and profitability performance resulting in a material adverse effect on our business.

Foreign currency fluctuations related to international operations may adversely affect our operating results.

We derived approximately 76% of our net sales from outside the United States in fiscal 2009 and expect to continue to derive the majority of net sales from outside the United States for the foreseeable future. Most of our sales outside the United States are denominated in the local currency of our customers. As a result, the U.S. dollar value of our net sales varies with currency rate fluctuations. Significant changes in the value of the U.S. dollar relative to certain foreign currencies could have a material adverse effect on our results of operations. In recent periods, our results of operations have been positively affected from the depreciation of the U.S. dollar against the Euro, the yen and several other foreign currencies, but there can be no assurance that this positive impact will continue. In the past, our results of operations have been negatively impacted by the appreciation of the U.S. dollar against other currencies.

Economic, political and other risks associated with international sales and operations could adversely affect our results of operations.

Because we sell our products worldwide and have significant operations outside of the United States, our business is subject to risks associated with doing business internationally. We anticipate that revenue from international operations will continue to represent a majority of our total net sales. In addition, we expect that the proportion of our employees, contract manufacturers, suppliers, job functions and manufacturing facilities located outside the United States will increase. Accordingly, our future results could be harmed by a variety of factors, including:

•

interruption to transportation flows for delivery of parts to us and finished goods to our customers;

•

changes in a specific country’s or region’s economic, political or other conditions;

•

trade protection measures and import or export licensing requirements;

•

negative consequences from changes in tax laws;

•

difficulty in staffing and managing widespread operations;

•

differing labor regulations;

•

differing protection of intellectual property;

•

unexpected changes in regulatory requirements; and

•

geopolitical turmoil, including terrorism and war.

Credit risks associated with our customers may adversely affect our financial position or result of operations.

Because trade credit is extended to many of our customers, the current global economic condition may adversely affect our ability to collect on accounts receivable that are owed to us. In general, our customers are evaluated for their credit worthiness as part of our operating policy, and letters of credit are utilized to mitigate credit risks when possible. We believe we have adopted the appropriate operating policies to address the customer credit risk under a stable economic environment. Nevertheless, given the current global economic situation we could experience delays in collection on accounts receivable that are owed to us. As a result, this could adversely affect our financial position or result of operations.

Fluctuations in worldwide demand for analytical instrumentation could affect our operating results.

The demand for analytical instrumentation products can fluctuate depending upon capital expenditure cycles. Most companies consider our instrumentation products capital equipment and some customers may be unable to secure the necessary capital expenditure approvals due to general economic or customer specific conditions. Significant fluctuations in demand could harm our results of operations.

Fluctuations in our quarterly operating results may cause our stock price to decline.

A high proportion of our costs are fixed due in part to our significant sales, research and product development and manufacturing costs. Declines in revenue caused by fluctuations in currency rates, worldwide demand for analytical instrumentation or other factors could disproportionately affect our quarterly operating results, which may in turn cause our stock price to decline.

A significant portion of our cash position is maintained overseas.

Most of our short term debt is in the United States. While there is a substantial cash requirement in the U.S. to fund operations and capital expenditures, service debt obligations, finance potential acquisitions and continue authorized stock repurchases, a significant portion of our cash is maintained and generated from foreign operations. Our financial condition and results of operations could be adversely impacted if we are unable to maintain a sufficient level of cash flow in the U.S. to address these requirements through cash from U.S. operations, efficient and timely repatriation of cash from overseas and other sources obtained at an acceptable cost.

Our results of operations and financial condition will suffer if we do not introduce new products that are attractive to our customers on a timely basis.

Our products are highly technical in nature. As a result, many of our products must be developed months or even years in advance of the potential need by a customer. If we fail to introduce new products and enhancements as demand arises or in advance of the competition, our products are likely to become obsolete over time, which would harm operating results. Also, if the market is not receptive to our newly-developed products, our results of operations would be adversely impacted and we may be unable to recover the costs of research and product development and marketing associated with such products.

The analytical instrumentation market is highly competitive, and our inability to compete effectively in this market would adversely affect our results of operations and financial condition.

The analytical instrumentation market is highly competitive and we compete with many companies on a local and international level that are significantly larger than we are and have greater resources, including larger sales forces and technical staff. Competitors may introduce more effective and less costly products and, in doing so, may make it difficult for us to acquire and retain customers. If this occurs, our market share may decline and operating results could suffer.

We may experience difficulties with obtaining components from sole- or limited-source suppliers, or manufacturing delays, either of which could adversely affect our results of operations.

Most raw materials, components and supplies that we purchase are available from many suppliers. However, certain items are purchased from sole or limited-source suppliers and a disruption of these sources could adversely affect our ability to ship products as needed. A prolonged inability to obtain certain materials or components would likely reduce product inventory, hinder sales and harm our reputation with customers. Worldwide demand for certain components may cause the cost of such components to rise or limit the availability of these components, which could have an adverse effect on our results of operations.

We manufacture products in our facilities in Germany, the Netherlands and the United States. Any prolonged disruption to the operations at these facilities, whether due to labor unrest, supplier issues, damage to the physical plants or equipment or other reasons, could also adversely affect our results of operations.

Our executive officers and other key employees are critical to our business, they may not remain with us in the future and finding talented replacements may be difficult.

Our operations require managerial and technical expertise. Each of the executive officers and key employees is employed “at will” and may leave our employment at any time. In addition, we operate in a variety of locations around the world where the demand for qualified personnel may be extremely high and is likely to remain so for the foreseeable future. As a result, competition for personnel can be intense and the turnover rate for qualified personnel may be high. The loss of any of our executive officers or key employees could cause us to incur increased operating expenses and divert senior management resources in searching for replacements. An inability to hire, train and retain sufficient numbers of qualified employees would seriously affect our ability to conduct our business. In April 2009, we hired a new President and Chief Executive Officer, Dr. Frank Witney, to succeed Lukas Braunschweiler who had served as our President and Chief Executive Officer since 2002. The success of our business will depend in part on the successful integration of Dr. Witney into our management team and the continued success of Dr. Witney and the rest of our management team in developing and executing the Company’s strategic plans.

We may be unable to protect our intellectual property rights and may face intellectual property infringement claims.

Our success will depend, in part, on our ability to obtain patents, maintain trade secret protection and operate without infringing the proprietary rights of third parties. We cannot be certain that:

•

any of our pending patent applications or any future patent applications will result in issued patents;

•

the scope of our patent protection will exclude competitors or provide competitive advantages to us;

•

any of our patents will be held valid if subsequently challenged; or

•

others will not claim rights in or ownership of the patents and other proprietary rights held by us.

Furthermore, we cannot be certain that others have not or will not develop similar products, duplicate any of our products or design around any patents issued, or that may be issued, in the future to us or to our licensors. Whether or not patents are issued to us or to our licensors, others may hold or receive patents which contain claims having a scope that covers products developed by us. We could incur substantial costs in defending any patent infringement suits, whether or not such suits have merit, or in asserting any patent rights, including those granted by third parties. In addition, we may be required to obtain licenses to patents or proprietary rights from third parties. There can be no assurance that such licenses will be available on acceptance terms, if at all.

Our issued U.S. patents, and corresponding foreign patents, expire at various dates ranging from 2009 to 2029. When each of our patents expires, competitors may develop and sell products based on the same or similar technologies as those covered by the expired patent. We have invested in significant new patent applications, and we cannot be certain that any of these applications will result in an issued patent to enhance our intellectual property rights.


Item 1B.		*UNRESOLVED STAFF COMMENTS*

Not applicable.


Item 2.		*PROPERTIES*

We own nine buildings in Sunnyvale, California, providing 252,000 square feet of space utilized for administration, marketing, sales, service, research and product development and manufacturing. We also own a 20,000 square feet building utilized for sales, service and administration in Idstein, Germany, a 77,000 square foot building for marketing, research and development, manufacturing and administration in Germering, Germany and a 32,000 square foot building in Osaka, Japan for sales, service and administration.

We lease sales and service offices in Austria, Australia, Brazil, China, Denmark, France, Germany, India, Ireland, Italy, Japan, Korea, the Netherlands, Singapore, Sweden, Switzerland, Taiwan, the United Kingdom and the United States. In addition, we lease marketing and research and product development offices in Salt Lake City, Utah. We also lease marketing and research and product development offices in Amsterdam, the Netherlands. Our facilities are well maintained, adequate to conduct our current business.


Item 3.		*LEGAL PROCEEDINGS*

We are a party to various legal proceedings arising in the ordinary course of our business, but are not currently a party to any legal proceeding that management believes will have a material adverse effect on our financial position or results of operations.


Item 4.		*SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS*

Not applicable.

PART II


Item 5.		*MARKET FOR OUR COMMON STOCK, RELATED STOCKHOLDER MATTERS AND ISSUER REPURCHASES OF EQUITY SECURITIES*

MARKET PRICE OF COMMON STOCK

Our common stock is traded in the over-the-counter market through the Nasdaq Global Market under the symbol DNEX. The following table sets forth, for the periods indicated, the high and low sales price as reported by the Nasdaq Global Market.


	Fiscal 2009				Fiscal 2008
Quarter	High		Low		High		Low
First	$	74.83	$	61.39	$	80.10	$	67.54
Second	$	64.59	$	43.01	$	88.00	$	80.32
Third	$	52.62	$	40.03	$	82.34	$	66.76
Fourth	$	63.59	$	47.83	$	79.65	$	65.00

As of August 27, 2009, there were 745 holders of record of our common stock as shown on the records of our transfer agent.

DIVIDENDS

As of August 28, 2009, we have paid no cash dividends on our common stock and we do not anticipate doing so in the foreseeable future.

ISSUER PURCHASES OF EQUITY SECURITIES

During the fourth quarter of fiscal 2009, we repurchased shares of our common stock under a systematic program to manage the dilution created by shares issued under employee stock plans and for other purposes. This program authorizes repurchases in the open market or in private transactions. We started a series of repurchase programs in fiscal 1989, with the Board of Directors most recently authorizing in October 2008 future repurchases of 1,000,000 shares of common stock as well as authorizing the repurchase of additional shares of common stock equal to the number of common shares issued pursuant to our employee stock plans.

The following table indicates common shares repurchased and additional shares added to the program during the quarter ended June 30, 2009:

Total

Number of

Maximum

Shares

Number of

Purchased

Shares that

Total

Avg.

as Part of

Additional

May Yet be

Number of

Price

Publicly

Shares

Purchased

Shares

Paid per

Announced

Authorized for

Under the

Period

Purchased

Share

Program(1)

Purchase(1)

Program(2)

April 1 – 30, 2009

—

7,567,687

—

1,172,905

May 1 – 31, 2009

185,805

56.87

7,753,492

177,792

1,164,892

June 1 – 30, 2009

60,533

60.33

7,814,025

36,699

1,141,058


(1)		The number of shares represents the number of shares issued pursuant to employee stock plans that are authorized for purchase.

(2)		The number of shares includes a total of 1,000,000 shares of common stock approved for repurchase in October 2008 plus that number of shares of common stock equal to the number of shares issued pursuant to employee stock plans subsequent to October 2008 minus the number of shares purchased since October 2008.


Item 6.		*SELECTED CONSOLIDATED FINANCIAL DATA*

Statement of operations information:


	Year Ended June 30,
	2009			2008			2007			2006			2005
	(In thousands, except per share amounts)
Net sales	$	385,048		$	377,538		$	327,284		$	291,300		$	279,317
Cost of sales		128,651			126,756			109,015			99,857			91,754

Gross profit		256,397			250,782			218,269			191,443			187,563
Operating expenses:
Selling, general and administrative		143,171			142,545			123,525			113,241			102,539
Research and product development		28,979			28,943			24,737			22,392			20,354

Total operating expenses		172,150			171,488			148,262			135,633			122,893

Operating income		84,247			79,294			70,007			55,810			64,670
Interest income		1,300			2,212			1,435			1,874			1,276
Interest expense		(493	)		(878	)		(335	)		(184	)		(176	)
Other income (expense)		(1,781	)		(2,230	)		183			1,013			801

Income before taxes on income		83,273			78,398			71,290			58,513			66,571
Taxes on income		27,818			25,598			25,968			22,820			21,081

Net income	$	55,455		$	52,800		$	45,322		$	35,693		$	45,490

Basic earnings per share	$	3.10		$	2.85		$	2.37		$	1.78		$	2.20
Diluted earnings per share	$	3.04		$	2.77		$	2.31		$	1.74		$	2.13
Shares used in computing earnings per share amounts:
Basic		17,903			18,506			19,136			20,013			20,655
Diluted		18,228			19,072			19,615			20,527			21,388

Balance sheet information:


	At June 30,
	2009		2008		2007		2006		2005
	(In thousands)
Working capital	$	128,223	$	106,269	$	93,780	$	97,769	$	102,006
Total assets		329,984		330,430		272,188		250,402		238,153
Long-term debt		—		—		—		—		—
Stockholders’ equity		222,414		196,749		185,708		185,382		183,049


*ITEM 7.*		*MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS*

Cautionary Statement Regarding Forward-Looking Statements

Except for historical information contained herein, the discussion below and in the notes to our financial statements contained in this Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Exchange Act and the Private Securities Litigation Reform Act of 1995, and are made under the safe harbor provisions thereof. Such statements are subject to certain risks, uncertainties and other factors that may cause actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements, or industry results, expressed or implied by such forward-looking statements. Such risks and uncertainties include, among other things: general economic conditions, foreign currency fluctuations, the risks associated with international sales and operations, fluctuations in worldwide demand for analytical instrumentation, fluctuations in quarterly operating results, competition from other products, existing product obsolescence, new product development, including market receptiveness, the ability to manufacture products on an efficient and timely basis and at a reasonable cost and in sufficient volume, the ability to attract and retain talented employees and other risks as described in more detail below under the heading “Risk Factors.” Readers are cautioned not to place undue reliance on these forward-looking statements that reflect management’s analysis only as of the date hereof. We undertake no obligation to update these forward-looking statements.

Overview

Dionex Corporation designs, manufactures, markets and services analytical instrumentation and related accessories and chemicals. Our products are used to analyze chemical substances in the environment and in a broad range of industrial and scientific applications. Our systems are used in environmental analysis and by the pharmaceutical, life sciences, chemical/petrochemical, power generation, food and electronics industries in a variety of applications.

Our liquid chromatography systems are currently focused in two product areas: ion chromatography (IC) and high performance liquid chromatography (HPLC). We offer a mass spectrometer coupled with either an IC or HPLC system. For sample preparation, we provide automated solvent extraction systems. In addition, we develop and manufacture consumables, detectors, automation and analysis systems for use in or with liquid chromatographs. We market and distribute our products and services through our own sales force in Austria, Australia, Brazil, Canada, China, Denmark, France, Germany, India, Ireland, Italy, Japan, Korea, the Netherlands, Singapore, Sweden, Switzerland, Taiwan, the United Kingdom and the United States.

During fiscal 2009, we achieved growth in certain of our end-user markets, including the life sciences, environmental, and power markets, and particularly strong growth in the food and beverage market resulting from increased testing for food safety. We saw weaker demand which resulted in decreased sales in our chemical/petrochemical and electronics markets, two sectors that are very sensitive to current economic conditions. This growth took place primarily in China, Korea, India and Australia, and was offset by lower sales in Europe and North America. We anticipate that demand in North America will remain weak for the next two quarters as our customers are pressured by weak economic conditions. In our European markets, we saw some of our life sciences customers start to increase spending by the end of the fiscal 2009 but this was offset by lower sales in our chemical/petrochemical and power markets. Sales in our Asia/Pacific region increased by 17% from fiscal 2008 to fiscal 2009 and we expect double-digit growth to continue in fiscal 2010. In summary, we made solid progress on our strategic initiatives during the year and are pleased to say that we performed very well given the current challenges of the global economy. We anticipate that the effects of the weak economy will continue for the next two quarters and improve during the second half of fiscal 2010. We also anticipate that currency fluctuations will have a negative impact on our subsidiaries in the first quarter and a slightly positive impact on the remaining three quarters. We anticipate that Europe will remain weak but perform better than North America in fiscal 2010. On manufacturing costs, we anticipate that our initiative on expenditure management will keep costs under control in fiscal 2010 and there should be no significant pressure on the gross margin due to manufacturing costs. We expect that our gross margin will remain in the 66% to 67% range in fiscal 2010.

Results of Operations

The following table summarizes our consolidated statements of income for the last three fiscal years with each line item shown as a percentage of net sales.


	Year Ended June 30
	2009			2008			2007
Net sales		100.0	%		100.0	%		100.0	%
Cost of sales		33.4			33.6			33.3

Gross profit		66.6			66.4			66.7
Operating expenses:
Selling, general and administrative		37.2			37.7			37.7
Research and product development		7.5			7.7			7.6

Total operating expenses		44.7			45.4			45.3

Operating income		21.9			21.0			21.4
Interest income, net		0.3			0.4			0.3
Other income (expense), net		(0.6	)		(0.6	)		0.1

Income before taxes		21.6			20.8			21.8
Taxes on income		7.2			6.8			7.9

Net income		14.4	%		14.0	%		13.8	%

Net sales for fiscal 2009 were $385.0 million, an increase of 2% compared with the $377.5 million reported in fiscal 2008. Net sales in fiscal 2008 increased 15% compared with the $327.3 million in fiscal 2007. Operating income for fiscal 2009 was $84.2 million, growing 6% from fiscal 2008 and representing 22% of sales. Operating income for fiscal 2008 was $79.3 million, an increase of 13% compared to fiscal 2007 and represented 21% of sales.

Diluted earnings per share for fiscal 2009 were $3.04, an increase of 10% compared to $2.77 in fiscal 2008. Diluted earnings per share for fiscal 2008 represented an increase of 20% compared to $2.31 in fiscal 2007.

Cash flow from operations during fiscal 2009 was $64.1 million. Cash flow from operations was $70.7 million for fiscal 2008 and $68.5 million for fiscal 2007.

For fiscal 2009, we repurchased 791,517 shares of our common stock for $44.2 million compared to 928,131 shares for $70.3 million in fiscal 2008 and 1,185,100 shares for $69.6 million in fiscal 2007.

Net Sales

The increase in net sales from fiscal 2008 to fiscal 2009 was the result of increased net sales in our Asia/Pacific region, offset by declines in net sales in our other geographic regions, and the increase in net sales from fiscal 2007 to fiscal 2008 was the result of increased sales in all of the major geographic regions in which we do business, in each case as described in greater detail below. We are subject to the effects of foreign currency fluctuations, which have an impact on net sales and gross profits. Currency fluctuations decreased net sales by 3% in fiscal 2009 and increased net sales by 5% in fiscal 2008 and 3% in fiscal 2007.

Percentage changes in net sales, including the effects of currency fluctuations:


	From Fiscal 2008			From Fiscal 2007
	to			to
	Fiscal 2009			Fiscal 2008
Total:		2	%		15	%
By geographic region:
North America		-6	%		13	%
Europe		-3	%		12	%
Asia/Pacific		17	%		24	%

Percentage changes in net sales, before the impact of currency fluctuations:


	From Fiscal 2008			From Fiscal 2007
	to			to
	Fiscal 2009			Fiscal 2008
Total:		5	%		10	%
By geographic region:
North America		-5	%		12	%
Europe		2	%		2	%
Asia/Pacific		18	%		21	%

Sales outside North America accounted for 74% of net sales in fiscal 2009, 72% of net sales in fiscal 2008 and 71% of net sales in fiscal 2007. We sell directly through our sales forces in Austria, Australia, Brazil, Canada, China, Denmark, France, Germany, India, Ireland, Italy, Japan, Korea, the Netherlands, Sweden, Switzerland, Taiwan, the United Kingdom and the United States. Direct sales accounted for 95% of net sales in fiscal 2009, compared with 93% in fiscal 2008 and 94% in fiscal 2007. International distributors and representatives in Europe, Asia and other international markets accounted for the balance of net sales. There were no significant price changes during the years ended June 30, 2009, 2008 and 2007.

Net sales in North America declined by 6% from fiscal 2008 to fiscal 2009 driven by declining demand as a result of recent unfavorable economic conditions dramatically affecting demand from our customers except our food and beverage customers. Net sales in Europe declined by 3% in reported dollars (grew 2% net of currency fluctuations) from fiscal 2008 to fiscal 2009 reflecting a growth in HPLC products offset by a strengthening U.S. dollar during the fiscal year. Net sales in the Asia/Pacific region grew 17% in reported dollars (18% net of currency fluctuations) from fiscal 2008 to fiscal 2009 driven by continued sales force expansion and higher demand in China, India and Taiwan from our life sciences, environmental and food and beverage customers. Net sales in North America grew 13% from fiscal 2007 to fiscal 2008 in reported dollars driven by growth in most of our markets, including an increase in our HPLC products and growth in sales of both RFIC instrumentation and consumables. Net sales in Europe grew 12% in reported dollars (2% net of currency fluctuations) from fiscal 2007 to fiscal 2008 reflecting a growth in IC products and a weaker U.S. dollar offset partially by softer demand in our larger life sciences customers in the second half of that fiscal year. Net sales for fiscal 2008 in the Asia/Pacific region grew 24% in reported dollars (21% net of currency fluctuation) driven by continued sales force expansion and higher demand in China, Korea, India and Australia from our chemical/petrochemical, environmental and food and beverage customers.

Net sales of IC products grew 2% from fiscal 2008 to fiscal 2009 and 18% from fiscal 2007 to fiscal 2008. The growth from fiscal 2008 to fiscal 2009 was driven mostly by higher demand from our environmental and food and beverage customers for our RFIC instrumentation, consumables and services in the Asia/Pacific region. Sales growth in fiscal 2008 was driven by higher demand from our environmental and industrial customers for our RFIC instrumentation, consumables and services across all major geographies.

Net sales of HPLC products grew by 1% from fiscal 2008 to fiscal 2009 driven primarily by increased sales in Asia/Pacific, partially offset by weaker demand in North America. Sales of HPLC products grew 8% from fiscal 2007 to fiscal 2008 primarily driven by increased sales in North America and Asia/Pacific, partially offset by weaker demand in Europe in the second half of fiscal 2008.

Gross Margin

Gross margin for fiscal 2009 was $256.4 million compared to $250.8 million in fiscal 2008, an increase of $5.6 million or 2%. In 2007, gross margin was $218.3 million. Gross margin as a percentage of sales was 66.6%, 66.4% and 66.7% in fiscal 2009, 2008 and 2007, respectively. The increase in gross margin as a percentage of sales from fiscal 2008 to fiscal 2009 was mainly due to a higher percentage of international sales partially offset by a strengthening U.S. dollar. The decrease in gross margin in fiscal 2008 compared to 2007 was due to a weaker growth in Europe partially offset of weaker U.S. dollar. We anticipate gross margin will be in the range of 66% to 67% for fiscal 2010.

Operating Expenses

From fiscal 2008 to fiscal 2009. From fiscal 2008 to fiscal 2009, overall operating expenses increased by less than 1% to $172.2 million. The slight increase in expenses in fiscal 2009 as compared to fiscal 2008 was primarily attributable to the following factors:


• currency fluctuations	-3	%
• continued expansion efforts in the Asia/Pacific region	2	%
• increased depreciation and infrastructure expense	2	%

Selling, general and administrative (SG&A) expenses as a percentage of net sales were 37% in fiscal 2009 compared with 38% in fiscal 2008. SG&A expenses were $143.2 million in fiscal 2009, an increase of less than 1% from $142.6 million in fiscal 2008. The slight increase from fiscal 2008 to 2009 included $3.6 million of expenses from our continued expansion efforts in Asia/Pacific region offset by a decrease of $5.0 million due to currency fluctuations. A significant portion of the expansion effort in Asia/Pacific region was attributable to increased selling costs.

Research and product development expenses were 7.5% of net sales in fiscal 2009 compared with 7.7% in fiscal 2008. Research and product development expenses in fiscal 2009 were $29.0 million, virtually unchanged from $28.9 million in fiscal 2008.

From fiscal 2007 to fiscal 2008. From fiscal 2007 to fiscal 2008, overall operating expenses increased by 16% to $171.5 million. The increase in expenses in fiscal 2008 as compared to fiscal 2007 was primarily attributable to the following factors:


• currency fluctuations	5	%
• continued expansion efforts in the Asia/Pacific region	5	%
• increased depreciation and infrastructure expense	2	%
• increased salary and commission in North America	1	%

Selling, general and administrative (SG&A) expenses as a percentage of net sales were 38% in fiscal 2008 compared with 38% in fiscal 2007. SG&A expenses were $142.6 million in fiscal 2008, an increase of 15% from $123.5 million in fiscal 2007. Increases from fiscal 2007 to 2008 included $6.7 million due to currency fluctuations, $7.3 million due to our continued expansion efforts in the Asia/Pacific region, which included a 17% headcount increase, $2.4 million due to increased expense for depreciation and distributed costs attributable to capital investments and facilities and I.T. infrastructure costs, and $1.4 million due to increased salary and commission costs attributable to increased sales in fiscal 2008 in North America.

Research and product development expenses were 7.7% of net sales in fiscal 2008 compared with 7.6% in fiscal 2007. Research and product development expenses in fiscal 2008 were $28.9 million, an increase of $4.2 million compared with $24.7 million in fiscal 2007. Research and product development expenses increased by $4.2 million due to higher product development costs associated with new HPLC, IC and ASE products introduced during fiscal 2008 and currency fluctuations.

Interest Income

Interest income in fiscal 2009 of $1.3 million was lower than the $2.2 million reported for fiscal 2008 and the $1.4 million reported in fiscal 2007. The decrease in fiscal 2009 from fiscal 2008 was due to declining interest rates in the United States and Europe. The increase from fiscal 2007 to fiscal 2008 was due to higher yields on cash balances held outside of the U.S.

Interest Expense

Interest expense of $493,000 in fiscal 2009 was lower than the $878,000 in fiscal 2008 and higher than the $335,000 in fiscal 2007. The decreased interest expense in fiscal 2009 was primarily due to a significantly lower interest rate on short-term borrowings. In fiscal 2008, interest expense increased due to higher level of outstanding borrowing.

Other Income (Expense), Net

Other expense, net in fiscal 2009 was $1.8 million, which was primarily due to losses on foreign currency exchanges. We had other expense, net in fiscal 2008 of $2.2 million and other income, net of $183,000 in fiscal 2007. Other expense in fiscal 2008 was primarily due to losses on derivatives related to our Japanese hedge and foreign currency exchange.

Income Taxes

Our effective tax rate was 33.4% for fiscal 2009, 32.6% for fiscal 2008 and 36.4% for fiscal 2007. Our effective tax rate is affected by the mix of taxable income among the various tax jurisdictions in which we do business. The increase in the effective tax rate from fiscal 2008 to fiscal 2009 was primarily due to higher state taxes. The decrease in the effective tax rate from fiscal 2007 to fiscal 2008 was primarily due to foreign tax credits, expiration of certain tax exposures and mix of taxable income in our various tax jurisdictions.

Earnings per Share

Diluted earnings per share were $3.04, an increase of 10% compared with $2.77 reported for fiscal 2008 and $2.31 reported for fiscal 2007. Net income for fiscal 2009 was higher due to increased revenues and expense control initiatives during the fiscal year.

Liquidity and Capital Resources

At June 30, 2009, we had cash and cash equivalents and short-term investments of $70.3 million. Our working capital was $128.2 million at June 30, 2009, compared with $106.3 million at June 30, 2008.

Cash generated by operating activities was $64.1 million in fiscal 2009, compared with $70.7 million in fiscal 2008 and $68.5 million in fiscal 2007. The decrease in operating cash flows was due to negative currency effect on inventory which exceeded increased levels due to a new subsidiary and our acquisition of the AutoTrace product line, higher prepaid income taxes on intercompany dividends partially offset by higher operating results, lower accruals for variable compensation and lower accounts receivable due to faster payments from customers. The increase in operating cash flows in fiscal 2008 as compared to fiscal 2007 was primarily due to improved operating results resulting from higher revenues, higher deferred revenue and increase in accrued liabilities due to higher accrued payroll costs, partially offset by higher prepaid expenses and higher estimated tax payments.

Cash used for investing activities was $17.9 million in fiscal 2009 compared with $15.3 million in fiscal 2008 and $4.0 million in fiscal 2007. The increase of cash used in fiscal 2009 compared to 2008 was due to an ongoing Oracle system upgrade and its associated worldwide rollout project cost and other related capital expenditures, as well as the purchase of AutoTrace product line from Caliper Life Sciences, Inc. The increase of cash used in fiscal 2008 compared to 2007 was due to higher capital expenditures related to facility renovation costs in Sunnyvale, Oracle upgrade and world-wide rollout project costs, tooling costs in both Germany and Sunnyvale and the payment for accrued patent acquisition costs.

Cash used for financing activities was $48.3 million in fiscal 2009, compared with $37.8 million in fiscal 2008 and $52.4 million in fiscal 2007. Financing activities for all three years consisted primarily of common stock repurchases, partially offset by proceeds from issuances of shares pursuant to our stock option plans, repayment of short-term obligations, and the tax benefits related to stock option plans in fiscal 2009. We repurchased 791,517 shares of our common stock for $44.2 million in fiscal 2009, 928,131 shares for $70.3 million in fiscal 2008 and 1,185,100 shares for $69.6 million in fiscal 2007, under our repurchase program. We had 1,141,058 remaining shares authorized for repurchase under our repurchase programs at June 30, 2009.

At June 30, 2009, our available bank lines of credit totaled $28.8 million, compared with $7.0 million at June 30, 2008. The increase in available lines of credit was due to the substantial repayment of outstanding borrowings during fiscal 2009. We believe our cash flow from operations, our existing cash and cash equivalents and our bank lines of credit will be adequate to meet our cash requirements for at least the next 12 months. The line of credit matures on December 31, 2009 and it is the Company’s intention to renew the line of credit. The impact of inflation on our financial position and results of operations was not significant during any of the periods presented.

CONTRACTUAL OBLIGATIONS

The following summarizes our contractual obligations at June 30, 2009, and the effect such obligations are expected to have on our liquidity and cash flows in future periods (in thousands):


	Payments Due by Period
			Less Than		1-3		4-5		After 5
	Total		1 Year		Year		Years		Years
Short-Term Borrowings	$	64	$	64	$	—	$	—	$	—
Purchase Obligations		527		—		527		—		—
Operating Lease Obligations		14,075		5,455		4,665		1,484		2,471

Total	$	14,666	$	5,519	$	5,192	$	1,484	$	2,471

EFFECT OF NEW ACCOUNTING STANDARDS

In September 2006, the Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting Standards (“SFAS”) No. 157, Fair Value Measurements (“SFAS No. 157”). SFAS No. 157 establishes a framework for measuring fair value and expands disclosures about fair value measurements. The changes to current practice resulting from the application of SFAS No. 157 relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. FASB Staff Position 157-2, Effective Date of FASB Statement No. 157 (“SFAS No. 157-2”), was further released in February 2008 to amend the effective date pertaining to non-financial assets and liabilities, except those that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually) until years beginning after November 15, 2008. Effective July 1, 2008, we adopted SFAS No. 157, except as it applies to the non-financial assets and non-financial liabilities subject to SFAS No. 157-2. Additional disclosures are provided in Note 16 of our consolidated financial statements.

In April 2008, the FASB released FASB Staff Position 142-3, Determination of the Useful Life of Intangible Assets (“SFAS No. 142-3”), which amends the factors that should be considered in developing renewal or extension assumptions used to determine the useful life of a recognized intangible asset under SFAS No. 142, Goodwill and Other Intangible Assets (“SFAS No. 142”). The intent of the statement is to improve the consistency between the useful life of a recognized intangible asset under SFAS No. 142 and the period of expected cash flows used to measure the fair value of the asset under SFAS No. 141 (revised 2007) and other U.S. generally accepted accounting principles. SFAS No. 142-3 is effective as of the beginning of an entity’s fiscal year that begins after December 15, 2008, which will be our fiscal year beginning July 1, 2009. We are currently evaluating the potential impact, if any, of the adoption of SFAS No. 142-3 on our consolidated financial position, results of operations and cash flows.

In March 2008, the FASB issued SFAS No. 161, Disclosures about Derivative Instruments and Hedging Activities (“SFAS No. 161”). SFAS No. 161 enhances financial disclosure by requiring that objectives for using derivative instruments be described in terms of underlying risk and accounting designation in the form of tabular presentation, requiring transparency with respect to the entity’s liquidity from using derivatives, and cross-referencing an entity’s derivative information within its financial footnotes. SFAS No. 161 is effective for financial statements issued for fiscal years beginning after November 15, 2008, which will be our fiscal year beginning July 1, 2009. We are currently evaluating the potential impact, if any, of the adoption of SFAS No. 161 on our consolidated financial position, results of operations and cash flows.

In December 2007, the FASB issued SFAS No. 141 (revised 2007), Business Combinations (“SFAS No. 141(R)”). SFAS No. 141(R) expands the definition of a business combination and requires the fair value of the purchase price of an acquisition, including the issuance of equity securities, to be determined on the acquisition date. SFAS No. 141(R) also requires that all assets, liabilities, contingent consideration and contingencies of an acquired business be recorded at fair value at the acquisition date. In addition, SFAS No. 141(R) requires that acquisition costs generally be expensed as incurred, restructuring costs generally be expensed in periods subsequent to the acquisition date, and changes in accounting for deferred tax asset valuation allowances and acquired income tax uncertainties after the measurement period that impacts income tax expense. SFAS No. 141(R) applies prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008 with early adoption prohibited, which will begin on July 1, 2009 for us. We are currently evaluating the potential impact, if any, of the adoption of SFAS No. 141(R) on our consolidated financial position, results of operations and cash flows.

In February 2007, the FASB issued SFAS No. 159, The Fair Value Option for Financial Assets and Financial Liabilities (“SFAS No. 159”). SFAS No. 159 permits entities to choose, at specified election dates, to measure eligible items at fair value (or “fair value option”) and to report in earnings unrealized gains and losses on those items for which the fair value option has been elected. SFAS No. 159 also requires entities to display the fair value of those assets and liabilities on the face of the balance sheet. SFAS No. 159 establishes presentation and disclosure requirements designed to facilitate comparisons between entities that choose different measurement attributes for similar types of assets and liabilities. SFAS No. 159 was effective for us as of the first quarter of fiscal 2009. Currently, we have elected not to adopt the fair value option under this pronouncement.

In April 2009, the FASB issued FASB Staff Position (“FSP”), FAS 115-2 and FAS 124-2, Recognition and Presentation of Other-Than-Temporary Impairments, which provides operational guidance for determining other-than-temporary impairments (“OTTI”) for debt securities. FSP FAS 115-2 and FAS 124-2 are effective for interim and annual periods ending after June 15, 2009. We are currently evaluating the potential impact, if any, of the application of FSP FAS 115-2 and FAS 124-2 on our consolidated financial position, results of operations and cash flows.

In April 2009, the FASB issued FSP FAS 107-1 and APB 28-1, Interim Disclosures about Fair Value of Financial Instruments to require disclosures about fair value of financial instruments in interim period financial statements of publicly traded companies and in summarized financial information required by APB Opinion No. 28, Interim Financial Reporting. FSP FAS 107-1 and APB 28-1 are effective for interim and annual reporting periods ending after June 15, 2009. We are currently evaluating the potential impact, if any, of the application of FSP FAS 107-1 and APB 28-1 on our consolidated financial position, results of operations and cash flows.

In April 2009, the FASB issued FSP FAS 141(R)-1, Accounting for Assets Acquired and Liabilities Assumed in a Business Combination That Arise from Contingencies, which amends the guidance in SFAS No. 141(R) to require contingent assets acquired and liabilities assumed in a business combination to be recognized at fair value on the acquisition date if fair value can be reasonably estimated during the measurement period. If fair value cannot be reasonably estimated during the measurement period, the contingent asset or liability would be recognized in accordance with SFAS No. 5, Accounting for Contingencies, and FASB Interpretation (FIN) No. 14, Reasonable Estimation of the Amount of a Loss. Further, this FSP eliminated the specific subsequent accounting guidance for contingent assets and liabilities from SFAS No. 141(R), without significantly revising the guidance in SFAS No. 141. However, contingent consideration arrangements of an acquiree assumed by the acquirer in a business combination would still be initially and subsequently measured at fair value in accordance with SFAS No. 141(R). This FSP is effective for all business acquisitions occurring on or after the beginning of the first annual reporting period beginning on or after December 15, 2008, which will begin on July 1, 2009 for us. We are currently evaluating the potential impact, if any, of the adoption of FAS 141(R)-1 on our consolidated financial position, results of operations and cash flows.

In May 2009, the FASB issued SFAS No. 165, Subsequent Events (“SFAS No. 165”). SFAS No. 165 is intended to establish general standards of the accounting for and disclosures of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. It requires the disclosure of the date through which an entity has evaluated subsequent events and the basis for selecting that date, that is, whether that date represents the date the financial statements were issued or were available to be issued. SFAS No. 165 is effective for interim or annual financial periods ending after June 15, 2009 and was adopted by the Company during the quarter ended June 30, 2009. Additional disclosures are provided in Note 17 of our consolidated financial statements.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Summary. The preparation of consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting period. We evaluate our estimates, including those related to product returns and allowances, bad debts, inventory valuation, goodwill and other intangible assets, income taxes, warranty and installation provisions, and contingencies, on an on-going basis.

We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. We believe the following critical accounting policies affect our more significant judgments and estimates used in the preparation of our consolidated financial statements.

Revenue Recognition Policy. We derive revenues from the sale of products and the delivery of services to our customers, including installation, training, time and material repairs, and maintenance, which consists of product repair obligations, telephone support, and/or unspecified software upgrades.

We recognize revenue in accordance with Staff Accounting Bulletin No. 104, Revenue Recognition, and Statement of Position 97-2, Software Revenue Recognition, as amended, when persuasive evidence of an arrangement exists, the product has been delivered, or service performed, the price is fixed or determinable, collection is probable and vendor specific objective evidence or objective reliable evidence of fair value, as applicable, exists to allocate revenue to the various elements of the arrangement. In all cases, the portion of revenue allocated to the undelivered elements is deferred until those items are delivered to the customer or the services are performed. Delivery of the product is generally considered to have occurred when shipped. Undelivered elements in our sales arrangements, which are not considered to be essential to the functionality of a product, generally include maintenance, installation services and/or training that are delivered after the related products have been delivered. Installation consists of system set-up, calibration and basic functionality training and generally requires one to three days depending on the product. Fair value for training services is based on the price charged when the element is sold separately or, if not sold separately, when the price is established by authorized management. The fair value of installation services is calculated by applying standard service billing rates to the estimate of the number of hours to install a specific product based on historical experience. These estimated hours for installation have historically been accurate and consistent from product to product. However, to the extent these estimates were to reflect unfavorable variability, our ability to maintain objective reliable evidence of fair value for such element could be impacted which in turn could delay the recognition of the revenue currently allocated to the delivered elements.

Prior to fiscal 2008, the fair value of maintenance contracts was based on the price charged when an element was sold separately or, if not yet sold separately, when the price was established by authorized management. Maintenance fees were recognized ratably over the period of the related maintenance contracts, which ranged from one to two years. Maintenance consisted of product repair obligations, telephone support, and/or unspecified software upgrades. Effective July 1, 2007, unspecified software upgrades are generally not provided with our maintenance contracts. As such, revenue from separately priced extended maintenance contracts is deferred and recognized in income on a straight-line basis over the contract period, in accordance with FTB 90-1, Accounting for Separately Priced Extended.

Our sales are typically not subject to rights of return and, historically, actual sales returns have not been significant. We sell our products through our direct sales force and through distributors and resellers. Sales through distributors and resellers are recognized as revenue upon sale to the distributor or reseller as these sales are considered to be final and no right of return or price protection exists. Customer acceptance is generally limited to performance under our published product specifications. When additional customer acceptance conditions apply, all revenue related to the sale is deferred until acceptance is obtained.

Product Warranty. Our equipment typically includes a one-year warranty. The estimated cost of product warranty claims is accrued at the time the sale is recognized, based on historical experience. While we believe our historical experience provides a reliable basis for estimating such warranty cost, unforeseen quality issues or component failure rates could result in future costs in excess of such estimates, or alternatively, improved quality and reliability in our products could result in actual expenses that are below those currently estimated.

Loss Provisions on Accounts Receivable and Inventory. We maintain allowances for doubtful accounts for estimated losses resulting from the inability of customers to make required payments. If the financial condition of any of our customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. We assess collectability based on a number of factors including, but not limited to, past transaction history with the customer, the credit-worthiness of the customer, independent credit reports, industry trends and the macro-economic environment. Sales returns and allowances are estimates of future product returns related to current period revenue. Material differences may result in the amount and timing of our revenue for any period. Historically, we have not experienced significant sales returns or bad debt losses.

We value our inventory at the lower of standard cost (which approximates cost on a first-in, first-out basis) or market. Our estimated valuation provisions on inventory are based on technical obsolescence, historical demand, projections of future demand and industry and market conditions. If actual future demand or market conditions are less favorable than those projected by management, additional valuation provisions may be required. If demand or market conditions are more favorable than projected, higher margins could be realized to the extent inventory is sold which had previously been written down.

Long-Lived Assets, Intangible Assets with Finite Lives and Goodwill. We assess for the impairment of long-lived assets, intangible assets with finite lives and goodwill whenever events or changes in circumstances indicate that the carrying value may not be recoverable. In addition, we assess goodwill for impairment at least annually. Factors we consider important which could trigger an impairment review include but are not limited to the following:

•

significant underperformance relative to historical or projected future operating results;

•

significant negative industry or economic trends; and

•

significant changes or developments in strategic technology.

When we determine that the carrying value of long-lived assets and intangible assets with finite lives may not be recoverable based upon the existence of one or more of the above or other indicators, we measure any impairment based on a projected discounted cash flow method using a discount rate determined by our management to be commensurate with the risk inherent in our current business model. Goodwill is tested for impairment by comparing the fair values of related reporting units to their carrying values. We are required to perform an impairment review for goodwill at least annually.

Taxes on Income. As part of the process of preparing the consolidated financial statements, we estimate our income taxes in each of the jurisdictions in which we operate. The determination of our tax provision is subject to judgments and estimates due to the complexity of the tax laws that we are subject to in several tax jurisdictions. This process involves our estimate of our actual current tax exposure together with assessing temporary differences resulting from differing treatment of items, such as depreciation, amortization and inventory reserves for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included with our consolidated balance sheets.

We account for income taxes in accordance with SFAS No. 109, Accounting for Income Taxes (“SFAS No. 109”). SFAS No. 109 requires that deferred tax assets and liabilities be recognized for the effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. SFAS No. 109 also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some or all of the deferred tax asset will not be realized.

On July 1, 2007, we adopted FIN No. 48, Accounting for Uncertainty in Income Taxes an interpretation of FASB Statement No. 109, which clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements in accordance with SFAS No. 109. This interpretation prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. As a result of the implementation of FIN No. 48, we recognize the tax liability for uncertain income tax positions on the income tax return based on the two-step process prescribed in the interpretation. The first step is to determine whether it is more likely than not that each income tax position would be sustained upon audit. The second step is to estimate and measure the tax benefit as the amount that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority. Estimating these amounts requires us to determine the probability of various possible outcomes. We evaluate these uncertain tax positions on a quarterly basis. This evaluation is based on the consideration of several factors, including changes in facts or circumstances, changes in applicable tax law, settlement of issues under audit, and new exposures. If we later determine that our exposure is lower or that the liability is not sufficient to cover our revised expectations, we adjust the liability and effect a related change in our tax provision during the period in which we make such determination.

Stock-Based Compensation. SFAS No. 123 (Revised 2004), Share-Based Payment (SFAS No. 123R) requires that all share-based payments to employees be recognized in the statements of operations based on their fair value. We have used the Black-Scholes model to determine the fair value of our stock option awards. Under the fair value recognition provisions of this statement, share-based compensation cost is measured at the grant date based on the value of the award and is recognized as expense over the vesting periods. Determining the fair value of share-based awards at the grant date required judgment, including estimating stock price volatility and employee stock options exercise behaviors. If actual results differ significantly from these estimates, stock-based compensation expense recognized in our results of operations could be materially affected. As stock-based compensation expense recognized in the consolidated statements of operations is based on awards that ultimately are expected to vest, the amount of the expense has been reduced for estimated forfeitures. SFAS No. 123R requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Forfeitures were estimated based on historical experience. If factors change and we employ different assumptions in the application of SFAS No. 123R, the compensation expense that we record in the future periods may differ significantly from what we have recorded in the current period.


Item 7A.		*QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK*

We are exposed to financial market risks from fluctuations in foreign currency exchange rates, interest rates and stock prices of marketable securities. With the exception of the stock price volatility of our marketable equity securities, we manage our exposure to these and other risks through our regular operating and financing activities and, when appropriate, through our hedging activities. Our policy is not to use hedges or other derivative financial instruments for speculative purposes. We deal with a diversified group of major financial institutions to limit the risk of nonperformance by any one institution on any financial instrument. Separate from our financial hedging activities, material changes in foreign exchange rates, interest rates and, to a lesser extent, commodity prices could cause significant changes in the costs to manufacture and deliver our products and in customers’ buying practices. We have not substantially changed our risk management practices during fiscal 2009 and we do not currently anticipate significant changes in financial market risk exposures in the near future that would require us to change our current risk management practices.

Foreign Currency Exchange. Revenues generated from international operations are generally denominated in foreign currencies. We entered into forward foreign exchange contracts to hedge against fluctuations of intercompany account balances. Market value gains and losses on these hedge contracts are substantially offset by fluctuations in the underlying balances being hedged, and the net financial impact is not expected to be material in future periods. At June 30, 2009, we had forward exchange contracts to sell foreign currencies totaling $15.2 million, including approximately $9.8 million in Euros, $3.9 million in Japanese yen, $0.9 million in Australian dollars and $0.6 million in Canadian dollars. At June 30, 2008, we had forward exchange contracts to sell foreign currencies totaling $19.0 million, including approximately $12.4 million in Euros, $3.8 million in Japanese yen, $1.7 million in Australian dollars and $1.1 million in Canadian dollars. At June 30, 2009 and 2008, the aggregate unrealized gains or losses on the forward exchange contracts were not material.

In March 2007, we entered into a $10.0 million cross-currency swap arrangement for Japanese yen that matures in March 2010 and functions as a cash flow hedge of the US dollar/Japanese yen exchange rate exposure of our net investment in our Japanese subsidiary. This derivative instrument did not qualify for net investment hedge accounting and was deemed to be an ineffective hedge instrument because, at the inception of the hedge transaction, there was no formal documentation of the hedging relationship and our risk management objective and strategy for undertaking the hedge. Therefore, we marked to market the decrease in value of approximately $1.0 million for the six months ended December 31, 2007 and this amount was recorded in other income (expense), net. In January 2008, we completed our formal documentation of the hedging relationship and determined that the cross-currency swap qualified as a net investment hedge. As a result, during the fiscal year ended June 30, 2009 and six months ended June 30, 2008, we marked to market $1.1 million and $0.6 million, respectively in unrealized losses associated with the hedge, which is reported in accumulated other comprehensive income as part of the foreign currency translation adjustment.

A sensitivity analysis assuming a hypothetical 10% movement in foreign currency exchange rates applied to our hedging contracts and underlying balances being hedged at June 30, 2009 and 2008 indicated that these market movements would not have a material effect on our business, operating results or financial condition.

Foreign currency rate fluctuations can impact the U.S. dollar translation of our foreign operations in our consolidated financial statements. Currency fluctuations decreased sales by 3% in fiscal 2009 and increased sales by 5% in fiscal 2008 and 3% in fiscal 2007.

Interest and Investment Income. Our interest and investment income is subject to changes in the general level of U.S. interest rates. Changes in U.S. interest rates affect the interest earned on our cash equivalents and short-term investments. A sensitivity analysis assuming a hypothetical 10% movement in interest rates applied to our investment balances at June 30, 2009 and 2008 indicated that such market movement would not have a material effect on our business, operating results or financial condition. Actual gains or losses in the future may differ materially from this analysis, depending on our actual balances and changes in the timing and amount of interest rate movements.

Debt and Interest Expense. At June 30, 2009, we had short-term notes payable of $64,000. A sensitivity analysis assuming a hypothetical 10% movement in interest rates applied to our outstanding debt balance at June 30, 2009, indicated that such market movement would not have a material effect on our business, operating results or financial condition. Actual gains or losses in the future may differ materially from this analysis, depending on changes in the timing and amount of interest rate movements and the level of borrowings maintained by us.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of Dionex Corporation:

We have audited the accompanying consolidated balance sheets of Dionex Corporation and subsidiaries (the “Company”) as of June 30, 2009 and 2008, and the related consolidated statements of income, stockholders’ equity, and cash flows for each of the three years in the period ended June 30, 2009. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of the Company and subsidiaries at June 30, 2009 and 2008, and the results of their operations and their cash flows for each of the three years in the period ended June 30, 2009, in conformity with accounting principles generally accepted in the United States of America.

As discussed in Note 1 to the consolidated financial statements, on July 1, 2007, the Company adopted the provisions of Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes — an interpretation of FASB Statement No. 109.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the Company’s internal control over financial reporting as of June 30, 2009, based on the criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated August 28, 2009 expressed an unqualified opinion on the Company’s internal control over financial reporting.

/s/ Deloitte & Touche LLP

San Jose, California
August 28, 2009

DIONEX CORPORATION

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts)

AT JUNE 30


	2009		2008
ASSETS
Current assets:
Cash and equivalents	$	69,684	$	75,624
Short-term investments		641		77
Accounts receivable (net of allowance for doubtful accounts of $560 in 2009 and $524 in 2008)		70,535		74,436
Inventories		31,274		31,627
Deferred taxes		12,171		11,534
Prepaid expenses and other current assets		21,917		13,742

Total current assets		206,222		207,040
Property, plant and equipment, net		71,927		72,335
Goodwill		29,354		26,670
Intangible assets, net		8,506		6,463
Other assets		13,975		17,922

	$	329,984	$	330,430

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Notes payable	$	64	$	21,805
Accounts payable		16,545		16,086
Accrued liabilities		31,222		32,211
Deferred revenues		22,559		21,352
Income taxes payable		4,581		5,873
Accrued product warranty		3,028		3,444

Total current liabilities		77,999		100,771
Deferred and other income taxes payable		24,348		27,013
Other long-term liabilities		5,223		5,897
Commitments and other contingencies (Note 13)
Stockholders’ equity:
Preferred stock (par value $.001 per share; 1,000,000 shares authorized; none outstanding)		—		—
Common stock (par value $.001 per share; 80,000,000 shares authorized; shares outstanding: 17,759,690 in 2009 and 18,130,713 in 2008)		186,649		170,045
Retained earnings		21,459		2,582
Accumulated other comprehensive income		14,306		24,122

Total stockholders’ equity		222,414		196,749

	$	329,984	$	330,430

See notes to consolidated financial statements.

DIONEX CORPORATION

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY AND COMPREHENSIVE INCOME

(In thousands, except for share amounts)


										Accumulated
										Other
	Common Stock						Retained			Comprehensive						Comprehensive
	Shares			Amount			Earnings			Income			Total			Income

Balance, June 30, 2006		19,624,839		$	148,214		$	28,589		$	8,579		$	185,382

Comprehensive income, net of tax:
Net income								45,322						45,322		$	45,322
Foreign currency translation adjustments (net of tax of $1,582)											2,470			2,470			2,470
Unrealized gain on securities											27			27			27

Comprehensive income																$	47,819

Common stock issued under employee stock-based compensation plans		406,063			13,517									13,517
Repurchase of common stock		(1,185,100	)		(8,904	)		(60,688	)					(69,592	)
Stock-based compensation expense					5,125									5,125
Tax benefit from employee stock transactions					3,457									3,457

Balance, June 30, 2007		18,845,802			161,409			13,223			11,076			185,708

Comprehensive income, net of tax:
Net income								52,800						52,800		$	52,800
Foreign currency translation adjustments (net of tax of $6,308)											13,042			13,042			13,042
Unrealized gain on securities											4			4			4

Comprehensive income																$	65,846

Common stock issued under employee stock-based compensation plans		213,042			9,143									9,143
Repurchase of common stock		(928,131	)		(8,278	)		(62,019	)					(70,297	)
Stock-based compensation expense					5,939									5,939
Tax benefit from employee stock transactions					1,832									1,832
Adoption of FIN 48—cumulative effect								(1,422	)					(1,422	)

Balance, June 30, 2008		18,130,713			170,045			2,582			24,122			196,749

Comprehensive income, net of tax:
Net income								55,455						55,455		$	55,455
Foreign currency translation adjustments (net of tax of $3,805)											(9,815	)		(9,815	)		(9,815	)
Unrealized loss on securities											(1	)		(1	)		(1	)

Comprehensive income																$	45,639

Common stock issued under employee stock-based compensation plans		420,494			15,864									15,864
Repurchase of common stock		(791,517	)		(7,654	)		(36,578	)					(44,232	)
Stock-based compensation expense					6,594									6,594
Tax benefit from employee stock transactions					1,800									1,800

Balance, June 30, 2009		17,759,690		$	186,649		$	21,459		$	14,306		$	222,414

See notes to consolidated financial statements.

DIONEX CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

YEAR ENDED JUNE 30


	2009			2008			2007

Cash flows from operating activities:
Net income	$	55,455		$	52,800		$	45,322
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		9,491			8,767			8,544
Stock-based compensation		6,594			5,939			5,125
Allowance for bad debts		135			(232	)		(45	)
Loss on disposal of fixed assets		363			543			422
Tax benefit related to stock transactions		(1,800	)		(1,832	)		(3,457	)
Deferred income taxes		1,184			(944	)		443
Changes in assets and liabilities:
Accounts receivable		(38	)		(1,321	)		(1,129	)
Inventories		(2,343	)		1,688			407
Prepaid expenses and other assets		(7,322	)		(725	)		(6,332	)
Accounts payable		432			1,506			2,694
Deferred revenue		2,079			2,398			3,594
Accrued liabilities		(663	)		4,709			4,431
Income taxes payable		733			(2,895	)		9,206
Accrued product warranty		(228	)		290			(714	)

Net cash provided by operating activities		64,072			70,691			68,511

Cash flows from investing activities:
Proceeds from sale of marketable securities		—			124			9,700
Purchase of short term investments		(568	)		(77	)		—
Purchase of marketable securities		—			—			(2,600	)
Purchase of property, plant and equipment		(11,379	)		(13,847	)		(9,388	)
Purchase of intangible assets		—			(2,071	)		(1,723	)
Acquisition, net of cash acquired		(5,976	)		543			—
Other		—			—			(26	)

Net cash used for investing activities		(17,923	)		(15,328	)		(4,037	)

Cash flows from financing activities:
Net change in notes payable		(21,746	)		21,506			231
Proceeds from issuance of common stock		15,864			9,143			13,517
Repayments of capital lease obligations		—			(58	)		—
Tax benefit related to stock transactions		1,800			1,832			3,457
Repurchase of common stock		(44,232	)		(70,297	)		(69,592	)

Net cash used for financing activities		(48,314	)		(37,874	)		(52,387	)

Effect of exchange rate changes on cash		(3,775	)		3,197			(673	)


Net increase (decrease) in cash and equivalents		(5,940	)		20,686			11,414
Cash and equivalents, beginning of year		75,624			54,938			43,524

Cash and cash equivalents, end of year	$	69,684		$	75,624		$	54,938

Supplemental disclosures of cash flow information:
Income taxes paid	$	28,865		$	31,162		$	21,349
Interest expense paid	$	451		$	790		$	162
Supplemental schedule of non-cash investing and financing activities:
Accrued purchases of property, plant and equipment	$	919		$	1,563		$	219
Accrued purchase consideration	$	657		$	—		$	2,000
Elimination of equity interest associated with step-acquisition of business	$	760		$	—		$	—
Effect of adoption of FIN 48:
Cumulative effect on retained earnings	$	—		$	1,422		$	—
Increase in deferred and other income taxes payable	$	—		$	16,033		$	—
Increase in other assets	$	—		$	11,409		$	—
Decrease in income taxes payable	$	—		$	3,202		$	—
Capital lease obligation for equipment purchases	$	—		$	487		$	—

See notes to consolidated financial statements.

DIONEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1 — SIGNIFICANT ACCOUNTING POLICIES

Organization. Dionex Corporation is a leading manufacturer and marketer of chromatography systems for chemical analysis. Our systems are used in environmental analysis and by the pharmaceutical, life sciences, chemical/petrochemical, power generation, food and electronics industries in a variety of applications. Unless the context otherwise requires, the terms “Dionex,” “we,” “our” and “us” and words of similar import as used in these notes to consolidated financial statements include Dionex Corporation and its consolidated subsidiaries.

Principles of Consolidation. The consolidated financial statements include Dionex Corporation and its consolidated subsidiaries. All significant wholly-owned intercompany transactions and accounts are eliminated in consolidation.

Certain Risks and Uncertainties. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting period. Actual results could differ from those estimates.

Financial instruments which potentially subject us to concentrations of credit risk consist principally of investments and trade receivables. We invest in high-grade instruments which we place for safekeeping with high quality financial institutions. We sell our products primarily to large organizations in diversified industries worldwide. Credit risk is further mitigated by our credit evaluation process and the reasonably short collection terms. We do not require collateral or other security to support accounts receivable and we maintain allowances for potential credit losses.

We are subject to certain risks and uncertainties and believe that changes in any of the following areas could have a material adverse effect on our future financial position or results of operations. Such factors include, among others: the continuation or spread of economic uncertainties; risks related to international operations, including foreign currency fluctuations; the importance of meeting customer demand for new products; competition in the analytical instrumentation market; our ability to maintain inventories; the importance of attracting and retaining key personnel; our ability to protect our proprietary information and acceptance of new products.

Cash Equivalents. We consider all highly liquid investments with maturities of three months or less at the date of purchase to be cash equivalents. We place our cash, cash equivalents and marketable debt securities with high-credit quality financial institutions and to date, we have not experienced credit losses on investments in these instruments.

Short-Term Investments. We classify our debt and equity securities as “held to maturity” or “available for sale.” Securities classified as “held to maturity” are reported at amortized cost and “available for sale” securities are reported at fair market value, with a corresponding recognition of the unrealized gains and losses (net of tax effect) as a separate component of stockholders’ equity. Our investments in marketable debt securities have been classified as “available for sale.”

Inventories. Inventories are stated at the lower of standard cost or market (cost approximates first-in, first-out method). We write down product inventory based on forecasted demand and technological obsolescence and parts inventory based on past usage. These factors are impacted by market and economic conditions, technology changes, new product introductions and changes in strategic direction and require estimates that may include uncertain elements. Actual demand may differ from forecasted demand and such differences may have a material effect on recorded inventory values. In addition, when the inventory carrying value exceeds the market estimated value, we write-down the value of the inventory for the difference between the cost and the estimated market value. These write-downs are determined based on management’s estimates. Inventories consist of finished goods, work-in-process and raw materials.

Property, Plant and Equipment. Property, plant and equipment are stated at cost. Depreciation is computed using the straight-line method based on estimated useful lives of 3 to 30 years. Leasehold improvements are amortized over the lesser of the useful life or the remaining term of the lease.

Purchased Technology and Goodwill. Purchased technology amounts are recorded at their fair market values as of the date of acquisition and amortized over their estimated useful lives of up to ten years. Identifiable intangible assets are recognized separately from goodwill if certain criteria are met and those assets are amortized over their estimated useful economic life. Goodwill is not amortized but is tested for impairment as required. We test goodwill for impairment in April each year and more often if circumstances indicate that goodwill may be impaired. If impaired, a charge is recorded in income from operations. We found no impairment as a result of our fiscal 2009 and 2008 annual impairment tests performed in April of each year.

Valuation of Long Lived Assets. The carrying value of our long-lived assets is reviewed for impairment whenever events or changes in circumstances indicated that an asset may not be recoverable. We look to current and future profitability, as well as current and future undiscounted cash flows, as primary indicators of recoverability. If impairment is determined to exist, any related impairment loss is calculated based on the amount by which the carrying value of the asset exceeds the fair value of the asset with fair value determined on a discounted cash flow basis.

Revenue Recognition. We derive revenues from the sale of products and the delivery of services to our customers, including installation, training, time and material repairs, and maintenance, which consists of product repair obligations, telephone support, and/or unspecified software upgrades.

Prior to fiscal 2008, the fair value of the maintenance contracts was based on the price charged when an element was sold separately or, if not yet sold separately, when the price was established by authorized management. Maintenance fees were recognized ratably over the period of the related maintenance contracts, which ranged from one to two years. Maintenance consists of product repair obligations, telephone support, and/or unspecified software upgrades. Effective July 1, 2007, unspecified software upgrades are generally not provided with our maintenance contracts. As such, revenue from separately priced extended maintenance contracts is deferred and recognized in income on a straight-line basis over the contract period, in accordance with FTB 90-1, Accounting for Separately Priced Extended Warranty and Product Maintenance Contracts.

Reclassifications. Certain reclassifications have been made of amounts previously reported to conform to the current year presentation. Such reclassifications consist of separate disclosure for net sales to unaffiliated customers and long-lived assets for China in Note 14, and separate disclosure for stock-based compensation related deferred tax assets in Note 12.

Stock-based Compensation Plans. We follow Statement of Financial Accounting Standards (“SFAS”) No. 123 (revised 2004) Share-Based Payment (“SFAS No. 123R”), which requires companies to measure the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. We have elected to use the modified prospective transition method such that SFAS No. 123R applies to new awards and to awards modified, repurchased or canceled after the effective date. We have a stock-based employee compensation plan and an employee stock purchase plan. Generally, stock options granted to employees fully vest four years from the grant date and have a term of ten years. We recognize stock-based compensation expense over the requisite service period of the individual grants, generally, equal to the vesting period.

Also, SFAS No. 123R required the benefits of tax deductions in excess of the tax-effected compensation that would have been recognized as if we had always accounted for our stock-based award activity under SFAS No. 123R to be reported as a cash flow from financing activities, rather than as a cash flow from operating activities.

We elected to adopt the alternative transition method provided in the FSP 123R-3 for calculating the tax effects of stock-based compensation pursuant to SFAS No. 123R. The alternative transition method includes simplified methods to establish the beginning balance of the additional paid-in-capital (“APIC pool”) related to the tax effects of employee stock-based compensation, and to determine the subsequent impact on the APIC pool and Consolidated Statements of Cash Flows of the tax effects of employee stock-based compensation awards that are outstanding upon adoption of SFAS No. 123R.

The following table shows total stock-based compensation expense included in the Consolidated Statements of Income for the years ended June 30, 2009, 2008 and 2007 (in thousands):


	Year Ended			Year Ended			Year Ended
	June 30,			June 30,			June 30,
	2009			2008			2007
Cost of sales	$	794		$	602		$	393
Selling, general and administrative expenses		4,097			3,847			3,494
Research and product development expenses		1,703			1,490			1,238
Tax benefit		(2,065	)		(1,919	)		(1,542	)

Total	$	4,529		$	4,020		$	3,583

Common Stock Repurchases. We repurchase shares in the open market under our ongoing stock repurchase program. For each share repurchased, we reduce the common stock account by the average value per share reflected in the account prior to the repurchase with the excess allocated to retained earnings. We currently retire all shares upon repurchase.

During fiscal 2009, we repurchased 791,517 shares of our common stock on the open market for $44.2 million (an average of $55.88 per share), compared with 928,131 shares repurchased for $70.3 million (an average of $75.74 per share) for fiscal 2008 and 1,185,100 shares repurchased for $69.6 million (an average of $58.72 per share) for fiscal 2007.

Translation of Foreign Currency. Our foreign operations are measured using local currencies as the functional currency. Assets and liabilities are translated into U.S. dollars at year-end rates of exchange, and results of operations are translated at average rates for the year. Translation adjustments are included in stockholders’ equity as accumulated other comprehensive income/(loss).

Derivative Securities. Derivative instruments, including certain derivative instruments embedded in other contracts, are recorded on the consolidated balance sheet at their fair value as required by SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities. Changes in the fair value of derivatives are recorded each period in current earnings or other comprehensive income, depending on whether a derivative is designated as part of a hedge transaction and, if it is, the type of hedge transaction. We formally document, designate and assess the effectiveness of transactions that receive hedge accounting. The changes in fair value of an ineffective portion of a hedge instrument are included in earnings through a credit or charge to other income/expense.

We enter into foreign exchange forward contracts with high quality financial institutions to manage our exposure to the impact of fluctuations in foreign currency exchange rates on our intercompany receivables balances. These contracts generally have maturities of approximately 30 days and require us to exchange foreign currencies for U.S. dollars at maturity. We have not designated these contracts as hedging instruments. The contracts are recorded at fair value on the consolidated balance sheet. Changes in the fair values of these derivative instruments are recognized in earnings in the period they occur.

At June 30, 2009, we had forward exchange contracts to sell foreign currencies totaling $15.2 million, including approximately $9.8 million in Euros, $3.9 million in Japanese yen, $0.9 million in Australian dollars and $0.6 million in Canadian dollars. At June 30, 2008, we had forward exchange contracts to sell foreign currencies totaling $19.0 million, including approximately $12.4 million in Euros, $3.8 million in Japanese yen, $1.7 million in Australian dollars and $1.1 million in Canadian dollars. At June 30, 2009 and 2008, the aggregate unrealized gains or losses on the forward exchange contracts were not material.

In March 2007, we entered into a $10.0 million cross-currency swap arrangement for Japanese Yen which matures in March 2010 and functions as a cash flow hedge of the US dollar/Japanese Yen exchange rate exposure of our net investment in its Japanese subsidiary. Until January 1, 2008, this derivative instrument did not qualify for net investment hedge accounting and was deemed to be an ineffective hedge instrument because, at the inception of the hedge transaction, there was no formal documentation of the hedging relationship and our risk management objective and strategy for undertaking the hedge. Therefore, we marked to market the decrease in value of approximately $1.0 million for the six months ended December 31, 2007 and this amount was recorded in other expense, net. In January 2008, we determined that the cross-currency swap qualified as a net investment hedge. As a result, during the fiscal year ended June 30, 2009, and six months ended June 30, 2008, we marked to market $1.1 million and $0.6 million, respectively, in unrealized losses on our derivative contract related to our Japanese subsidiary, which is reported in accumulated other comprehensive income as part of the foreign currency translation adjustment. On a quarterly basis, we evaluate the need to redesignate the hedging relationship.

Comprehensive Income. We are required to report comprehensive income in the financial statements, in addition to net income. The primary differences between net income and comprehensive income are foreign currency translation adjustments and net unrealized gains or losses on available for sale securities. At June 30, 2009, 2008 and 2007, the components of accumulated other comprehensive income was as follows:


	2009			2008		2007
	(In thousands)
Foreign currency translation adjustments	$	14,307		$	24,118	$	11,075
Unrealized gain/(loss) on securities available for sale, net		(1	)		4		1

	$	14,306		$	24,122	$	11,076

Recently Adopted Accounting Pronouncements. In September 2006, the Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting Standards (“SFAS”) No. 157, Fair Value Measurements (“SFAS No. 157”). SFAS No. 157 establishes a framework for measuring fair value and expands disclosures about fair value measurements. The changes to current practice resulting from the application of SFAS No. 157 relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. FASB Staff Position 157-2, Effective Date of FASB Statement No. 157 (“SFAS No. 157-2”), was further released in February 2008 to amend the effective date pertaining to non-financial assets and liabilities, except those that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually) until years beginning after November 15, 2008. Effective July 1, 2008, we adopted SFAS No. 157, except as it applies to the non-financial assets and non-financial liabilities subject to SFAS No. 157-2. Additional disclosures are provided in Note 16 of our consolidated financial statements.

Recent Accounting Pronouncements Not Yet Adopted. In April 2008, the FASB released FASB Staff Position 142-3, Determination of the Useful Life of Intangible Assets (“SFAS No. 142-3”), which amends the factors that should be considered in developing renewal or extension assumptions used to determine the useful life of a recognized intangible asset under SFAS No. 142, Goodwill and Other Intangible Assets (“SFAS No. 142”). The intent of the statement is to improve the consistency between the useful life of a recognized intangible asset under SFAS No. 142 and the period of expected cash flows used to measure the fair value of the asset under SFAS No. 141 (revised 2007) and other U.S. generally accepted accounting principles. SFAS No. 142-3 is effective as of the beginning of an entity’s fiscal year that begins after December 15, 2008, which will be our fiscal year beginning July 1, 2009. We are currently evaluating the potential impact, if any, of the adoption of SFAS No. 142-3 on our consolidated financial position, results of operations and cash flows.

In April 2009, the FASB issued FSP FAS 141(R)-1, Accounting for Assets Acquired and Liabilities Assumed in a Business Combination That Arise from Contingencies, which amends the guidance in SFAS No. 141(R) to require contingent assets acquired and liabilities assumed in a business combination to be recognized at fair value on the acquisition date if fair value can be reasonably estimated during the measurement period. If fair value cannot be reasonably estimated during the measurement period, the contingent asset or liability would be recognized in accordance with SFAS No. 5, Accounting for Contingencies, and FASB Interpretation (FIN) No. 14, Reasonable Estimation of the Amount of a Loss. Further, this FSP eliminated the specific subsequent accounting guidance for contingent assets and liabilities from SFAS No. 141(R), without significantly revising the guidance in SFAS No. 141. However, contingent consideration arrangements of an acquiree assumed by the acquirer in a business combination would still be initially and subsequently measured at fair value in accordance with SFAS No. 141(R). This FSP is effective for all business acquisitions occurring on or after the beginning of the first annual reporting period beginning on or after December 15, 2008. We are currently evaluating the potential impact, if any, of the adoption of FAS 141(R)-1 on our consolidated financial position, results of operations and cash flows.

Note 2 — EARNINGS PER SHARE

Basic earnings per share are determined by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is determined by dividing net income by the weighted average number of common shares used in the basic earnings per share calculation, plus the number of common shares that would be issued assuming conversion of all potentially dilutive securities outstanding under the treasury stock method.

The following table is a reconciliation of the numerators and denominators used in computing basic and diluted earnings per share (in thousands, except per share amounts):


	Year Ended June 30
	2009		2008		2007
Numerator:
Net income	$	55,455	$	52,800	$	45,322

Denominator:
Shares used to compute net income per common share — basic		17,903		18,506		19,136
Effect of dilutive stock options		325		566		479

Shares used to compute net income per common share — diluted		18,228		19,072		19,615

Basic earnings per share	$	3.10	$	2.85	$	2.37

Diluted earnings per share	$	3.04	$	2.77	$	2.31

Antidilutive common equivalent shares related to stock options excluded from the calculation of diluted shares were approximately 626,615, 349,025 and 327,894 for fiscal 2009, 2008 and 2007, respectively.

Note 3 — SHORT-TERM INVESTMENTS

Short-term investments are recorded at their fair value. The difference between the fair value and amortized cost of short-term investments classified as “available-for-sale” securities is recorded in other comprehensive income, net of deferred taxes. We do not hold any auction-rate securities. As of June 30, 2009, short-term investments included an equity indexed derivative totaling $633,000.

The aggregate market value, cost basis, and gross unrealized gains and losses of short-term investments classified as “available-for-sale” securities were as follows:


			Gross
	Cost		Unrealized Losses		Fair Value
	(In thousands)
June 30, 2009, Marketable securities	$	8	$	—	$	8

June 30, 2008, Certificate of deposit	$	77	$	—	$	77

Investments with maturities greater than three months, but less than one year are classified as short-term investments. Investments with maturities greater than one year are classified as long-term investments and are recorded in other assets.

Note 4 — INVENTORIES

Inventories at June 30 consisted of the following:


	2009		2008
	(In thousands)
Finished goods	$	19,070	$	19,236
Work in process		1,119		1,449
Raw materials and subassemblies		11,085		10,942

	$	31,274	$	31,627

Note 5 — PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment, net at June 30 consisted of:


	2009			2008
	(In thousands)
Land	$	24,533		$	24,911
Buildings and improvements		47,060			46,019
Machinery, equipment and tooling		40,960			36,825
Furniture and fixtures		10,884			10,898
Construction-in-progress		2,408			2,330


		125,845			120,983
Accumulated depreciation and amortization		(53,918	)		(48,648	)

Property, plant and equipment, net	$	71,927		$	72,335

Note 6 — GOODWILL AND INTANGIBLE ASSETS

Information regarding our goodwill and other intangible assets reflect current foreign exchange rates.

Changes in the carrying amount of goodwill for the years ended June 30, 2009 and 2008 are as follows (in thousands):


Balance as of June 30, 2007	$	25,443
Translation adjustments		1,227

Balance as of June 30, 2008		26,670
Additions		3,974
Translation adjustments		(1,290	)

Balance as of June 30, 2009	$	29,354

On July 1, 2008, we acquired a 100% ownership interest in a Swedish company, in which we previously held a 30% equity interest with a carrying amount of $760,000 at June 30, 2008, using a combination of cash and earn-out payment arrangements. The total purchase consideration for the incremental 70% ownership interest was approximately $1.5 million, excluding contingent earn-out payments based on a percentage of net income in 2009 through 2011. This acquisition allowed us to take control of our Swedish distributor for the purpose of further expanding the business. Approximately $952,000 of the purchase consideration was paid during the quarter ended September 30, 2008, with the remaining $527,000 payable on July 1, 2011 and included within other long-term liabilities at March 31, 2009. As a result of this acquisition, the $760,000 equity interest previously included within other assets was eliminated, and $1.5 million of goodwill was recorded along with $830,000 of identifiable intangible assets. The acquired goodwill was deductible for tax purposes.

On November 10, 2008, we entered into a purchase agreement with Caliper Life Sciences, Inc. to acquire the assets and liabilities of an established sample preparation line of products collectively known as AutoTrace, to complement our current analytical solutions. This purchase included the AutoTrace developed technology, trade name, inventories, non-competition covenant, customer list, and its related existing servicing obligations as of the purchase date. The purchase consideration totaled $5.1 million, including $5 million in cash, $65,000 in assumed liabilities and $23,000 of acquisition related costs. Based on our preliminary allocation of the purchase price, we recorded $2.4 million of goodwill for the purchase price paid in excess of $2.7 million in identifiable assets, consisting primarily of developed technology for $1.3 million, trade name for $1.1 million and inventory for $358,000. The acquired goodwill was deductible for tax purposes.

Our reporting units consist of our operating segments, the Chemical Analysis Business Unit (CABU) and the Life Sciences Business Unit (LSBU). Except for goodwill associated with the AutoTrace acquisition that was assigned to the CABU reporting unit, all goodwill has been previously assigned to the LSBU reporting unit. The evaluation of goodwill is based upon the fair value of this reporting unit. Pursuant to the provisions of SFAS No. 142, Goodwill and Other Intangible Assets, we performed annual impairment tests on goodwill in April 2009 and determined that goodwill was not impaired. Additionally, there was no occurrence of events indicating a possible impairment of recorded goodwill as of June 30, 2009.

Information regarding our other intangible assets is as follows (in thousands):


	As of June 30, 2009							As of June 30, 2008
	Carrying		Accumulated					Carrying		Accumulated
	Amount		Amortization			Net		Amount		Amortization			Net

Patents and trademarks	$	7,088	$	(1,978	)	$	5,110	$	5,958	$	(1,376	)	$	4,582
Developed technology		11,504		(10,327	)		1,177		10,825		(10,825	)		—
Customer relationships		3,391		(1,172	)		2,219		2,761		(880	)		1,881

Total	$	21,983	$	(13,477	)	$	8,506	$	19,544	$	(13,081	)	$	6,463

The acquired trade name “AutoTrace” of $1.1 million, which is included in patents and trademarks, is not amortizable. We amortize patents and trademarks over a period of seven to sixteen years and the remaining weighted average amortization period for this category is approximately eleven years.

We amortize developed technology over a period of seven years based on experiences from our historical product cycles.

We amortize customer relationships over a period of two to ten years on a straight-line basis and the remaining weighted average amortization period for this category is approximately seven years.

Amortization expense related to intangible assets was $1.2 million, $1.1 million and $1.3 million for the years ended June 30, 2009, 2008 and 2007, respectively. The estimated amortization for each of the five fiscal years subsequent to June 30, 2009 is as follows (in thousands):


	Remaining
	Amortization
Year Ending June 30,	Expense
2010	$	1,214
2011		1,198
2012		1,213
2013		856
2014		635
Thereafter		2,260

Total	$	7,376

Note 7 — FINANCING ARRANGEMENTS

We have unsecured lines of credit with various domestic and foreign banks which have been used primarily to minimize our exposure to foreign currency fluctuations and to fund share repurchases. Our lines of credit totaled $28.8 million and $29.2 million at June 30, 2009 and 2008, respectively. Borrowings in each country bear interest at local reference rates which ranged from 1.3% to 6.8% at June 30, 2009. There was $64,000 and $21.8 million outstanding under these lines at June 30, 2009 and 2008, respectively. Such line of credit agreements impose certain financial restrictions relating to cash dividends, working capital and tangible net worth and expires December 31, 2009.

One of our foreign subsidiaries discounts trade notes receivable with banks. Total notes receivable discounted were approximately $12.2 million in fiscal 2009 and $11.3 million in fiscal 2008. The uncollected balances of notes receivable due to the discounting banks at June 30, 2009 and 2008 were approximately $3.1 million and $2.8 million, respectively. We have a contingent liability to repurchase these notes under certain conditions. We have determined that the carrying amount of our contingent liability under this guarantee was insignificant at June 30, 2009 and 2008 based on its past experience of discounting trade notes receivable.

Total interest paid was $451,000 in 2009, $790,000 in 2008 and $162,000 in 2007.

Note 8 — WARRANTY

Product warranties are recorded at the time revenue is recognized for certain product shipments. While we engage in extensive product quality programs and processes, our warranty obligation is affected by product failure rates, material usage and service costs incurred in correcting a product failure. Should actual product failure rates, material usage or service costs differ from our previous estimates, revisions to the estimated warranty liability would be required.

Details of the change in accrued product warranty for fiscal 2009, 2008 and 2007 are as follows:


					Charged
	Balance				(Credited)						Balance
	Beginning of				to Other						End of
	Year		Additions		Accounts(1)			Deductions(2)			Year
					(In thousands)
Accrued product warranty:
June 30, 2009	$	3,444	$	4,907	$	(249	)	$	(5,074	)	$	3,028
June 30, 2008		2,875		5,954		296			(5,681	)		3,444
June 30, 2007		3,493		2,669		100			(3,387	)		2,875


(1)		Effects of exchange rate changes.

(2)		Product warranty costs.

Note 9 — ACCRUED LIABILITIES

Accrued liabilities at June 30 consisted of:


	2009		2008
	(In thousands)
Accrued payroll and related expenses	$	18,267	$	21,037
Other accrued liabilities		12,955		11,174

	$	31,222	$	32,211

Note 10 — STOCK OPTION AND PURCHASE PLANS

Stock Option Plans. We have one stock option plan (the “Option Plan”) under which incentive and nonqualified options may be granted. Options are granted at the stock’s fair market value at the grant date. Options generally become exercisable in increments over a period of four years from the date of grant and expire generally ten years from the grant date.

In October 2007 and 2008, we granted 1,000 restricted stock units to each of our five non-employee directors for a total of 5,000 shares of our common stock. The value of each share was $87.03 and $46.47, respectively and restricted stock units vest over a four-year period and delivery of the shares occurs on the earlier of : (i) five years from grant date, or (ii) termination of service.

In August 2008, we granted a total of 15,000 restricted stock units to our nine executive Officers, excluding our Chief Executive Officer. The fair value of each share on the grant date was $74.27. These restricted stock units vest over a five-year period and delivery of the shares occurs on the earlier of : (i) five years from grant date, or (ii) termination of service.

In August 2006, the Board of Directors approved an amendment to our Option Plan to increase the number of shares authorized for issuance by 1,500,000 shares. The amendment was approved by our stockholders at the Annual Meeting of Stockholders on October 27, 2006.


	As of June 30,
	2009					2008					2007
				Wtd. Avg.					Wtd. Avg.					Wtd. Avg.
				Exercise					Exercise					Exercise
	Shares			Price		Shares			Price		Shares			Price
Options outstanding, beginning of year		1,792,708		$	47.20		1,694,471		$	41.91		1,736,593		$	37.43
Granted		304,250			67.10		347,750			72.81		346,250			53.58
Exercised		(376,577	)		36.35		(180,073	)		40.41		(367,479	)		32.29
Canceled		(20,741	)		59.35		(69,440	)		63.77		(20,893	)		48.61

Options outstanding, end of year		1,699,640		$	53.02		1,792,708		$	47.20		1,694,471		$	41.91

Options vested and expected to vest		1,687,578		$	52.93		1,778,930		$	47.07		1,664,063		$	41.74

Options exercisable at year end		1,105,821		$	46.00		1,180,159		$	39.20		1,036,706		$	36.13

Weighted average fair value of options granted during the year				$	20.77				$	23.88				$	18.38

The total intrinsic value of options exercised were $7.3 million, $6.9 million and $12.3 million in fiscal 2009, 2008 and 2007 respectively. As of June 30, 2009, there was $14.4 million of total unrecognized compensation cost related to non-vested stock options. That cost is expected to be recognized over a weighted average period of 2.5 years. The total intrinsic value of options exercisable at June 30, 2009 was $18.3 million based upon a market value of $46.00 per share. The total intrinsic value of options outstanding at June 30, 2009 was $20.0 million based upon a market value of $53.02 per share. The total intrinsic value of the options exercisable and expected to vest, based on a market value of $61.03 per share was $19.9 million at June 30, 2009, with a weighted average remaining contractual life of 6.19 years.

Additional information regarding options outstanding and exercisable as of June 30, 2009 is as follows:


	Options Outstanding						Options Exercisable
			Weighted Avg.		Weighted				Weighted Avg.		Weighted
			Remaining		Avg.				Remaining		Avg.
Range of	Number		Contractual		Exercise		Number		Contractual		Exercise
Exercise Prices	Outstanding		Life (Yrs)		Price		Exercisable		Life (Yrs)		Price
$23.98 – 39.47		419,600		2.61	$	32.58		419,600			$	32.58
41.03 – 48.05		362,576		5.62		47.28		343,244				47.26
48.19 – 53.85		378,978		7.75		53.21		186,270				52.93
54.86 – 72.56		333,986		7.79		71.47		153,957				70.65
74.27 – 74.27		198,000		9.03		74.27		—				—
87.03 – 87.03		6,500		6.44		87.03		2,750				87.03

$23.98 – 87.03		1,699,640		6.21	$	53.02		1,105,821		4.99	$	46.00

At June 30, 2009, 890,757 shares were available for future grants under the Option Plan.

The fair value of each option on the date of grant is estimated using the Black-Scholes option-pricing model using the single option approach for options granted after June 30, 2005.

These are the following weighted-average assumptions:


	Year Ended June 30,
	2009			2008			2007
Volatility for options		29 – 35	%		28 – 29	%		29	%
Volatility for employee stock purchase plan		24 – 56	%		21 – 31	%		23 – 26	%
Risk-free interest rate for options		1.9 – 3.3	%		2.91 – 4.60	%		4.50 – 4.88	%
Risk-free interest rate for employee stock purchase plan		0.5 – 2.0	%		2.13 – 4.80	%		2.00 – 4.98	%
Expected life of options	4.70 years			4.72 years			4.70 years
Expected life of employee stock purchase plan	6 months			6 months			6 months
Expected dividend	$	0.00		$	0.00		$	0.00

Exercise and post-vesting forfeiture assumptions based on analysis of historical data.

Determining Fair Value

Valuation and amortization method — We estimate the fair value of stock options granted using the Black-Scholes-Merton option — pricing formula and a single option award approach. This fair value is then amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period.

Expected Term — The expected term represents the period that our stock-based awards are expected to be outstanding and was determined based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior as influenced by changes to the terms of our stock-based awards.

Expected Volatility — Our computation of expected volatility for the years ended June 30, 2009, 2008 and 2007 is based on a combination of historical and market-based implied volatility.

Risk-Free Interest Rate — The risk-free interest rate used in the Black-Scholes-Merton valuation method is based on the implied yield currently available on U.S. Treasury zero-coupon issues with an equivalent remaining term.

Expected Dividend — The expected dividend assumption is based on our current expectations about our anticipated dividend policy.

Employee Stock Purchase Plan. Under our Employee Stock Purchase Plan (the “Purchase Plan”), eligible employees are permitted to have salary withholdings to purchase shares of common stock at a price equal to 85% of the lower of the market value of the stock at the beginning or end of each six-month offer period, subject to certain annual limitations. The number of shares of stock issued under the Purchase Plan was 43,917, 32,969 and 38,584 shares in fiscal 2009, 2008 and 2007, respectively, at weighted average prices of $49.57, $56.59 and $44.36, respectively. The weighted average fair value of the fiscal 2009, 2008 and 2007 awards was $8.75, $12.48 and $14.10, respectively. At June 30, 2009, 591,333 shares were reserved for future issuances under the Purchase Plan.

Note 11 — EMPLOYEE 401(K) PLAN

We have a 401(k) tax deferred savings plan covering most U.S. employees. Participants may contribute up to 10% of their compensation and we make matching contributions ($1.8 million in fiscal 2009, $1.6 million in fiscal 2008, and $1.4 million in fiscal 2007) limited to 5% of each participant’s compensation. Starting as of fiscal 2007, matching contributions vest in 25% increments each year. In prior years, matching contributions vested in 25% increments each year beginning two years after the participant’s date of employment.

Note 12 — TAXES ON INCOME

The provision for taxes on income consists of:


	Year Ended June 30
	2009			2008			2007
	(In thousands)
Current:
Federal	$	15,420		$	17,433		$	10,488
State		1,755			(1,481	)		1,770
Foreign		9,459			10,590			13,166

Total current		26,634			26,542			25,424

Deferred:
Federal		2,734			105			1,474
State		(560	)		122			(78	)
Foreign		(990	)		(1,171	)		(852	)

Total deferred		1,184			(944	)		544

	$	27,818		$	25,598		$	25,968

Domestic and foreign income before taxes on income is as follows:


	Year Ended June 30
	2009		2008		2007
	(In thousands)
Domestic	$	58,226	$	57,830	$	55,126
Foreign		25,047		20,568		16,164

	$	83,273	$	78,398	$	71,290

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Non-current deferred tax assets are presented on the balance sheets as part of other assets. The components of the current and non-current deferred tax assets and liabilities are as follows:


	Year Ended June 30
	2009			2008
	(In thousands)
Current deferred tax assets:
Accounting accruals deductible in different periods for tax purposes	$	6,192		$	7,239
Stock-based compensation		4,787			3,629
State income tax		268			88
Other		924			578

Total current deferred tax assets		12,171			11,534


Non-current deferred tax assets:
Difference in tax basis from acquisition		—			980
Book depreciation in excess of tax		229			—

Non-current deferred tax liabilities:
Accelerated depreciation		(1,676	)		(826	)
Excess tax basis from acquisition		—			(980	)
Book/tax amortization of intangibles		(3,450	)		(2,301	)
Accumulated translation adjustment		(3,043	)		(6,777	)

Total deferred tax liabilities		(8,169	)		(10,884	)

Net deferred tax assets	$	4,231		$	1,630

Total income tax expense differs from the amount computed by applying the statutory Federal income tax rate to income before taxes on income as follows:


	Year Ended June 30
	2009			2008			2007
Statutory Federal income tax rate		35.0	%		35.0	%		35.0	%
State income taxes, net of Federal income tax effect		0.8			(1.3	)		1.6
Extraterritorial income exclusion/Manufacturing deduction		(1.3	)		(1.4	)		(1.1	)
Taxes on foreign income		(2.0	)		1.0			1.8
Other		0.9			(0.7	)		(0.9	)

		33.4	%		32.6	%		36.4	%

Income taxes paid were $28.9 million in fiscal 2009, $31.2 million in fiscal 2008 and $21.3 million in fiscal 2007.

We have not provided for Federal income taxes on approximately $55.3 million of undistributed earnings of certain foreign subsidiaries, which we intend to permanently reinvest in subsidiary operations. If these earnings were distributed to us as the parent, foreign tax credits available under current law would substantially eliminate the resulting Federal income tax liability.

Our total amount of unrecognized tax benefits as of June 30, 2009 was $14.1 million, of which $3.2 million, if recognized, would affect our effective tax rate compared to $14.2 million on July 1, 2008, of which $1.9 million, if recognized, would have affected our effective tax rate. The liability for income taxes associated with uncertain tax positions is classified in deferred and other income taxes payable.

We record interest and penalties related to unrecognized tax benefits in income tax expense. At June 30, 2009, we had approximately $2.0 million accrued for estimated interest related to uncertain tax positions compared to approximately $1.9 million on July 1, 2008. During the fiscal year ended June 30, 2009, we accrued a total of $793,000 in interest on these uncertain tax positions. During the fiscal year ended June 30, 2009, we reversed certain income taxes payable in the amount of $3.4 million, including $710,000 of accrued interest due to expiring statutes relating to FIN 48 liabilities previously accrued. Similarly, deferred tax assets and other tax receivables were reduced by $2.9 million, including $225,000 of accrued interest, due to related expiring FIN 48 liabilities.

Reconciliation of unrecognized tax benefits is as follows (in thousands):


Balance, July 1, 2007	$	14,356
Additions for tax positions of the current year		3,104
Decrease from expiration of statute of limitation		(3,228	)

Balance, June 30, 2008		14,232
Additions for tax positions of prior year		1,601
Additions for tax positions of the current year		1,699
Decrease from expiration of statute of limitation		(3,451	)

Balance, June 30, 2009	$	14,081

We are subject to audit by the Internal Revenue Service and California Franchise Tax Board for the fiscal years 2005 through the fiscal year 2009. As we have operations in most other US states, other state tax authorities may assess deficiencies related to prior year activities; however, the years open to assessment vary with each state. We also file income tax returns for non-US jurisdictions, the most significant of which are Germany, Japan, the UK and Hong Kong. The years open to adjustment for Germany are fiscal years 2004 through 2008, fiscal years 2003 through 2008 for the UK and Hong Kong and fiscal years 2002 through 2008 for Japan.

A number of years may elapse before an uncertain tax position is audited and ultimately settled. It is difficult to predict the ultimate outcome or the timing of resolution for uncertain tax positions. It is reasonably possible that the amount of unrecognized tax benefits could significantly increase or decrease within the next twelve months. These changes could result from the settlement of ongoing litigation, the completion of ongoing examinations, the expiration of the statute of limitations, or other circumstances. At this time, an estimate of the range of the reasonably possible change cannot be made.

Note 13 — COMMITMENTS AND OTHER CONTINGENCIES

Revenue generated from international operations is generally denominated in foreign currencies. We enter into forward foreign exchange contracts to hedge against fluctuations of intercompany account balances. Market value gains and losses on these exchange contracts are substantially offset by fluctuations in the underlying balances being hedged, and the net financial impact is not expected to be material in future periods. We had forward exchange contracts to sell foreign currencies totaling $15.2 million, $19.0 million and $10.5 million at June 30, 2009, 2008 and 2007, respectively. In March 2007, we entered into a $10.0 million cross-currency swap arrangement for Japanese Yen which matures in March 2010.

In July 2008, we acquired a Swedish company using a combination of cash and post acquisition earn-out payment arrangements. Under the purchase agreement, earn-out payments of 70% for fiscal 2009 and 30% for fiscal 2010 and 2011 as a percentage of the acquired company’s net income are payable to the seller at the end of each fiscal year. Each earn-out payment is contingent upon results of operations.

Certain facilities and equipment are leased under non-cancelable operating leases. We generally pay taxes, insurance and maintenance costs on leased facilities and equipment. Minimum annual rental commitments under these non-cancelable operating leases are $5.5 million for fiscal 2010 $3.0 million for fiscal 2011, $1.7 million for fiscal 2012, $0.8 million for fiscal 2013, $0.6 million for fiscal 2014 and $2.5 million thereafter.

Total rental expense for all operating leases was $7.6 million in fiscal 2009, $7.2 million in fiscal 2008 and $6.7 million in fiscal 2007.

We enter into standard indemnification agreements with many of our customers and certain other business partners in the ordinary course of business. These agreements include provisions for indemnifying the customer against any claim brought by a third party to the extent any such claim alleges that our product infringes a patent, copyright or trademark, or violates any other proprietary rights of that third party. The maximum potential amount of future payments we could be required to make under these indemnification agreements is not estimable, however, we have not incurred any costs to defend lawsuits or settle claims related to these indemnification agreements. No material claims for such indemnifications were outstanding as of June 30, 2009. We have not recorded any liabilities for these indemnification agreements at June 30, 2009 or 2008.

Note 14 — BUSINESS SEGMENT INFORMATION

SFAS No. 131 establishes standards for reporting information about operating segments in annual financial statements of public business enterprises. It also establishes standards for related disclosures about products and service, geographic areas and major customers.

Our business activities, for which discrete financial information is available, are regularly reviewed and evaluated by the chief operating decision maker (our Chief Executive Officer). We have two operating segments, the Chemical Analysis Business Unit (“CABU”) and the Life Sciences Business Unit (“LSBU”). CABU sells ion chromatography and accelerated solvent extraction products, services and related consumables. LSBU sells high performance liquid chromatography products, services and related consumables. These two operating segments are aggregated into one reportable segment for financial statement purposes.

We sell products, installation and training services and maintenance within this reportable segment, detailed as follows:


	Year Ended June 30
	2009		2008		2007
			(In thousands)
Products	$	332,965	$	329,485	$	286,767
Installation and training services		11,287		10,433		9,365
Maintenance		40,796		37,620		31,152

	$	385,048	$	377,538	$	327,284

Geographic information is presented below:


	Year Ended June 30
	2009		2008		2007
			(In thousands)
Net sales to unaffiliated customers:
United States	$	110,084	$	96,250	$	85,419
Europe, excluding Germany		118,327		116,482		106,781
China		47,655		33,452		24,465
Germany		37,756		40,836		37,683
Japan		38,529		34,996		32,642
Other International		32,697		55,522		40,294

Consolidated net sales	$	385,048	$	377,538	$	327,284

At June 30
Long-lived assets:
United States	$	59,681	$	53,798	$	51,728
Europe, excluding Germany		10,121		8,734		9,022
China		567		430		371
Germany		30,747		36,536		30,251
Japan		10,796		10,070		8,738
Other International		746		1,515		885

Consolidated long-lived assets	$	112,658	$	111,083	$	100,995

Net revenues above are attributed to geographic area based on customers’ shipment locations.

No individual customer accounted for greater than 5% of net sales in fiscal 2009, 2008 and 2007 or greater than 10% of consolidated accounts receivable at June 30, 2009 and 2008.

Note 15 — QUARTERLY RESULTS OF OPERATIONS (unaudited)

The following is a summary of the unaudited quarterly results of operations for the years ended June 30, 2009 and 2008.


	Quarter
	First		Second		Third		Fourth
	(In thousands, except per share amounts)
Fiscal 2009:
Net sales	$	93,435	$	103,041	$	94,396	$	94,176
Gross profit		62,711		69,570		64,225		59,891
Net income		11,816		17,026		15,175		11,438
Basic earnings per share		0.65		0.95		0.85		0.64
Diluted earnings per share		0.64		0.93		0.84		0.63
Fiscal 2008:
Net sales	$	82,423	$	98,038	$	98,356	$	98,721
Gross profit		53,727		66,206		64,525		66,324
Net income		10,150		14,829		13,595		14,226
Basic earnings per share		0.54		0.80		0.74		0.78
Diluted earnings per share		0.53		0.77		0.72		0.76

Subsequent to the issuance of the Company’s condensed consolidated financial statements for the third quarter ended March 31, 2009, we discovered two immaterial errors that affected our gross margin and earnings per share for the quarter ended March 31, 2009. The first error related to in-transit inventory that was improperly recorded on the balance sheet instead of cost of sales. The second error was related to an intercompany transfer pricing adjustment that was not properly eliminated in consolidation during the third quarter causing inventory to be overstated and cost of sales to be understated. As a result of these errors, our gross profit and net income, as reported for the three months ended March 31, 2009, are overstated by $1.7 million and $1.1 million, respectively, and our basic and diluted earnings per share are overstated by $0.06 and $0.06, respectively. Adjustments were recorded during the fourth quarter to correct these errors. Consequently, our gross profit and net income, as reported, are understated by $1.7 million and $1.1 million, respectively, and our basic and diluted earnings per share are understated by $0.06 and $0.06, respectively, for the three months ended June 30, 2009.

Note 16 — FAIR VALUE MEASUREMENTS

Effective July 1, 2008, we adopted fair value measurements for all financial assets and liabilities as required by SFAS No. 157. SFAS No. 157 defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing assets or liabilities. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, we consider the principal or most advantageous market in which these assets and liabilities would be transacted.

SFAS No. 157 fair value hierarchy prioritizes the inputs to fair value measurement into three levels:

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

Level 2 inputs are those other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3 inputs are unobservable inputs for the asset or liability.

The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis in accordance with SFAS No. 157 as of June 30, 2009 (in thousands):


			Fair Value Measurements at June 30, 2009
			Quoted Prices		Significant
			In Active		Other		Significant
			Markets or		Observable		Unobservable
			Identical Assets		Inputs		Inputs
Description	Total		(Level 1)		(Level 2)		(Level 3)
Assets:
Money market	$	2,998	$	2,998	$	—	$	—
Stocks		8		8		—		—
Equity indexed derivatives		633		—		633		—

Total	$	3,639	$	3,006	$	633	$	—

Liabilities:
Foreign currency contracts	$	2,225	$	2,225	$	—	$	—

Reported as:


			Fair Value Measurements at June 30, 2009
			Quoted Prices		Significant
			In Active		Other		Significant
			Markets or		Observable		Unobservable
			Identical Assets		Inputs		Inputs
Description	Total		(Level 1)		(Level 2)		(Level 3)
Assets:
Cash equivalents (1)	$	2,998	$	2,998	$	—	$	—
Short-term investments		641		8		633		—

Total	$	3,639	$	3,006	$	633	$	—

Liabilities:
Foreign currency contracts (2)	$	2,225	$	2,225	$	—	$	—


(1)		Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheet as of June 30, 2009.

(2)		Included in “Accrued liabilities” in the accompanying Condensed Consolidated Balance Sheet as of June 30, 2009.

Note 17 — SUBSEQUENT EVENTS

We have evaluated subsequent events through August 28, 2009, the day our consolidated financial statements for the year ended June 30, 2009 were issued and concluded there are no additional adjustments to the consolidated financial statements or disclosures required.


Item 9.		*CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE*

Not applicable.


Item 9A.		*CONTROLS AND PROCEDURES*

Management’s Evaluation of Disclosure Controls and Procedures

We carried out an evaluation, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our “disclosure controls and procedures” (as defined in rules promulgated under the Exchange Act Rules 13a-15(e) and 15d-15(e)). Based on that evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures as of June 30, 2009 were effective to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is (i) recorded processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (ii) accumulated and communicated to our management, including our principal executive and principal financial officers, to allow timely decisions regarding required disclosures.

Management’s Annual Report on Internal Control over Financial Reporting

Our management, including our Chief Executive Officer and Chief Financial Officer, is responsible for establishing and maintaining internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for us. Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America. Our management conducted an assessment of the effectiveness of our internal control over financial reporting as of June 30, 2009 based on criteria established in the “Internal Control — Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on our assessment, our management concluded that, as of June 30, 2009, our internal control over financial reporting was effective.

Our independent registered public accounting firm, Deloitte & Touche LLP, has audited the effectiveness of our internal control over financial reporting as of June 30, 2009, as stated in their report that appears below.

Changes in Internal Control over Financial Reporting

No changes in our internal control over financial reporting occurred during the quarter ended June 30, 2009 that have materially affected or are reasonably likely to materially affect our internal control over financial reporting.


Item 9B.		*OTHER INFORMATION*

Not applicable.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of Dionex Corporation:

We have audited the internal control over financial reporting of Dionex Corporation and subsidiaries (the “Company”) as of June 30, 2009, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Annual Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed by, or under the supervision of, the company’s principal executive and principal financial officers, or persons performing similar functions, and effected by the company’s board of directors, management, and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may not be prevented or detected on a timely basis. Also, projections of any evaluation of the effectiveness of the internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of June 30, 2009, based on the criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated financial statements and consolidated financial statement schedule as of and for the year ended June 30, 2009, of the Company, and our reports dated August 28, 2009, expressed unqualified opinions on those consolidated financial statements and financial statement schedule.

/s/ Deloitte & Touche LLP

San Jose, California
August 28, 2009

PART III


Item 10.		*DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE*

IDENTIFICATION OF DIRECTORS AND EXECUTIVE OFFICERS

The information required by Item 10 of Form 10-K with respect to identification of directors and executive officers is incorporated by reference to the information contained in the sections captioned “Election of Directors”, “Executive Officers of Dionex Corporation” and “Section 16(a) Beneficial Ownership Reporting Compliance” in our definitive Proxy Statement for the Annual Meeting of Stockholders to be held October 26, 2009 (the “2009 Proxy Statement”), which will be filed in accordance with Regulation 14A under the Exchange Act.

CORPORATE GOVERNANCE

The information required by Item 10 of Form 10-K with respect to the Audit Committee is incorporated by reference to the information contained in “Election of Directors” in the 2009 Proxy Statement.

CODE OF ETHICS

The information required by Item 10 of Form 10-K with respect to the Code of Ethics is incorporated by reference to the information contained in “Code of Ethics” in the 2009 Proxy Statement.


Item 11.		*EXECUTIVE COMPENSATION*

The information required by Item 11 of Form 10-K regarding executive compensation is incorporated by reference to the information contained in the sections captioned “Compensation of Directors and Executive Officers,” “Compensation Discussion and Analysis,” “Compensation Committee Interlocks and Insider Participation”, “Compensation Tables”, and “Compensation Committee Report” in the 2009 Proxy Statement.


Item 12.		*SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS*

The information required by Item 12 of Form 10-K is incorporated by reference to the information contained in the section captioned “Security Ownership Certain Beneficial Owners and Management” in the 2009 Proxy Statement.


Item 13.		*CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE*

The information required by Item 13 of Form 10-K is incorporated by reference to the information contained in the section captioned “Election of Directors” and “Transactions with Related Persons” in the 2009 Proxy Statement.


Item 14.		*PRINCIPAL ACCOUNTING FEES AND SERVICES*

The information required by Item 14 of Form 10-K is incorporated by reference to the information contained in the sections captioned “Independent Registered Public Accounting Firm’s Fees,” “Policy on Audit Committee Pre-Approval” and “Audit Committee Disclosure” in the 2009 Proxy Statement.

PART IV


Item 15.		*EXHIBITS AND FINANCIAL STATEMENT SCHEDULES*

(a)

(1) Financial Statements — See Index to Financial Statements at page 29 of this Report.

(2) Financial Statement Schedule — See Index to Financial Statement Schedules at pages 54 of this Report.

(3) Exhibits — See Exhibit Index at page 57 through 58 of this Report.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, we have duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	DIONEX CORPORATION
	By:	/s/ Frank Witney
		Frank Witney
		President, Chief Executive Officer and Director
Date: August 28, 2009

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Frank Witney and Craig A. McCollam, and each or either of them, each with the power of substitution, his attorney-in-fact, to sign any amendments to this report, with exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, hereby ratifying and confirming all that each of said attorneys-in-fact, or his substitute or substitutes, may do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of Dionex Corporation and in the capacities and on the dates indicated.


Signature	Title	Date

/s/ Frank Witney Frank Witney	President, Chief Executive Officer, and Director (Principal Executive Officer)	August 28, 2009

/s/ Craig A. McCollam Craig A. McCollam	Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)	August 28, 2009

/s/ A. Blaine Bowman A. Blaine Bowman	Director	August 28, 2009

/s/ David L. Anderson David L. Anderson	Director	August 28, 2009

/s/ Roderick McGeary Roderick McGeary	Director	August 28, 2009

/s/ Riccardo Pigliucci Riccardo Pigliucci	Lead Director	August 28, 2009

/s/ Michael W. Pope Michael W. Pope	Director	August 28, 2009

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of Dionex Corporation:

We have audited the consolidated financial statements of Dionex Corporation and subsidiaries (the “Company”) as of June 30, 2009 and 2008, and for each of the three years in the period ended June 30, 2009, and the Company’s internal control over financial reporting as of June 30, 2009, and have issued our reports dated August 28, 2009 (which report on the Company’s consolidated financial statements includes an explanatory paragraph relating to the adoption of Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes — an interpretation of FASB Statement No. 109). Such consolidated financial statements and reports are included elsewhere in this Annual Report on Form 10-K for the year ended June 30, 2009. Our audits also included the consolidated financial statement schedule of the Company listed in Item 15. This consolidated financial statement schedule is the responsibility of the Company’s management. Our responsibility is to express an opinion based on our audits. In our opinion, such consolidated financial statement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly, in all material respects, the information set forth therein.

/s/ Deloitte & Touche LLP

San Jose, California
August 28, 2009

EXHIBIT INDEX


Exhibit
Number			Description	Reference
	3.1		Restated Certificate of Incorporation, filed December 12, 1988		(1	)

	3.2		Certificate of Amendment of Restated Certificate of Incorporation, filed December 1, 1999 (Exhibit 3.2)		(8	)

	3.3		Amended and Restated Bylaws, August 6, 2008 (Exhibit 99.1)		(12	)

	10.1	*	Medical Care Reimbursement Plan as amended October 30, 2007 (Exhibit 10.1)		(9	)

	10.2		Credit Agreement dated November 13, 2000 between Wells Fargo Bank and Dionex Corporation (Exhibit 10.15)		(3	)

	10.3		First amendment to Credit Agreement dated November 13, 2000 between Wells Fargo Bank and Dionex Corporation (Exhibit 10.17)		(4	)

	10.4	*	Dionex Corporation 2004 Equity Incentive Plan, as amended October 2006 (Exhibit 10.1)		(10	)

	10.5	*	Form of Stock Option Agreement for non-employee directors (Exhibit 10.5)		(11	)

	10.6	*	Form of Stock Option Agreement for other than non-employee directors (Exhibit 10.6)		(11	)

	10.7	*	Form of Stock Unit Award Agreement (Exhibit 10.2)		(10	)

	10.8	*	Form of International Stock Option Agreement (Exhibit 10.8)		(9	)

	10.9	*	Form of Stock Unit Award Agreement for U.S. employees		(2	)

	10.10	*	Form of Stock Unit Award Agreement for International employees		(2	)

	10.11	*	Employee Stock Participation Plan (Exhibit 10.13)		(5	)

	10.12		Second amendment to Credit Agreement dated November 13, 2000 between Wells Fargo Bank and Dionex Corporation (Exhibit 10.1)		(6	)

	10.13	*	Change in Control Severance Benefit Plan as amended August 6, 2008		(2	)

	10.14		Third amendment to Credit Agreement dated December 1, 2006 between Wells Fargo Bank and Dionex Corporation (Exhibit 10.8)		(7	)

	10.15	*	Form of Indemnification Agreement (Exhibit 10.1)		(13	)

	10.16		Management Incentive Bonus Plan dated August 6, 2009 (Exhibit 99.1)		(14	)

	21.1		Subsidiaries of Dionex Corporation

	23.1		Consent of Independent Registered Public Accounting Firm

	24.1		Power of Attorney (reference is made to the signature page of this report on Form 10-K)

	31.1		Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

	31.2		Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

	32.1	†	Certification of the Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

	32.2	†	Certification of the Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002


(1)		Incorporated by reference to the indicated exhibit in our Form 10-Q filed September 20, 1989.

(2)		Incorporated by reference to the indicated exhibit in our Form 10-K filed August 29, 2008.

(3)		Incorporated by reference to the indicated exhibit in our Form 10-Q filed February 14, 2001.

(4)		Incorporated by reference to the indicated exhibit in our Form 10-K filed September 24, 2003.

(5)		Incorporated by reference to the indicated exhibit in our Form 10-K filed September 10, 2004.

(6)		Incorporated by reference to the indicated exhibit in our Form 8-K filed December 22, 2004.

(7)		Incorporated by reference to the indicated exhibit in our Form 10-Q filed February 9, 2007.

(8)		Incorporated by reference to the indicated exhibit in our Form 10-K filed August 29, 2007.

(9)		Incorporated by reference to the indicated exhibit in our Form 10-Q filed November 9, 2007.

(10)		Incorporated by reference to the indicated exhibit in our Form 8-K filed October 15, 2007.

(11)		Incorporated by reference to the indicated exhibit in our Form 10-Q filed February 8, 2008.

(12)		Incorporated by reference to the indicated exhibit in our Form 8-K filed August 11, 2008.

(13)		Incorporated by reference to the indicated exhibit in our Form 8-K filed November 3, 2008.

(14)		Incorporated by reference to the indicated exhibit in our Form 8-K filed August 10, 2009.

*		Management contract or compensatory plan or arrangement.

†		This certification accompanies the Form 10-K to which it relates, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of the Registrant under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Form 10-K), irrespective of any general incorporation language contained in such filing.


PART I

Item 1. Business			3

Item 1A. Risk Factors			12

Item 1B. Unresolved Staff Comments			15

Item 2. Properties			15

Item 3. Legal Proceedings			15

Item 4. Submission of Matters to a Vote of Security Holders			15

PART II

Item 5. Market for our Common Stock, Related Stockholder Matters and Issuer Purchases of Equity Securities			16

Item 6. Selected Consolidated Financial Data			18

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations			19

Item 7A. Quantitative and Qualitative Disclosures About Market Risk			27

Item 8. Financial Statements and Supplementary Data			29

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure			50

Item 9A. Controls and Procedures			50

Item 9B. Other Information			50

PART III

Item 10. Directors, Executive Officers and Corporate Governance			52

Item 11. Executive Compensation			52

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters			52

Item 13. Certain Relationships and Related Transactions, and Director Independence			52

Item 14. Principal Accounting Fees and Services			52

PART IV

Item 15. Exhibits and Financial Statement Schedules			52

Signatures			53

Exhibit Index			57

Exhibit 21.1
Exhibit 23.1
Exhibit 31.1
Exhibit 31.2
Exhibit 32.1
Exhibit 32.2


	Fiscal Year Ending
COMPANY/INDEX/MARKET	6/30/2004		6/30/2005		6/30/2006		6/30/2007		6/30/2008		6/30/2009

Dionex Corporation		100.00		79.03		99.08		128.68		120.30		110.62
Analytical Instruments (SIC)		100.00		97.42		108.73		136.80		144.01		118.19
S&P Composite		100.00		106.32		115.50		139.28		121.01		89.28


Item 8.		*FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA*


	Page
FINANCIAL STATEMENTS

Report of Independent Registered Public Accounting Firm		30

Consolidated Balance Sheets at June 30, 2009 and 2008		31

Consolidated Statements of Income for the years ended June 30, 2009, 2008 and 2007		32

Consolidated Statements of Stockholders’ Equity and Comprehensive Income for the years ended June 30, 2009, 2008 and 2007		33

Consolidated Statements of Cash Flows for the years ended June 30, 2009, 2008 and 2007		34

Notes to Consolidated Financial Statements		35


	Page

FINANCIAL STATEMENT SCHEDULE

Report of Independent Registered Public Accounting Firm		55

Schedule II — Valuation and Qualifying Accounts and Reserves		56


(1)		Effects of exchange rate changes.

(2)		Accounts written off, net of recoveries.


	State or other
	Jurisdiction of	Name under which
	incorporation or	subsidiary does
Name of Subsidiary	organization	business

Dionex (U.K.) Limited	England	Dionex (U.K.) Ltd.

Dionex GmbH	Germany	Dionex GmbH

Dionex S.p.A.	Italy	Dionex S.p.A.

Dionex S.A.	France	Dionex S.A.

Dionex(Europe)Management AG	Switzerland	Dionex European Management

Dionex Export Corporation	U.S. Virgin Islands	Dionex Export Corporation

Dionex Canada Ltd. /Ltee.	Canada	Dionex Canada Ltd./Ltee

Dionex Benelux B.V.	The Netherlands	Dionex Benelux B.V.

Nippon Dionex K.K.	Japan	Nippon Dionex K.K.

Dionex (Switzerland) AG	Switzerland	Dionex(Switzerland) AG

Dionex Austria GmbH	Austria	Dionex Austria GmbH

Dionex Softron GmbH	Germany	Dionex Softron GmbH

Dionex Holding GmbH	Germany	Dionex Holding GmbH

Dionex Denmark A/S	Denmark	Dionex Denmark A/S

Dionex China Ltd.	China	Dionex China Ltd.

Dionex Korea Ltd.	Korea	Dionex Korea Ltd.

Dionex Pty Ltd. (AU)	Australia	Dionex Pty Ltd.

Dionex Pty Ltd. (NZ)	New Zealand	Dionex Pty Ltd.

Dionex (India) Pvt. Ltd.	India	Dionex (India) Pvt. Ltd.

Dionex Brazil Ltda	Brazil	Dionex Brazil Instrumentos Cientificos Ltda

Dionex Taiwan Ltd.	Taiwan	Dionex Taiwan Ltd.

Dionex Singapore PTD Ltd.	Singapore	Dionex Singapore PTD LTD.

Dionex Sweden AB	Sweden	Dionex Sweden AB

Dionex Ireland Ltd.	Ireland	Dionex Ireland Ltd.


/s/ Frank Witney Frank Witney President, Chief Executive Officer and Director


By:		/s/ Frank Witney
		Name: Frank Witney
		Title: President, Chief Executive Officer and Director
		Dated: August 28, 2009


By:		/s/ Craig A. McCollam
		Name: Craig A. McCollam
		Title: Executive Vice President and Chief Financial Officer
		Dated: August 28, 2009