EX-99.1 3 f98250exv99w1.htm EXHIBIT 99.1 exv99w1
 

Exhibit 99.1

     
April 20, 2004
  Contact: Craig McCollam
Dionex Corporation
408-481-4107

DIONEX REPORTS RECORD SALES AND EARNINGS FOR THIRD QUARTER

FOR RELEASE TUESDAY, APRIL 20, 2004, 1:05 P.M. PDT

Sunnyvale, California – Dionex Corporation (NASDAQ: DNEX) today announced record sales and earnings for its third quarter and first nine months of fiscal 2004.

For the third quarter ended March 31, 2004, sales were $70.7 million, an increase of 26%, compared with the $56.1 million reported for the same period last year. Excluding the favorable effects of foreign currency fluctuations, sales growth would have been 15% for the quarter. Diluted earnings per share were $.56 for the third quarter, an increase of 60%, compared with the $.35 reported in the third quarter last year. In the third quarter last year, the Company reported the write-off of an investment in an unaffiliated entity. Excluding this write-off, earnings per share growth was 33%. Cash flow from operations was $13 million in the third quarter.

For the first nine months of fiscal 2004, Dionex sales were $189.6 million, an increase of 20% over the $157.8 million reported in the first nine months of fiscal 2003. Favorable currency fluctuations increased sales by 8 percentage points for the first nine months. Diluted earnings per share for the first nine months of fiscal 2004 were $1.40, an increase of 33% compared with the same period last year. Excluding the write-off of an investment in an unaffiliated entity, earnings per share increased by 25%. Cash flow from operations for the first nine months was $36 million, 19% of sales.

During the third quarter of fiscal 2004, the Company repurchased 316,700 shares of its common stock, bringing the total shares repurchased to 652,700 for the first nine months of fiscal 2004.

A. Blaine Bowman, Chairman of the Board, commenting on the results, said, “We are very pleased with our results for the third quarter. Our sales and earnings per share were both records for the Company. We again experienced good growth in both our ion chromatography (IC) and HPLC businesses. Our IC business grew approximately 30% as we benefited from our Reagent- Free IC (RFIC) technology introduced last year and new drinking water regulations in Japan. We also introduced new products during the quarter that further expand our RFIC offerings. In addition, we continued to drive our HPLC innovation strategy by introducing a number of new products, including an autopurification system and the latest version of our Chromeleon data management system.”

 

 

Lukas Braunschweiler, President and Chief Executive Officer, commenting on the results, said, “We again reported very strong results for the quarter and for the nine months. We saw solid sales growth in all major geographic regions and in both IC and HPLC. In North America, we grew in the high-single digits for the quarter. These results continue the good growth we have experienced in North America so far this fiscal year. Sales growth in Europe was in the high-teens in reported dollars. In local currency, sales growth was in the mid-single digits. This growth was in spite of the fact that economic conditions in Europe, particularly Germany, continue to be weak. In our Asia/Pacific region, we experienced very strong growth this quarter as sales grew over 60% in reported dollars and over 50% in local currency. Sales related to the new drinking water regulations in Japan added an estimated $5 million in incremental revenues for the quarter. We anticipate that we will continue to benefit from this positive effect in the fourth quarter also, but not to the same level as in the third quarter.

“We had good market growth in our key markets of life sciences and environmental this quarter. In our other markets, we saw good growth except for the electronics market.

“Looking ahead to the fourth quarter, we believe that we will continue the positive results experienced in the first nine months of this year. We estimate that our sales will be in the range of $65-$67 million and earnings per share will be in the range of $.47-$.49. These estimates result in full year sales in the range of $254-$256 million and earnings per share in the range of $1.87-$1.89. These estimates reflect the expectations that we will again see some benefits from the new drinking water regulations in Japan, that currency exchange rates will not change significantly from current levels, and that there will be some further improvements in the economic conditions in the U.S. and Europe.”

Dionex Corporation is a leading manufacturer and marketer of chromatography systems for chemical analysis. The Company’s systems are used in environmental analysis and by the life sciences, food and beverage, chemicals, petrochemicals, power generation and electronics industries in a variety of applications.

The company will discuss third quarter results in a conference call on Tuesday, April 20th, 2004 at 1:30 p.m. Pacific Time (PT). To listen to the call live, please tune into the webcast via www.Dionex.com. A playback of the conference call will be available from 5:00 p.m. PT, Tuesday, April 20, 2004 until 5:00 p.m. PT, Tuesday, June 1, 2004.

Certain statements regarding sales and earnings contained herein that are not purely historical are forward-looking statements. Factors that may affect sales and earnings causing actual results to differ from these statements are foreign currency fluctuations, competition from other products, economic conditions in the areas in which the company sells its products, and existing product obsolescence. These factors and other risk and uncertainties are discussed in greater detail in the Company’s Reports on Form 10-K and 10-Q filed with the Securities and Exchange Commission.

 

 

DIONEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)

                                 
    Three Months Ended   Nine Months Ended
    March 31,
   March 31,
    2004
   2003
   2004
   2003
Net sales
   $ 70,746     $ 56,069     $ 189,561     $ 157,819  
Cost of sales
     24,629       18,810       64,474       54,082  
 
    
 		      
 		      
 		      
 		  
Gross profit
     46,117       37,259       125,087       103,737  
 
    
 		      
 		      
 		      
 		  
Operating expenses:
                                
Selling, general and administrative
     23,367       19,844       65,429       56,067  
Research and product development
     4,606       4,176       14,204       12,416  
 
    
 		      
 		      
 		      
 		  
Total operating expenses
     27,973       24,020       79,633       68,483  
 
    
 		      
 		      
 		      
 		  
Operating income
     18,144       13,239       45,454       35,254  
Interest income, net
     148       69       360       195  
Write-off of a non-affiliate investment
     —       (2,067 )     —       (2,067 )
Other income
     60       36       (268 )     426  
 
    
 		      
 		      
 		      
 		  
Income before taxes on income
     18,352       11,277       45,546       33,808  
Taxes on income
     5,965       3,665       14,803       10,988  
 
    
 		      
 		      
 		      
 		  
Net income
   $ 12,387     $ 7,612     $ 30,743     $ 22,820  
 
    
 		      
 		      
 		      
 		  
Basic earnings per share
   $ 0.58     $ 0.36     $ 1.46     $ 1.08  
 
    
 		      
 		      
 		      
 		  
Diluted earnings per share
   $ 0.56     $ 0.35     $ 1.40     $ 1.06  
 
    
 		      
 		      
 		      
 		  
Shares used in computing per share amounts:
                                
Basic
     21,180       21,028       21,099       21,100  
 
    
 		      
 		      
 		      
 		  
Diluted
     22,177       21,619       21,983       21,625  
 
    
 		      
 		      
 		      
 		  
RECONCILIATION OF DILUTED EARNINGS PER SHARE BEFORE WRITE-OFF OF A NON-AFFILIATE INVESTMENT:
                                
Net income, as reported
     12,387       7,612       30,743       22,820  
Write-off of non-affiliate investment
     —       2,067       —       2,067  
Tax effect
     —       (672 )     —       (672 )
 
    
 		      
 		      
 		      
 		  
Adjusted net income
   $ 12,387     $ 9,007     $ 30,743     $ 24,215  
 
    
 		      
 		      
 		      
 		  
Adjusted diluted earnings per share
   $ 0.56     $ 0.42     $ 1.40     $ 1.12  
 
    
 		      
 		      
 		      
 		  
Shares used to compute adjusted diluted earnings per share
     22,177       21,619       21,983       21,625  
 
    
 		      
 		      
 		      
 		  

 

 

DIONEX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
AT MARCH 31, 2004 AND JUNE 30, 2003
(In thousands)
(Unaudited)

                 
    March 31,   June 30,
    2004
   2003
ASSETS
                
Current assets:
                
Cash and equivalents
   $ 64,479     $ 46,831  
Marketable equity securities
     1,660       1,402  
Accounts receivable, net
     56,176       46,613  
Inventories
     25,997       25,462  
Other current assets
     14,321       12,737  
 
    
 		      
 		  
Total current assets
     162,633       133,045  
Property, plant and equipment, net
     47,304       45,436  
Goodwill and other intangible assets
     29,309       28,856  
Other assets
     5,187       5,763  
 
    
 		      
 		  
 
   $ 244,433     $ 213,100  
 
    
 		      
 		  
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
Current liabilities:
                
Notes payable
   $ 2,163     $ 1,334  
Accounts payable
     10,590       5,443  
Accrued liabilities
     30,371       29,045  
Income taxes payable
     2,163       6,189  
Accrued product warranty
     3,594       3,188  
 
    
 		      
 		  
Total current liabilities
     48,881       45,199  
Deferred income taxes and other
     5,228       8,121  
Long term debt
     144       500  
Stockholders’ equity
     190,180       159,280  
 
    
 		      
 		  
 
   $ 244,433     $ 213,100  
 
    
 		      
 		  

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