EX-99.1 2 f02535exv99w1.htm EXHIBIT 99.1 exv99w1
 

EXHIBIT 99.1

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

DIONEX REPORTS RECORD SALES AND EARNINGS FOR THE FIRST QUARTER

     FOR RELEASE WEDNESDAY, OCTOBER 20, 2004, 1:05 P.M. PDT

Sunnyvale, California — Dionex Corporation (NASDAQ: DNEX) today announced record sales and earnings for its first quarter of fiscal 2005.

For the first quarter ended September 30, 2004, sales were $63.2 million, an increase of 19%, compared with the $53.3 million reported in the first quarter of last year. Excluding the favorable effects of currency fluctuations, sales grew by 13% for the quarter. Operating income for the quarter was $14.3 million, an increase of 24%, compared with the same period last year. Diluted earnings per share for the quarter were $0.45, an increase of 29%, compared with the $0.35 reported for the same quarter last year. Cash flow from operations for the quarter was very strong, totaling approximately $14 million.

During the first quarter, the Company repurchased 303,100 shares of its common stock for a total of $13.7 million.

Lukas Braunschweiler, President and Chief Executive Officer, commenting on the results, said, “We started the year very strongly as we reported record sales and EPS for a first quarter, and our operating income grew 24% for the quarter. These results continue a series of ten quarters with strong growth. Our growth in operating income and diluted earnings per share was mainly driven by higher sales and good cost controls.

“Looking at sales, we experienced solid growth in our three major geographic regions and in our ion chromatography and HPLC product lines, compared with sales from the first quarter of fiscal 2004. Sales in North America grew in the high-single digits for the quarter. Sales in Europe grew in the high teens in reported dollars and mid-single digits in local currency. We are very pleased with the continued growth coming from Europe as economic conditions in certain countries continue to be difficult. Sales in Asia/Pacific grew over 40% for the quarter, driven by strong growth in all countries, especially Japan and China. Compared with the last two quarters, there were minimal incremental sales from the new drinking water analysis regulations enacted in Japan in our last fiscal year.

“If we look at the markets that we serve, we experienced good growth in our major markets: life sciences, environmental, chemical/petrochemical and power.

 

 

“We believe that we are well-positioned for continued growth in fiscal 2005. Looking at the second quarter, we forecast that sales will be in the range of $70-$72 million and that diluted earnings per share will be in the range of $0.53-$0.55. For the entire year, we forecast that sales will be in the range of $277-$286 million and diluted earnings per share in the range of $2.14-$2.19. These forecasts are based on the following assumptions: (a) continued improvements in the U.S. and European economies, (b) the incremental sales from the drinking water analysis regulations enacted in Japan in fiscal 2004 will be minimal in fiscal 2005, and (c) currency fluctuations will provide a very small benefit to sales and earnings per share in the second quarter and the full fiscal year. Overall, we anticipate our underlying business will grow as strongly in 2005 as in fiscal 2004 (excluding the incremental sales in Japan and currency benefits).”

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 first quarter results in a conference call on Wednesday, October 20, 2004 at 1:30 p.m. Pacific Time (PT). To listen to the call live, please turn into the webcast via www.Dionex.com. A playback of the conference call will be available from 8:00 a.m. PT, Thursday, October 21, 2004 until 5:00 p.m. PT, Friday, December 31, 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, economic conditions in the areas in which the company sells its products, competition from other products, ability to attract and retain qualified personnel 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
    September 30,
    2004
   2003
Net sales
   $ 63,208     $ 53,276  
Cost of sales
     21,576       18,008  
 
    
 		      
 		  
Gross profit
     41,632       35,268  
 
    
 		      
 		  
Operating expenses:
                
Selling, general and administrative
     22,418       19,168  
Research and product development
     4,929       4,571  
 
    
 		      
 		  
Total operating expenses
     27,347       23,739  
 
    
 		      
 		  
Operating income
     14,285       11,529  
Interest income, net
     150       49  
Other income (expense)
     455       (332 )
 
    
 		      
 		  
Income before taxes on income
     14,890       11,246  
Taxes on income
     5,226       3,655  
 
    
 		      
 		  
Net income
   $ 9,664     $ 7,591  
 
    
 		      
 		  
Basic earnings per share
   $ 0.47     $ 0.36  
 
    
 		      
 		  
Diluted earnings per share
   $ 0.45     $ 0.35  
 
    
 		      
 		  
Shares used in computing per share amounts:
                
Basic
     20,718       20,981  
 
    
 		      
 		  
Diluted
     21,493       21,786  
 
    
 		      
 		  

 

 

DIONEX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
AT SEPTEMBER 30, 2004 AND JUNE 30, 2004
(In thousands)

                         
    September 30,   June 30,        
    2004
   2004
        
    (Unaudited)                
ASSETS
                        
Current assets:
                        
Cash and equivalents
   $ 61,605     $ 57,182          
Short-term investments
     1,863       1,604          
Accounts receivable, net
     49,417       53,128          
Inventories
     25,229       24,838          
Other current assets
     14,540       14,168          
 
    
 		      
 		          
Total current assets
     152,654       150,920          
Property, plant and equipment, net
     47,125       46,656          
Goodwill and other intangible assets
     28,802       29,032          
Other assets
     8,026       8,857          
 
    
 		      
 		          
 
   $ 236,607     $ 235,465          
 
    
 		      
 		          
LIABILITIES AND STOCKHOLDERS’ EQUITY
                        
Current liabilities:
                        
Notes payable
   $ 1,316     $ 1,468          
Accounts payable
     7,736       8,113          
Accrued liabilities
     31,163       31,822          
Income taxes payable
     2,430       2,214          
Accrued product warranty
     3,754       3,584          
 
    
 		      
 		          
Total current liabilities
     46,399       47,201          
Deferred income taxes and other
     4,847       4,810          
Stockholders’ equity
     185,361       183,454          
 
    
 		      
 		          
 
   $ 236,607     $ 235,465          
 
    
 		      
 		          

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