updated 2/7/2011 4:17:57 PM ET 2011-02-07T21:17:57

SUNNYVALE, Calif., Feb. 7, 2011 (GLOBE NEWSWIRE) -- Dionex Corporation (Nasdaq:DNEX) today announced record sales and earnings per share for the second quarter and six months ended December 31, 2010.

For the second quarter of fiscal 2011, sales were $124.1 million, an increase of approximately 14% compared with the $109.2 million reported in the same quarter of last year. Currency fluctuations had virtually no impact on the sales growth during the quarter. Diluted earnings per share for the quarter were $1.04, an increase of 13% compared with $0.92 reported in the same quarter of last year.

For the first six months of fiscal 2011, sales were $227.0 million, an increase of approximately 14% compared with the $199.8 million reported for the first six months of fiscal 2010. Overall, currency fluctuations decreased sales in the first six months of fiscal 2011 by approximately 1%. Diluted earnings per share for the first six months of fiscal 2011 were $1.66, an increase of approximately 11% compared with the $1.49 reported in the first six months of fiscal 2010.

For the three and six months ended December 31, 2010, the Company repurchased 15,477 and 202,660 shares of its common stock for $1.4 million and $15.4 million, respectively. 

Frank Witney, President and Chief Executive Officer, commenting on the results, said, "We reported the highest quarterly sales and diluted earnings per share in the history of the Company and strong operating results for the quarter. Organic sales growth of 14% for the second quarter was driven by double-digit local currency sales growth in all three major geographic regions, in particular strong growth in our Asia-Pacific region. Operating income also increased at a rate of 13% as operating expenses as a percentage of net sales decreased by over one percentage point as we continued to manage operating expenses.

"Net sales in North America increased 14% for the quarter compared to the same period last year. Constant currency sales in Europe grew by 11%, however, unfavorable currency fluctuations reduced our reported sales growth to 7%. Constant currency sales in Asia/Pacific grew by 19% for the quarter, while reported dollars sales growth was 22% driven by strong performances in all countries, particularly Japan and China. One key driver of our growth in Asia/Pacific is the continued strong demand for our HPLC products, especially in China.

"Sales of our ion chromatography products were up 11% in the second quarter due to strong demand for our IC instrumentation and consumables, while HPLC growth over the same period was up 21%."

As previously reported on December 13, 2010, the Company has entered into an Agreement and Plan of Merger with Thermo Fisher Scientific Inc. As previously disclosed, the HSR waiting period in the US expired in early January. Thermo Fisher is in the process of seeking similar clearances under anti-trust laws of other jurisdictions, and we expect to complete the acquisition early in our fiscal fourth quarter.

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.

Certain statements contained herein or made in the quarterly conference call that are not purely historical are forward-looking statements Factors that may cause actual results to differ from these statements are foreign currency fluctuations, ability to attract and retain qualified personnel, economic conditions in the areas in which the company sells its products and demand for analytical instrumentation. These factors and other risks and uncertainties are discussed in greater detail in the Company's most recent 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   Six Months Ended 
   December 31,   December 31, 
  2010 2009 2010 2009
         
 Net sales   $ 124,111  $ 109,164  $ 226,985  $ 199,828
 Cost of sales   43,322  36,975  79,794  68,015
 Gross profit   80,789  72,189  147,191  131,813
         
 Operating expenses:         
 Selling, general and administrative   43,920  40,503  84,186  76,487
 Research and product development   9,370  7,654  17,383  14,825
 Total operating expenses   53,290  48,157  101,569  91,312
         
 Operating income   27,499  24,032  45,622  40,501
         
 Interest income, net   23  (4)  50  43
 Other income (expense)   (516)  (494)  (1,554)  (454)
         
 Income before taxes on income   27,006  23,534  44,118  40,090
 Taxes on income   8,148  6,614  13,938  12,583
 Net income   18,858  16,920  30,180  27,507
 Less: Net income attributable to noncontrolling interest   383  338  744  588
 Net income attributable to Dionex Corporation   $ 18,475  $ 16,582  $ 29,436  $ 26,919
         
 Basic earnings per share attributable to Dionex Corporation   $ 1.06  $ 0.94  $ 1.69  $ 1.52
 Diluted earnings per share attributable to Dionex Corporation   $ 1.04  $ 0.92  $ 1.66  $ 1.49
 Shares used in computing per share amounts:         
 Basic   17,394  17,654  17,391  17,678
 Diluted   17,802  18,025  17,750  18,032
     
 DIONEX CORPORATION 
 CONDENSED CONSOLIDATED BALANCE SHEETS 
 DECEMBER 31, 2010 AND JUNE 30, 2010 
 (In thousands) 
(Unaudited)
     
  December 31, June 30,
  2010 2010
     
 ASSETS     
     
 Current assets:     
 Cash, cash equivalents and short term investments   $ 92,525  $ 70,278
 Accounts receivable, net   87,721  86,780
 Inventories   43,580  37,458
 Other current assets   38,209  33,027
 Total current assets   262,035  227,543
     
 Property, plant and equipment, net   79,984  76,062
 Goodwill and other intangible assets   52,638  48,872
 Other assets   9,958  9,511
   $ 404,615  $ 361,988
     
 LIABILITIES AND STOCKHOLDERS' EQUITY     
     
 Current liabilities:     
 Borrowings under line of credit   $ 52  $ 3,149
 Accounts payable   16,987  17,303
 Accrued liabilities   38,497  33,980
 Deferred Revenue   23,352  25,203
 Income taxes payable   4,174  5,247
 Accrued product warranty   2,620  2,532
     
 Total current liabilities   85,682  87,414
     
 Deferred income taxes and other   27,778  23,699
 Total Dionex Corporation stockholders' equity   289,078  248,783
 Noncontrolling interests   2,077  2,092
   $ 404,615  $ 361,988
CONTACT: Craig McCollam
         Dionex Corporation
         408-481-4107

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