SUNNYVALE, Calif., Oct. 31, 2007 (PRIME NEWSWIRE) -- Dionex Corporation (Nasdaq:DNEX) today announced its results of operations for the first quarter ended September 30, 2007.
Net sales for the first quarter of fiscal 2008 were $82.4 million, an increase of 13% compared with the $72.9 million reported in the first quarter of last year. Currency fluctuations increased sales by $2.2 million, or 3%, for the first quarter compared with the same period last year. Operating income for the first quarter of fiscal 2008 was $16.0 million, an increase of 16%, compared with $13.7 million in the first quarter of last year. Diluted earnings per share for the quarter were $0.53, an increase of 20% compared with the $0.44 reported in the same quarter of last year. Net income in the first quarter of last year included costs of approximately $650,000, net of tax, or $0.03 per diluted share, related to the Company's initiative to centralize some of its field related technical, administrative and support functions within North America and Europe. Cash flow from operating activities was strong at $13 million for the first quarter of fiscal 2008.
During the first quarter of fiscal 2008, the Company repurchased 257,825 shares of its common stock for $18.6 million. In the first quarter of fiscal 2007, the Company repurchased 437,000 shares of its common stock for $21.5 million.
Lukas Braunschweiler, President and Chief Executive Officer, commenting on the results, said, "We are very pleased with the results for the first quarter of this fiscal year. We reported the highest first quarter sales in the Company's history. Our operating profit and earnings grew at a very strong rate in the first quarter; earnings per share exceeded the high end of our guidance.
"Sales in North America were up strongly, with percentage growth in the mid teens for the quarter compared to the first quarter of last year, reflecting a continued improvement in the business as reported for the second half of fiscal 2007. Percentage sales growth in Europe was in the low-double digits in reported dollars and in the mid-single digits in local currency. Sales in our Asia/Pacific region grew in the mid-teens this quarter showing solid growth in all countries; notably in China, Korea, Australia and India.
"Compared to the first quarter of last year, demand from our life sciences and environmental customers was up significantly this quarter. Demand from our chemical/petrochemical customers was up slightly in the first quarter.
"We saw continued strong growth in sales of our ion chromatography products in the first quarter compared to the same quarter last year with sales growing in the mid-teens on a percentage basis and driven by all three global regions. Our HPLC product line sales grew in the high-single digits for the quarter supported by strong performances in North America and Asia/Pacific.
"We believe that we are well positioned for good sales and earnings growth in the remainder of fiscal 2008. We estimate that net sales will be in the range of $88-$91 million for the second quarter and diluted earnings per share will be in the range of $0.70-$0.72. We estimate that our sales for the full year will be in the range of $351-$359 million and diluted earnings per share in the range of $2.52-$2.62. Among the assumptions on which our estimates were based are: (1) our gross margin will improve sequentially and be approximately 65%-66% in fiscal 2008; (2) currency rates will provide a benefit of 2-3 percentage points on sales in fiscal 2008; and (3) our tax rate for the rest of the fiscal year 2008 should be in the range of 36%-37% (our tax rate in the second quarter of fiscal 2007 included a discrete tax benefit of $550,000 or $0.03 per share)."
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.
Management of the Company will discuss the first quarter results in a conference call on Wednesday, October 31, 2007, 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 8:00 a.m. PT, Wednesday, November 1, 2007 until 5:00 p.m. PT, Monday, December 31, 2007.
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, competition from other products, 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
September 30,
2007 2006
-------- --------
Net sales $82,423 $72,857
Cost of sales 28,696 24,959
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Gross profit 53,727 47,898
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Operating expenses:
Selling, general and administrative 31,156 28,429
Research and product development 6,601 5,748
-------- --------
Total operating expenses 37,757 34,177
-------- --------
Operating income 15,970 13,721
-------- --------
Interest income, net 467 309
Other expense, net (751) (331)
-------- --------
Income before taxes on income 15,686 13,699
Taxes on income 5,536 5,028
-------- --------
Net income $10,150 $ 8,671
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Basic earnings per share $ 0.54 $ 0.45
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Diluted earnings per share $ 0.53 $ 0.44
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Shares used in computing per share amounts:
Basic 18,765 19,441
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Diluted 19,294 19,855
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DIONEX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
AT SEPTEMBER 30, 2007 AND JUNE 30, 2007
(In thousands)
(Unaudited)
September 30, June 30,
2007 2007
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ASSETS
Current assets:
Cash, cash equivalents and short term
investments $ 69,577 $ 55,062
Accounts receivable, net 64,527 65,990
Inventories 31,001 28,626
Other current assets 20,665 21,097
---------- ----------
Total current assets 185,770 170,775
Property, plant and equipment, net 63,297 62,366
Goodwill and other intangible assets 32,473 32,398
Other assets 16,967 6,230
---------- ----------
$298,507 $271,769
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable $ 18,246 $ 231
Accounts payable 12,663 12,293
Accrued liabilities 45,921 48,946
Income taxes payable 6,920 13,068
Accrued product warranty 2,954 2,875
---------- ----------
Total current liabilities 86,704 77,413
Deferred income taxes and other long-term
liabilities 26,557 8,648
Stockholders' equity 185,246 185,708
---------- ----------
$298,507 $271,769
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