SUNNYVALE, Calif., May 5, 2011 (GLOBE NEWSWIRE) -- Dionex Corporation (Nasdaq:DNEX) today announced results of operations for the third quarter and nine months ended March 31, 2011.
For the third quarter of fiscal 2011, sales were $123.1 million, an increase of 9% compared with the $112.8 million reported in the same quarter of last year. Currency fluctuations increased sales by 2 percentage points for the third quarter compared with the same period last year. Diluted earnings per share for the quarter were $0.94, a decrease of 5% compared with $0.99 reported in the same quarter of last year.
For the first nine months of fiscal 2011, sales were $350.1 million, an increase of 12% compared with the $312.6 million reported for the first nine months of fiscal 2010. Currency fluctuations did not have a significant impact on net sales for the first nine months of fiscal 2011. Diluted earnings per share for the first nine months of fiscal 2011 were $2.60, an increase of 5% compared with the $2.48 reported in the first nine months of fiscal 2010.
Frank Witney, President and Chief Executive Officer, commenting on the results, said, "We are pleased to have maintained our revenue growth momentum in the third quarter as we continue to work towards our merger with Thermo Fisher Scientific, Inc. Sales in each of our major geographic regions grew in the quarter. Net sales in North America increased by 12% for the quarter compared to the same period last year. European sales were up by 9% in reported dollars. Favorable currency fluctuations affected our reported sales growth in Europe by 2%. Growth in both of these regions was driven by our HPLC portfolio, specifically the strong commercial acceptance of our new UHPLC+ systems introduced in the fourth quarter of our fiscal 2010. Our Asia/Pacific sales were up by 8% in reported dollars. Favorable currency fluctuations affected our reported sales growth by 4%. The overall growth in Asia/Pacific was primarily due to continued strong demand for all of our HPLC products in China, India and Korea partially offset by a large order in Japan in the same quarter of last year. Operating income and diluted earnings per share for the quarter were affected by lower gross profit resulting from significantly higher HPLC sales, costs associated with moving the manufacturing of our ESA products, the effect of a large ion chromatography order in Japan in the third quarter of last year coupled with slightly higher operating expenses."
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 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 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 March 31, |
Nine Months Ended March 31, |
|||
| 2011 | 2010 | 2011 | 2010 | |
| Net sales | $ 123,090 | $ 112,782 | $ 350,075 | $ 312,610 |
| Cost of sales | 43,426 | 35,295 | 123,220 | 103,310 |
| Gross profit | 79,664 | 77,487 | 226,855 | 209,300 |
| Operating expenses: | ||||
| Selling, general and administrative | 45,915 | 42,218 | 130,101 | 118,705 |
| Research and product development | 8,964 | 8,355 | 26,348 | 23,180 |
| Total operating expenses | 54,879 | 50,573 | 156,449 | 141,885 |
| Operating income | 24,785 | 26,914 | 70,406 | 67,415 |
| Interest income, net | 64 | (106) | 114 | (64) |
| Other income (expense) | (685) | 426 | (2,238) | (28) |
| Income before taxes on income | 24,164 | 27,234 | 68,282 | 67,323 |
| Taxes on income | 6,888 | 8,997 | 20,826 | 21,579 |
| Net income | 17,276 | 18,237 | 47,456 | 45,744 |
| Less: Net income attributable to noncontrolling interest | 448 | 506 | 1,192 | 1,094 |
| Net income attributable to Dionex Corporation | $ 16,828 | $ 17,731 | $ 46,264 | $ 44,650 |
| Basic earnings per share attributable to Dionex Corporation | $ 0.96 | $ 1.01 | $ 2.66 | $ 2.53 |
| Diluted earnings per share attributable to Dionex Corporation | $ 0.94 | $ 0.99 | $ 2.60 | $ 2.48 |
| Shares used in computing per share amounts: | ||||
| Basic | 17,483 | 17,638 | 17,422 | 17,671 |
| Diluted | 17,974 | 17,957 | 17,824 | 18,014 |
| DIONEX CORPORATION | ||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||
| MARCH 31, 2011 AND JUNE 30, 2010 | ||
| (In thousands) | ||
| (Unaudited) | ||
|
March 31, 2011 |
June 30, 2010 |
|
| ASSETS | ||
| Current assets: | ||
| Cash, cash equivalents and short term investments | $ 107,330 | $ 70,278 |
| Accounts receivable, net | 96,242 | 86,780 |
| Inventories | 47,943 | 37,458 |
| Other current assets | 38,911 | 33,027 |
| Total current assets | 290,426 | 227,543 |
| Property, plant and equipment, net | 83,758 | 76,062 |
| Goodwill and other intangible assets | 52,415 | 48,872 |
| Other assets | 10,285 | 9,511 |
| $ 436,884 | $ 361,988 | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Borrowings under line of credit | $ 49 | $ 3,149 |
| Accounts payable | 19,030 | 17,303 |
| Accrued liabilities | 38,369 | 33,980 |
| Deferred Revenue | 27,497 | 25,203 |
| Income taxes payable | 4,677 | 5,247 |
| Accrued product warranty | 2,841 | 2,532 |
| Total current liabilities | 92,463 | 87,414 |
| Deferred income taxes and other | 25,793 | 23,699 |
| Total Dionex Corporation stockholders' equity | 316,256 | 248,783 |
| Noncontrolling interests | 2,372 | 2,092 |
| $ 436,884 | $ 361,988 | |