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 | |