Reader contribution: DIONEX - for the conservative investor?
Wednesday July 22, 9:01 am Eastern Time
Company Press Release
SOURCE: Dionex Corporation
Dionex Reports Eighteenth Consecutive Year of Record
Sales and Earnings
SUNNYVALE, Calif., July 22 /PRNewswire/ -- Dionex Corporation
(Nasdaq: DNEX - news) today announced record revenues and
earnings for its fourth quarter and year ended June 30, 1998.
Sales for the fourth quarter were $38,756,000, an increase of 4%
over the $37,299,000 reported in the same period last year. Had
currency rates remained the same as last year, sales growth for
the quarter would have been 7%. Net income was $7,547,000, a 5%
increase compared with net income of $7,162,000 reported in the
fourth quarter last year. Diluted earnings per share increased
14% to $.32, compared with $.28 in the fourth quarter of fiscal
1997.
For the twelve months ended June 30, 1998 sales increased 6%, to
$150,513,000, compared with $142,053,000 in fiscal 1997. Had
currency rates remained the same as last fiscal year, sales
growth for the year would have been 10%. Net income for the year
totaled $28,650,000 or $1.18 per share, an increase of 15% from
the $1.03 in diluted earnings per share reported for fiscal 1997.
Net income and earnings per share reflect the Company's ongoing
stock repurchase program, under which Dionex repurchased
1,851,460 shares of its common stock during fiscal 1998, compared
with 1,583,478 shares repurchased in fiscal 1997. All share and
earnings per share amounts have been restated to reflect the
Company's two-for-one split of its common stock in June 1998.
A. Blaine Bowman, Dionex President and Chief Executive Officer,
commenting on the results, said, ''Fiscal 1998 was a record year
for Dionex as we reported increased sales and earnings for the
eighteenth consecutive year. We experienced good sales growth,
despite the effects of a much stronger U.S. dollar throughout the
year and significantly weaker demand in Asia in the last half of
the fiscal year. Demand for our products in North America and
Europe was quite strong throughout the year. Constant currency
sales growth of 10% for fiscal 1998 was in line with our
objective of achieving double-digit sales growth. Importantly, we
also introduced several new products in the second half of fiscal
1998, highlighted by the EG40 Eluent Generator, two new pumps for
our DX-500 Series and several new consumables products. We
believe these products have us well positioned in the marketplace
as we head into fiscal 1999.''
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
pharmaceutical, life sciences, food and beverage, chemicals,
petrochemicals, power generation and electronics industries in a
variety of applications.
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, competition from other products, economic
conditions in the areas in which the company sells its products,
and existing product obsolescence. These factors and other risks
and uncertainties are discussed in greater detail in the
Company's Report on Form 10-K filed with the Securities and
Exchange Commission.
DIONEX CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
Three Months Ended Twelve
Months Ended
June 30, June
30,
1998 1997 1998 1997
(Unaudited)
Net sales $38,756 $37,299 $150,513 $142,053
Cost of sales 12,136 11,676 47,390 43,458
Gross profit 26,620 25,623 103,123 98,595 Operating expenses:
Selling, general and
administrative 12,072 11,795 47,689 47,344
Research and product
development 3,388 3,250 13,284 12,521
Total operating
expenses 15,460 15,045 60,973 59,865
Operating income 11,160 10,578 42,150 38,730 Interest income, net 275 355 1,259 1,311 Income before taxes on
income 11,435 10,933 43,409 40,041
Taxes on income 3,888 3,771 14,759 13,814
Net income $7,547 $7,162 $28,650 $26,227 Basic earnings per
share $0.33 $0.30 $1.25 $1.09 Diluted
earnings per share $0.32 $0.28 $1.18 $1.03
Shares used in computing
per share amounts:
Basic 22,550 23,800 22,978 24,103 Diluted 23,797 25,235 24,316 25,440
DIONEX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
AT JUNE 30, 1998 and 1997
(In thousands)
1998 1997
ASSETS
Current assets:
Cash and equivalents $19,034 $32,876
Accounts receivable 31,350 29,226
Inventories 9,921 9,479
Other current assets 9,054 8,212
Total current assets 69,359 79,793
Property, plant and equipment, net 30,070 30,225
Other assets 7,830 8,145
$107,259 $118,163
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $5,681 $4,442
Accrued liabilities 17,394 18,639
Income taxes payable 6,526 4,905
Accrued product warranty 4,013 3,592
Total current liabilities 33,614 31,578
Deferred income taxes and other 2,956 2,422
Stockholders' equity 70,689 84,163
$107,259 $118,163
SOURCE: Dionex Corporation |
