Dionex (DNEX) 8-K Dionex Reports Record Sales — Building Momentum, Fourth Quarter Net Income Lower on Charges

Exhibit 99.1

August 3, 2006	Contact: Craig McCollam
	Dionex Corporation
	408-481-4107

DIONEX REPORTS RECORD SALES — BUILDING MOMENTUM,
FOURTH QUARTER NET INCOME LOWER ON CHARGES

FOR RELEASE THURSDAY, AUGUST 3, 2006, P.M., 1:05 PDT

Sunnyvale, California — Dionex Corporation (NASDAQ:DNEX) today announced its results of operations for its fourth quarter and full fiscal year ended June 30, 2006.

For the fourth quarter, sales were a record $75.2 million, up 6% from the $71.2 million reported for the same period last year. The unfavorable effects of currency fluctuations reduced reported sales in the fourth quarter by $0.7 million, or 1%. Diluted earnings per share were $0.27 for the fourth quarter. Net income in the fourth quarter of fiscal 2006 included costs of $0.6 million, net of tax, or $0.03 per share, related to the impact of Statement of Financial Accounting Standards (SFAS) No.123R “Accounting For Stock-Based Compensation”; costs of $1.6 million, net of tax, or $0.08 per share related to the Company’s initiative to centralize some of its field related technical, administrative and support functions within North America and Europe, and other higher than expected severance costs in Europe; and special tax charges of $2.2 million, or $0.11 per share, primarily resulting from recent unfavorable tax audits.

For the fiscal year ended June 30, 2006, sales were a record $291.3 million, an increase of 4%, compared with the $279.3 million reported for the last fiscal year. The unfavorable effects of currency fluctuations reduced reported sales in fiscal 2006 by $7.3 million, or 3%. Diluted earnings per share for the year were $1.74. Net income for fiscal 2006 included costs of $3.8 million, net of tax, or $0.19 per share, related to the impact of SFAS No.123R; costs of $1.8 million, net of tax, or $0.09 per share related to the Company’s initiative to centralize some of its field related technical, administrative and support functions within North America and Europe and other higher than expected severance costs in Europe; special tax charges of $2.2 million, or $0.11 per share, and other income of $1.0 million, net of tax, or $0.05 per share, related to a
one-time gain from the favorable settlement of a patent litigation in the first quarter. Cash flow from operations was strong totaling $51 million for fiscal 2006.

During the fourth quarter, the Company repurchased 429,722 shares of its common stock for $24.2 million. In fiscal 2006, the Company repurchased 1,409,577 shares for $73.9 million, compared to the 1,355,900 shares repurchased for a total of $66.7 million in fiscal 2005. In addition, the Company announced today that its Board of Directors has approved the open market stock repurchase of up to an additional 1,500,000 shares of its common stock. This amount supplements the remaining 506,207 shares under the Company’s share repurchase programs previously announced.

Lukas Braunschweiler, President and Chief Executive Officer, commenting on the results, said, “We reported record sales based on strong organic growth, excluding currency effects, and we gained further momentum during the fourth quarter. Our operating results were lower than anticipated due to certain charges recorded in the fourth quarter. In addition to the factors we already discussed, our gross margin in the fourth quarter was negatively affected by additional costs related to the phase-out of our Summit HPLC product and the ramp up of production for our new Ultimate 3000 HPLC product line. Our cash flow from operations was strong.

“We experienced solid sales growth in all geographic regions and in both major product lines of ion chromatography and HPLC. Sales in North America grew in the low-double digits for the quarter, and in the mid single-digits for the year. Europe reported another good quarter, with sales growing in the high-single digits for the year as measured in local currencies. Sales in Japan grew in the fourth quarter for the first time in more than a year. Outside of Japan, sales in Asia/Pacific grew by approximately 20% for the year driven by strong sales in China, Korea, India and Australia.

“Demand from our Environmental market was slightly down for the quarter, but up for the full fiscal year. Sales in our Life Science market were up for the quarter and the full fiscal year. Demand from the Chemical/Petrochemical and Food/Beverage markets was up in the fourth quarter and for the full year.

“We also achieved good growth in both ion chromatography and HPLC in fiscal 2006, with our ion chromatography products sales growing in the mid-single digits despite lower sales in Japan, and with our analytical flow HPLC product sales growing 20%. The new Ultimate 3000 system for micro-, analytical- and preparative-flow HPLC applications introduced in March 2006 has been well received by our customers and contributed significantly to our fourth quarter results.

“We are well positioned for continued solid growth in fiscal 2007. Looking at the first quarter, we estimate that sales will be in the range of $71.0-$73.0 million and that GAAP diluted earnings per share will be in the range of $0.41-$0.44. For the entire fiscal year, we estimate that sales will be in the range of $305-$315 million and GAAP diluted earnings per share will be in the range of $2.06-$2.16. Among the assumptions on which our estimates for the entire year are based are: (1) demand from our life sciences customers will continue to improve; (2) currency rates will remain consistent with the rates at the end of June 2006; (3) our gross margin will improve slightly in the first quarter and sequentially in each quarter for the rest of the fiscal year and (4) costs related to our field centralization in North America and Europe will be approximately $1.0 million, net of tax, or $0.05 per share, most of which are expected to occur in the first 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.

Management of the Company will discuss the fourth quarter and full fiscal year results in a conference call on Thursday, August 3, 2006, at 1:30 p.m. Pacific Daylight Time (PDT). To listen to the call live, please tune into the webcast viawww.dionex.com. A playback of the conference call will be available from 8:00 a.m. PDT, Friday, August 4, 2006 until 5:00 p.m. PDT, Friday, September 29, 2006.

Certain statements contained herein that are not purely historical may be deemed to be forward-looking statements that involve risks and uncertainties. The Company’s actual results could differ materially from those discussed herein. 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 greater detail in the Company’s 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					Years Ended
	June 30,					June 30,
	2006			2005		2006		2005
Net sales	$	75,185		$	71,156	$	291,300	$	279,317
Cost of sales		26,432			22,564		99,857		91,754
Gross profit		48,753			48,592		191,443		187,563
Operating expenses:
Selling, general and administrative		31,022			28,644		113,241		102,539
Research and product development		5,743			5,227		22,392		20,354
Total operating expenses		36,765			33,871		135,633		122,893
Operating income		11,988			14,721		55,810		64,670
Interest income, net		678			346		1,690		1,100
Other income (expense)		(452	)		421		1,013		801
Income before taxes on income		12,214			15,488		58,513		66,571
Taxes on income		6,800			4,349		22,820		21,081
Net income	$	5,414		$	11,139	$	35,693	$	45,490
Basic earnings per share	$	0.27		$	0.55	$	1.78	$	2.20
Diluted earnings per share	$	0.27		$	0.53	$	1.74	$	2.13
Shares used in computing per share amounts:
Basic		19,849			20,357		20,013		20,655
Diluted		20,324			20,868		20,527		21,388

DIONEX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
AT JUNE 30, 2006 AND 2005
(In thousands)
(Unaudited)

	June 30,		June 30,
	2006		2005
ASSETS
Current assets:
Cash, cash equivalents and short term investments	$	51,014	$	53,781
Accounts receivable, net		63,008		55,450
Inventories		28,350		26,510
Other current assets		15,706		16,342
Total current assets		158,078		152,083
Property, plant and equipment, net		58,700		53,914
Goodwill and other intangible assets		29,504		27,555
Other assets		4,120		4,601
	$	250,402	$	238,153
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	9,395	$	10,031
Accrued liabilities		39,673		34,939
Income taxes payable		7,100		1,593
Accrued product warranty		3,493		3,514
Total current liabilities		59,661		50,077
Deferred income taxes and other		5,359		5,027
Stockholders’ equity		185,382		183,049
	$	250,402	$	238,153

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