EXHIBIT 99.1
Dionex Reports Record Net Sales and Earnings for the Fourth Quarter
SUNNYVALE, Calif., Aug. 9, 2007 (PRIME NEWSWIRE) -- Dionex Corporation (Nasdaq:DNEX) today announced record net sales and earnings for the fourth quarter and full year ended June 30, 2007.
For the fourth quarter of fiscal 2007, sales were $86.0 million, an increase of 14% compared with the $75.2 million reported in the fourth quarter of last year. Currency fluctuations increased sales by $2.2 million, or 3%, for the fourth quarter compared with the same period last year. Diluted earnings per share were $0.61 for the fourth quarter, an increase of 126%, compared with the $0.27 reported in the fourth quarter of last year. Net income in the fourth quarter of fiscal 2006 included costs of approximately $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 in North America and Europe and higher corporate taxes due to a one-time tax charge of $2.2 million or $0.11 per share resulting from a tax audit.
For the full year ended June 30, 2007, sales were $327.3 million, an increase of 12% compared with the $291.3 million reported for the same period of last year. Currency fluctuations increased sales by $9.1 million, or 3%, for the fiscal year 2007 compared with fiscal 2006. Diluted earnings per share were $2.31, an increase of 33% compared with the $1.74 reported for fiscal 2006. Net income for fiscal 2007 included costs of approximately $700,000, net of tax, or $0.04 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 a discrete tax benefit from the extension of the federal research credit of approximately $550,000 or $0.03 per share. Net income for fiscal 2006 included costs of approximately $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 in North America and Europe, h igher corporate taxes due to a one-time tax charge of $2.2 million or $0.11 per share resulting from a tax audit, and other income of $1.0 million, net of tax, or $0.05 per share, related primarily to a one-time gain from the favorable settlement of patent litigation.
Cash flow from operations was approximately $19 million for the fourth quarter and approximately $70 million for fiscal year 2007. During the quarter, the Company repurchased 282,224 shares of its common stock for $20.1 million. In fiscal 2007, the Company repurchased a total of 1,185,100 shares of its common stock for $69.6 million.
Lukas Braunschweiler, President and Chief Executive Officer, commenting on the results, said, "We are very pleased with the results of the fourth quarter. We achieved the highest quarterly and annual sales results in the Company's history. We reported strong fourth quarter profits as we saw good sales growth and an expansion in our operating income margin.
"We achieved growth in the fourth quarter in all three major geographic regions, in both of our major product lines, ion chromatography and HPLC, and in each of our major end-user markets, including life sciences, environmental and chemical/petrochemical. Sales in North America grew 8% for the quarter after strong third quarter growth. Sales in our European region grew by 19% in reported dollars and 12% in local currency, driven primarily by growth in the life sciences market. Sales in our Asia/Pacific region grew 13% in the fourth quarter in reported dollars and 14% in local currency.
"Sales of our ion chromatography products grew in the mid-teens in the fourth quarter driven by strong demand for both our RFIC instrumentation lines and consumables in each major geographic region. Our HPLC business grew in the high-single digits in the fourth quarter experiencing solid growth on a global basis.
"We believe that our performance in the fourth quarter leaves us well positioned for continued sales and earnings growth in fiscal year 2008. We estimate that net sales will be in the range of $77-$80 million and diluted earnings per share in the range of $0.47-$0.50 in the first quarter of fiscal 2008. For the full year, we estimate that sales will be in the range of $350-$358 million and diluted earnings per share in the range of $2.50-$2.60. Among the assumptions on which our guidance is based are: (1) currency rates will have a 1-2 percentage point positive impact on sales for all of fiscal 2008; and (2) our gross margin will be approximately 66% for fiscal year 2008."
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 results in a conference call on Thursday, August 9, 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, Friday, August 10, 2007 until 5:00 p.m. PT, Friday, September 28, 2007.
Certain statements contained herein that are not purely historical (such as statements related to the Company's future plans and prospects including its sales and earnings growth estimates) may be deemed to be forward-looking statements which are subject to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward looking statements include, among other things, statements regarding future events and the future financial performance of the Company that involve risks and uncertainties. Readers are cautioned that these forward looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors including: foreign currency fluctuations, competition from other products, economic conditions in the areas in which the company sells its products, and demand for analytical instrumentation and other factors listed in the Company's most recent reports on Form 10-K and Form 10-Q. The financial information contained in th is release should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's most recent reports on Form 10-K and Form 10-Q, each as it may be amended from time to time. The Company's results of operations for the fourth quarter and twelve months ended June 30, 2007 are not necessarily indicative of the Company's operating results for any future periods. Any projections in this release are based on limited information currently available to the Company, which is subject to change. Although any such projections and the factors influencing them will likely change, the Company will not necessarily update the information, since the Company will only provide guidance at certain points during the year. Such information speaks only as of the date of this release.
DIONEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Twelve Months Ended
June 30, June 30,
2007 2006 2007 2006
-------- -------- -------- --------
Net sales $ 85,954 $ 75,185 $327,284 $291,300
Cost of sales 27,229 26,432 109,015 99,857
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Gross profit 58,725 48,753 218,269 191,443
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Operating expenses:
Selling, general and
administrative 33,131 31,022 123,525 113,241
Research and product
development 6,528 5,743 24,737 22,392
-------- -------- -------- --------
Total operating
expenses 39,659 36,765 148,262 135,633
-------- -------- -------- --------
Operating income 19,066 11,988 70,007 55,810
Interest income, net 364 678 1,100 1,690
Other income (expense) 47 (452) 183 1,013
-------- -------- -------- --------
Income before taxes on
income 19,477 12,214 71,290 58,513
Taxes on income 7,590 6,800 25,968 22,820
-------- -------- -------- --------
Net income $ 11,887 $ 5,414 $ 45,322 $ 35,693
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Basic earnings per share $ 0.63 $ 0.27 $ 2.37 $ 1.78
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Diluted earnings per
share $ 0.61 $ 0.27 $ 2.31 $ 1.74
======== ======== ======== ========
Shares used in computing
per share amounts:
Basic 18,904 19,849 19,136 20,013
======== ======== ======== ========
Diluted 19,445 20,324 19,615 20,527
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DIONEX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
AT JUNE 30, 2007 AND JUNE 30, 2006
(In thousands)
(Unaudited)
June 30, June 30,
2007 2006
-------- --------
ASSETS
Current assets:
Cash, cash equivalents
and short term investments $ 55,062 $ 51,014
Accounts receivable, net 65,990 63,008
Inventories 28,626 27,702
Other current assets 21,097 15,706
-------- --------
Total current assets 170,775 157,430
Property, plant and equipment,
net 62,366 58,700
Goodwill and other intangible
assets 32,398 29,504
Other assets 6,230 4,768
-------- --------
$271,769 $250,402
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable $ 231 $ --
Accounts payable 12,293 9,395
Accrued liabilities 48,946 39,673
Income taxes payable 11,914 7,100
Accrued product warranty 2,875 3,493
-------- --------
Total current liabilities 76,259 59,661
Deferred income taxes and other 6,654 5,359
Stockholders' equity 188,856 185,382
-------- --------
$271,769 $250,402
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CONTACT: Dionex Corporation
Craig McCollam
(408) 481-4107
