Dionex Corp. (DNEX) filed Quarterly Report for the period ended 2010-09-30.
Dionex Corp. has a market cap of $1.6 billion; its shares were traded at around $92.41 with a P/E ratio of 27.8 and P/S ratio of 3.8. Dionex Corp. had an annual average earning growth of 12% over the past 10 years. GuruFocus rated Dionex Corp. the business predictability rank of 5-star.DNEX is in the portfolios of Richard Aster Jr of Meridian Fund, RS Investment Management, Chuck Royce of Royce& Associates, Columbia Wanger of Columbia Wanger Asset Management, Steven Cohen of SAC Capital Advisors, Jim Simons of Renaissance Technologies LLC, Jeremy Grantham of GMO LLC.
Highlight of Business Operations:The taxes on income in the first quarter of fiscal 2011 and 2010 was $5.8 million and $5.9 million, respectively, representing an effective tax rate of 33.8% and 36.6%, respectively. The decrease in our tax rate was primarily due to lower accrued interest on exposures. We anticipate that our tax rate for fiscal 2011 will be in the range of 33% to 34%.
Net income in the first quarter of fiscal 2011 and 2010 was $11.0 million and $10.3 million, respectively, while diluted earnings per share were $0.62 and $0.57, respectively.
As of September 30, 2010, we had cash and cash equivalents and short-term investments of $77.0 million. Our working capital was $143.7 million, an increase of $26.5 million from $117.2 million reported as of September 30, 2009.
Cash used for investing activities was $9.4 million during the first quarter of fiscal 2011. Capital expenditures during the first quarter of 2011 were $5.2 million which included purchases related to our general operations, purchase of land required for expansion of our manufacturing capacity in Germering, Germany, and effects of foreign currency translations. In addition, we also negotiated and completed a paid-up royalty for $4.5 million related to our ESA products.
As of September 30, 2010, the liability for uncertain tax positions, net of offsetting tax benefits associated with the correlative effects of potential transfer pricing adjustments, state income taxes, and interest deductions was $1.9 million. As of September 30, 2010, the Company has accrued $1.9 million of interest and $69,000 of penalties associated with its uncertain tax positions. The Company cannot conclude on the range of cash payments that will be made within the next twelve months associated with its uncertain tax positions.
contracts are substantially offset by fluctuations in the underlying balances being hedged, and the net financial impact is not expected to be material in future periods. As of September 30, 2010, we had forward exchange contracts to sell foreign currencies totaling approximately $32.7 million, including approximately $23.8 million in Euros, $6.7 million in Japanese yen, $1.0 million in Australian dollars and $1.2 million in Canadian dollars. As of June 30, 2010, we had forward exchange contracts to sell foreign currencies totaling approximately $23.7 million, including approximately $17.7 million in Euros, $4.3 million in Japanese yen, $0.8 million in Australian dollars and $0.9 million in Canadian dollars. The foreign exchange contracts outstanding at the end of the period mature within one month. As of September 30, 2010 and June 30, 2010, we have approximately $1.5 million and $0.3 million, respectively, in other current liabilities in the condensed consolidated balance sheets related to the foreign currency exchange contracts. For the three months ended September 30, 2010 and 2009, we recorded realized pre-tax losses of approximately $2.2 million and $0.7 million, respectively, related to the closed foreign exchange forward contracts.
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