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Dionex Corp. Reports Operating Results (10-Q)

February 08, 2011 | About:
10qk

10qk

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Dionex Corp. (DNEX) filed Quarterly Report for the period ended 2010-12-31.

Dionex Corp. has a market cap of $2.07 billion; its shares were traded at around $117.65 with a P/E ratio of 35.5 and P/S ratio of 4.9. 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.Hedge Fund Gurus that owns DNEX: Steven Cohen of SAC Capital Advisors. Mutual Fund and Other Gurus that owns DNEX: RS Investment Management, Richard Aster Jr of Meridian Fund, Chuck Royce of Royce& Associates, Chuck Royce of Royce& Associates, Mario Gabelli of GAMCO Investors, Columbia Wanger of Columbia Wanger Asset Management.

Highlight of Business Operations:

Interest income for the three and six months ended December 31, 2010 was $61,000 and $121,000, respectively, as compared to $32,000 and $115,000, respectively, in the corresponding periods in the prior fiscal year. Our interest income was affected by a combination of the maturity of one of our short-term investments and lower interest rates in the U.S. and Europe during the three and six months ended December 31, 2010.

Interest expense for the three and six months ended December 31, 2010 was $38,000 and $71,000, respectively, as compared to $36,000 and $72,000, respectively, in the corresponding periods in the prior fiscal year. Our interest expense was affected by combination of a lower average balance in our borrowing under the line of credit in three and six months ended December 31, 2010.

Net income attributable to noncontrolling interests for the three and six months ended December 31, 2010 was $0.4 million and $0.7 million, respectively, as compared to $0.3 million and $0.6 million, respectively, in the corresponding periods in the prior fiscal year. Net income attributable to noncontrolling interests represents the minority shareholders proportionate share of the net income recorded by majority-owned international subsidiaries. The increase was due to better performance in India and Brazil.

Net income for the three and six months ended December 31, 2010 was $18.4 million and $29.4 million, respectively, as compared to $16.6 million and $26.9 million, respectively, in the corresponding periods in the prior fiscal year. The diluted earnings per share for three and six months ended December 31, 2010 were $1.04 and $1.66, respectively, as compared to $0.92 and $1.49, respectively, in the corresponding periods in the prior fiscal year.

As of December 31, 2010, we had cash and cash equivalents and short-term investments of $92.5 million. Our working capital as of December 31, 2010 was $176.4 million, an increase of $36.3 million from $140.1 million reported as of June 30, 2010.

Revenues generated from international operations are generally denominated in foreign currencies. We entered into forward foreign exchange contracts to hedge against fluctuations of intercompany account balances. Market value gains and losses on these hedge 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 December 31, 2010, we had forward exchange contracts to sell foreign currencies totaling approximately $21.9 million, including approximately $8.8 million in Euros, $6.4 million in Japanese yen, $1.2 million in Australian dollars, $1.2 million in Canadian dollars, $3.7 million in British pound sterling, and $0.6 million in Swiss Francs. 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 December 31, 2010 and June 30, 2010, we have approximately $0.4 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 six months ended December 31, 2010 and 2009, we recorded realized pre-tax losses of approximately $3.0 million and $0.6 million, respectively, related to the closed foreign exchange forward contracts.

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