Dionex Corporation (DNEX)
F3Q10 (Qtr End 03/31/10) Earnings Call Transcript
May 6, 2010 4:30 pm ET
Craig McCollam – EVP and CFO
Frank Witney – President and CEO
Peter Lawson – Thomas Weisel Partners
Richard Eastman – Robert W. Baird & Co.
Chuck Murphy – Sidoti & Company
Previous Statements by DNEX
» Dionex Corporation, F2Q09 (Qtr End 12/31/08) Earnings Call Transcript
» Dionex Corporation F1Q09 (Qtr End 09/30/08) Earnings Call Transcript
» Dionex Corporation F4Q08 (Qtr End 06/30/08) Earnings Call Transcript
I would like to welcome you to the
Dionex Corporation conference call for the third quarter of fiscal-year 2010. Frank Witney, President and Chief Executive Officer; and Craig McCollam, Executive Vice President and Chief Financial Officer of Dionex Corporation will be discussing the results for the third quarter and the first nine months of the fiscal-year 2010.
I will now turn the call over to Mr. McCollam.
Thank you. Good afternoon everybody. I would like to begin by reading our Safe Harbor statement. Certain statements contained in this call 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 are only predictions and may differ materially from the actual future events or results due to a variety of factors including economic conditions in the areas in which the company sells its products, demand in the analytical instrumentation market, foreign currency fluctuations, our ability to manufacture products on an efficient and timely basis and at a reasonable cost and in sufficient volume, competition in the analytical instrumentation market, our ability to attract and retain qualified personnel, existing product obsolescence, and other risks and uncertainties listed in the company’s most recent reports on Form 10-K and Form 10-Q.
The financial information contained in this conference call should be considered in conjunction with the consolidated financial statements and notes thereto included in the company’s most recent reports on Form 10-K and Form10-Q, each as it may be amended from time to time. The company’s results of operations for the third quarter ended March 31, 2010 are not necessarily indicative of the company’s operating results for any future periods.
Any projections in this call are based on limited information currently available to the company, which is subject to change. Although 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 call.
I will now turn the call over to Frank Witney.
Good afternoon, everyone. I would like to welcome you to our conference call for the third quarter of fiscal-year 2010 ended March 31, 2010. Let me begin by saying that we are very pleased with our results for the third quarter of fiscal-year 2010.
This quarter reflects the first quarter of strong organic growth in several quarters and economic conditions seem to have stabilized and are showing signs of growth. We announced our highest quarterly sales in our history reporting over $112 million in sales for the first time. We also reported record earnings per share for the quarter mainly driven by strong sales and gross margins.
We also maintained good controls over our operating expenses during the quarter, as Craig
will describe in more detail later, and we continued to monitor and control our expenses closely. We achieved results near the high end of our guidance for sales and surpassed our guidance for GAAP earnings per share.
Sales were $112.8 million for the third quarter of fiscal-year 2010 growing 19% compared with the $94.4 million in the same period last year. Currency fluctuations increased our reported sales by approximately $5 million or 5 percentage points compared with the third quarter of last year. In addition, sales from our acquisition of ESA Life Sciences Tools business added approximately $3.5 million in the quarter. Thus our organic growth for the quarter was 10%.
GAAP diluted earnings per share were $0.99 for the third quarter compared to the $0.84 reported in the third quarter last year, an increase of 18%.
Sales for the first nine months of fiscal-year 2010 grew 7% to $312.6 million compared to $290.9 million reported in the first nine months of last fiscal year. Currency fluctuations increased our reported sales by $10.6 million or 4% in the first nine months of fiscal year compared with the first nine months of last fiscal year.
GAAP diluted earnings per share were $2.48, an increase of 3% compared to the $2.41 report in the first nine months of last year.
Cash flow from operations during the quarter was $17 million. In the third quarter, we repurchased 132,308 shares of our common stock for $9.2 million, bringing our year to date total to 476,126 shares repurchased for $31.2 million.
In summary, we are very pleased with the operating results we achieved for the third quarter of this fiscal year. Let me give you some more details about our specific markets, geography and product line performance for the quarter and the first nine months of fiscal-year 2010.
Demand grew during the quarter in all our major customer end markets. Demand from our chemical, petrochemical, electronics and power customers rebounded strongly during the quarter, growing over 30% in each of these markets.
In our environmental, life sciences and food and beverage markets, demand from our customers was up in the third quarter but not strongly as the other markets. These segments have performed well for us over the last several quarters despite the economic weakness.