Dionex Corporation (DNEX)
F4Q10 (Qtr End 6/30/10) Earnings Call
August 12, 2010 4:30 pm ET
Craig McCollam – EVP and CFO
Frank Witney – President and CEO
Richard Eastman – Robert W. Baird & Co.
Chuck Murphy – Sidoti & Co.
Jonathan Palmer – CLSA
John Wood – Jefferies.
I would like to welcome you to the Dionex Corporation Conference Call for the Fourth Quarter of Fiscal Year 2010.
Previous Statements by DNEX
» Dionex Corporation F3Q10 (Qtr End 03/31/10) Earnings Call Transcript
» Dionex Corporation, F2Q09 (Qtr End 12/31/08) Earnings Call Transcript
» Dionex Corporation F1Q09 (Qtr End 09/30/08) Earnings Call Transcript
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 of the fourth quarter and the full fiscal year 2010.
I will know turn the call over to Mr. McCollam.
Thank you. Good afternoon, everybody. I’d like to begin our call 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 estimate 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 actual future events or results due to a variety of factors including demand in the analytical instrumentation market, conditions in the areas in which the company sells its products, foreign currency fluctuations, our ability to manufacturer product on an efficient and timely basis and at reasonable cost and sufficient volume, competition in the analytical instrumentation market, our ability to attract and retain qualified personnel, existing product obsolescence and other risk and uncertainties listed in the company’s most recent report on Form 10-K and Form 10-Q.
The financial information contained in this conference call should be considered in conjunction with our consolidated financial statements and notes thereto included in the company’s most recent reports on Form 10-K and Form 10-Q. Each of them may be amended from time to time.
The company’s results of operations for the fourth quarter and the year ended June 30, 2010 are not necessarily indicative of the company’s operating results for any future period.
Any projections in this call 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 we will only provide guidance at certain points during the year. Such information speaks only as of the date of this call.
Now, I’ll turn it over to Frank Witney.
Thank you, Craig. I’d like to welcome you all to our conference call for the Fourth Quarter and Fiscal Year ended June 30, 2010.
Let me start by saying we are very pleased with our fourth quarter operating and financial results as well as the momentum we carry into our new fiscal year.
We had very strong sales quotes for the quarter at 14%. In addition, we were able to report full-year revenue growth despite the difficult economic conditions that we experienced in the first six months of the fiscal year.
Looking at our fourth quarter results, we are particularly pleased with our strong operating income growth at 21%. Moreover, we grew our diluted earnings per share by 29%.
In addition, as we will describe later in the call, we completed several strategically important initiatives that we believe will help drive growth in the upcoming year.
Sales were $107 million for the quarter, an increase of 14% compared with 94.2 million in the same period last year. Foreign currency fluctuations had a small positive impact on the quarter.
Excluding sales of our ESA products, and affects of foreign currency, organic sales growth for the fourth quarter was 8%. Earnings per share for the quarter were $0.81 compared to the $0.63 reported in the fourth quarter of last year, an increase of 29%.
Sales for the full fiscal year 2010 were 419.6 million, an increase of 9% compared with $385 million reported in the full fiscal year of 2009.
Foreign currency fluctuations for the year added 11.3 million, or two percentage points to our sales growth.
On an organic basis, sales grew by 3% in Fiscal Year 2010. Diluted earnings per share were $3.28, an increase of 8% compared to $3.04 in the full fiscal year 2009.
We were pleased to generate $13 million of cash flow from operations during the quarter, and we used this cash flow to repurchase 299,518 shares of our common stock for $23.7 million. Year-to-date, the company has repurchased 775,644 shares of its common stock for $54.9 million.
Let me now give you some more details about our operational performance.
We achieved growth in most of our customer markets in the fourth quarter including the Power, Chemical, Petrochemical and particular strong growth in Life Sciences, Electronics and Food and Beverage markets. For the full year, we saw growth in all our end-user markets except Power.
Let’s now look at sales by major geographic regions.
We experienced fourth quarter sales growth in all three of our major geographic regions. North America continued a strong performance from the third quarter growing 26% compared with fourth quarter of last year, due to a strong performance in our Life Sciences, Chemical, Petrochemical, Food and Beverage and Environmental markets. For the full year, sales in North America increased 12%.