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FORM 10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
-------------------------------

[X]	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
	SECURITIES EXCHANGE ACT OF 1934

	For the quarterly period ended March 31, 1999

OR

[ ]	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
	SECURITIES EXCHANGE ACT OF 1934 

	Commission File Number 0-11250 

                  DIONEX CORPORATION				
     (Exact name of registrant as specified in its charter)    

          Delaware	              		94-2647429	   
(State or other jurisdiction of       (I.R.S. Employer
 incorporation or organization)			 Identification No.)  

1228 Titan Way, Sunnyvale, California  		       94086		   
(Address of principal executive offices)	    (Zip Code)

Registrant's telephone number, including area code (408) 737-0700

                                 NONE						                        
(Former name, former address and former fiscal year, if changed
since last report.)

Indicate by check mark whether the registrant (1) has filed all 
reports required to be filed by Section 13 or 15(d) of the 
Securities Exchange Act of 1934 during the preceding 12 months 
(or for such shorter period that the registrant was required to 
file such reports), and (2) has been subject to such filing 
requirements for the past 90 days.

                                        YES   X    NO_____

Indicate the number of shares outstanding of each of the issuer's 
classes of common stock, as of May 12, 1999:

	        CLASS                    NUMBER OF SHARES

	   	Common Stock			       	22,349,767


DIONEX CORPORATION
INDEX


				PART I.  FINANCIAL INFORMATION


ITEM 1.  FINANCIAL STATEMENTS                      		        Page 

	      CONDENSED CONSOLIDATED BALANCE SHEETS
	      March 31, 1999 and June 30, 1998..................      3

	      CONDENSED CONSOLIDATED STATEMENTS OF INCOME
	      Three Months Ended March 31, 1999 and 1998........	     4

	      CONDENSED CONSOLIDATED STATEMENTS OF INCOME
	      Nine Months Ended March 31, 1999 and 1998.........      5

	      CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
	      Nine Months Ended March 31, 1999 and 1998.........     6-7

	      NOTES TO CONDENSED CONSOLIDATED FINANCIAL
	      STATEMENTS........................................     8-12


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
         CONDITION AND RESULTS OF OPERATIONS.............    13-18


				PART II.  OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K................      19

SIGNATURES...............................................      19






















2
<PAGE>
DIONEX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
-----------------

                                                    March 31,   June 30,
       ASSETS                                          1999	      1998	   
                                                   (unaudited)
Current assets:
  Cash and equivalents (including invested cash
    of $1,085 at March 31, 1999 and $5,364
    at June 30, 1998)............................   $  3,961   $ 13,184
  Temporary cash investments.....................         -       5,850
  Accounts receivable (net of allowance for    
    doubtful accounts of $699 at March 31,1999
    and $606 at June 30, 1998)...................     39,864     31,350
  Inventories....................................     12,464      9,921
  Deferred tax benefits..........................     10,443      7,965
  Prepaid expenses and other.....................      2,264      1,089
         Total current assets....................     68,996     69,359

Property, plant and equipment, net...............     39,890     30,070
Intangible assets................................     11,042         -
Other assets ....................................     17,319      7,830
					  $137,247   $107,259

	LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Notes payable to banks.........................   $  4,578   $    -  
  Accounts payable...............................      6,044      5,681
  Accrued liabilities............................     19,873     17,394
  Income taxes payable...........................      6,211      6,526
  Accrued product warranty.......................      4,425      4,013
         Total current liabilities...............     41,131     33,614

Deferred taxes...................................      7,117      2,956
Long-term debt...................................      1,140         -
Stockholders' equity:
  Preferred stock (par value $.001 per share;
    1,000,000 shares authorized; none
    outstanding).................................          -         -
  Common stock (par value $.001 per share;
    40,000,000 shares authorized; outstanding:
    22,320,517 shares at March 31, 1999 and   
    22,315,990 shares at June 30, 1998)..........     45,941     38,926
  Retained earnings..............................     40,523     32,106
  Accumulated other comprehensive income (loss)..      1,395       (343) 
         Total stockholders' equity..............     87,859     70,689
                                                    $137,247   $107,259



See notes to condensed consolidated financial statements. 


3
<PAGE>
DIONEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED MARCH 31, 1999 AND 1998
(In thousands, except per share amounts)
------------------



                                                      1999       1998	 
                                                        (unaudited)

Net sales......................................     $47,072    $38,404
Cost of sales..................................      15,378     12,134
Gross profit...................................      31,694     26,270

Operating expenses:
  Selling, general and administrative..........      13,986     11,706
  Research and product development.............       4,086      3,471

     Total operating expenses..................      18,072     15,177

Operating income...............................      13,622     11,093
 
Interest income................................         178        325 
Interest expense...............................         (91)       (27)

Income before taxes on income..................      13,709     11,391
Taxes on income................................       4,592      3,873

Net income.....................................     $ 9,117    $ 7,518

Basic earnings per share.......................     $   .41    $   .33

Diluted earnings per share.....................     $   .38    $   .31

Shares used in computing per share amounts:

     Basic.....................................      22,313     22,805

     Diluted...................................      23,780     24,179













 See notes to condensed consolidated financial statements.               


4
<PAGE>
DIONEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
NINE MONTHS ENDED MARCH 31, 1999 AND 1998
(In thousands, except per share amounts)
------------------



                                                      1999      1998	
                                                        (unaudited) 

Net sales.....................................      $126,422  $111,757
Cost of sales.................................        40,749    35,254
Revaluation of acquired inventory.............         1,952        -	

Gross profit..................................        83,721    76,503

Operating expenses:
  Selling, general and administrative.........        39,146    35,617
  Research and product development............        11,113     9,896
  Write-off of in-process research and development     4,991        -	 

     Total operating expenses.................        55,250    45,513

Operating income..............................        28,471    30,990

Interest income...............................           633     1,065
Interest expense..............................          (234)      (81)

Income before taxes on income.................        28,870    31,974
Taxes on income...............................         9,671    10,871

Net income....................................      $ 19,199  $ 21,103


Basic earnings per share......................      $    .86  $    .91

Diluted earnings per share....................      $    .81  $    .86

Shares used in computing per share amounts:

  Basic.......................................        22,266    23,120

  Diluted.....................................        23,569    24,490









 See notes to condensed consolidated financial statements.               


5
<PAGE>
DIONEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED MARCH 31, 1999 AND 1998
(In thousands)
------------------


                                                           1999       1998	
                                   		                (unaudited)
Cash and equivalents provided by (used for):

Cash flows from operating activities:
Net income............................................	  $19,199    $21,103
Adjustments to reconcile net income to net cash
  provided by operating activities:
  Writeoff of in-process research and development.....	    4,991
  Depreciation and amortization.......................	    2,621      1,892
  Deferred taxes......................................	   (2,632)      (516)
 
  Changes in assets and liabilities:
    Accounts receivable...............................	   (4,512)    (3,800)
    Inventories.......................................	    1,444       (736)
    Prepaid expenses and other assets.................	     (939)       758 
    Accounts payable..................................	     (338)       222 
    Accrued liabilities...............................	    1,362     (1,680)
    Income taxes payable..............................	     (521)       817 
    Accrued product warranty..........................	      250        259
Net cash provided by operating activities.............	   20,925     16,803

Cash flows from investing activities:
  Purchase of temporary cash investments..............	   (3,500)   (11,000)
  Proceeds from maturities of temporary
     cash investments.................................	    9,350     14,402
  Purchase of property, plant and equipment...........	   (6,744)    (1,266)
  Acquisition of Softron, net of cash acquired........	  (23,206)      -
  Other...............................................	   (2,832)       (81)
Net cash provided by (used for) investing activities..	  (26,932)     2,055 

Cash flows from financing activities:
  Net change in notes payable to banks................	    3,727        750 
  Sale of common stock................................	    6,415      4,900
  Repurchase of common stock..........................	  (11,570)   (31,203)
  Other...............................................	     (456)        19  
Net cash used for financing activities................    (1,884)   (25,534)

Effect of exchange rate changes on cash...............	   (1,332)     1,056 

Net decrease in cash and equivalents..................	   (9,223)    (5,620)
Cash and equivalents, beginning of period.............	   13,184     24,624

Cash and equivalents, end of period...................	  $ 3,961    $19,004
(continued)



6
<PAGE>
DIONEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED MARCH 31, 1999 AND 1998
(In thousands)
------------------


                                                         1999    1998	  
                                                          (unaudited)
(continued)
Supplemental disclosures of cash flow information:
  Income taxes paid.................................	$ 9,267  $ 8,610
  Interest paid.....................................	$   232  $    79

Noncash investing activities:
  Common stock issued in connection with acquisition
   of Softron GmbH.................................... $ 1,388  $  -




































See notes to condensed consolidated financial statements.                

7

<PAGE>
DIONEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
------------------



1.  Basis of Presentation

The condensed consolidated financial statements included
herein have been prepared by the Company, without audit,
pursuant to the rules and regulations of the Securities and
Exchange Commission.  Certain information and footnote
disclosures normally included in financial statements
prepared in accordance with generally accepted accounting
principles have been condensed or omitted pursuant to such
rules and regulations, although the Company believes the
disclosures which are made are adequate to make the
information presented not misleading.  It is suggested that
these condensed consolidated financial statements be read
in conjunction with the consolidated financial statements
and the notes thereto included in the Company's Annual
Report to Stockholders for the fiscal year ended
June 30, 1998. 

The unaudited condensed consolidated financial statements
included herein reflect all adjustments (which include only
normal, recurring adjustments) which are, in the opinion of
management, necessary to state fairly the results for the
periods presented.  The results for such periods are not
necessarily indicative of the results to be expected for
the entire fiscal year ending June 30, 1999.
2.  Acquisition Event

On October 20, 1998, the Company, through a wholly owned
subsidiary, purchased all of the issued and outstanding
shares of Softron GmbH, a limited liability company organized
under the laws of Germany (Softron), for total consideration,
including acquisition costs, of approximately $25.0 million
comprised of cash and 63,091 shares of Dionex common stock
valued at $22 per share.  

The acquisition of Softron was accounted for by the purchase
method and its results of operations have been included in
the Company's results of operations since the date of
acquisition.









8
<PAGE>
DIONEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
------------------

		Purchase price allocation:

			Tangible assets                   $12,776
			Deferred tax asset                  3,240
			Intangible assets:
				Developed and core technology      4,415
				Assembled workforce                  830
				Goodwill                           7,402
			In-process research and development 4,991
			Liabilities assumed                (5,376)
			Deferred tax liabilities           (3,240)
                                     $25,038

In connection with the acquisition the Company recorded a 
nonrecurring charge of $5.0 million for the write-off of
in-process research and development acquired.  In addition, 
cost of sales included $2.0 million in the quarter ended 
December 31, 1998 related to the sale of inventory acquired 
which had been written up as part of the purchase accounting.  

The Company initially expected to record a charge of between 
$10 million and $12 million for in-process research and 
development acquired in connection with the Softron 
acquisition.  However, in the latter part of calendar 1998, 
the Securities and Exchange Commission issued new guidance 
concerning the methods for determining in-process research 
and development charges.  In light of this new guidance, the 
Company reported charges related to in-process research and 
development substantially lower than originally anticipated. 

The valuation of intangibles was based upon management's 
estimates of after tax net cash flow.  The valuation gave 
consideration to the following: (i) comprehensive due 
diligence concerning all potential intangibles; (ii) the 
value of developed and core technology, ensuring that the 
relative allocation to core technology and in-process 
research and development were consistent with the 
contribution of each to the final product; (iii) the 
allocation to in-process research and development was based 
upon a calculation that only considered the efforts completed 
as of the date of the transaction, and only the cash flows 
associated with one generation of products currently
in-process; and (iv) it was performed by an independent 
valuation group and was deemed reasonable in light of all the 
quantitative and qualitative information available.

The write-off of in-process research and development related 
to three projects that were in development, had not reached 
technological feasibility, had no alternative future use and 
for which successful development was uncertain.  

9
<PAGE>
DIONEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
------------------


Two of the in-process projects were to design and build new 
liquid chromatography modules.  At the date of acquisition, 
the estimated cost to complete these projects was 
approximately $900,000.  The third project is a new 
generation of software.  At the time of the acquisition, the 
estimated cost to complete was approximately $750,000.  The 
projects are scheduled to be completed mid to late 1999.  
Costs incurred by the Company through March 31, 1999 were 
approximately $750,000. 

There can be no assurances that the Company will be able to 
complete the development of the products on a timely basis.  
Failure to complete these projects could have an adverse 
impact on the Company's financial condition or results of 
operations.  

The write-up of the value of land and building and goodwill 
and other intangibles will be amortized over periods of up to 
30 years using the straight line method of amortization.  

The following unaudited pro forma results of operations for 
the nine months ended March 31, 1999 and 1998 give effect to 
the acquisition as if it had occurred at the beginning of 
fiscal 1998.  The pro forma results of operations exclude the 
nonrecurring charges that were recorded in conjunction with 
the acquisition.  

Pro Forma Results of Operations
(In thousands, except per share amounts)

                                          Nine Months Ended
                                           Ended March 31,	
                                             1999  	   1998

	Net sales............................    $130,198  $117,413
	Income from continuing operations....     $34,945   $31,845
	Net income...........................     $23,241   $21,018
	Basic earnings per share.............       $1.04      $.91
	Diluted earnings per share...........        $.98      $.86

Softron, which markets its products primarily in Europe, 
specializes in high performance liquid chromatography systems 
used by scientific, pharmaceutical and industrial 
laboratories to analyze the chemical components of compounds.  





10

<PAGE>
DIONEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
------------------


3.  Inventories

Inventories consist of (in thousands):
													
                                    March 31,      June 30,
                                      1999          1998	

Finished goods                       $ 7,241        $3,459
Work in process                        1,921         3,548
Raw materials and subassemblies        3,302         2,914

                                     $12,464        $9,921

4.   Income Taxes

The effective income tax rate for the first nine months of
1999 was 33.5%, compared to 34.0% reported in the same
period of fiscal 1998.  

5.	Comprehensive Income

In the first quarter of fiscal 1999, the Company adopted 
Statement of Financial Accounting Standards ("SFAS") No. 
130, "Reporting Comprehensive Income".  SFAS No. 130 
establishes standards for the reporting and display of 
comprehensive income.  Components of comprehensive income 
include net income, foreign currency translation adjustments 
and unrealized gain on equity securities available for sale.  
As such, Accumulated Other Comprehensive Income (Loss) in 
the Condensed Consolidated Balance Sheets represents 
cumulative foreign currency translation adjustments and 
unrealized gain on equity securities available for sale.  
Comprehensive income was $7,770,000 and $6,743,000 for the 
three months ended March 31, 1999 and 1998, respectively, 
and $20,937,000 and $20,313,000 for the nine months ended 
March 31, 1999 and 1998, respectively.  The adoption of SFAS 
No. 130 required additional disclosure but did not impact 
the Company's consolidated financial position, results of 
operations or cash flows.











11
<PAGE>
DIONEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
------------------


6.   Net Income Per Share
 
Basic earnings per share excludes dilution and is computed 
by dividing net income by the weighted average of common 
shares outstanding for the period.  Diluted earnings per 
share reflects the potential dilution from securities and 
other contracts which are exercisable or convertible into 
common stock.  Diluted earnings per share is computed by 
dividing net income by the weighted average number of common 
shares that would have been outstanding during the period 
assuming the issuance of common shares for all dilutive 
potential common shares outstanding.  The difference between 
the number of shares outstanding for basic and diluted 
earnings per share is due to stock options outstanding 
during the period.

7.   Common Stock Repurchases

During the third quarter of fiscal 1999, the Company 
repurchased 155,400 shares of its common stock on the open 
market, bringing the cumulative number of shares repurchased 
during the first nine months of the year to 423,000 shares 
compared with 1,266,450 shares repurchased in the same 
period of the previous fiscal year.  During all of fiscal 
1998, the Company repurchased 1,851,460 shares.

8.	New Accounting Pronouncements

In June 1998, the Financial Accounting Standards Board 
issued SFAS No. 133, "Accounting for Derivative Instruments 
and Hedging Activities," which is effective for all fiscal 
quarters of fiscal years beginning after June 15, 1999.  
Earlier application is permitted.  The statement establishes 
accounting and reporting standards for derivative 
instruments, including certain derivative instruments 
embedded in other contracts and for hedging activities.  It 
requires that an entity recognize all derivatives as either 
assets or liabilities in the statement of financial position 
and measure those instruments at fair value.  Management has 
not determined the impact of this new standard on the 
Company's results of operations and financial position.  









12
<PAGE>
DIONEX CORPORATION


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
	    CONDITION AND RESULTS OF OPERATIONS

Acquisition of Softron GmbH

On October 20, 1998, the Company, through a wholly owned 
subsidiary, purchased all of the issued and outstanding shares of 
Softron GmbH (Softron), a limited liability company organized 
under the laws of Germany for total consideration, including 
acquisition costs, of approximately $25.0 million comprised of 
cash and 63,091 shares of Dionex stock valued at $22 per share.

The acquisition of Softron was accounted for by the purchase 
method and its results of operations have been included in the 
Company's results of operations since the date of acquisition.  

In connection with the acquisition, the Company recorded a 
nonrecurring charge of $5.0 million for the write-off of in-
process research and development acquired.  In addition, cost of 
sales included $2.0 million in the quarter ended December 31, 
1998 related to the sale of inventory acquired which had been 
written up as a part of the purchase accounting.

The Company initially expected to record a charge of between $10 
million and $12 million for in-process research and development 
acquired in connection with the Softron acquisition.  However, in 
the latter part of calendar 1998 the Securities and Exchange 
Commission issued new guidance concerning the methods for 
determining in-process research and development charges.  In 
light of this new guidance, the Company reported charges related 
to in-process research and development substantially lower than 
originally anticipated. 

Results of Operations - Three Months Ended March 31, 1999 and 
1998

Net sales for the third quarter of fiscal 1999 were $47.1 
million, an increase of 23% from the $38.4 million reported for 
the same period last year.  The Company experienced strong sales 
growth in Japan and Europe, while sales growth in North America 
was lower than previous quarters.  The inclusion of Softron also 
increased sales during the third quarter.  Had currency rates 
been the same as in last year's third quarter, sales growth would 
have been 19%.

Gross margin for the third quarter of fiscal 1999 was 67.3% 
compared to 68.4% for the same period last year.  The lower gross 
margin was attributable to the inclusion of Softron, whose 
products have a lower gross margin than Dionex's historical 
product margins.  There were no significant selling price changes 
between these periods.


13

Operating expenses of $18.1 million for the third quarter of 
fiscal 1999 were up $2.9 million compared to the third quarter of 
fiscal 1998.  The increase was due to the inclusion of Softron 
and the effect of currency fluctuations.  As a percentage of 
sales, operating expenses were 38% of sales compared with 40% in 
the same period last year.  Selling, general and administrative 
expenses (SG&A) increased $2.3 million, or 19%, compared with 
$11.7 million reported in the same period last year.  The 
increase in SG&A expenses was primarily due to the inclusion of 
Softron and the effect of currency fluctuations on international 
selling expenses.  

Research and development (R&D) costs of $4.1 million increased 
$615,000, or 18%, from the $3.5 million reported in the same 
period last year.  The increase was attributable to the inclusion 
of Softron.  The level of R&D spending varies depending on both 
the breadth of the Company's R&D efforts and the stage of 
specific product development.

Interest income was $178,000 for the third quarter of fiscal 
1999, $147,000 lower than the $325,000 reported in the third 
quarter last year.  The decrease in interest income was due to 
lower average cash balances resulting from the acquisition of 
Softron.  

Interest expense was $91,000, an increase of $64,000 compared 
with $27,000 reported in the third quarter last year.  The 
increase was due to borrowings related to the acquisition of 
Softron.

The effective tax rate for the third quarter of fiscal 1999 was 
33.5%, compared with 34.0% in the third quarter a year ago.  
Variations in the tax rate reflect changes in the mix of taxable 
income among the various tax jurisdictions in which the Company 
does business. 

Net income in the third quarter of fiscal 1999 was $9.1 million 
compared with the $7.5 million reported in the third quarter last 
year. Basic and diluted earnings per share were $.41 and $.38 
respectively, compared with $.33 and $.31 reported for the same 
period last year.













14
<PAGE>
Results of Operations - Nine months ended March 31, 1999 and 1998

Net sales for the nine months ended March 31, 1999 were $126.4 
million, an increase of 13%, compared with the $111.8 million 
reported for the same period last year. The Company experienced 
strong sales growth in Europe and Japan, while growth in North 
America was lower.  The inclusion of Softron since the date of 
acquisition also increased sales.  Had currency remained the same 
as the first nine months last year, sales growth would have been 
12%.

Gross margin for the first nine months of fiscal 1999 was 66.2% 
compared with 68.5% reported for the same period last year.  
Excluding a nonrecurring charge related to the sale of inventory 
acquired which had been written up as part of the purchase 
accounting, gross margin was 67.8%.  The lower gross margin was 
attributable to the inclusion of Softron, whose products have a 
lower gross margin than Dionex's historical product margins.  
There were no significant selling price changes between these 
periods.

Operating expenses for the nine months ended March 31, 1999 were 
$55.2 million, an increase of $9.7 million compared with $45.5 
million reported for the same period last year.  Excluding the 
nonrecurring write-off of in-process research and development, 
operating expenses increased $4.7 million, or 10%, and as a 
percentage of sales, operating expenses were 40%, down one 
percentage point from the same period last year.  SG&A expenses 
were $39.1 million, an increase of $3.5 million or 10%, compared 
with $35.6 million reported for the same period last year.  The 
increase in SG&A expenses was attributable to the inclusion of 
Softron.

R&D expenses for the nine months ended March 31, 1999 were $11.1 
million, an increase of $1.2 million, or 12%, from the $9.9 
million reported in the same nine-month period last year.  The 
increase was attributable to the inclusion of Softron and an 
increase in personnel related costs.  The level of R&D spending 
varies depending on both the breadth of the Company's R&D efforts 
and the stage of specific product development.

Write-off of in-process research and development represents a 
nonrecurring charge of $5.0 million associated with the 
acquisition of Softron completed in October 1998 for technology 
which had not reached technological feasibility and had no 
alternative future use.










15
<PAGE>
The valuation of intangibles was based upon management's 
estimates of after tax net cash flow.  The valuation gave 
consideration to the following: (i) comprehensive due diligence 
concerning all potential intangibles; (ii) the value of developed 
and core technology, ensuring that the relative allocation to 
core technology and in-process research and development were 
consistent with the contribution of each to the final product; 
(iii) the allocation to in-process research and development was 
based upon a calculation that only considered the efforts 
completed as of the date of the transaction, and only the cash 
flows associated with one generation of products currently in-
process; and (iv) it was performed by an independent valuation 
group and was deemed reasonable in light of all the quantitative 
and qualitative information available.

The write-off of in-process research and development related to 
three projects that were in development, had not reached 
technological feasibility, had no alternative future use and for 
which successful development was uncertain.  

Two of the in-process projects were to design and build new 
liquid chromatography modules.  At the date of acquisition, the 
estimated cost to complete these projects was approximately 
$900,000.  The third project is a new generation of software.  At 
the time of the acquisition, the estimated cost to complete was 
approximately $750,000.  The projects are scheduled to be 
completed mid to late 1999.  Costs incurred by the company 
through March 31, 1999 were approximately $750,000.

There can be no assurances that the Company will be able to 
complete the development of the products on a timely basis.  
Failure to complete these projects could have an adverse impact 
on the Company's financial condition or results of operations.  

Interest income was $633,000 for the first nine months of fiscal 
1999, $432,000 lower than the $1.1 million reported in the third 
quarter last year.  The decrease in interest income was due to 
lower average cash balances resulting from the acquisition of 
Softron.

Interest expense was $234,000, an increase of $153,000 compared 
with $81,000 reported in the first nine months last year.  The 
increase was due to borrowings related to the acquisition of 
Softron.  












16
<PAGE>
The effect tax rate for the first nine months of fiscal 1999 was 
33.5%, compared with the 34.0% in the nine months of fiscal 1998.  
Variations in the tax rate reflect changes in the mix of taxable 
income among the various tax jurisdictions in which the Company 
does business.  

Net income in the first nine months of fiscal 1999 was $19.2 
million compared with $21.1 million reported in the same period 
last year.  Basic and diluted earnings per share were $.86 and 
$.81 respectively, compared with $.91 and $.86 per share in same 
period of last year.  The nonrecurring acquisition related 
charges reduced basic and diluted earnings per share by $.21 and 
$.20, respectively during the first nine months of fiscal 1999.  
Basic and diluted earnings per share were favorably affected by 
the Company's stock repurchase program.

Liquidity and Capital Resources

At March 31, 1999, the Company had cash and cash investments of 
$4.0 million.  During the third quarter of fiscal 1999, the 
Company repurchased 155,400 shares of its common stock, bringing 
the total shares repurchased for the first nine months of fiscal 
1999 to 423,000.  During fiscal 1998, the Company repurchased a 
total of 1,851,460 shares of its common stock.

At March 31, 1999, the Company had outstanding borrowings of $5.7 
million.  At March 31, 1999, the Company had bank lines of credit 
totaling $31.0 million.  The Company believes its cash flow from 
operations, its existing cash and cash investments and its bank 
lines of credit will be adequate to meet its cash requirements 
for the remainder of the fiscal year.

The impact of inflation on Dionex Corporation's financial 
position and results of operations was not significant during the 
nine months ended March 31, 1999.



















17
<PAGE>
Year 2000 Compliance

Many older computer software programs refer to years in terms of 
their final two digits only.  Such programs may interpret the year 
2000 to mean the year 1900 instead.  If not corrected, those 
programs could cause date-related transaction failures.  Beginning 
in fiscal 1997, the Company started a process to review its internal 
systems for year 2000 compliance.  Testing of the internal systems 
was substantially completed during fiscal 1998 and the Company 
believes its current internal systems are compliant.  Dionex 
believes the products it is currently shipping are year 2000 
compliant as well.  The Company has no obligation to upgrade 
previously shipped products which are not year 2000 compliant but 
may make available for sale to customers fixes for certain products.  
Additionally, the Company has contacted numerous vendors and 
customers to assess their progress in addressing the year 2000 
issue.  Based upon our assessments, testing and the plans in 
progress, the Company does not believe that the year 2000 issue will 
have a material adverse effect on the Company's financial position, 
results of operation or cash flows.  However, the Company does not 
have control over whether its vendors or customers will make any 
appropriate modifications on a timely basis.  If such modifications 
are not made in a timely manner, the financial position and results 
of operations could be materially adversely affected.  To date, the 
Company has not incurred any significant costs related to this 
issue, and does not expect significant costs directly related to 
year 2000 compliance issues in the future.  However, should the need 
arise, the Company has adequate resources and would use them to 
resolve significant year 2000 issues in a timely manner.

Forward-looking statements

Except for historical information contained herein, the above 
discussion and the letter to shareholders contains forward-looking 
statements within the meaning of Section 27A of the Securities Act 
of 1933, as amended, Section 21E of the Securities and Exchange Act 
of 1934, as amended and the Private Securities Litigation Reform Act 
of 1995, and are made under the safe harbor provisions thereof.  
Such statements are subject to certain risks and uncertainties that 
could cause actual results to differ materially from those discussed 
here.  Such risks and uncertainties include: general economic 
conditions, foreign currency fluctuations, new product development, 
including market receptiveness, fluctuation in worldwide demand for 
analytical instrumentation, competition from other products, 
existing product obsolescence, the ability to manufacture products 
on an efficient and timely basis and at a reasonable cost and in 
sufficient volume, year 2000 compliance issues, the ability to 
attract and retain talented employees and other risks as described 
in more detail in the Company's Form 10-K for the year ended June 
30, 1998.  Readers are cautioned not to place undue reliance on 
these forward-looking statements which reflect management's analysis 
only as of the date hereof.  The Company undertakes no obligation to 
publicly release the results of any revision to these forward-
looking statements which may be made to reflect events or 
circumstances after the date hereof or to reflect the occurrence of 
unanticipated events.  
18
<PAGE>
PART II.  OTHER INFORMATION



Item 6.  Exhibits and Reports on Form 8-K 

         (a)	Exhibits

27 	Financial Data Schedule for the period ended
   	March 31, 1999.  

         (b)	Reports on Form 8-K.  

No reports on Form 8-K were filed during the
current quarter.


SIGNATURES 



PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 
1934, THE REGISTRANT HAS DULY CAUSED THIS REPORT TO BE SIGNED ON 
ITS BEHALF BY THE UNDERSIGNED THEREUNTO DULY AUTHORIZED.


                            DIONEX CORPORATION
                            (Registrant)


Date: May 12, 1999 	   	   By:/s/ A. Blaine Bowman		
                               A. Blaine Bowman
                               President, Chief Executive
                        						 Officer



                            By:/s/ Michael W. Pope		
                               Michael W. Pope
                        						 Vice President, Finance and
                        						 and Administration
                               (Principal Financial and
                        						 Accounting Officer)













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