|UNITED
STATES SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549


FORM 10-Q
|----------------------------------------------------------------------------------

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

| | For the quarterly period ended September 30, 2001
| | -------------------------------------------------

|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 ofincorporation or organization) | (I.R.S. EmployerIdentification 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 October 31, 2001:
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|CLASS        | NUMBER OF SHARES
|------------ | ----------------
|Common Stock | 21,993,989      

|Page 1 of 17
|------------

|DIONEX CORPORATION
INDEX



PART I. FINANCIAL
INFORMATION
|---------------------------------------------------------

|ITEM 1. | FINANCIAL STATEMENTS | Page
|------- | -------------------- | ----

| | CONDENSED CONSOLIDATED BALANCE SHEETS as of September 30, 2001 and June 30, 2001 | 3
| | -------------------------------------------------------------------------------- | -

| | CONDENSED CONSOLIDATED STATEMENTS OF INCOME for the Three Months Ended September 30, 2001 and 2000 | 4
| | -------------------------------------------------------------------------------------------------- | -

| | CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS for the Three Months Ended September 30, 2001 and 2000 | 5
| | ------------------------------------------------------------------------------------------------------ | -

| | NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | 6-11
| | ---------------------------------------------------- | ----

|ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | 12-14
|------- | ------------------------------------------------------------------------------------- | -----

|ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS | 15
|------- | ----------------------------------------------------------- | --

|PART II. OTHER INFORMATION
|--------------------------

|ITEM 6. | EXHIBITS AND REPORTS ON FORM 8-K | 16
|------- | -------------------------------- | --

|SIGNATURES |  | 17
|---------- |  | --

|2
|-

|DIONEX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
|-----------------------------------------------------------------------

|                                                            | September 30,2001(unaudited) |  | June 30,2001 |        
|----------------------------------------------------------- | ---------------------------- |  | ------------ | -------
|ASSETS                                                      |                             
|Current assets:                                             |                              |  |              |        
|Cash and equivalents (including invested cash of $10,334 at |                              | 
|September 30, 2001 and $7,853 at June 30, 2001)             |                              |  | $            | 21,179 
|Marketable equity securities                                |                              |  |              | 4,756  
|Accounts receivable (net of allowance for doubtful accounts |                              | 
|of $1,023 at September 30, 2001 and $890 at June 30,        |                              | 
|2001)                                                       |                              |  |              | 43,047 
|Inventories                                                 |                              |  |              | 25,523 
|Deferred tax assets                                         |                              |  |              | 8,776  
|Prepaid expenses and other                                  |                              |  |              | 2,345  
|                                                            |                              |  |              |        
|Total current assets                                        |                              |  |              | 105,626
|                                                            |                              | 
|Property, plant and equipment, net                          |                              |  |              | 43,968 
|Goodwill, net                                               |                              |  |              | 14,671 
|Intangible assets, net                                      |                              |  |              | 6,250  
|Other assets                                                |                              |  |              | 7,231  
|                                                            |                              |  |              |        
|                                                            |                              |  | $            | 177,746
|                                                            |                              |  |              |        
|                                                            |                              | 
|LIABILITIES AND STOCKHOLDERS' EQUITY                        |                             
|Current liabilities:                                        |                              | 
|Notes payable to banks                                      |                              |  | $            | 3,356  
|Accounts payable                                            |                              |  |              | 5,041  
|Accrued liabilities                                         |                              |  |              | 20,156 
|Income taxes payable                                        |                              |  |              | 6,140  
|Accrued product warranty                                    |                              |  |              | 2,944  
|                                                            |                              |  |              |        
|Total current liabilities                                   |                              |  |              | 37,637 
|Deferred taxes and other liabilities                        |                              |  |              | 6,828  
|Long-term debt                                              |                              |  |              | 1,384  
|Stockholders' equity:                                       |                              | 
|Preferred stock (par value $.001 per share; 1,000,000       |                              | 
|shares authorized; none outstanding)                        |                              |  |              |       
|Common stock (par value $.001 per share; 80,000,000 shares  |                              | 
|authorized; issued and outstanding: 22,001,489 shares at    |                              | 
|September 30, 2001 and 22,177,005 shares at June 30,        |                              | 
|2001)                                                       |                              |  |              | 67,877 
|Retained earnings                                           |                              |  |              | 69,794 
|Accumulated other comprehensive income/(loss)               |                              |  |              | (5,774 
|                                                            |                              |  |              |        
|Total stockholders' equity                                  |                              |  |              | 131,897
|                                                            |                              |  |              |        
|                                                            |                              |  | $            | 177,746
|                                                            |                              |  |              |        

|See notes to condensed consolidated
financial statements.




3
|---------------------------------------------------------------

|DIONEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME THREE MONTHS ENDED SEPTEMBER 30, 2001 AND
2000 (In thousands, except per share amounts)
|------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                                  | September 30, | 
|----------------------------------------------------------------- | ------------- | 
|                                                                  | 2001          | 
|                                                                  | (unaudited)   | 
|Net sales                                                         |               | 
|Cost of sales                                                     |               | 
|                                                                  |               | 
|Gross profit                                                      |               | 
|                                                                  |               | 
|Operating expenses:                                               |               | 
|Selling, general and administrative                               |               | 
|Research and product development                                  |               | 
|                                                                  |               | 
|Total operating expenses                                          |               | 
|                                                                  |               | 
|Operating income                                                  |               | 
|                                                                  |               | 
|Interest income                                                   |               | 
|Interest expense                                                  |               | 
|Other income                                                      |               | 
|                                                                  |               | 
|Income before taxes                                               |               | 
|Taxes on income                                                   |               | 
|                                                                  |               | 
|Income before cumulative effect of change in accounting principle |               | 
|                                                                  |               | 
|Cumulative effect of change in accounting principle               |               | 
|                                                                  |               | 
|Net income                                                        |               | 
|                                                                  |               | 
|Basic earnings per share:                                         |               | 
|Income before cumulative effect of change in accounting principle |               | 
|Cumulative effect of change in accounting principle, net of tax   |               | 
|                                                                  |               | 
|Net income                                                        |               | 
|                                                                  |               | 
|Diluted earnings per share:                                       |               | 
|Income before cumulative effect of change in accounting principle |               | 
|Cumulative effect of change in accounting principle, net of tax   |               | 
|                                                                  |               | 
|Net income                                                        |               | 
|                                                                  |               | 
|Shares used in computing per share amounts:                       |               | 
|Basic                                                             |               | 
|                                                                  |               | 
|Diluted                                                           |               | 
|                                                                  |               | 

|See notes to condensed consolidated
financial statements.




4
|---------------------------------------------------------------

|DIONEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS THREE MONTHS ENDED SEPTEMBER 30, 2001
AND 2000 (In thousands)
|--------------------------------------------------------------------------------------------------------------------------------

|                                                            | September 30, | 
|----------------------------------------------------------- | ------------- | 
|                                                            | 2001          | 
|                                                            | (unaudited)   | 
|Cash and equivalents provided by (used for):                |               | 
|                                                            |               | 
|Cash flows from operating activities:                       |               | 
|Net income                                                  |               | 
|Adjustments to reconcile net income to net cash provided by |               | 
|operating activities:                                       |               | 
|Depreciation and amortization                               |               | 
|Gain on sale of marketable securities                       |               | 
|Tax benefit related to stock option plans                   |               | 
|Deferred taxes                                              |               | 
|Changes in assets and liabilities:                          |               | 
|Accounts receivable                                         |               | 
|Inventories                                                 |               | 
|Prepaid expenses and other assets                           |               | 
|Accounts payable                                            |               | 
|Accrued liabilities                                         |               | 
|Income taxes payable                                        |               | 
|Accrued product warranty                                    |               | 
|                                                            |               | 
|Net cash provided by operating activities                   |               | 
|                                                            |               | 
|Cash flows from investing activities:                       |               | 
|Proceeds from sale of marketable securities                 |               | 
|Purchase of property, plant and equipment                   |               | 
|Other                                                       |               | 
|                                                            |               | 
|Net cash used for investing activities                      |               | 
|                                                            |               | 
|Cash flows from financing activities:                       |               | 
|Net change in notes payable to banks                        |               | 
|Principal payments on long-term debt                        |               | 
|Sale of common stock                                        |               | 
|Repurchase of common stock                                  |               | 
|Other                                                       |               | 
|                                                            |               | 
|Net cash provided by (used for)financing activities         |               | 
|                                                            |               | 
|Effect of exchange rate changes on cash                     |               | 
|                                                            |               | 
|Net increase in cash and equivalents                        |               | 
|Cash and equivalents, beginning of period                   |               | 
|                                                            |               | 
|Cash and equivalents, end of period                         |               | 
|                                                            |               | 
|Supplemental disclosures of cash flow information:          |               | 
|Income taxes paid                                           |               | 
|Interest paid                                               |               | 

|See notes to condensed consolidated
financial statements.



5
|--------------------------------------------------------------

|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 accounting
principles generally accepted in the United States of America 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, 2001.


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, 2002.


2. Acquisition


On
October 17, 2000, the Company purchased all of the issued and outstanding shares
of LC Packings Nederland B.V. and LC Packings (U.S.A.), Inc. (collectively
referred to as LC Packings) for a purchase price of $12 million. In
addition, the shareholders of LC Packings have the right to receive additional
contingent purchase consideration, to be paid in varying amounts at the end of
calendar years 2000 through 2004, in the event LC Packings achieves certain
revenue goals. If the entire additional contingent purchase consideration is
achieved, the shareholders of LC Packings will be paid an additional amount not
to exceed $13 million. At September 30, 2001, $4.9 million of the additional
contingent purchase consideration had been earned and was recorded as goodwill.


The
acquisition of LC Packings was accounted for using the purchase method of
accounting and its results of operations have been included in the
Companys results of operations since the date of acquisition.


6
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|DIONEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)


The
following unaudited pro forma consolidated results of operations for the three
months ended September 30, 2000 give effect to the acquisition as if it had
occurred at the beginning of fiscal 2001. The unaudited pro forma consolidated
results of operations exclude the nonrecurring charges that were recorded in
conjunction with the acquisition and the contingent purchase consideration.


Pro Forma Consolidated Results of
Operations (in thousands, except per share amounts)
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | Three Months EndedSeptember 30,2000
     (unaudited) |                                  
| |  | ---------------------------------------------------- | ---------------------------------
| |  |                                                      | Net sales                        
| |  |                                                      | Income from continuing operations
| |  |                                                      | Net income                       
| |  |                                                      | Basic earnings per share         
| |  |                                                      | Diluted earnings per share       

|LC
Packings, which markets its products primarily in the United States and Europe,
specializes in micro, capillary and nano liquid chromatography used by
proteomics and genomics researchers in pharmaceutical, biotechnology and
scientific laboratories to analyze and separate proteins, glycoproteins and
other complex compounds.


3. New Accounting Pronouncements


In
June 2001, the FASB issued SFAS No. 141, Business Combinations, which eliminates
the pooling method of accounting for all business combinations initiated after
June 30, 2001 and addresses the initial recognition and measurement of goodwill
and other intangible assets acquired in a business combination. The Company will
adopt this accounting standard for business combinations initiated after June
30, 2001.


As
of July 1, 2001, the Company adopted SFAS No. 142, Goodwill and Other Intangible
Assets, which addresses the financial accounting and reporting standards for the
acquisition of intangible assets outside of a business combination and for
goodwill and other intangible assets subsequent to their acquisition. This
accounting standard requires that goodwill be separately disclosed from other
intangible assets in the statement of financial position, and no longer be
amortized but tested for impairment on a periodic basis.


7
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|DIONEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)


The provisions of this
accounting standard also require the completion of a transitional impairment
test within six months of adoption, with any impairments identified treated as a
cumulative effect of a change in accounting principle.


In
accordance with SFAS No. 142, the Company discontinued the amortization of
goodwill effective July 1, 2001. A reconciliation of previously reported net
income and earnings per share to the amounts adjusted for the exclusion of
goodwill amortization net of the related income tax effect follows:
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | Three Months Ended September 30,       |                                        |     
| |  | -------------------------------------- | -------------------------------------- | ----
| |  | 2001                                   |                                        | 2000
| |  | (in millions, except per share amounts |                                        |     
| |  |                                        | Reported net income                    |     
| |  |                                        | Add: Goodwill amortization, net of tax |     
| |  |                                        |                                        |     
| |  |                                        | Adjusted net income                    |     
| |  |                                        |                                        |     
| |  |                                        | Diluted earnings per common share      |     
| |  |                                        | Reported net income                    |     
| |  |                                        | Goodwill amortization, net of tax      |     
| |  |                                        |                                        |     
| |  |                                        | Adjusted net income                    |     
| |  |                                        |                                        |     

|In
October 2001, the Financial Accounting Standards Board issued SFAS No. 144,
Impairment on Disposal of Long-Lived Assets, effective for fiscal years
beginning after December 31, 2001. Under the new rules, the criteria required
for classifying an asset as held-for-sale have been significantly changed.
Assets held-for-sale are stated at the lower of their fair values or carrying
amounts, and depreciation is no longer recognized. In addition, the expected
future operating losses from discontinued operations will be displayed in
discontinued operations in the period in which the losses are incurred rather
than as of the measurement date. More dispositions will qualify for discontinued
operations treatment in the income statement under the new rules. The Company is
currently evaluating the impact of SFAS No. 144 to its consolidated financial
statements.


8
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|DIONEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)


4. Inventories


Inventories
consist of (in thousands):
|---------------------------------------------------------------------------------------------------------------------------------------------

| |  | September 30,2001 |                 | June 30,2001 |  |  
| |  | ----------------- | --------------- | ------------ |  | -
| |  |                   | Finished goods  |              |  | $
| |  |                   | Work in process |              |  |  
| |  |                   | Raw materials   |              |  |  
| |  |                   |                 |              |  |  
| |  |                   |                 |              |  | $
| |  |                   |                 |              |  |  

|5. Income Taxes


The
effective income tax rate for the first three months of fiscal 2002 was 32.5%,
unchanged from the same period in fiscal 2001.


6. 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 in the Condensed Consolidated
Balance Sheets represents cumulative foreign currency translation adjustments
and unrealized gain on equity securities available for sale. Comprehensive
income was $7,211,000 and $11,078,000 for the three months ended September 30,
2001 and 2000, respectively.


7. 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 using the treasury stock method. The difference between the number
of shares outstanding for basic and diluted earnings per share is due to stock
options outstanding during the periods presented.




9
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|DIONEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)


8. Common Stock Repurchases


During
the first three months of fiscal 2002, the Company repurchased 226,200 shares of
its common stock on the open market, compared with 117,100 shares repurchased in
the first three months of the previous fiscal year. During all of fiscal 2001,
the Company repurchased 361,000 shares.


9. Goodwill and Other Intangible
Assets


Changes
in the carrying amount of goodwill for the quarter ended September 30, 2001 are
as follows:
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | Total |                                     | 
| |  | ----- | ----------------------------------- | 
| |  |       | Balance as of July 1, 2001          | 
| |  |       | Goodwill acquired during the Period | 
| |  |       | Translation adjustments and other   | 
| |  |       |                                     | 
| |  |       | Balance as of September 30, 2001    | 
| |  |       |                                     | 

|In
connection with the adoption of SFAS No. 142, Note 3", the Company
will perform and report the results of the transitional impairment tests in the
Companys December 31, 2001 financial statements.


Information
regarding the Companys other intangible assets follow:
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                       | As of September 30, 2001 |  | As of June 30,2001      |      
|---------------------- | ------------------------ |  | ----------------------- | -----
|                       | CarryingAmount           |  | AccumulatedAmortization |      
|                       | (in thousands)          
|Patents and Trademarks |                          |  | $                       | 376  
|Developed Technology   |                          |  |                         | 5,526
|Core Technology        |                          |  |                         | 2,844
|                       |                          |  |                         |      
|Total                  |                          |  | $                       | 6,746
|                       |                          |  |                         |      

|10
|--

|DIONEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)


Amortization
expense of other intangible assets was $406,000 and $122,000 in the three months
ended September 30, 2001 and 2000. The estimated amortization for each of the
five fiscal years subsequent to June 30, 2001 is as follows:
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Year Ended June 30, | Amortization Expense |  |      
| | ------------------- | -------------------- |  | -----
| |                     |                      |  | 2002 
| |                     |                      |  | 2003 
| |                     |                      |  | 2004 
| |                     |                      |  | 2005 
| |                     |                      |  | 2006 
| |                     |                      |  | Total

|11
|--

|DIONEX CORPORATION
|------------------

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

|Results of Operations - Three months
Ended September 30, 2001 and 2000



Net sales for the first
quarter of fiscal 2002 were $42.1 million, a decrease of 1% from the $42.7
million reported for the same period last year. Sales decreased over the prior
year period in our North American and Japanese markets. Sales increased in
Europe in both local currency and reported dollars. Had currency rates been the
same as in last years first quarter, sales growth would have been up
slightly. LC Packings also had a favorable impact on the current years
quarterly sales.


Gross margin for the first
quarter of fiscal 2002 was 63.6%, down from the 65.9% reported for the same
period last year. Gross margin was lower primarily due to the unfavorable effect
of currency fluctuations and higher manufacturing costs.


Operating expenses of $19.5
million for the first quarter of fiscal 2002 were up $1.6 million, or 9%, from
the $17.9 million reported in the same quarter last year. As a percentage of
sales, operating expenses were 46%, higher than the 42% reported for the first
quarter last year. Selling, general and administrative (SG&A) expenses
increased $1.2 million, or 8%, to $15.6 million in the first quarter of fiscal
2002. The increase was due to the addition of LC Packings and two new
subsidiaries in China and Denmark.


Research and development
(R&D) costs of $3.9 million were slightly higher than the $3.6 million
reported in the same period last year. 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.


Other income was $0.6
million in the first quarter of fiscal 2002. Other income resulted from the sale
of marketable equity securities during the quarter.


The effective tax rate for
the first quarter of fiscal 2002 was 32.5%, unchanged from the first 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.


Cumulative effect of change
in accounting principle reflects the adoption of Staff Accounting Bulletin No.
101, Revenue Recognition in Financial Statements, (SAB
101) in the first quarter of fiscal 2001. SAB 101 outlines the basic
criteria that must be met to recognize revenue and provides guidance for
disclosures related to revenue recognition policies. The cumulative effect of
the change, totaling $359,000, is shown as a one-time charge to income in the
first quarter of fiscal 2001s income statement.


12
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Net income in the first
quarter of fiscal 2002 was $5.4 million, compared with $6.6 million reported for
the same period last year. After the effect of the change in accounting
principle in the prior year, diluted earnings per share were $.24 compared with
$.29 in the same period last year.


Liquidity and Capital Resources



At September 30, 2001, the
Company had cash and cash investments of $21.2 million. The Companys
working capital was $68.0 million, essentially the same as the $68.1 million
reported at June 30, 2001. Cash generated by operating activities for the three
months ended September 30, 2001 was $9.9 million compared with $3.0 million for
the same period last year. The increase in operating cash flow was primarily due
to a decrease in accounts receivable.


Capital expenditures during
the first three months of fiscal 2002 were $2.4 million. This includes $1.1
million related to an expansion of a manufacturing site in Germering, Germany.


At September 30, 2001, the
Company has utilized $5.2 million of the Companys $35.4 million in
committed bank lines of credit, mainly due to borrowings related to the
Companys operations. The Company believes that its cash flow from
operations, current cash and cash investments and the remainder of its $30.2
million bank lines of credit will be adequate to meet its cash requirements for
fiscal 2002 and the foreseeable future. During the three months of fiscal 2002,
the Company repurchased 226,200 shares of its common stock for $6.4 million.


The impact of inflation on
Dionex Corporations financial position and results of operations was not
significant during the three months ended September 30, 2001.


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 risk and
uncertainties include: general economic conditions, foreign currency
fluctuations, competition from other products, existing product obsolescence,
fluctuation in worldwide demand for analytical instrumentation, new product
development, including market receptiveness, the ability to manufacture products
on an efficient and timely basis and at a reasonable cost and in sufficient
volume, 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, 2001. Readers are cautioned not to place undue reliance on these
forward-looking statements which reflect


13
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|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.


14
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|
|

|ITEM 3. |  | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS
|------- |  | -----------------------------------------------------------

|The Company is exposed to
financial market risks, including changes in foreign currency rates, interest
rates and marketable equity securities.


For a detailed analysis of
these market risks see the discussion in the Companys Annual Report to
Stockholders for the year ended June 30, 2001 and the Companys Form 10-K
for the year ended June 30, 2001 filed with the Securities and Exchange
Commission. There have been no material changes to these financial market risks
since June 30, 2001.


15
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|
|

|PART II. |  | OTHER
INFORMATION
|-------- |  | -----------------

|Item 6. Exhibits and Reports on
Form 8-K
|----------------------------------------

| | (a) 
Exhibits
| | -------------

| | (b) 
Reports on Form 8-K.
| | -------------------------

| | The
Company did not file any reports on Form 8-K during the quarter ended September 30, 2001.
| | ---------------------------------------------------------------------------------------------

|16
|--

|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.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Date: November 9, 2001 |  | DIONEX CORPORATION(Registrant)By:
A. Blaine BowmanPresident, Chief Executive Officer
|---------------------- |  | --------------------------------------------------------------------------------------------------

| |  | By:
Craig A. McCollamVice President, Finance andAdministration (PrincipalFinancial and Accounting Officer)
| |  | ------------------------------------------------------------------------------------------------------------------------

|17
|--