This document consists of 14
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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 September 30, 1998

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 November 11, 1998:

	        CLASS                    NUMBER OF SHARES

    	Common Stock           		     	 22,204,612


<PAGE>
DIONEX CORPORATION
INDEX


				PART I.  FINANCIAL INFORMATION



ITEM 1.  FINANCIAL STATEMENTS                      	  	   Page 


	      CONDENSED CONSOLIDATED BALANCE SHEETS
	      September 30, 1998 and June 30, 1998............     3


	      CONDENSED CONSOLIDATED STATEMENTS OF INCOME
	      Three Months Ended September 30, 1998 and 1997..     4


	      CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
	      Three Months Ended September 30, 1998 and 1997..     5-6


	      NOTES TO CONDENSED CONSOLIDATED FINANCIAL
	      STATEMENTS......................................     7-9



ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
         CONDITION AND RESULTS OF OPERATIONS...............    10-13




				PART II.  OTHER INFORMATION


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K..................     14

SIGNATURES.................................................     14 
















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

                                                   September 30, June 30,
         ASSETS                                        1998	       1998  
                                                    (unaudited)
Current assets:
  Cash and equivalents (including invested cash
    of $7,695 at September 30, 1998 and $5,364
    at June 30, 1998)............................    $ 13,739   $ 13,184
  Temporary cash investments.....................       5,000      5,850
  Accounts receivable (net of allowance for
    doubtful accounts of $605 at September 30, 1998
    and $606 at June 30, 1998)...................      29,654     31,350
  Inventories....................................      11,306      9,921
  Deferred tax benefits..........................       7,542      7,965
  Prepaid expenses and other.....................       1,457      1,089
         Total current assets....................      68,698     69,359

Property, plant and equipment, net...............      34,075     30,070
Other assets ....................................       8,284      7,830
                                                     $111,057   $107,259

	LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Notes payable to banks.........................    $    733   $     - 
  Accounts payable...............................       4,933      5,681
  Accrued liabilities............................      15,561     17,394
  Income taxes payable...........................       7,905      6,526
  Accrued product warranty.......................       4,010      4,013
         Total current liabilities...............      33,142     33,614

Deferred taxes and other.........................       2,757      2,956

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:
    22,210,656 shares at September 30, 1998 and
    22,315,910 shares at June 30, 1998)..........      39,275     38,926
  Retained earnings..............................      35,265     32,106
  Accumulated other comprehensive income (loss)..         618       (343)
          Total stockholders' equity.............      75,158     70,689
                                                     $111,057   $107,259




See notes to condensed consolidated financial statements. 


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<PAGE>
DIONEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(In thousands, except per share amounts)
------------------



                                                     1998       1997	
                                                       (unaudited)

Net sales...................................       $34,845    $33,933
Cost of sales...............................        11,031     10,767
Gross profit................................        23,814     23,166

Operating expenses:
  Selling, general and administrative.......        11,516     11,565
  Research and product development..........         3,435      3,107

     Total operating expenses...............        14,951     14,672

Operating income............................         8,863      8,494
 
Interest income.............................           258        348
Interest expense............................           (25)       (41)

Income before taxes on income...............         9,096      8,801
Taxes on income.............................         3,047      2,992

Net income..................................       $ 6,049    $ 5,809

Basic earnings per share....................       $   .27    $   .25

Diluted earnings per share .................       $   .26    $   .23

Shares used in computing per share amounts:

     Basic .................................        22,288     23,373

     Diluted ...............................        23,410     24,740











 See notes to condensed consolidated financial statements.               




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<PAGE>
DIONEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(In thousands)
------------------


                                                            1998      1997	 
                                   		                (unaudited)
Cash and equivalents provided by (used for):

Cash flows from operating activities:
Net income............................................	  $ 6,049   $ 5,809
Adjustments to reconcile net income to net cash
  provided by operating activities:
  Depreciation and amortization.......................	      658       624
  Deferred taxes......................................	      428      (631)

  Changes in assets and liabilities:
    Accounts receivable...............................	    2,533       (49)
    Inventories.......................................	   (1,097)   (1,212)
    Prepaid expenses and other assets.................	     (322)      133 
    Accounts payable..................................	     (805)      (29)
    Accrued liabilities...............................	   (2,056)   (3,746)
    Income taxes payable..............................	    1,319     2,526
    Accrued product warranty..........................	      (50)      (61)
Net cash provided by operating activities.............	    6,657     3,364

Cash flows from investing activities:
  Purchase of temporary cash investments..............	   (3,500)   (4,450)
  Proceeds from maturities of temporary
     cash investments.................................	    4,350     6,000
  Purchase of property, plant and equipment...........	   (4,509)     (302)
  Other...............................................       (32)       99 
Net cash provided by (used for) investing activities..    (3,691)    1,347 

Cash flows from financing activities:
  Net change in notes payable to banks................	      709       843 
  Sale of common stock................................	      597       722
  Repurchase of common stock..........................	   (3,137)  (12,582)
  Lease obligations and other.........................	     (353)        7  
Net cash used for financing activities................	   (2,184)  (11,010)


Effect of exchange rate changes on cash...............	     (227)      420 

Net increase(decrease)in cash and equivalents.........       555    (5,879)
Cash and equivalents, beginning of period.............	   13,184    24,624

Cash and equivalents, end of period...................	  $13,739   $18,745

(continued)



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<PAGE>
DIONEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(In thousands)
------------------


                                   									           1998     1997
                                   		             (unaudited)
(continued)
Supplemental disclosures of cash flow information:
  Income taxes paid.................................	$1,597    $1,160
  Interest paid.....................................	$   28    $   41






































See notes to condensed consolidated financial statements.                




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<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.  Inventories

    Inventories consist of (in thousands):
				     								
                                     September 30,    June 30,
                                             1998        1998	     

    	 Finished goods             		       $ 4,248 	    $3,459
	     Work in process                       3,369     	 3,548
      Raw materials and subassemblies       3,689       2,914

                                          $11,306      $9,921

3.   Income Taxes

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



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



4.	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 $7,010,000 and $6,405,000 for the three months ended 
   September 30, 1998 and 1997, 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.  

5.	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.  

6.	Common Stock Repurchases

   During the first three months of fiscal 1999, the Company
  	repurchased 140,000 shares of its common stock on the open
  	market compared with 541,100 shares repurchased in the
   first three months of the previous fiscal year.  During all
	  of fiscal 1998, the Company repurchased 1,851,460 shares.






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


7.	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.  

8.	Subsequent 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 a purchase price of
   DM 34,000,000 (approximately $20.7 million in cash and common 
   stock on the closing date).  In addition, the shareholders of 
   Softron have the right to receive an earn-out, to be paid by 
   February 1, 1999, in the event Softron achieves certain 
   business goals in calendar year 1998, which earn-out shall not 
   exceed an aggregate of DM 6,000,000 (equivalent to 
   approximately $3.7 million based on the October 20, 1998 
   exchange ratio of 1.64 marks to the dollar). The Company 
   expects to record an after-tax charge of between $6 million 
   and $8 million in the second quarter of fiscal 1999 in 
   connection with the acquisition.  In anticipation of the 
   acquisition, the Company increased its existing bank line of 
   credit to $25 million.  The Company utilized $9.8 million of 
   its bank line of credit to fund the acquisition of Softron.

   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.  







9
<PAGE>
DIONEX CORPORATION


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

Results of Operations - Three Months Ended September 30, 1998 
and 1997

Net sales for the first quarter of fiscal 1999 were $34.8 million, 
an increase of 3% from the $33.9 million reported for the same 
period last year.  The Company experienced sales growth despite a 
stronger U.S. dollar and weak demand in Asia.  Sales in both North 
America and Europe increased over the prior year period.  Had 
currency rates been the same as in last year's first quarter, sales 
growth would have been 5%.

Gross margin for the first quarter of fiscal 1999 was 68%, 
unchanged from the same period last year.  Gross margin was 
affected by unfavorable currency fluctuations offset by lower 
manufacturing costs.  There were no significant selling price 
changes between these periods.

Operating expenses of $15.0 million for the first quarter of fiscal 
1999 were up $279,000, or 2%, from the $14.7 million reported in 
the same quarter last year.  As a percentage of sales, operating 
expenses were 43%, unchanged from the 43% reported for the first 
quarter last year.  Selling, general and administrative (SG&A) 
expenses decreased $49,000 to $11.5 million in the first quarter of 
fiscal 1999.  The decrease was due to the favorable effect of 
currency fluctuations on international selling expenses. 

Research and development (R&D) costs of $3.4 million were up 11% 
from the $3.1 million reported in the same period last year.  The 
increase in costs was due to higher personnel and related costs and 
higher project material 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.  

Interest income of $258,000 for the first quarter of fiscal 1999 
was $90,000 lower than the $348,000 reported in the first quarter 
last year.  The decrease in interest income was due to lower 
average cash balances.  

The effective tax rate for the first quarter of fiscal 1999 was 
33.5%, compared with 34.0% in 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. 





10 

Net income in the first quarter of fiscal 1999 was $6.0 million, an 
increase of 4% from the $5.8 million reported for the same period 
last year.  Diluted earnings per share rose $.03, or 13%, to $.26 
compared with $.23 for the same period last year.  Net income per 
share was favorably impacted by the Company's stock repurchase 
program.

Liquidity and Capital Resources

The Company's liquidity and capital resources remained strong 
during the first three months of fiscal 1999.  At September 30, 
1998, the Company had cash and cash investments of $18.7 million.

During the first quarter of fiscal 1999, the Company repurchased 
140,000 shares of its common stock compared with 541,100 shares 
repurchased in the first three months of last year.  During all of 
fiscal 1998, the Company repurchased 1,851,460 shares.

At September 30, 1998, the Company's Japanese subsidiary had 
utilized $733,000 of the Company's $29.2 million in committed bank 
lines of credit.  These funds and existing cash and equivalents 
were used to acquire a leasehold right in Japan for approximately 
$3.7 million during the first quarter.  The Company is in the early 
stages of planning construction of a building on the property for 
occupancy by its Japanese operations.  The Company believes that 
its cash flow from operations, current cash and cash investments 
and the remainder of its $29.2 million bank lines of credit will be 
adequate to meet its cash requirements for fiscal 1999 and the 
foreseeable future.  

The impact of inflation on Dionex Corporation's financial position 
and results of operations was not significant during the three 
months ended September 30, 1998.

Subsequent 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 a purchase price of DM 34,000,000 
(approximately $20.7 million in cash and common stock on the 
closing date).  In addition, the shareholders of Softron have the 
right to receive an earn-out, to be paid by February 1, 1999, in 
the event Softron achieves certain business goals in calendar year 
1998, which earn-out shall not exceed an aggregate of DM 6,000,000 
(equivalent to approximately $3.7 million based on the October 20, 
1998 exchange ratio of 1.64 marks to the dollar). The Company 
expects to record an after-tax charge of between $6 million and $8 
million in the second quarter of fiscal 1999 in connection with the 
acquisition.  In anticipation of the acquisition, the Company 
increased its existing bank line of credit to $25 million.  The 
Company utilized $9.8 million of its bank line of credit to fund 
the acquisition of Softron.
11
<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 risk and uncertainties include: general 
economic conditions, foreign currency fluctuations, new product 
development, including market receptiveness, competition from other 
products, existing product obsolescence, fluctuation in









12
<PAGE>
worldwide demand for analytical instrumentation, 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.  










































13
<PAGE>
PART II.  OTHER INFORMATION


Item 6.  Exhibits and Reports on Form 8-K 

        (a)  Exhibits

         10.1  Third Amendment to the Credit Agreement dated
               February 29, 1998 between BankAmerica and
               Dionex Corporation.
	
         27    Financial Data Schedule for the period ended
               September 30, 1998.
 
   	    (b) The Company did not file any reports on Form 8-K
            during the quarter ended September 30, 1998.  





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: November 13, 1998  	 By:    /s/ A. Blaine Bowman		
                                  A. Blaine Bowman
                                  President, Chief Executive
                                  Officer



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






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