This document consists of 25
pages, of which this page
is number 1.



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 December 31, 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 February 11, 1999:

	        CLASS                    NUMBER OF SHARES

	   	Common Stock		 22,330,917


DIONEX CORPORATION
INDEX


				PART I.  FINANCIAL INFORMATION


ITEM 1.  FINANCIAL STATEMENTS                      		     Page 


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

	      CONDENSED CONSOLIDATED STATEMENTS OF INCOME
	      Three Months Ended December 31, 1998 and 1997.....     4

	      CONDENSED CONSOLIDATED STATEMENTS OF INCOME
	      Six months Ended December 31, 1998 and 1997            5

	      CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
	      Six Months Ended December 31, 1998 and 1997.......     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 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.      19

ITEM 5.  OTHER INFORMATION...................................   19-23

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K....................   24-25

SIGNATURES...................................................      25


















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

                                                    December 31, June 30,
      ASSETS                                           1998	       1998  
                                                    (unaudited)
Current assets:
  Cash and equivalents (including invested cash
    of $1,868 at December 31, 1998 and $5,364
    at June 30, 1998)............................    $  6,893   $ 13,184
  Temporary cash investments.....................          -       5,850
  Accounts receivable (net of allowance for
    doubtful accounts of $632 at December 31,
    1998 and $606 at June 30, 1998)..............      35,155     31,350
  Inventories....................................      11,808      9,921
  Deferred tax benefits..........................       9,363      7,965
  Prepaid expenses and other.....................       2,054      1,089
         Total current assets....................      65,273     69,359

Property, plant and equipment, net...............      40,355     30,070
Intangible assets................................      12,446         -
Other assets ....................................      13,456      7,830
                                                     $131,530   $107,259

	LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Notes payable to banks.........................    $  1,997   $     -
  Accounts payable...............................       4,689      5,681
  Accrued liabilities............................      23,636     17,394
  Income taxes payable...........................       4,442      6,526
  Accrued product warranty.......................       4,420      4,013
         Total current liabilities...............      39,184     33,614

Deferred taxes and other ........................       6,704      2,956
Long-term debt...................................       1,236         -
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:
    22,257,741 shares at December 31, 1998 and
    22,315,910 shares at June 30, 1998)..........      44,650     38,926
  Retained earnings..............................      37,014     32,106
  Accumulated other comprehensive income (loss)..       2,742       (343)
         Total stockholders' equity..............      84,406     70,689
										   $131,530   $107,259


See notes to condensed consolidated financial statements. 



3
<PAGE>
DIONEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED DECEMBER 31, 1998 AND 1997
(In thousands, except per share amounts)
------------------




                                                           1998     1997	
                                                             (unaudited)

Net sales.............................................   $44,505    $39,420
Cost of sales.........................................    14,340     12,353
Revaluation of acquired inventory.....................     1,952         -	
Gross profit..........................................    28,213     27,067

Operating expenses:
  Selling, general and administrative.................    13,644     12,346
  Research and product development....................     3,592      3,318
  Write-off of in-process research and development....     4,991        -	

     Total operating expenses.........................    22,227     15,664

Operating income......................................     5,986     11,403
 
Interest income.......................................       197        392
Interest expense......................................      (118)       (13)

Income before taxes on income.........................     6,065     11,782
Taxes on income.......................................     2,032      4,006

Net income............................................   $ 4,033    $ 7,776


Basic earnings per share..............................   $   .18    $   .34

Diluted earnings per share............................   $   .17    $   .32


Shares used in computing per share amounts:

    Basic ............................................    22,196     23,182

    Diluted ..........................................    23,516     24,550








 See notes to condensed consolidated financial statements.               


4
<PAGE>
DIONEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
SIX MONTHS ENDED DECEMBER 31, 1998 AND 1997
(In thousands, except per share amounts)
------------------




                                                          1998        1997	  
                                                           (unaudited)

Net sales............................................   $79,350     $73,353 
Cost of sales........................................    25,371      23,120 
Revaluation of acquired inventory....................     1,952        -	 
Gross profit.........................................    52,027      50,233 

Operating expenses:
  Selling, general and administrative................    25,160      23,911
  Research and product development...................     7,027       6,425
  Write-off of in-process research and development...     4,991          -	

     Total operating expenses........................    37,178      30,336

Operating income.....................................    14,849      19,897
 
Interest income......................................       455         740
Interest expense.....................................      (143)        (54)

Income before taxes on income........................    15,161      20,583
Taxes on income......................................     5,079       6,998

Net income...........................................   $10,082     $13,585


Basic earnings per share.............................   $   .45     $   .58

Diluted earnings per share...........................   $   .43     $   .55


Shares used in computing per share amounts:

  Basic .............................................    22,242      23,278

  Diluted ...........................................    23,463      24,645








 See notes to condensed consolidated financial statements.


5
<PAGE>
DIONEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED DECEMBER 31, 1998 AND 1997
(In thousands)
------------------


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

Cash flows from operating activities:
Net income............................................	$ 10,082   $13,585
Adjustments to reconcile net income to net cash
  provided by operating activities:
  Write-off of in-process research and development....	   4,991        -
  Depreciation and amortization.........................  1,602     1,243
  Deferred taxes......................................	  (1,393)     (471)

  Changes in assets and liabilities:
    Accounts receivable...............................	   1,069    (1,836)
    Inventories.......................................	   2,612      (256)
    Prepaid expenses and other assets.................	    (772)     (367)
    Accounts payable..................................	  (1,758)   (1,295)
    Accrued liabilities...............................	   3,824      (243)
    Income taxes payable..............................	  (2,267)    1,771 
    Accrued product warranty..........................	     172       219
Net cash provided by operating activities.............	  18,162    12,350

Cash flows from investing activities:
  Purchase of temporary cash investments..............	  (3,500)   (7,650)
  Proceeds from maturities of temporary
    cash investments.................................	   9,350     9,000
  Purchase of property, plant and equipment...........	  (5,709)     (794)
  Acquisition of Softron, net of cash acquired........	 (23,206)       - 
  Other...............................................	     102        13
Net cash provided by (used for) investing activities..	 (22,963)      569

Cash flows from financing activities:
  Net change in notes payable to banks................	   1,058        -
  Sale of common stock................................	   4,809     1,094
  Repurchase of common stock..........................	  (5,647)  (17,691)
  Lease obligations and other.........................	    (462)        9 
Net cash used for financing activities................	    (242)  (16,588)

Effect of exchange rate changes on cash...............	  (1,248)      786 

Net decrease in cash and equivalents..................	  (6,291)   (2,883)
Cash and equivalents, beginning of period.............	  13,184    24,624

Cash and equivalents, end of period...................	$  6,893   $21,741
(continued)




6
<PAGE>
DIONEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED DECEMBER 31, 1998 AND 1997
(In thousands)
------------------


                                                       1998     1997
                                                         (unaudited)
(continued)
Supplemental disclosures of cash flow information:
  Income taxes paid.................................   $5,365  $5,787
  Interest paid.....................................   $  144  $   55
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 consideration also includes an earn-out of $3.6 
million which was fully earned as of December 31, 1998 and is 
reported in accrued liabilities.  

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.

The total purchase price and final allocation among the tangible 
and intangible assets and liabilities acquired (including 
acquired in-process research and development) is summarized as 
follows: (in thousands):

		Total purchase price:

   Total cash consideration	   			$22,950
   Value of common stock issued			  1,388
   Transaction costs					             700
			                               $25,038


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
   Tangible liabilities				        (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, 
over the course of the last few months 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 during the current 
quarter were approximately $300,000.

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 
six months ended December 31, 1998 and 1997 give effect to the 
acquisition as if it had occurred at the beginning of fiscal 
1997.  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)

                                          Six Months Ended
                                         Ended December 31,
                                             1998      1997

	Net sales............................    $83,126   $79,009
	Income from continuing operations....    $21,180   $20,642
	Net income...........................    $14,098   $13,764
	Basic earnings per share.............       $.63      $.59
	Diluted earnings per share...........       $.60      $.56

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):
													
                                  December 31,      June 30,
	                                        1998           1998	

  Finished goods         		        $ 4,906    	   $3,459
  Work in process                     2,677         3,548
  Raw materials and subassemblies     4,225         2,914

	                             		   $11,808    	   $9,921

4.   Income Taxes

	The effective income tax rate for the first six 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 $6,157,000 and 
$7,165,000 for the three months ended December 31, 1998 and 
1997, respectively, and $13,167,000 and $13,570,000 for the six 
months ended December 31, 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.















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 second quarter of fiscal 1999, the Company repurchased 
127,600 shares of its common stock on the open market, bringing 
the cumulative number of shares repurchased during the first half 
of the year to 267,600 shares compared with 747,900 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, 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 stock valued at $22 per share.  The 
consideration also includes an earn-out of $3.6 million which was 
fully earned at December 31, 1998 and is reported in accrued 
liabilities.  

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, over 
the course of the last few months 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 December 31, 1998 and 
1997

Net sales for the second quarter of fiscal 1999 were $44.5 million, 
an increase of 13% from the $39.4 million reported for the same 
period last year.  The Company experienced strong sales growth in 
Europe, while growth in North America was moderate. Demand for 
products in Asia outside of Japan was better than in recent 
quarters, but remained well below the level experienced in the same 
quarter last year.  Importantly, demand in Japan was much improved 
compared with the recent quarters. The inclusion of Softron also 
increased sales during the second quarter.  Had currency rates been 
the same as in last year's second quarter, sales growth would have 
been 12%.





13
<PAGE>
Gross margin for the second quarter of fiscal 1999 was 63.4%.  
Excluding a nonrecurring charge related to the sale of inventory 
acquired which had been written up as part of the purchase 
accounting of $2.0 million, 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 of $22.2 million for the second quarter of 
fiscal 1999 were up $6.6 million.  The increase was due to the 
inclusion of Softron since the date of acquisition and the
write-off of in-process research and development acquired.  
Excluding the nonrecurring write-off, operating expenses increased 
$1.6 million, or 10%.  As a percentage of sales, operating 
expenses, excluding the nonrecurring charge, were 39% of sales 
compared with 40% in the same period last year.  Selling, general 
and administrative expenses (SG&A) increased $1.3 million, or 11%, 
compared with $12.3 million reported in the same period last year.  
The increase in SG&A expenses was primarily due to the inclusion of 
Softron since the date of acquisition.

Research and development (R&D) costs of $3.6 million increased 
$274,000, or 8%, from the $3.3 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.

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.  

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.







14
<PAGE>
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 during the current quarter were approximately 
$300,000.

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 $197,000 for the second quarter of fiscal 1999, 
$195,000 lower than the $392,000 reported in the second quarter 
last year.  The decrease in interest income was due to lower 
average cash balances resulting from the acquisition of Softron.  

Interest expense was $118,000, an increase of $105,000 compared 
with $13,000 reported in the second quarter last year.  The 
increase was due to borrowings used in the acquisition of Softron.  
At December 31, 1998, the Company had no borrowings outstanding 
related to its acquisition of Softron.  

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. 

Net income in the second quarter of fiscal 1998 was $4.0 million 
compared with the $7.8 million reported in the second quarter last 
year. Basic and diluted earnings per share were $.18 and $.17 
respectively, compared with $.34 and $.32 reported for the same 
period last year. The nonrecurring charges reduced basic and 
diluted earnings per share by $.21 and $.20, respectively, during 
the quarter.







15
<PAGE>
Results of Operations - Six months ended December 31, 1998 and 1997

Net sales for the six months ended December 31, 1998 were $79.4 
million, an increase of 8%, compared with the $73.4 million 
reported for the same period last year. The Company experienced 
continued strong sales growth in Europe, while growth in North 
America was moderate.  Demand in Asia was lower during the first 
half of fiscal 1999 compared with the same period last year.  The 
inclusion of Softron since the date of acquisition also increased 
sales.  Had currency remained the same as the first half last year, 
sales growth would have been 9%.

Gross margin for the first six months of fiscal 1999 was 65.6% 
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 68.0%.  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 six months ended December 31 1998 were 
$37.2 million, an increase of $6.8 million compared with $30.3 
million reported for the same period last year.  Excluding the 
nonrecurring write-off of in-process research and development, 
operating expenses increased $1.9, or 6%, and as a percentage of 
sales, operating expenses were 41%, unchanged from the same period 
last year.  SG&A expenses were $25.2 million, an increase of $1.2 
million or 5%, compared with $23.9 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 six months ended December 31, 1998 were $7.0 
million, an increase of $602,000, or 9%, from the $6.4 million 
reported in the same six-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.

Interest income for the six months ended December 31, 1997 was 
$455,000, a decrease of $285,000 from the $740,000 reported for the 
same period last year.  The decrease in interest income was due to 
lower average cash balances resulting from the Softron acquisition.

Interest expense of $143,000 was $89,000 higher than the $54,000 
reported for the first half last year.  The interest expense 
increase was due to borrowings for the acquisition of Softron.  





16
<PAGE>
The effective tax rate for the first six months 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. 

Net income in the first half of fiscal 1998 was $10.1 million 
compared with $13.6 million reported in the same period last year.  
Basic and diluted earnings per share were $.45 and $.43 
respectively, compared with $.58 and $.55 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 six 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 December 31, 1998, the Company had cash and cash investments of 
$6.9 million.  During the second quarter of fiscal 1998, the 
Company repurchased 127,600 shares of its common stock, bringing 
the total shares repurchased for the first six months of fiscal 
1999 to 267,600.  During fiscal 1998, the Company repurchased a 
total of 1,851,460 shares of its common stock.

At December 31, 1998, the Company had outstanding borrowings of 
$3.2 million consisting of borrowings by its Japanese subsidiary 
and Softron.  There were no borrowings outstanding at December 31, 
1998 related to the acquisition of Softron.  At December 31, 1998, 
the Company had bank lines of credit totaling $29.7 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 six months 
ended December 31, 1998.





















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 4.  Submission of Matters to a Vote of Security Holders

On October 22, 1998, the Company held its annual meeting 
for the following purposes: (1) to elect directors, and 
(2) to ratify the selection of Deloitte & Touche LLP as 
the Company's independent auditors for its fiscal year 
ending June 30, 1999. A description of these matters is 
contained in the Company's Proxy Statement, dated 
September 11, 1998, relating to the 1998 Annual Meeting of 
Stockholders.

There were 22,282,956 shares of the Company's common stock 
entitled to vote at the Annual Meeting of Stockholders 
based on the September 8, 1998 record date.  The Company 
solicited proxies pursuant to Regulation 14 of the 
Securities Exchange Act of 1934 and there was no 
solicitation in opposition to management's nominees for 
directors as listed in the proxy statement.  Each director 
received a minimum of 19,841,018 votes which represented 
at least 89% of the outstanding common shares entitled to 
vote.

The shareholders voted to ratify the selection of Deloitte 
& Touche LLP as the Company's independent auditors for its 
fiscal year ending June 30, 1999.  

Item 5.  Other Information

On January 21, 1999 the Company's Board of Directors 
approved the adoption of a Share Purchase Rights Plan (the 
"Plan").  Terms of the Plan provide for a dividend 
distribution of one preferred share purchase right (a 
"Right") for each outstanding share of common stock, par 
value $.001 per share (the "Common Shares"), of the 
Company.  The dividend is payable on June 27, 1999 (the 
"The "Record Date") to the stockholders of record on that 
date.  Each Right entitles the registered holder to 
purchase from the Company one one-hundredth of a share of 
Series A Junior Participating Preferred Stock, par value 
$.001 per share (the "Preferred Shares"), at a price of 
$200.00 per one one-hundredth of a Preferred Share (the 
"Purchase Price"), subject to adjustment.  Each one
one-hundredth Preferred Share has designations and powers, 
preferences and rights, and the qualifications, 
limitations and restrictions which make its value 
approximately equal to the value of a Common Share.  The 
description and terms of the Rights are set forth in a 
Rights Agreement (the "Rights Agreement"), dated as of 
January 21, 1999 entered into between the Company and 
BankBoston, N.A., as Rights Agent (the "Rights Agent").  







19
<PAGE>
Initially, the Rights will be evidenced by the stock 
certificates representing the Common Shares then 
outstanding, and no separate Right Certificates, as 
defined, will be distributed.  Until the earlier to occur 
of (i) the date of a public announcement that a person, 
entity or group of affiliated or associated persons have 
acquired beneficial ownership of 15% or more of the 
outstanding Common Shares (an "Acquiring Person")or (ii) 
10 business days (or such later date as may be determined 
by action of the Board of Directors prior to such time as 
any person or entity becomes an Acquiring Person) 
following the commencement of, or announcement of an 
intention to commence, a tender offer or exchange offer 
the consummation of which would result in any person or 
entity becoming an Acquiring Person (the earlier of such 
dates being called the "Distribution Date") the Rights 
will be evidenced, with respect to any of the Common Share 
certificates outstanding as of the Record Date, by such 
Common Share certificate with or without a copy of the 
Summary of Rights, which is included in the Rights 
Agreement as Exhibit C thereof (the "Summary of Rights").  

Until the Distribution Date, the Rights will be 
transferable with and only with the Common Shares.  Until 
the Distribution Date (or earlier redemption or expiration 
of the Rights), new Common Share certificates issued after 
the Record Date, upon transfer or new issuance of Common 
Shares, will contain a notation incorporating the Rights 
Agreement by reference.  Until the Distribution Date (or 
earlier redemption or expiration of the Rights), the 
surrender or transfer of any certificates for Common 
Shares outstanding as of the Record Date, even without 
such notation or a copy of the Summary of Rights being 
attached thereto, will also constitute the transfer of the 
Rights associated with the Common Shares represented by 
such certificate.  As soon as practicable following the 
Distribution Date, separate certificates evidencing the 
Rights ("Right Certificates") will be mailed to holders of 
record of the Common Shares as of the close of business on 
the Distribution Date and such separate Right Certificates 
alone will evidence the Rights.  

The Rights are not exercisable until the Distribution 
Date.  The Rights will expire on June 26, 2009 (the "Final 
Expiration Date"), unless the Rights are earlier redeemed 
or exchanged by the Company, in each case, as described 
below.












20
<PAGE>
The Purchase Price payable, and the number of Preferred 
Shares or other securities or other property, upon 
exercise of the Rights are subject to adjustment from time 
to time to prevent dilution (i) in the event of a stock 
dividend on, or a subdivision, combination of 
reclassification of, the Preferred Shares, (ii) upon the 
grant to holders of the Preferred Shares of certain rights 
or warrants to subscribe for or purchase Preferred Shares 
at a price, or securities convertible into Preferred 
Shares with a conversion price, less than the then current 
market price of the Preferred Shares or (iii) upon the 
distribution to holders of the Preferred Shares of 
evidences of indebtedness or assets (excluding regular 
periodic cash dividends paid out of earnings or retained 
earnings or dividends payable in Preferred Shares) or of 
subscription rights or warrants (other than those referred 
to above).  The exercise of Rights for Preferred Shares is 
at all times subject to the availability of a sufficient 
number of authorized but unissued Preferred Shares.  

The number of outstanding Rights and the number of one 
one-hundredths of a Preferred Share issuable upon exercise 
of each Right are also subject to adjustment in the event 
of a stock split of the Common Shares or a stock dividend 
on the Common Shares payable in Common Shares or 
subdivisions, consolidations or combinations of the Common 
Shares occurring, in any case, prior to the Distribution 
Date.  

Preferred Shares purchasable upon exercise of the Rights 
will not be redeemable.  Each Preferred Share will be 
entitled to a minimum preferential quarterly dividend 
payment of $1.00 but will be entitled to an aggregate 
dividend of 100 times the dividend declared per Common 
Share.  In the event of liquidation, the holders of the 
Preferred Shares would be entitled to a minimum 
preferential liquidation payment of $100 per share, but 
would be entitled to receive an aggregate payment equal to 
100 times the payment made per Common Share.  Each 
Preferred Share will have 100 votes, voting together with 
the Common Shares.  Finally, in the event of any merger, 
consolidation or other transaction in which Common Shares 
are exchanged, each Preferred Share will be entitled to 
receive 100 times the amount of consideration received per 
Common Share.  These rights are protected by customary 
anti-dilution provisions.  Because of the nature of the 
Preferred Shares' dividend and liquidation rights, the 
value of one one-hundredth of a Preferred Share should 
approximate the value of one Common Share.  The Preferred 
Shares would rank junior to any other series of the 
Company's preferred stock.  








21
<PAGE>
In the event that any person or group of affiliated or 
associated persons becomes an Acquiring Person, proper 
provision shall be made so that each holder of a Right, 
other than Rights beneficially owned by the Acquiring 
Person and its associates and affiliates (which will 
thereafter be void), will for a 60-day period have the 
right to receive upon exercise that number of Common 
Shares having a market value of two times the exercise 
price of the Right (or, if such number of shares is not 
and cannot be authorized, the Company may issue Preferred 
Shares, cash, debt, stock or a combination thereof in 
exchange for the Rights).  This right will terminate 60 
days after the date on which the Rights become 
nonredeemable (as described below), unless there is an 
injunction or similar obstacle to exercise of the Rights, 
in which event this right will terminate 60 days after the 
date on which the Rights again become exercisable.  

Generally, under the Plan, an "Acquiring Person" shall not 
be deemed to include (i) the Company, (ii) a subsidiary of 
the Company, (iii) any employee benefit or compensation 
plan of the Company, or (iv) any entity holding Common 
Shares for or pursuant to the terms of any such employee 
benefit or compensation plan.  In addition, except under 
limited circumstances, no person or entity shall become an 
Acquiring Person as the result of the acquisition of 
Common Shares by the Company which, by reducing the number 
of shares outstanding, increases the proportionate number 
of shares beneficially owned by such person or entity to 
15% or more of the Common Shares then outstanding.  
Further, except under certain circumstances, no person 
shall become an Acquiring Person due to the acquisition of 
Common Shares directly from the Company.  

In the event that the Company is acquired in a merger or 
other business combination transaction or 50% or more of 
its consolidated assets or earning power are sold to an 
Acquiring Person, its associates or affiliates or certain 
other persons in which such persons have an interest, 
proper provision will be made so that each holder of a 
Right will thereafter have the right to receive, upon the 
exercise thereof at the then current exercise price of the 
Right, that number of shares of common stock of the 
acquiring company which at the time of such transaction 
will have a market value of two times the exercise price 
of the Right.  

At any time after an Acquiring Person becomes an Acquiring 
Person and prior to the acquisition by such Acquiring 
Person of 50% or more of the outstanding Common Shares, 
the Board of Directors of the Company may exchange the 
Rights (other than Rights owned by such person or group 
which have become void), in whole or in part, at any 
exchange ratio of one Common Share, or one one-hundredth 
of a Preferred Share, per Right (or, at the election of 
the Company, the Company may issue cash, debt, stock or a 
combination thereof in exchange for the Rights), subject 
to adjustment.  

22
<PAGE>
With certain exceptions, no adjustments in the Purchase 
Price will be required until cumulative adjustments 
require an adjustment of at least 1% in such Purchase 
Price.  No fractional Preferred Shares will be issued 
(other than fractions which are integral multiples of the 
number of one one-hundredths of a Preferred Share issuable 
upon the exercise of one Right, which may, at the election 
of the Company, be evidenced by depository receipts), and 
in lieu thereof, an adjustment in cash will be made based 
on the market price of the Preferred Shares on the last 
trading day prior to the date of exercise.

At any time prior to the earlier of (i) the day of the 
first public announcement that a person has become an 
Acquiring Person or (ii) the Final Expiration Date, the 
Board of Directors of the Company may redeem the Rights in 
whole, but not in part, at a price of $.001 per Right (the 
"Redemption Price").  

Following the expiration of the above periods, the Rights 
become nonredeemable.  Immediately upon any redemption of 
the Rights, the right to exercise the Rights will 
terminate and the only right of the holders of Rights will 
be to receive the Redemption Price.

The terms of the Rights may be amended by the Board of 
Directors of the Company without the consent of the 
holders of the Rights, except that from and after such 
time as the rights are distributed no such amendment may 
adversely affect the interest of the holders of the Rights 
excluding the interests of an Acquiring Person.

Until a Right is exercised, the holder thereof, as such, 
will have no rights as a stockholder of the Company, 
including, without limitation, the right to vote or to 
receive dividends.

The Rights have certain anti-takeover effects.  The Rights 
will cause substantial dilution to a person or group that 
attempts to acquire the Company on terms not approved by 
the Company's Board of Directors.  The Rights should not 
interfere with any merger or other business combination 
approved by the Board of Directors since the Rights may be 
amended to permit such acquisition or redeemed by the 
Company at $.001 per Right prior to the earliest of (i) 
the time that a person or group has acquired beneficial 
ownership of 15% or more of the Common Shares or (ii) the 
final expiration date of the rights.  











23
<PAGE>

PART II. OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K

	    (a)  Exhibits

		     3   Bylaws, as amended through January 21, 1999

		     4   Rights Agreement between Dionex Corporation and
			    BankBoston, N.A., dated as of January 21, 1999.

		    27   Financial Data Schedule for the period ended
			    December 31, 1998.

	    (b)   Reports on Form 8-K.

		     Reports filed on Form 8-K during the quarter ended
		     December 31, 1998.  

		Form 8-K dated October 20, 1998 and filed
November 4, 1998

Item 2.	Acquisition or Disposition of Assets - 
Announcement of the Acquisition of Softron 
GmbH.

		Item 7.	Financial Statements, Pro forma Financial
				Information and Exhibits.  

    (a),(b)  Financial statements and pro forma
         financial information omitted in reliance on
         Item 7 (a)(4) of the Instructions to Form 8-K.

				(c)  Exhibits.  

    2.1  Stock Purchase Agreement, dated
October 20, 1998, among the Registrant,
Zeus Vierrunddreissigste 
Beteiligungsgesellschaft mbH and the 
shareholders of Softron GmbH (the 
Disclosure Schedule has been omitted as
permitted pursuant to the rules and
regulations of the Securities and Exchange
Commission (SEC), but will be furnished
supplementally to the SEC upon request).

    20.2  Press release of Dionex Corporation dated
October 20, 1998.






24
<PAGE>
Item 9.  Sale of Equity Securities Pursuant to Regulation S.

Form 8-K/A dated October 20, 1998 and filed November 12, 1998.

Item 2.	Acquisition or Disposition of Assets - Announcement 
of the Acquisition of Softron GmbH.

Item 7.	Financial Statements, Pro forma Financial
				Information and Exhibits.

				(a) Financial statements of Business Acquired
        filed in accordance with Item 7 (a)(4) of
        the Instructions to Form 8-K.

    (b) Pro Forma Financial Information filed in
        accordance with Item 7(a)(4) of the
        Instructions to  Form 8-K.

(c) Exhibits.  

   2.1  Stock Purchase Agreement, dated
October 20 1998, among the Registrant, "Zeus"
Vierrunddreissigste Beteiligungsgesellschaft
mbH and the shareholders of Softron GmbH (the
Disclosure Schedule has been Omitted as
permitted pursuant to the rules and regulations
of the Securities and Exchange Commission
("SEC"), but will be furnished supplementally
to the SEC upon request).  

   20.1 Press release of the Registrant dated
     October 20, 1998.  

   23.1 Independent Auditors' Consent

		Item 9.	Sale of Equity Securities Pursuant to
				Regulation S.  


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: February 11, 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
                               Administration
                               (Principal Financial and
                               Accounting Officer)

25