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Continued Strong New Product Demand Drives Waters Third Quarter 2007 Sales Up 17%

MILFORD, Mass.--(BUSINESS WIRE)--Oct. 23, 2007--Waters Corporation (NYSE/WAT) reported today third quarter 2007 sales of $353 million, an increase of 17% over sales of $301 million in the third quarter of 2006. Foreign currency translation contributed 3% to this reported sales growth rate. On a GAAP basis, earnings per diluted share (E.P.S.) for the third quarter were $0.52, compared to $0.49 for the third quarter in 2006. On a non-GAAP basis, including the adjustments noted in the attached reconciliation, E.P.S. grew 24% to $0.62 in the third quarter of 2007 from $0.50 in the third quarter of 2006.

Through the first nine months of 2007, sales for the Company were $1,036 million, a 16% increase over sales in the first nine months of 2006 of $893 million. Foreign currency translation contributed 2% to this reported sales growth rate. E.P.S. for the first nine months of 2007 were $1.65 compared to $1.36 for the comparable period in 2006. On a non-GAAP basis and including adjustments on the attached reconciliation, E.P.S. grew 23% in the first nine months of 2007 to $1.78 from $1.45 in 2006.

Commenting on the quarter, Douglas Berthiaume, Chairman, President and Chief Executive Officer said, "The broad-based growth that we experienced in the first half of 2007 continued through the third quarter with the ongoing success of our major programs and a generally favorable spending environment."

As communicated in a prior press release, Waters Corporation will webcast its third quarter 2007 financial results conference call this morning, October 23, 2007 at 8:30 a.m. eastern time. To listen to the call, connect to www.waters.info , choose Investor Relations and click on the Live Webcast. A replay of the call will be available through October 30, 2007, similarly by webcast and also by phone at 402-220-2173.

Waters Corporation holds worldwide leading positions in three complementary analytical technologies - liquid chromatography, mass spectrometry, and thermal analysis. These markets account for approximately $5.0 billion of the estimated $20 - $25 billion analytical instrumentation market.

                         CAUTIONARY STATEMENT

This release may contain "forward-looking" statements regarding future results and events, including statements regarding expected financial results, future growth and customer demand that involve a number of risks and uncertainties. For this purpose, any statements that are not statements of historical fact may be deemed forward-looking statements. Without limiting the foregoing, the words, "believes", "anticipates", "plans", "expects", "intends", "appears", "estimates", "projects", and similar expressions are intended to identify forward-looking statements. The Company's actual future results may differ significantly from the results discussed in the forward-looking statements within this release for a variety of reasons, including and without limitation, the ability to successfully integrate acquired businesses, the impact of changes in accounting principles or practices, fluctuations in capital expenditures by the Company's customers, in particular large pharmaceutical companies, regulatory and/or administrative obstacles to the timely completion of purchase order documentation, introduction of competing products by other companies, such as improved research-grade mass spectrometers, and/or higher speed and/or more sensitive liquid chromatographs, pressures on prices from competitors and/or customers, regulatory obstacles to new product introductions, lack of acceptance of new products, other changes in the demands of the Company's healthcare and pharmaceutical company customers, changes in distribution of the Company's products, risks associated with lawsuits and other legal actions particularly involving claims for infringement of patents and other intellectual property rights, and foreign exchange rate fluctuations affecting translation of the Company's future non-U.S. operating results. Such factors and others are discussed more fully in the section entitled "Risk Factors" of the Company's annual report on Form 10-K for the year ended December 31, 2006 and quarterly report on Form 10-Q for the period ended June 30, 2007, as filed with the Securities and Exchange Commission (the "SEC"), which "Risk Factors" discussion is incorporated by reference in this release. The forward-looking statements included in this release represent the Company's estimates or views as of the date of this release report and should not be relied upon as representing the Company's estimates or views as of any date subsequent to the date of this release.

                 Waters Corporation and Subsidiaries
                Consolidated Statements of Operations
                (In thousands, except per share data)
                             (Unaudited)

                              (Unaudited)            (Unaudited)
                           Three Months Ended     Nine Months Ended
                          September  September  September   September
                           29, 2007   30, 2006   29, 2007    30, 2006

Net sales                   352,638    301,182   1,036,045    893,299
Cost of sales (1)           153,679    127,167     449,130    373,799

  Gross profit              198,959    174,015     586,915    519,500

Selling and administrative
 expenses (1)               105,577     87,397     301,707    261,903
Research and development
 expenses (1)                21,974     19,138      59,811     57,836
Purchased intangibles
 amortization                 2,176      1,403       6,434      3,980
Restructuring and other
 unusual charges (2)              -        344           -      7,670

  Operating income           69,232     65,733     218,963    188,111

Interest expense, net        (6,722)    (6,688)    (19,953)   (19,096)
  Income from operations
   before income taxes       62,510     59,045     199,010    169,015

Provision for income taxes    9,227      8,669      29,881     26,704

  Net income                 53,283     50,376     169,129    142,311


Net income per basic
 common share              $   0.53   $   0.49  $     1.68   $   1.38

Weighted average number of
 basic common shares         99,821    101,845     100,457    103,135


Net income per diluted
 common share              $   0.52   $   0.49  $     1.65   $   1.36

Weighted average number of
 diluted common shares and
 equivalents                101,712    103,074     102,352    104,570


(1) The results for the three and nine months ended September 29, 2007
 include a charge for a one-time contribution to the 401(k) defined
 contribution plan associated with freezing of pay credit accruals
 under the Company's U.S. defined benefit pension plan. The amount of
 the one-time charge in the consolidated statement of operations above
 is as follows:




                              (Unaudited)            (Unaudited)
                           Three Months Ended     Nine Months Ended
                          September  September  September   September
                           29, 2007   30, 2006   29, 2007    30, 2006
Cost of sales                 2,556          -       2,556          -
Selling and administrative
 expenses                     7,368          -       7,368          -
Research and development
 expenses                     2,243          -       2,243          -
                          ---------- ---------- ----------- ----------
   Total one-time
    contribution charge      12,167          -      12,167          -


(2) The results for the three and nine months ended September 30, 2006
 include restructuring and other incremental costs in relation to a
 cost reduction plan implemented in February 2006.


                 Waters Corporation and Subsidiaries
                Consolidated Statements of Operations
                (In thousands, except per share data)
                             (Unaudited)

                              (Unaudited)            (Unaudited)
                           Three Months Ended     Nine Months Ended
                          September  September  September   September
                           29, 2007   30, 2006   29, 2007    30, 2006
Reconciliation of income
 per diluted share, in
 accordance with
generally accepted
 accounting principles,
 with adjusted results:

Income per diluted share   $   0.52   $   0.49  $     1.65   $   1.36
                          ---------- ---------- ----------- ----------

Adjustment for purchased
 intangibles amortization,
 net of tax                   1,557      1,223       4,843      3,431
Income per diluted share
 effect                        0.02       0.01        0.05       0.03
                          ---------- ---------- ----------- ----------

Adjustment for
 restructuring and other
 unusual charges, net of
 tax                              -        329           -      6,366
Income per diluted share
 effect                           -       0.00           -       0.06
                          ---------- ---------- ----------- ----------

Adjustment for one-time
 contribution, net of tax     7,750          -       7,750          -
Income per diluted share
 effect                        0.08          -        0.08          -
                          ---------- ---------- ----------- ----------


Adjusted income per
 diluted share             $   0.62   $   0.50  $     1.78   $   1.45
                          ========== ========== =========== ==========

The adjusted income per diluted share presented above is used by the
 management of the Company to measure operating performance with prior
 periods and is not in accordance with generally accepted accounting
 principles (GAAP). The above reconciliation identifies items
 management has excluded as non-operational transactions. Management
 has excluded the restructuring charges and purchased intangibles
 amortization from its non-GAAP adjusted amounts since management
 believes that these charges are not directly related to ongoing
 operations thereby providing investors with information that helps to
 compare ongoing operating performance. Management has also excluded
 the one-time contribution from its non-GAAP adjusted amounts to
 enable management and investors to prepare meaningful comparisons of
 the Company's operating results to prior and future periods.

                 Waters Corporation and Subsidiaries
                Condensed Consolidated Balance Sheets
                     (In thousands and unaudited)



                                                   September December
                                                    29, 2007  31, 2006


Cash, cash equivalents and short-term
 investments                                         626,465   514,166
Accounts receivable                                  269,580   272,157
Inventories                                          191,121   168,437
Other current assets                                  42,347    44,920
   Total current assets                            1,129,513   999,680

Property, plant and equipment, net                   157,901   149,262
Other assets                                         494,844   468,371
   Total assets                                    1,782,258 1,617,313


Notes payable and debt                               410,515   403,461
Accounts payable and accrued expenses                277,807   282,373
   Total current liabilities                         688,322   685,834

Long-term debt                                       500,000   500,000
Other long-term liabilities                          138,263    69,096
   Total liabilities                               1,326,585 1,254,930

Total equity                                         455,673   362,383
   Total liabilities and equity                    1,782,258 1,617,313
CONTACT: Waters Corporation
Gene Cassis, 508-482-2349
Vice President of Investor Relations
SOURCE: Waters Corporation