News Releases

<< Back
Waters Corporation First Quarter 1998 Sales Up 35%, 39% Excluding Currency Effects

Earnings Per Diluted Share Up 32% Excluding Nonrecurring Charge

MILFORD, Mass.--April 27, 1998--Waters Corporation (NYSE:WAT) reported today that first quarter 1998 sales increased by 35% over prior year levels. Sales grew by 39% excluding the unfavorable impact of foreign currency exchange rate comparisons. Earnings per diluted share (E.P.S.) excluding a nonrecurring charge related to the Company's Micromass Limited (Micromass) acquisition were $0.50 for the quarter, representing a 32% increase over prior year E.P.S. of $0.38. After the nonrecurring $16.5 million charge for the revaluation of inventory purchased in the 1997 acquisition of Micromass, the Company reported first quarter 1998 E.P.S. of $0.00.

Douglas A. Berthiaume, Chairman and Chief Executive Officer, said: ''I'm extremely pleased with our first quarter results and start to 1998. The Company's operating and financial performance was strong across all lines of business. Worldwide sales of core high performance liquid chromatography (HPLC) and thermal analysis products grew by 11% excluding currency effects. Our new mass spectrometry business, added in September 1997 with the acquisition of Micromass, also contributed strongly to the Company's performance and added 28% points of sales growth for the quarter. And, on a stand-alone basis, Micromass sales grew much faster than the Company's core HPLC business. Overall Company sales growth for the quarter was 39% before currency effects.

First quarter customer demand was very strong worldwide with the exception of the Far East. This strength, particularly in the U.S. and Europe, more than offset weaker performance in Japan and the Pacific Rim.''

Waters Corporation holds worldwide leading positions in three complementary analytical technologies- HPLC, thermal analysis and mass spectrometry -which account for $3 billion in annual revenues of the $12 billion analytical instrument industry total.


Certain statements contained herein are forward looking. Many factors could cause actual results to differ from these statements, including loss of market share through competition, introduction of competing products by other companies, pressures on prices from competitors and/or customers, regulatory obstacles to new product introductions, lack of acceptance of new products, changes in the healthcare market and the pharmaceutical industry, changes in distribution of the Company's products, and interest rate and foreign exchange fluctuations. Such factors are discussed in detail in the Company's filings with the Securities and Exchange Commission.

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

                                                    Three Months
                                                    Ended March 31
                                                   1998      1997

Net sales                                        138,725   102,431
Cost of sales                                     51,920    37,765
Revaluation of acquired inventory (A)             16,500         0
   Gross profit                                   70,305    64,666

Selling, general and
 administrative expenses                          49,988    39,076

Research and development expenses                  8,372     5,786
Goodwill and purchased
 technology amortization                           2,275     1,357
   Operating income                                9,670    18,447

Interest expense, net                              5,063     3,024
   Income from operations before income taxes      4,607    15,423

Provision for income taxes                         4,363     3,085
   Net income                                        244    12,338

Less: preferred stock dividend and accretion         239       234
   Net income available to common stockholders         5    12,104

Net income per basic common share                   0.00      0.42

Net income per diluted common share                 0.00      0.38

Weighted average number of basic common shares    29,708    28,927

Weighted average number of diluted
 common shares and equivalents                    33,161    31,867

(A)  Nonrecurring 1998 charge, no tax effect

                 Waters Corporation and Subsidiaries
                 Condensed Consolidated Balance Sheets

                                        March 31,   December 31,
                                          1998         1997

Cash and cash equivalents                 2,591         3,113
Accounts receivable                     114,369       111,022
Inventories                              79,516        87,375
Other current assets                     16,425        11,614
   Total current assets                 212,901       213,124

Property, plant and equipment, net       89,621        88,668
Other assets                            247,292       250,267
   Total assets                         549,814       552,059

Notes payable                             8,924         7,394
Accounts payable and accrued expenses   170,035       163,262
    Total current liabilities           178,959       170,656

Loans payable                           292,955       305,340
Redeemable preferred stock                8,335         8,096
Other liabilities                         5,653         5,670
   Total liabilities                    485,902       489,762

 Total equity                            63,912        62,297
  Total liabilities and equity          549,814       552,059

     Waters Corporation
     Brian Mazar, Vice President of Investor Relations