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Waters Corporation Fourth Quarter 2000 Sales Up 19% Before Currency Effects, Earnings Per Diluted Share Up 19%

MILFORD, Mass.--(BUSINESS WIRE)--Jan. 30, 2001--Waters Corporation (NYSE:WAT) reported today that fourth quarter 2000 sales increased by 19% over prior year levels before unfavorable currency effects. After currency effects, reported sales growth was 12%. Earnings per diluted share (E.P.S.) were $0.37 for the quarter, representing a 19% increase over prior year E.P.S. of $0.31.

E.P.S were $1.14 for full year 2000 before an ($0.08) impact from the cumulative effect of a change in accounting principle. As required by the Securities and Exchange Commission, the Company implemented Staff Accounting Bulletin #101 (SAB #101) in the fourth quarter retroactive to January 1, 2000, restating the first three quarters of 2000 and recording a cumulative effect of change in accounting principle in the first quarter. SAB #101 clarifies and modifies rules regarding revenue recognition practices for companies in various areas, one of which, primarily, affected Waters. Retroactive to January 1, 2000, Waters now recognizes that portion of revenue related to the installation of certain products when installation is complete; a change from past accepted practice of recognizing both product and installation revenue, along with associated costs, when product was shipped. The adoption of SAB #101 had virtually no effect on the Company's 2000 results of operations excluding the cumulative effect.

Douglas A. Berthiaume, Chairman and Chief Executive Officer, said: "Fourth quarter results completed the year on a strong note and were consistent broadly with the rest of the year. Overall sales growth was again led by demand from life science customers and by sales of mass spectrometry products in particular. From a geographic perspective, sales growth before currency effects was double-digit across all major areas. As we start the new year, I am enthusiastic about both our markets and new product plans. In 2001, we plan to introduce a variety of new products across our technology platforms-- liquid chromatography, mass spectrometry and thermal analysis-- which we think continue to position us well. We will showcase many of these in March 2001 at the Pittsburgh Conference trade show, the largest analytical instrument and consumable trade show held annually in the US.

As we discussed in last quarter's earnings release, currency translation effects, primarily due to the weak Euro, proved challenging for the quarter. The Company grew earnings by 19% in the fourth quarter despite this dynamic. The Euro today is stronger than its fourth quarter average and, at today's level, would be less unfavorable to Company financial results going forward. "

As communicated by prior press release, Waters Corporation will webcast its fourth quarter 2000 financial results conference call this morning, January 30, 2001 at 8:30 a.m. eastern time. To listen to the call, connect to www.waters.com and access the investor relations section. A replay of the call will be available from today through February 5, 2001 similarly by webcast, and also by phone at 402-220-0186.

Waters Corporation holds worldwide leading positions in three complementary analytical technologies - high performance liquid chromatography, thermal analysis and mass spectrometry - which account for $4 billion in annual revenues of the $18 billion analytical instrument total.

CAUTIONARY STATEMENT

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 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 Statements of Operations
                ( In thousands, except per share data)
                              (Unaudited)


                              Three Months                    Year
                         Ended December 31       Ended December 31
                          2000        1999        2000        1999

Net sales               225,508     200,668     795,071     704,400
Cost of sales            79,854      70,899     288,264     257,136
   Gross profit         145,654     129,769     506,807     447,264

Selling, general
 and administrative
 expenses                65,223      59,477     246,390     226,593
Research and
 development
 expenses                11,200       9,753      42,513      36,094
Goodwill and
 purchased
 technology
 amortization             1,751       1,990       7,077       8,068
  Operating income       67,480      58,549     210,827     176,509

Interest (income)
 expense, net              (857)      1,742        (135)      8,948
   Income before
    income taxes         68,337      56,807     210,962     167,561

Provision for
 income taxes            17,768      15,339      54,849      45,243
   Income before
    cumulative
    effect of
    change in
    accounting
    principle            50,569      41,468     156,113     122,318

Cumulative effect
 of change in
 accounting
 principle (A)                0           0     (10,771)          0
   Net income            50,569      41,468     145,342     122,318

Less: preferred
 stock dividend
 and accretion,
 net of
 redemption (gain)            0        (294)          0         442
   Net income
    available to
    common
    stockholders         50,569      41,762     145,342     121,876


Income (loss)
 per basic common
 share:
  Net income
   before cumulative
   effect of
   accounting
   principle
   change                  0.39        0.34        1.22        0.99
Cumulative
 effect of change
 in accounting
 principle (A)             0.00        0.00       (0.08)       0.00
  Net income               0.39        0.34        1.14        0.99

Income (loss)
 per diluted
 common share:
  Net income
   before
   cumulative
   effect of
   accounting
   principle
   change                  0.37        0.31        1.14        0.92
Cumulative
 effect of change
 in accounting
 principle (A)             0.00        0.00       (0.08)       0.00
  Net income               0.37        0.31        1.06        0.92


Weighted average
 number of basic
 common shares          129,347     124,408     127,568     123,013

Weighted average
 number of diluted
 common shares and
 equivalents            137,795     133,242     136,743     132,632

    (A) Effect at January 1, 2000 of adopting Securities and Exchange
Commission Staff Accounting Bulletin #101


                  Waters Corporation and Subsidiaries
                 Condensed Consolidated Balance Sheets
                            (In Thousands)



                              December 31, 2000
                                    (Unaudited)   December 31, 1999

Cash and cash equivalents                75,509               3,803
Accounts receivable                     167,713             149,271
Inventories                              87,275              80,363
Other current assets                     13,299              15,801
   Total current assets                 343,796             249,238

Property, plant and equipment, net      102,608              91,841
Other assets                            245,941             245,266
   Total assets                         692,345             586,345


Notes payable                             4,879              14,164
Accounts payable and accrued expenses   215,654             185,585
   Total current liabilities            220,533             199,749

Loans payable                                 0              81,105
Other liabilities                        20,031              13,329
   Total liabilities                    240,564             294,183

 Total equity                           451,781             292,162
   Total liabilities and equity         692,345             586,345




                  Waters Corporation and Subsidiaries
      Supplemental Information: Restated Consolidated Statements
                        of Operations (A) (B)
               For Nine Months Ended September 30, 2000
                 (In thousands, except per share data)
                              (Unaudited)


               3 Months    3 Months   3 Months    9 Months    9 Months
                 Ended       Ended      Ended       Ended       Ended
                3/31/00     6/30/00    9/30/00     9/30/00     9/30/00
               Restated    Restated   Restated    Restated  Originally
                    (A)         (A)        (A)         (A)    Reported
                                                                   (B)
Net sales       180,202     197,408    191,953     569,563     569,990
Cost
 of sales        66,340      71,777     70,293     208,410     208,469
Gross profit    113,862     125,631    121,660     361,153     361,521

Selling,
 general
 and
 administrative
 expenses        60,395      61,060     59,712     181,167     181,167
Research and
 development
 expenses        10,362      10,557     10,394      31,313      31,313
Goodwill and
 purchased
 technology
 amortization     1,811       1,760      1,755       5,326       5,326
  Operating
   income        41,294      52,254     49,799     143,347     143,715

Interest
 (income)
 expense, net       701         343       (322)        722         722
   Income
    before
    income
    taxes        40,593      51,911     50,121     142,625     142,993

Provision for
 income taxes    10,545      13,506     13,030      37,081      37,177
   Income
    before
    cumulative
    effect of
    change in
    accounting
    principle    30,048      38,405     37,091     105,544     105,816

Cumulative
 effect of
 change in
 accounting
 principle (A)  (10,771)          0          0     (10,771)          0
   Net income    19,277      38,405     37,091      94,773     105,816

Income (loss)
 per basic
 common share:
   Net income
    before
    cumulative
    effect of
    accounting
    principle
    change         0.24        0.30       0.29        0.83        0.83
   Cumulative
    effect of
    change in
    accounting
    principle
    (A)           (0.09)       0.00       0.00       (0.08)       0.00
     Net income    0.15        0.30       0.29        0.75        0.83

Income (loss)
 per diluted
 common share:
   Net income
    before
    cumulative
    effect of
    accounting
    principle
    change         0.22        0.28       0.27        0.77        0.78
   Cumulative
    effect of
    change in
    accounting
    principle
    (A)           (0.08)       0.00       0.00       (0.08)       0.00
     Net income    0.14        0.28       0.27        0.69        0.78


Weighted
 average
 number of
 basic
 common
 shares         125,602     126,914    128,485     126,984     126,984

Weighted
 average
 number of
 diluted
 common
 shares
 and
 equivalents    135,184     136,222    137,430     136,369     136,369


    (A) This schedule presents data for the first three quarters and
nine month cumulative period of 2000 restated for the implementation
of SAB #101 retroactive to January 1, 2000.

    (B) Data for the first nine month cumulative period of 2000 as
originally reported are presented for comparative purposes. Restated
data, excluding the cumulative effect of change in accounting
principle, are different only minimally from originally reported data.

--30--jb/bos*

CONTACT: Waters Corporation
Brian Mazar
Vice President of Investor Relations
508-482-2193