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Waters Corporation Second Quarter 1998 Sales Up 41%, 45% Excluding Currency Effects

Earnings Per Diluted Share Up 28%

MILFORD, Mass.--July 27, 1998--Waters Corporation (NYSE: WAT) reported today that second quarter 1998 sales increased by 41% over prior year levels. Sales grew by 45% excluding the unfavorable impact of foreign currency exchange rate comparisons. Earnings per diluted share (E.P.S.) were $0.59 for the quarter, representing a 28% increase over prior year E.P.S. of $0.46.

Douglas A. Berthiaume, Chairman and Chief Executive Officer, said: ``I'm very pleased with the Company's continuing strong performance across all aspects of our business. Second quarter worldwide sales of core high performance liquid chromatography (HPLC) and thermal analysis products grew by 11% excluding currency effects. Sales of benchtop HPLC-mass spectrometry systems were especially strong. Our new mass spectrometry business, added in September 1997 with the acquisition of Micromass, performed well and added 34% points of sales growth for the quarter. Micromass has sustained high growth since the acquisition. In the second quarter, its sales growth was approximately 20%.

As in the first quarter, second 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.

Finally, Waters continued its record of steady productivity improvement with operating margins for the quarter approaching 21%. Productivity improvement coupled with strong sales performance drove growth in earnings per diluted share of 28% for the quarter.``

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.

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 interest rate and foreign exchange fluctuations. Such factors are discussed in detail in the Company's filings with the Securities and Exchange Commission.

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

                                Three Months        Six Months
                               Ended June 30       Ended June 30
                              1998      1997      1998       1997

Net sales                    149,311   106,240   288,036   208,671
Cost of sales                 55,848    38,703   107,768    76,468
Revaluation of
 acquired inventory (A)            0         0    16,500         0
   Gross profit               93,463    67,537   163,768   132,203

Selling, general and
 administrative expenses      51,952    38,909   101,940    77,985
Research and development
 expenses                      8,246     5,806    16,618    11,592
Goodwill and purchased
 technology amortization       2,231     1,415     4,506     2,772
  Operating income            31,034    21,407    40,704    39,854

Interest expense, net          4,888     2,959     9,951     5,983
   Income from operations
    before income taxes       26,146    18,448    30,753    33,871

Provision for income taxes     6,033     3,689    10,396     6,774
   Net income                 20,113    14,759    20,357    27,097

Less: preferred stock
 dividend and accretion          240       234       479       468
   Net income available to
    common stockholders       19,873    14,525    19,878    26,629


Net income per basic
 common share                   0.67      0.50      0.67      0.92

Net income per diluted
 common share                   0.59      0.46      0.60      0.84


Weighted average number
 of basic common shares       29,877    28,957    29,793    28,942

Weighted avg. number of
 diluted common shares
 and equivalents              33,519    31,560    33,340    31,714


(A) Nonrecurring first quarter 1998 charge, no associated tax
    effects


                  Waters Corporation and Subsidiaries
                 Condensed Consolidated Balance Sheets

                                     June 30, 1998
                                        (Unaudited) December 31, 1997

Cash and cash equivalents                    1,598              3,113
Accounts receivable                        112,373            111,022
Inventories                                 81,510             87,375
Other current assets                        16,807             11,614
   Total current assets                    212,288            213,124

Property, plant and equipment, net          89,597             88,668
Other assets                               248,714            250,267
   Total assets                            550,599            552,059

Notes payable                                7,269              7,394
Accounts payable and accrued expenses      164,756            163,262
   Total current liabilities               172,025            170,656

Loans payable                              279,375            305,340
Redeemable preferred stock                   8,575              8,096
Other liabilities                            5,637              5,670
   Total liabilities                       465,612            489,762

 Total equity                               84,987             62,297
   Total liabilities and equity            550,599            552,059


Contact:
     Waters Corporation
     Brian Mazar, 508-482-2193