Waters Corporation
WAT
#605
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NZ$74.29 B
Marketcap
NZ$756.66
Share price
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K

( X ) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1997

OR

( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR
15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM_________ TO _________.

Commission File Number: 01-14010

Waters Corporation
------------------
(Exact name of registrant as specified in the charter)

DELAWARE 13-3668640
-------- ----------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)

34 MAPLE STREET
Milford, Massachusetts 01757
-----------------------------
(Address, including zip code, of principal executive offices)

Registrant's telephone number, including area code: (508) 478-2000

Securities registered pursuant to Section 12(b) of the Act: NONE
Securities registered pursuant to Section 12(g) of the Act: COMMON STOCK, PAR
VALUE $.01 PER SHARE

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 by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein and will not be contained, to the best
of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. (X)

State the aggregate market value of the voting stock held by non-affiliates of
the registrant as of March 23, 1998: $1,532,334,801.

Indicate the number of shares outstanding of the registrant's common stock as of
March 23, 1998: 29,790,227.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the 1997 Annual Report to Stockholders are incorporated by reference
in Parts I and II.

Portions of the proxy statement for the 1998 Annual Meeting of Stockholders are
incorporated by reference in Part III.

1
WATERS CORPORATION AND SUBSIDIARIES
ANNUAL REPORT ON FORM 10K
INDEX

<TABLE>
<CAPTION>
Index No. PAGE
- --------- ----

PART I
<S> <C> <C>
1. Business............................................................................ 3
2. Properties.......................................................................... 6
3. Legal Proceedings................................................................... 7
4. Submission of Matters to a Vote of Security Holders................................. 8

PART II

5. Market for Registrant's Common Equity and Related Stockholder Matters............... 8
6. Selected Financial Data............................................................. 8
7. Management's Discussion and Analysis of Financial Condition and Results
of Operations....................................................................... 9
8. Financial Statements and Supplementary Data......................................... 9
9. Changes In and Disagreements With Accountants on Accounting and
Financial Disclosure................................................................ 9

PART III

10. Directors and Executive Officers of the Registrant................................... 9
11. Executive Compensation............................................................... 9
12. Security Ownership of Certain Beneficial Owners and Management....................... 9
13. Certain Relationships and Related Transactions....................................... 9

PART IV

14. Exhibits, Financial Statement Schedules and Reports on Form 8-K...................... 10
Signatures........................................................................... 12
</TABLE>

2
PART I

Item 1: BUSINESS

THE COMPANY

Waters Corporation ("Waters" or the "Company") is a holding company which owns
only and all of the outstanding common stock of Waters Technologies Corporation,
the operating subsidiary. Waters Corporation was established to acquire
("Acquisition") the predecessor Waters Chromatography Division ("Predecessor")
of Millipore Corporation ("Millipore") on August 18, 1994. Waters Corporation
became a publicly traded company with its initial public offering ("IPO") in
November 1995. The Company has made two significant acquisitions since its
inception: TA Instruments, Inc. in May 1996 and Micromass Limited in October
1997.

BUSINESS SEGMENTS

The Company operates in only one business segment, but operates in several
geographic segments. See Footnote 18 to the Financial Statements for detailed
results by geographic segment found in the 1997 Annual Report which is
incorporated herein by reference.

BUSINESS

Waters is the world's largest manufacturer, distributor and provider of high
performance liquid chromatography ("HPLC") instruments, columns and other
consumables, and related service. The Company has the largest HPLC market share
in the United States, Europe and non-Japan Asia and has a leading position in
Japan. HPLC, the largest product segment of the analytical instrument market,
is utilized in a broad range of industries to detect, identify, monitor and
measure the chemical, physical and biological composition of materials, and to
purify a full range of compounds. With its acquisition of TA Instruments, Inc.
("TAI") in May 1996, Waters is also the world's leader in thermal analysis, a
prevalent and complementary technique used in the analysis of polymers. Also,
with its acquisition of Micromass Limited ("Micromass") in September 1997,
Waters is a market leader in mass spectrometry, which can be integrated and used
along with other analytical instruments, especially HPLC.

Developed in the 1950's, HPLC today is the standard technique used to identify
and analyze the constituent components of a variety of chemicals and materials.
HPLC's unique performance capabilities enable it to separate and identify 80% of
all known chemicals and materials. As a result, HPLC is used to analyze
substances in a wide variety of industries for research and development
purposes, quality control and process engineering applications. Within the
pharmaceutical and life science industries, its most important end-use market,
HPLC is used extensively to identify new drugs, to develop manufacturing
methods, and to assure the potency and purity of new pharmaceuticals. HPLC is
used to identify food content for nutritional labeling in the food and beverages
industry and to test water and air purity within the environmental testing
industry. HPLC is also used in a variety of applications in other industries,
such as chemical and consumer products, as well as by universities and
government agencies. In many instances, Food and Drug Administration ("FDA")
and Environmental Protection Agency ("EPA") regulations, and those of their
international counterparts, mandate testing that requires HPLC instrumentation.

Waters manufactures over 100 HPLC instrument types. A complete HPLC system
consists of five basic components: the solvent delivery system, the sample
injector, the separation column, the detector and the data acquisition unit.
The solvent delivery system pumps the solvent through the HPLC system, while the
sample injector injects the sample into the solvent flow. The separation column
then separates the sample into its components for analysis by the detector which
measures the presence and amount of the constituents. The data acquisition unit
then records and stores the information from the detector. Instrument and
system sales comprise approximately two thirds of the Company's annual HPLC
revenues.

3
Consumable products and service comprise the remaining one third of annual
HPLC revenues. Consumable products primarily are columns packed with separation
media used in the HPLC testing process and are replaced at regular intervals.
The separation column contains one of several types of packing, typically
stationary phase packing made from silica. As the sample flows through the
column, it is separated into its constituent components.

The acquisition of TAI expanded the Company's product offerings to include
thermal analysis and rheology products. TAI develops, manufactures, sells and
services thermal analysis and rheology instruments which are used for the
physical characterization of polymers and related materials. Thermal analysis
measures the physical characteristics of materials as a function of temperature.
Changes in temperature affect several characteristics of materials such as their
physical state, weight, dimension and mechanical and electrical properties,
which may be measured by one or more thermal analysis techniques. Consequently,
thermal analysis techniques are widely used in the development, production and
characterization of materials in various industries such as plastics, chemicals,
automobiles, pharmaceuticals and electronics. Rheology instruments complement
thermal analyzers in characterizing materials. Rheology characterizes the flow
properties of materials and measures their viscosity, elasticity and deformation
under different types of loading. The information obtained provides insight
with regard to a material's behavior during manufacture, transport, usage and
storage. Approximately 80% of TAI's annual revenues pertain to instrument
sales.

The acquisition of Micromass expands the Company's product offerings in mass
spectrometry instruments. Micromass is a world leader in the development,
manufacture, sale and support of organic, inorganic, stable isotope and ICP mass
spectrometers typically coupled with HPLC, chemical electrophoresis, chemical
electrophoresis chromatography, gas chromatography or elemental analysis
systems. Its products supply a diverse market with a strong emphasis on the life
science, pharmaceutical, biomedical, clinical, environmental and geochemistry
markets worldwide. With the acquisition of Micromass, Waters became one of the
leading worldwide manufacturers of HPLC-MS systems, "hyphenated" analytical
systems that bring together HPLC and mass spectrometry detection. Design
innovations in HPLC-MS interfacing technology have drastically improved the
operating efficiencies of these systems, greatly simplifying their operation,
driving down their overall cost and making them much more affordable for the
average analytical laboratory. These laboratories previously relied on expert
mass spectrometrists to provide them the information they now get in minutes.
The largest market for HPLC-MS is the pharmaceutical market where new drug
development technologies are placing greater demands on laboratories to screen
and analyze new drug compounds. Approximately 88% of Micromass' annual revenues
pertain to instrument sales.

CUSTOMERS

Waters has a broad and diversified customer base that includes pharmaceutical
accounts, other industrial accounts, universities and government agencies. The
pharmaceutical segment represents the Company's largest sector and includes
multinational pharmaceutical companies, generic drug manufacturers and
biotechnology companies. The Company's other industrial customers include
chemical manufacturers, polymer manufacturers, food and beverage companies and
environmental testing laboratories.

The Company also sells to various universities and government agencies
worldwide and Waters' technical support staff work closely with these customers
in developing and implementing applications that meet their full range of
analytical requirements.

The Company does not rely on any one customer or group of customers for a
material portion of its sales. During fiscal 1997, no customer accounted for
more than 2% of the Company's net sales.

4
RESEARCH AND DEVELOPMENT

Waters maintains an active research and development program focused on the
development and commercialization of products which both complement and update
the existing product offering. The Company's research and development
expenditures for 1997, 1996 and 1995, were $25.8 million, $20.9 million, and
$17.7 million, respectively. Nearly all of the current HPLC core products of
the Company have been developed at the main research and development center in
Milford, Massachusetts, with input and feedback from Waters' extensive field
organization. Nearly all of the current thermal analysis products have been
developed at TAI's research and development center in New Castle, Delaware and
nearly all of the current rheology products have been developed at the TAI
facility in England. The majority of the mass spectrometry products have been
developed at Micromass' facilities in England. At December 31, 1997, there were
approximately 305 employees involved in the Company's research and development
efforts.

SALES AND SERVICE

Waters has the largest sales and service team focused exclusively on HPLC in
the industry. Along with TAI and Micromass, the Company serves its customer
base through over 865 field representatives in 73 sales offices throughout the
world. Many of Waters' field representatives are former Waters' customers. The
sales representatives have direct responsibility for account relationships,
while service representatives work in the field to install instruments and
minimize instrument downtime for customers. Technical support representatives
work directly with customers, helping them to develop customized applications
and procedures. Waters provides customers with comprehensive product literature
and also makes consumable products available through a dedicated catalog. TAI
and Micromass maintain their own dedicated, specialized and highly experienced
sales and service forces.

MANUFACTURING

Waters provides high quality HPLC products by controlling each stage of
production of its instruments and columns. The Company assembles most of its
instruments at its facility in Milford, Massachusetts, where it performs
machining, wiring, assembly and testing. The Milford facility employs
manufacturing techniques that meet the strict ISO 9002 quality manufacturing
standards and FDA mandated Good Manufacturing Practices. The Company outsources
manufacturing of certain electronic components such as computers and screens to
outside vendors that can meet the Company's quality requirements.

The Company manufactures its HPLC columns at its facility in Taunton,
Massachusetts, where it processes, sizes and treats silica and polymer media
that are packed into columns, solid phase extraction cartridges and bulk
shipping containers. The Taunton facility meets the same ISO and FDA standards
met by the Milford, Massachusetts facility and is approved by the FDA to produce
Class 1 medical devices.

TAI manufactures its thermal analysis products at its New Castle, Delaware
facility and its rheology products at its Leatherhead, England facility.
Micromass manufactures its mass spectrometry products at its Manchester, England
facilities.

COMPETITION

The analytical instrument and systems market is highly competitive. The
Company encounters competition from several worldwide instrument manufacturers
in both domestic and foreign markets. Waters competes in its markets primarily
on the basis of instrument performance, reliability and service and, to a lesser
extent, price. Some competitors have instrument businesses that are much larger
than the Company's business, but are typically less focused on Waters' chosen
markets. Certain competitors have greater financial and other resources than
the Company.

5
The market for consumable HPLC products, including separation columns, is also
highly competitive but is more fragmented than the analytical instruments
market. Waters encounters competition in the columns market from chemical
companies that produce column chemicals and small specialized companies that
pack and distribute columns. The Company believes that it is one of the few
suppliers that processes silica, packs columns, and distributes its own product.
Waters competes in this market on the basis of reproducibility, reputation and
performance, and, to a lesser extent, price.

PATENTS, TRADEMARKS AND LICENSES

Waters owns a number of United States and foreign patents and has patent
applications pending in the United States and abroad. Certain technology and
software is licensed from third parties. Waters also owns a number of
trademarks. While the patents, licenses and trademarks are viewed as valuable
assets, the Company's patent position is not of material importance to its
operations.

EMPLOYEES

At December 31, 1997, Waters had approximately 2,640 employees. 56% of the
Company's employees are located in the United States. Labor relations are
considered to be excellent and no Waters employees have union affiliations.

ENVIRONMENTAL MATTERS

The Company is subject to Federal, state and local laws, regulations and
ordinances that (i) govern activities or operations that may have adverse
environmental effects, such as discharges to air and water, as well as handling
and disposal practices for solid and hazardous wastes, and (ii) impose liability
for the costs of cleaning up, and certain damages resulting from sites of past
spills, disposals or other releases of hazardous substances. The Company
believes that it currently conducts its operations, and in the past has operated
its business, in substantial compliance with applicable environmental laws.
From time to time, operations of the Company have resulted or may result in
noncompliance with or liability for cleanup pursuant to environmental laws. The
Company does not currently anticipate any material adverse effect on its
operations, financial condition or competitive position as a result of its
efforts to comply with environmental laws.

With respect to the Predecessor operations of the Company's HPLC business,
Millipore has been notified that the United States Environmental Protection
Agency has determined that a release or a threat of a release of hazardous
substances as defined by CERCLA has occurred at certain sites to which chemical
wastes generated by its manufacturing operations have been sent. In each
instance, Millipore was only one of a large number of corporations and entities
which received such notification, and anticipates that any ultimate liability
for remedial costs will be shared by others. In any instances involving
chemical wastes generated by the Predecessor, Millipore has entered into partial
settlements, paid its proportionate financial obligation and received partial
releases.

In connection with the Acquisition, Millipore agreed to retain environmental
liabilities resulting from pre-acquisition operations of the Company's
facilities. Notwithstanding this contractual agreement, under CERCLA and similar
environmental laws, the Company may remain primarily liable to certain persons
for environmental cleanup costs.

Item 2: PROPERTIES

Waters operates 19 United States facilities and 68 international facilities.
The Company believes its facilities are adequate for its current production
level and for reasonable growth over the next few years. The Company's primary
facilities are summarized in the table below.

6
PRIMARY FACILITY LOCATIONS

LOCATION FUNCTION (1) OWNED/LEASED SQUARE FEET(000'S)
- --------------------------------------------------------------------------------

Etten-Leur, Netherlands D Leased 42
Franklin, MA D Leased 30
Milford, MA M, R, S Owned 408
Taunton, MA M Owned 32
St. Quentin, France S Leased 18
Singapore S Leased 5
Tokyo, Japan R, S Leased 12
Wexford, Ireland M Leased 20
Deeside Flintshire, UK M, R, S, D Leased 25
Wilmington, NC M, R, S, D Leased 5
New Castle, DE M, R, S, D Leased 49
Leatherhead, England M, R, S, D Leased 10
Manchester, England M, R, S, D Leased 54
Cheshire, England M, R, S Leased 28
- --------------

(1) M = Manufacturing; R = Research; S = Sales; D = Distribution

Waters operates and maintains 14 field offices in the United States and 59
field offices abroad in addition to sales offices in the primary facilities
listed above. The Company's primary field office locations are listed below.


FIELD OFFICE LOCATIONS (2)


UNITED STATES INTERNATIONAL
- ------------------------------------------------------------------------
Tustin, CA Australia Hungary Russia
Wood Dale, IL Austria India Spain
Fairfax, VA Belgium Italy Sweden
Cary, NC Brazil Japan Switzerland
Morristown, NJ Canada Malaysia Taiwan
Houston, TX Czech Republic Mexico United Kingdom
Pleasanton, CA Denmark Netherlands
Ann Arbor, MI Finland Norway
Charlotte, NC France People's Republic of China
Felton, CA Germany Poland
Rolling Meadows, IL Hong Kong Puerto Rico
Beverly, MA

______________

(2) Waters operates more than one office within certain states and foreign
countries.

Item 3: LEGAL PROCEEDINGS

From time to time, the Company and its subsidiaries are involved in various
litigation matters arising in the ordinary course of its business. None of the
matters in which the Company or its subsidiaries are currently involved, either
individually or in the aggregate, is material to the Company or its
subsidiaries.

The Company has asserted a claim contending that Millipore has understated
the amount of assets it is obligated to transfer from the Millipore Retirement
Plan to the Waters successor plan. The Federal court has recently ruled in
favor of Millipore's position with respect to the claim. The Company appealed
the decision in October, 1997. The Company believes it has meritorious
arguments and should prevail although the outcome is not certain.

7
Regardless, the outcome is not expected to have a material impact on the
Company's financial position.

The Company, through its subsidiary TAI, asserted a claim against The Perkin-
Elmer Corporation ("PE") alleging patent infringement of three patents owned by
TAI ("the TAI patents"). PE counterclaimed for infringement of a patent owned
by PE ("the PE patent"). PE withdrew its claim for infringement preserving its
right to appeal rulings interpreting the claims of the PE patent. A jury
returned a verdict finding that no valid claims of the TAI patents were
infringed by PE. TAI has appealed the verdict with the U.S. District Court for
the District of Delaware and believes it has meritorious arguments and should
prevail, although the outcome is not certain. The Company believes that any
outcome will not be material to the Company.

The Company has filed suit against Hewlett-Packard Company and Hewlett-
Packard GmbH ("HP"), seeking a declaration that certain products sold under the
mark Alliance do not constitute an infringement of one or more patents owned by
HP or its foreign subsidiaries ("the HP patents"). Similar actions seeking
revocation or nullification of foreign HP patents have been filed in Europe.
The Company believes it has meritorious arguments and should prevail, although
the outcome is not certain. The Company believes that any outcome of the
proceedings will not be material to the Company.

Item 4: SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None.

PART II

Item 5: MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER
MATTERS

The Company's Common Stock is registered under the Securities Exchange Act
of 1934 and is listed on the New York Stock Exchange under the symbol WAT. As
of March 23, 1998, the Company had approximately 296 common stockholders of
record. The Company has not declared or paid any cash or other dividends on its
Common Stock and does not expect to pay dividends for the foreseeable future.

The quarterly range of high and low sales prices for the Common Stock as
reported by the New York Stock Exchange is as follows:

Price Range
-----------
For the quarter ended High Low
--------------------- ---- ---

March 31, 1996 24 5/8 16 3/4
June 30, 1996 33 24 3/8
September 30, 1996 33 25 1/4
December 31, 1996 33 5/8 25 7/8
March 31, 1997 31 3/8 26
June 30, 1997 37 3/4 23 1/8
September 30, 1997 45 1/4 31 7/16
December 31, 1997 48 7/16 36

Item 6: SELECTED FINANCIAL DATA

Reference is made to information contained in the section entitled
"Selected Financial Data" on page 42 of the 1997 Annual Report, which
information is incorporated herein by reference.

8
Item 7:  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

Reference is made to the information on pages 19 to 23 of the 1997 Annual
Report, which information is incorporated herein by reference.

Item 8: FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Reference is made to the Company's consolidated financial statements and
notes thereto on pages 25 to 40 of the 1997 Annual Report together with the
"Report of Independent Accountants" dated January 23, 1998 on page 24 and
"Quarterly Results" on page 41, which information is incorporated herein by
reference.

Item 9: CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
AND FINANCIAL DISCLOSURE

None.

PART III

Item 10: DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

a. Information concerning the Registrant's directors is set forth in the
Proxy Statement under the headings "Election of Directors" and "Directors
Meetings and Compensation." Such information is incorporated herein by
reference.

b. Information required by Item 405 of Regulation S-K is set forth in the
Proxy Statement under the heading "Director and Officer and Ten Percent
Stockholder Securities Reports." Such information is incorporated herein by
reference.

Item 11: EXECUTIVE COMPENSATION

Information concerning compensation of the Registrant's executive officers is
set forth in the Proxy Statement under the heading "Management Compensation."
Such information is incorporated herein by reference.

Item 12: SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

Information concerning security ownership of certain beneficial owners and
management is set forth in the Proxy Statement under the heading "Security
Ownership of Certain Beneficial Owners." Such information is incorporated
herein by reference.

Item 13: CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

Information concerning certain relationships and related transactions is set
forth in the Proxy Statement under the heading "Certain Relationships and
Related Transactions." Such information is incorporated herein by reference.


9
PART IV

Item 14: EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K

(a) Documents filed as part of this report

(1) Reference is made to the Company's consolidated financial statements and
notes thereto on pages 25 to 40 of the 1997 Annual Report, which
information is incorporated herein by reference.

(2) Not Applicable.

(3) List of exhibits:

Exhibit
Number Description of Document
------ -----------------------

2.1 Agreement for the Sale and Purchase of Micromass Limited dated as of
September 12, 1997, between Micromass Limited, Schroder UK Buy-Out
Fund III Trust I and Others, Waters Corporation and Waters
Technologies Corporation. (Incorporated by reference to the
Registrant's Report on Form 8-K, filed on October 8, 1997 as amended
on December 5, 1997.)

3.1 Second Amended and Restated Certificate of Incorporation of Waters
Corporation, as amended to date. (1)

3.2 Amended and Restated Bylaws of Waters Corporation, as amended to date.
(1)

10.1 Credit Agreement, dated as of November 22, 1995, among Waters
Corporation, Waters Technologies Corporation, Bankers Trust Company
and other Lenders party thereto. (2)

10.2 First Amendment to Credit Agreement, dated as of March 6, 1996 among
Waters Corporation, Waters Technologies Corporation, Bankers Trust
Company and other Lenders party thereto. (2)

10.3 Waters Corporation Amended and Restated 1996 Long-Term Performance
Incentive Plan. (Incorporated by reference to Exhibit A of the Proxy
Statement for the 1996 Annual Meeting of Stockholders ("1996 Proxy
Statement")).

10.4 Waters Corporation 1996 Employee Stock Purchase Plan. (Incorporated by
reference to Exhibit B of the 1996 Proxy Statement.)

10.5 Waters Corporation 1996 Non-Employee Director Deferred Compensation
Plan. Incorporated by reference to Exhibit C of the 1996 Proxy
Statement.

10.6 Waters Corporation Amended and Restated 1996 Non-Employee Directors
Stock Option Plan. (Incorporated by reference to Exhibit D of the 1996
Proxy Statement.)

10.7 Agreement and Plan of Merger among Waters Corporation, TA Merger Sub,
Inc. and TA Instruments, Inc. dated as of March 28, 1996.
(Incorporated by reference to the Registrant's Report on Form 8-K
dated March 29, 1996.)

10.8 Offer to Purchase and Consent Solicitation Statement, dated March 7,
1996, of Waters Technologies Corporation. (Incorporated by reference
to the Registrant's Report on Form 8-K dated March 11, 1996.)


10
10.9   WCD Investors, Inc. Amended and Restated 1994 Stock Option Plan, as
amended (including Form of Amended and Restated Stock Option
Agreement). (2)

10.10 Waters Corporation Retirement Plan. (2)

10.11 Registration Rights Agreement made as of August 18, 1994, by and among
WCD Investors, Inc., AEA Investors, Inc., certain investment funds
controlled by Bain Capital, Inc. and other stockholders of Waters
Corporation. (2)

10.12 Form of Indemnification Agreement, dated as of August 18, 1994,
between WCD Investors, Inc. and its directors and executive officers.
(2)

10.13 Form of Management Subscription Agreement, dated as of August 18,
1994, between WCD Investors, Inc. and certain members of management.
(2)

13.1 1997 Annual Report to Stockholders.

21.1 Subsidiaries of Waters Corporation. (1)

22.1 Proxy Statement for the 1997 Annual Meeting of Stockholders.

23.1 Consent of Coopers & Lybrand L.L.P.

27.1 Financial Data Schedule for December 31, 1997.

27.2 Restated Financial Data Schedule for September 30, 1997 and June 30,
1997.

27.3 Restated Financial Data Schedule for March 31, 1997 and December 31,
1996.

27.4 Restated Financial Data Schedule for September 30, 1996 and June 30,
1996.

27.5 Restated Financial Data Schedule for March 31, 1996 and December 31,
1995.

27.6 Restated Financial Data Schedule for December 31, 1994.

______________
(1) Incorporated by reference to the Registrant's Report on Form 10-K
dated March 30, 1998.
(2) Incorporated by reference to the Registrant's Registration Statement
on Form S-1 (File No. 333-3810).


(b) Reports on Form 8-K.

Form 8-K was filed on October 8, 1997 and amended Form 8-K was filed on
December 5, 1997, both relating to the acquisition of Micromass Limited.

(c) See (3) above.

(d) Not Applicable.

11
SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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.

Date: March 31, 1998 Waters Corporation



/s/ Philip S. Taymor
-------------------------------
Philip S. Taymor
Senior Vice President, Finance
and Administration and Chief Financial
Officer



Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed by the following persons on behalf of the registrant and in the
capacities indicated on March 31, 1998.


Chairman of the Board of Directors,
Chief Executive Officer, and President
/s/ Douglas A. Berthiaume (principal executive officer)
- ----------------------------------
Douglas A. Berthiaume

Senior Vice President, Finance and
Administration, and Chief Financial
Officer (principal financial officer and
/s/ Philip S. Taymor principal accounting officer)
- ----------------------------------
Philip S. Taymor


/s/ Joshua Bekenstein Director
- ----------------------------------
Joshua Bekenstein


/s/ Michael J. Berendt Director
- ----------------------------------
Michael J. Berendt, PhD


/s/ Philip Caldwell Director
- ----------------------------------
Philip Caldwell


/s/ Edward Conard Director
- ----------------------------------
Edward Conard


/s/ Laurie H. Glimcher Director
- ----------------------------------
Dr. Laurie H. Glimcher


/s/ William J. Miller Director
- ----------------------------------
William J. Miller


/s/ Thomas P. Salice Director
- ----------------------------------
Thomas P. Salice


12