SUNNYVALE, Calif., July 24 Cepheid(Nasdaq: CPHD) today reported revenue for the second quarter of 2008 of $42.1million, an increase of 55% over the second quarter of fiscal 2007. Net losswas $7.5 million, or $(0.13) per share, which compares to revenue of $27.2million and a net loss of $5.2 million, or $(0.10) per share, in the secondquarter of fiscal 2007.
Excluding amortization of purchased intangible assets and stockcompensation expenses, non-GAAP net loss for the second quarter was $3.5million, or $(0.06) per share. This compares to a non-GAAP net loss of $2.7million, or $(0.05) per share, in the second quarter of fiscal 2007.
"We are continuing to see rapid development of the Healthcare AssociatedInfection (HAI) market as sales for our Xpert(TM) MRSA test increased by 35%from the first quarter reaching approximately $11 million," said John Bishop,Cepheid's Chief Executive Officer. "Providing the fastest time-to-result inthe industry, our GeneXpert(R) System continues to be the HAI molecularplatform of choice, resulting in year-over-year growth in our clinicalbusiness of 186% for the first half of 2008."
"While our core clinical product laboratory sales grew to record levels inthe second quarter, non-core clinical sales of products to other companieswere below our expectations and we expect non-core clinical sales of productsto other companies to continue to be below our expectations for the remainderof 2008," continued Bishop. "Our gross margin on product sales was also belowour expectations as a result of a problem in the production of a cartridgepart. Given that this was occurring with high volume production at anincidence rate of less than 1%, this could have taken an extended period tofind and resolve. However, our operations team did an outstanding job inquickly finding the cause and correcting the problem with no impact on productavailability. We expect our product gross margin to return to first quarterlevels in the current third quarter."
Excluding biothreat revenue to the US Postal Service, North America salesincreased 121% when compared to the same quarter a year ago.
Accessing Cepheid's Q208 Earnings Conference Call
The company will host a management presentation at 1:30 p.m. Pacific Timeon Thursday, July 24, 2008 to discuss the results. To access the livewebcast, please visit Cepheid's website at http://www.cepheid.com/investors atleast 15 minutes before the scheduled start time to download any necessaryaudio or plug-in software. A replay of the webcast will be available shortlyfollowing the call and will remain available for at least 90 days.
Interested participants and investors may also listen to the liveteleconference call by dialing 866-825-1692 (domestic) or 617-213-8059(international), and entering participant code 92219619. A replay will beavailable for seven days beginning at 3:30 p.m. Pacific Time. Access numbersfor this replay are 888-286-8010 (domestic) and 617-801-6888 (international),with participant code 37466812.
Cepheid (Nasdaq: CPHD), based in Sunnyvale, Calif., is an on-demandmolecular diagnostics company that develops, manufactures, and markets
fully-integrated systems and tests for genetic analysis in the clinical,industrial and biothreat markets. The Company's systems enable rapid,sophisticated genetic testing for organisms and genetic-based diseases byautomating otherwise complex manual laboratory procedures. Cepheid'seasy-to-use systems integrate a number of complicated and time-intensivesteps, including sample preparation, DNA amplification and detection, whichenable the analysis of complex biological samples in its proprietary testcartridges. Through its strong molecular biology capabilities, the Company isfocusing on those applications where rapid molecular testing is particularlyimportant, such as identifying infectio