Cepheid (NSDQ:CPHD) posted fourth-quarter sales of $49.2 million for the three months ended Dec. 31, 2009, up 30.1 percent compared with $37.8 million during the same period in 2008. Cepheid pared its net loss for the quarter by 29.2 percent to $4.3 million, compared with $6.1 million during Q4 2008:
Press Release
Cepheid Reports Fourth Quarter and Full Year 2009 Results
Test Menu Expansion Drives Full Year Clinical Business Growth of 28%
SUNNYVALE, Calif., Jan. 28 /PRNewswire-FirstCall/ — Cepheid (Nasdaq: CPHD) today reported revenue for the fourth quarter of 2009 of $49.2 million. Net loss was $4.3 million, or $(0.07) per share, which compares to revenue of $37.8 million and a net loss of $6.0 million, or $(0.10) per share, in the fourth quarter of fiscal 2008. Excluding amortization of purchased intangible assets and stock compensation expenses, non-GAAP net income for the fourth quarter of fiscal 2009 was $0.3 million, or $0.01 per share. This compares to a non-GAAP net loss of $2.5 million, or $(0.04) per share, in the fourth quarter of fiscal 2008.
Fiscal 2009 Overview
For the full fiscal year ended December 31, 2009, Cepheid reported revenue of $170.6 million. Net loss for the full year was $22.5 million, or $(0.39) per share, which compares to a net loss of $22.4 million, or $(0.39) per share in 2008. Excluding amortization of purchased intangible assets and stock compensation expenses, non-GAAP net loss for the full year was $5.0 million, or $(0.09) per share. This compares to a non-GAAP net loss of $7.1 million, or $(0.13) per share, for the full year 2008.
“Increasing recognition of the accuracy and ease of use of our GeneXpert® System, coupled with one of the broadest menus of rapid molecular tests available on the market, resulted in year-over-year growth of 28% in our Clinical business,” said John Bishop, Cepheid’s Chief Executive Officer. ”During 2010, we expect our Clinical business will continue to grow rapidly, as we build on our leadership position in molecular diagnostic testing for Healthcare Associated Infections and further extend our women’s health test menu and our menu for other critical infectious diseases.”
Operational Overview
- Fourth quarter of fiscal 2009 Clinical sales of $35.6 million grew 46% from $24.4 million in the fourth quarter of 2008, and total fourth quarter of fiscal 2009 product sales of $48.2 million grew 34% from the same quarter a year ago. For the full year 2009, total product sales of $165.2 million compared to $159.4 million reported for the full year 2008. By industry, product sales were, in millions:
Three Months Ended Full Year Ended December 31, December 31, 2009 2008 Change 2009 2008 Change ----- ----- ------ ------ ----- ------ Clinical Systems $10.0 $7.8 28% $26.2 $32.1 -18% Clinical Reagents 25.6 16.6 54% 89.7 58.2 54% ----- ----- ------ ----- Total Clinical 35.6 24.4 46% 115.9 90.3 28% Industrial 6.1 3.9 58% 19.2 15.4 24% Biothreat 5.1 5.2 -2% 24.8 35.8 -31% Partner 1.4 2.6 -46% 5.3 17.9 -70% ----- ----- ------ ------ Total Product Sales $48.2 $36.1 34% $165.2 $159.4 4% ===== ===== ====== ======
- By geography, product sales were, in millions:
Three Months Ended Full Year Ended December 31, December 31, 2009 2008 Change 2009 2008 Change ----- ----- ------ ------ ------ ------ North America Clinical $27.1 $19.0 43% $88.6 $70.2 26% Other 9.1 9.3 -3% 40.2 55.1 -27% ----- ----- ------ ------ Total North America 36.2 28.3 28% 128.8 125.3 3% International Clinical 8.5 5.5 55% 27.4 20.0 37% Other 3.5 2.3 54% 9.0 14.1 -36% ----- ----- ------ ------ Total International 12.0 7.8 54% 36.4 34.1 7% ----- ----- ------ ------ Total Product Sales $48.2 $36.1 34% $165.2 $159.4 4% ===== ===== ====== ======
- During the fourth quarter of fiscal 2009, Cepheid placed a total of 134 GeneXpert systems and 796 modules. For the full year 2009, 428 GeneXpert systems and 2,446 modules were installed. As of December 31, 2009, a cumulative total of 1,375 GeneXpert systems and 7,553 modules have been placed worldwide.
- Cash, cash equivalents, restricted cash and investments, net of the debt associated with our Auction Rate Securities, were $46.1 million as of December 31, 2009.
- DSO improved to 43 days, ahead of the Company’s target range.
Business Outlook
For the fiscal year ending December 31, 2010, the Company expects:
- Total revenue to be in the range of $195 to $205 million;
- Net loss in the range of $(0.35) to $(0.27) per share;
- Non-GAAP net income ranging from a loss of $(0.05) to net income of $0.02 per share.
Expected non-GAAP net income/loss excludes approximately $16.5 million related to stock compensation expense and approximately $1.5 million related to the amortization of acquired intangibles.