Cepheid Reports Fourth Quarter and Full Year 20...(zation of acquired inventory step-...)

step-up in basis - - (170) -

Amortization of purchased

intangible assets (199) - (694) -

Non-GAAP measure of cost of goods

sold $20,989 $12,390 $67,516 $48,216

Gross Margin on Product Sales per

GAAP 42% 42% 41% 41%

Gross Margin on Product Sales per

Non-GAAP 43% 43% 42% 41%

Gross Margin on Total Revenues per

GAAP 47% 47% 47% 44%

Gross Margin on Total Revenues per

Non-GAAP 48% 47% 48% 45%

Research and development $8,717 $6,682 $31,449 $23,886

Amortization of purchased

intangible assets $(23) $(32) $(95) $(40)

Stock compensation expense (1,184) (924) (4,294) (2,839)

Non-GAAP measure of cost of research

and development $7,510 $5,726 $27,060 $21,007

Non-GAAP R&D measure as percent of

Total Revenues 19% 24% 21% 24%

Selling, general and administrative $12,692 $7,257 $41,081 $26,470

Amortization of purchased

intangible assets $(14) $- $(51) $-

Stock compensation expense (2,373) (1,160) (6,032) (3,907)

Non-GAAP measure of cost of selling,

general and administrative $10,305 $6,097 $34,998 $22,563

Non-GAAP SG&A measure as percent of

Total Revenues 25% 26% 27% 26%

Net Loss $(5,288) $(8,301) $(21,423) $(25,985)

Stock compensation expense 3,821 2
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