Cepheid Reports Second Quarter Revenue of $42...( securities ...)

securities 2,550 39,500

Proceeds from the sale of fixed assets 1,011 -

Transfer to unrestricted cash 517 -

Net cash provided by (used in) investing

activities (4,922) 4,467

Cash flows from financing activities:

Net proceeds from the issuance of common

shares and exercise of stock options and

awards 9,333 1,523

Principal payments under equipment financing - (257)

Payment of note payable (4) (44)

Net cash provided by financing activities 9,329 1,222

Effect of exchange rate change on cash 17 (64)

Net increase (decrease) in cash and cash

equivalents 8,390 (10,010)

Cash and cash equivalents at beginning of

period 16,476 17,186

Cash and cash equivalents at end of period $24,866 $7,176

CEPHEID

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

(in thousands, except per share data)

Three Months Ended Six Months Ended

June 30, June 30,

2008 2007 2008 2007

Cost of product sales $22,870 $13,879 $45,856 $27,756

Stock compensation expense (247) (36) (597) (302)

Amortization of acquired inventory

step-up in basis - (106) - (170)

Amortization of purchased intangible

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