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Cepheid Reports Second Quarter Revenue of $42.1 Million
Date:7/24/2008

assets (241) (122) (482) (297)

Non-GAAP measure of cost of product

sales $22,382 $13,615 $44,777 $26,987

Gross margin on product sales per GAAP 41% 41% 43% 39%

Gross margin on product sales per

Non-GAAP 43% 42% 45% 41%

Research and development $10,964 $7,439 $20,862 $14,361

Amortization of purchased

intangible assets (24) (24) (48) (48)

Stock compensation expense (1,414) (1,047) (2,677) (1,791)

Non-GAAP measure of cost of research

and development $9,526 $6,368 $18,137 $12,522

Sales and marketing $7,434 $5,067 $14,375 $9,560

Amortization of purchased

intangible assets (21) (18) (42) (23)

Stock compensation expense (909) (424) (1,754) (795)

Non-GAAP measure of cost of sales

and marketing $6,504 $4,625 $12,579 $8,742

General and administrative $5,518 $4,038 $10,265 $7,973

Stock compensation expense (1,137) (791) (1,940) (1,411)

Non-GAAP measure of cost of

general and administrative $4,381 $3,247 $8,325 $6,562

Income (Loss) from Operations $(7,513) $(5,981) $(10,985) $(13,161)

Stock compensation expense 3,707 2,298 6,968 4,299

Amortization of acquired inventory

step-up in basis - 106 - 170

Amortization of purchased

intangible assets 286 164 572 368

Non-GAAP measure of Income (Loss)

from Operations $(3,520) $(3,413) $(3,445) $(8,324)

Net
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SOURCE Cepheid
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