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Cepheid Reports Third Quarter Revenue of $44.9 Million
Date:10/28/2008

GeneXpert(R) System Momentum Drives 71% Year-Over-Year Growth in Core

Clinical Business

SUNNYVALE, Calif., Oct. 28 /PRNewswire-FirstCall/ -- Cepheid (Nasdaq: CPHD) today reported revenue for the third quarter of 2008 of $44.9 million, an increase of 24% over the third quarter of fiscal 2007. Net loss was $6.5 million, or $(0.11) per share, which compares to revenue of $36.3 million and a net loss of $4.7 million, or $(0.09) per share, in the third quarter of fiscal 2007.

Excluding amortization of purchased intangible assets and stock compensation expenses, non-GAAP net loss for the third quarter was $2.3 million, or $(0.04) per share. This compares to a non-GAAP net loss of $1.5 million, or $(0.03) per share, in the third quarter of fiscal 2007.

"With very strong North American system placements and record MRSA test revenue, our third quarter results highlight the continued momentum of Cepheid's industry-leading GeneXpert System," said John Bishop, Cepheid's Chief Executive Officer. "Approximately 74% of North American system placements in the third quarter were various configurations of our GX-16 which should help to position accounts to take full advantage of our rapidly-developing test menu. With the two additional Xpert(TM) tests cleared by the FDA within the last month, and an aggressive development pipeline that expands beyond Healthcare Associated Infections into women's health, critical infectious disease and oncology, our GeneXpert System is rapidly earning its reputation as the molecular platform of choice for on-demand testing."

Operational Overview

-- Total product sales increased 25% to $42.4 million, from $34.0 million

in the third quarter of fiscal 2007. By industry, product sales were,

in millions:

Three Months Ended September 30

2008 2007 Change

Core Clinical
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SOURCE Cepheid
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4. Cepheid Receives FDA Clearance for First On-Demand Diagnostic Test for Life-Threatening MRSA and Staphylococcus aureus From Patient Positive Blood Cultures
5. Cepheid Receives FDA Clearance for First Rapid On-Demand Molecular Diagnostic Test for MRSA and S. aureus
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