Cepheid Reports 2009 Second Quart...(systems and 6128 modules have been place...),Health

Business Outlook

For the fiscal year ending December 31, 2009, the company expects:

• Total revenue to be in the range of $164 to $170 million;
• Net loss in the range of $(0.43) to $(0.48) per share;
• Non-GAAP net loss in the range of $(0.12) to $(0.18) per share.
  

The loss per share guidance ranges have each been reduced from Cepheid's previously announced guidance by $0.01 to reflect the patent license amortization adjustment discussed below.

Non-GAAP net loss excludes approximately $16 million related to stock compensation expense, $1 million related to the amortization of acquired intangibles, and $0.7 million related to restructuring expenses.

Patent License Amortization Adjustment

The company capitalizes patent licenses and amortizes them over their estimated useful lives on a straight-line basis. An internal review of our patent license useful lives during the second quarter of 2009 identified that certain patent licenses were being amortized over incorrect useful lives. This error resulted in the understatement of amortization expense over several reporting periods, starting in 2004. In accordance with SAB No. 108, "Financial Statements - Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements" ("SAB 108"), in assessing the identified error, the company considered both the "rol
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