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15,3346,061Proceeds from bank borrowing
—20Proceeds from note payable
6,448849Principal payments of bank borrowing
(14,618)(40)Principal payments of notes payable
(618)(9)Net cash provided by financing activities
6,5466,881Effect of exchange rate change on cash
147254Net increase in cash and cash equivalents
43,75212,308Cash and cash equivalents at beginning of period
35,78623,478Cash and cash equivalents at end of period
$ 79,538$ 35,786CEPHEIDRECONCILIATION OF GAAP TO NON-GAAP MEASURES (UNAUDITED)(in thousands, except per share data)Three Months EndedDecember 31,Year EndedDecember 31,2010200920102009Cost of product sales
$ 26,570$ 27,837$ 105,135$ 95,542 Stock compensation expense
(687)(682)(2,522)(2,411) Amortization of purchased intangible assets
(394)(324)(1,422)(1,296)Non-GAAP measure of cost of product sales
$ 25,489$ 26,831$ 101,191$ 91,835Gross margin on product sales per GAAP
53%42%49%42%Gross margin on product sales per non-GAAP
55%44%51%44%Operating expenses
$ 29,224$ 23,749$ 105,871$ 89,747 Stock compensation expense
(3,614)(3,502)(14,093)(12,679) Amortization of purchased intangible assets
(78)(83)(409)(332)Non-GAAP measure of operating expenses
$ 25,532$ 20,164$ 91,369$ 76,736Income (loss) from operations
$
,839$ (4,035)$ (5,344)$ (23,366) Restructuring charge
———747 Stock compensation expense
4,3014,18416,61515,090 Amortization of purchased intangible assets
4724071,8311,628Non-GAAP mea
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