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Cepheid Reports Fourth Quarter and Full Year 2010 Results
Date:1/27/2011

ections (HAIs); the company's ability to successfully introduce and sell products in clinical markets other than HAIs; the rate of environmental biothreat testing conducted by the USPS, which will affect the amount of consumable products sold to the USPS; unforeseen development and manufacturing problems; the potential need for additional intellectual property licenses for tests and other products and the terms of such licenses; lengthy sales cycles in certain markets; the company's reliance on distributors in some regions to market, sell and support its products; the occurrence of unforeseen expenditures, acquisitions or other transactions; the impact of competitive products and pricing; the company's ability to manage geographically-dispersed operations; and underlying market conditions worldwide.  Readers should also refer to the section entitled "Risk Factors" in Cepheid's Annual Report on Form 10-K, its most recent Quarterly Report on Form 10-Q, and its other reports filed with the Securities and Exchange Commission.

All forward-looking statements and reasons why results might differ included in this release are made as of the date of this press release, based on information currently available to Cepheid, and Cepheid assumes no obligation to update any such forward-looking statement or reasons why results might differ.

FINANCIAL TABLES FOLLOWCEPHEIDCONDENSED CONSOLIDATED UNAUDITED STATEMENTS OF OPERATIONS(in thousands, except per share data)Three Months Ended
December 31,Year Ended
December 31,2010200920102009Revenues:System sales

$   13,200$   15,545$   46,416$
42,993Reagent and disposable sales

42,96932,694160,460122,192Total product sales

56,16948,239206,876165,185Other revenues

2,5579655,5925,442Total revenues

58,72649,204212,468170,627Costs and operating expenses:Cost of product sales

26,57027,837105,13595,542Collaboration profit sharing

1,0
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