Cepheid (Nasdaq: CPHD) today reported revenues for the second quarter of 2012 of $81.0 million, representing growth of 21% from $67.0 million for the second quarter of 2011. Net income was $1.1 million, or $0.02 per share, which compares to net income of $1.8 million, or $0.03 per share, in the second quarter of 2011.
Excluding employee stock-based compensation and amortization of purchased intangible assets, non-GAAP net income for the second quarter was $7.9 million, or $0.11 per share. This compares to non-GAAP net income of $7.2 million, or $0.11 per share, in the second quarter of 2011.
"Growth in our installed base was strong during the second quarter, with a total of 271 GeneXpert system placements. With a cumulative total of 3,350 placements globally, it is clear that benefits of our innovative system and our growing menu of Xpert tests continues to drive broad market adoption of our GeneXpert system," said John Bishop, Cepheid's Chief Executive Officer. "We continued to execute well on test menu expansion during the quarter. Our CT/NG test is now under FDA review in the United States, and we have been very encouraged by early customer feedback following the product's release in Europe."
"Looking forward, we continue to expect sales of our Xpert MTB/RIF test to grow to volumes in the millions in the next several years. However, we do expect that certain features of the HBDC program could slow our progress on overall profitability goals in the immediate-term," continued Bishop. "Coupled with a number of macro factors, namely less favorable currency rates and potentially lengthening capital sales cycles as we approach elections here in the United States, we are taking a more cautious view for the remainder of the year."
Operational Overview
- Total product sales of $78.5 million in the second quarter of 2012 compared to $63.6 million in the second quarter of 2011. By business, product sales were, in millions:
- By geography, product sales were, in millions:
- During the quarter, Cepheid installed a total of 133 GeneXpert systems in its commercial Clinical business. Additionally, the Company placed a total of 138 GeneXpert systems as part of its High Burden Developing Country (HBDC) program. Including the HBDC systems, a cumulative total of 3,350 GeneXpert systems have been placed worldwide as of June 30, 2012.
- GAAP gross margin on product sales was 55% and non-GAAP gross margin on product sales was 57%, which compares to 54% and 55%, respectively, in the second quarter of 2011.
- Cash and cash equivalents were $97.3 million as of June 30, 2012.
- DSO was 41 days.
Business Outlook
For the fiscal year ending December 31, 2012, the Company expects:
- Total revenue to be in the range of $333 to $347 million;
- Net income per share in the range of $0.00 to $0.04; and
- Non-GAAP net income per share in the range of $0.38 to $0.42.
Expected non-GAAP net income per share excludes the effect of approximately $26 million related to stock-based compensation expense, approximately $2.8 million related to the amortization of acquired intangibles, and a $1.8 million tax benefit related to an intercompany intellectual property transaction. The fully diluted share count for the year is expected to be between 70 and 71 million.