Cepheid (Nasdaq: CPHD) today reported revenues for the first quarter of 2014 of $106.9 million, representing growth of 16% from $91.9 million for the first quarter of 2013. Net loss in the first quarter of 2014 was $(9.3) million, or $(0.13) per share, which compares to net income of $0.3 million, or $0.00 per share, in the first quarter of 2013.
Excluding employee stock-based compensation, amortization of debt discount and debt issuance costs, and amortization of purchased intangible assets, non-GAAP net loss for the first quarter of 2014 was $(0.6) million, or $(0.01) per share. This compares to non-GAAP net income of $7.8 million, or $0.11 per share, in the first quarter of 2013.
"We placed an additional 503 GeneXpert systems globally in the first quarter of 2014, contributing to 26% growth in our clinical business, and bringing our cumulative installed base to more than 6,000," said John Bishop, Cepheid's Chairman and Chief Executive Officer. "Growing adoption of our broad menu of 14 Xpert tests drove Commercial Clinical Xpert reagent growth of 20% in the first quarter. With the recent additions of Xpert HPV and Xpert Norovirus to our test menu outside the US, we are entering a prolific, global product cycle that will further extend the portfolio of accurate, fast and easy-to-use molecular diagnostics available to our customers."
Total sales were, in millions:
By geography, total sales were, in millions:
During the quarter, Cepheid installed a total of 181 GeneXpert systems in its commercial Clinical business. Additionally, the Company placed a total of 322 GeneXpert systems as part of its High Burden Developing Country (HBDC) program. Including the HBDC systems, a cumulative total of 6,012 GeneXpert systems have been placed worldwide as of March 31, 2014.
GAAP gross margin on sales was 50% and non-GAAP gross margin on sales was 51%, which compares to 53% and 55%, respectively, in the first quarter of 2013.
Cash, cash equivalents and investments were $391.3 million as of March 31, 2014.
DSO was 48 days.
Reflecting the issuance of the Convertible Senior Notes in February 2014, the Company has updated it's guidance for the fiscal year ending December 31, 2014. The Company expects:
Total revenue in the range of $446 to $461 million;
Net loss in a range from $(0.43) to $(0.38) per share; and
Non-GAAP net income in the range of $0.19 to $0.24 per share.
Expected non-GAAP net income excludes approximately $33 million related to stock compensation expense, approximately $9 million related to the amortization of debt discount and debt issuance costs, and approximately $3 million related to the amortization of acquired intangibles. The fully diluted share count for the year is expected to be approximately 70 million, except in the event we have non-GAAP net income, in which case the share count would be approximately 73 million shares.
The following table reconciles net loss per share to the non-GAAP net income per share range:
Accessing Cepheid's 2014 First Quarter Results Conference Call
The Company will host a management presentation at 2 p.m. Pacific Time on Thursday, April 17, 2014, to discuss the results. To access the live webcast, please visit Cepheid's website at http://ir.cepheid.com at least 15 minutes before the scheduled start time to download any necessary audio or plug-in software. A replay of the webcast will be available shortly following the call and will remain available for at least 90 days.