Cepheid (Cepheid) has reported total revenues of $169.6 million for the full year of 2008, up 31%, compared with the total revenues of $129.4 million in the previous year-end. It posted a net loss of $21.7 million, or $0.38 per share, for the full year of 2008, compared with the net loss of $21.4 million, or $0.39 per share, in the previous year-end.
Net loss was $5.9 million, or $(0.10) per share, which against revenue of $40.4 million and a net loss of $5.3 million, or $(0.10) per share, in the fourth quarter of fiscal 2007. Excluding amortization of purchased intangible assets and stock compensation expenses, non-GAAP net loss for the fourth quarter of fiscal 2008 was $2.3 million, or $(0.04) per share. This against a non-GAAP net loss of $1.2 million, or $(0.02) per share, in the fourth quarter of fiscal 2007.
Fiscal 2008 overview
Excluding amortization of purchased intangible assets and stock compensation expenses, non-GAAP net loss for the full year was $6.5 million, or $(0.11) per share. This against a non-GAAP net loss of $9.3 million, or $(0.17) per share, for the full year 2007. “Despite a challenging selling environment driven by increasing economic uncertainty as the year ended, continued adoption of our GeneXpert systems and XpertTM tests drove full year growth of 112% in our Core Clinical business,” said John Bishop, Cepheid’s chief executive officer. “Full year growth of more than 400% for our Xpert MRSA test positions us as the leader in molecular testing for Healthcare Associated Infections, and we enter 2009 with a broadened – and expanding – test menu that we believe will enable continued adoption of our GeneXpert system even in today’s tough economic environment.”
“With the potential for on-going economic uncertainty, we have executed a series of actions designed to optimize our opportunity for growth in our Core Clinical sales while reducing our 2009 spending levels and supporting our profitability improvement objectives. These actions included: a reduction-inforce totaling 47 positions that impacted employees, contractors and replacement positions; the implementation of a hiring freeze with the exception of specified positions in sales, marketing and manufacturing; and the suspension of annual salary increases for 2009.”
“Without detriment to our near-term strategic imperatives, we have postponed certain facility expansions and selectively slowed development of some of our longer term strategic projects. Our near-term projects were not impacted by these actions. Notably, development of our Clostridium difficile test, our vanA/vanB Xpert test for vancomycin-resistant enterococci (or VRE), and our MRSA/SA nasal pre-surgical test are on-track and are expected to be released in the United States in the second half of 2009. In addition, in the first half of the year, we expect the European release of our Xpert TB test which simultaneously detects TB along with multi-drug resistance.”
Business Outlook
For the fiscal year ending December 31, 2009, the company expects:
Total revenue to be in the range of $164 to $174 million;
Net loss in the range of $(0.42) to $(0.47) per share;
Non-GAAP net loss in the range of $(0.11) to $(0.17) per share.
Non-GAAP net loss excludes about $16 million related to stock compensation expense, $1 million related to the amortization of acquired intangibles, and $0.8 million related to restructuring expenses.