SUNNYVALE, Calif., April 23, 2015 /PRNewswire/ -- Cepheid (Nasdaq: CPHD) today reported revenue for the first quarter of 2015 of $132.6 million, representing growth of 24% from $106.9 million for the first quarter of 2014. Net income was $0.9 million, or $0.01 per share, which compares to net loss of $(9.3) million, or $(0.13) per share, in the first quarter of 2014.
Excluding stock-based compensation expense, amortization of debt discount and transaction costs, and amortization of purchased intangible assets, non-GAAP net income for the first quarter of 2015 was $12.4 million, or $0.17 per share. This compares to a non-GAAP net loss of $(0.6) million, or $(0.01) per share, in the first quarter of 2014.
"Momentum continues to build across our business, with strong execution on our test menu, geographic expansion, and market extension programs all contributing to record first quarter revenue," said John Bishop, Cepheid's Chairman and Chief Executive Officer. "In the last 12 months, Cepheid has added eight tests to the international Xpert menu, including the milestone HIV Viral Load, HIV Qualitative and HCV Viral Load tests. Regardless of size, many of our international customers now have the capability to offer a broad molecular menu of HAI, critical infectious disease, sexual health and virology tests on a single accurate, efficient, scalable, and cost-effective platform."
Operational Overview
- Total revenue was, in millions:
Three Months Ended March 31, | |||||
2015 | 2014 | Change | |||
Clinical Systems | $ 16.3 | $ 17.3 | -6% | ||
Clinical Reagents | 109.0 | 83.1 | 31% | ||
Total Clinical | 125.3 | 100.4 | 25% | ||
Non-Clinical & Other | 7.3 | 6.5 | 13% | ||
Total Revenue | $ 132.6 | $ 106.9 | 24% | ||
- By geography, total revenue was, in millions:
Three Months Ended March 31, | |||||
2015 | 2014 | Change | |||
North America | |||||
Clinical | $ 75.5 | $ 57.3 | 32% | ||
Non-Clinical & Other | 6.8 | 5.5 | 23% | ||
Total North America | 82.3 | 62.8 | 31% | ||
International | |||||
Clinical | 49.8 | 43.2 | 15% | ||
Non-Clinical & Other | 0.5 | 0.9 | -46% | ||
Total International | 50.3 | 44.1 | 14% | ||
Total Revenue | $ 132.6 | $ 106.9 | 24% | ||
- Commercial Clinical sales were $109.0 million and sales to High Burden Developing Countries (HBDC) were $16.3 million.
- During the quarter, Cepheid installed a total of 163 GeneXpert systems in its commercial Clinical business. Additionally, the Company placed a total of 133 GeneXpert systems as part of its HBDC program. Including HBDC sales, a cumulative total of 8,321 GeneXpert systems have been placed worldwide as of March 31, 2015.
- GAAP gross margin on sales was 54% and non-GAAP gross margin on sales was 55%, which compares to 50% and 51%, respectively, in the first quarter of 2014.
- Cash, cash equivalents and investments were $373.3 million as of March 31, 2015.
- DSO was 51 days.
Business Outlook
For the fiscal year ending December 31, 2015, the Company now expects:
- Total revenue to be in the range of $542 to $553 million;
- Net loss in the range of $(0.47) to $(0.43) per share;
- Non-GAAP net income in the range of $0.25 to $0.29 per share.
Expected non-GAAP net income excludes approximately $36 million related to stock-based compensation expense, approximately $10 million related to the amortization of debt discount and transaction costs, and approximately $6 million related to the amortization of purchased intangible assets. The fully diluted share count for the year is expected to be approximately 71 million in the case of a net loss, and approximately 74 million shares in the case of net income.
The following table reconciles net income (loss) per share to the non-GAAP net income per share range:
Guidance Range for Year | ||||
Ending December 31, 2015 | ||||
Low | High | |||
Net Loss Per Share | $ (0.47) | $ (0.43) | ||
Stock-Based Compensation Expense | 0.50 | 0.50 | ||
Amortization of Debt Discount and Transaction Costs | 0.14 | 0.14 | ||
Amortization of Purchased Intangible Assets | 0.08 | 0.08 | ||
Non-GAAP Measure of Net Income Per Share | $ 0.25 | $ 0.29 | ||
Accessing Cepheid's 2015 First Quarter Results Conference Call
The Company will host a management presentation at 2 p.m. Pacific Time on Thursday, April 23, 2015, 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.
Summary of Management Presentation
In conjunction with today's press release, the Company is making a summary of the management presentation immediately available at http://ir.cepheid.com.
About Cepheid
Based in Sunnyvale, California, Cepheid (Nasdaq: CPHD) is a leading molecular diagnostics company that is dedicated to improving healthcare by developing, manufacturing, and marketing accurate yet easy-to-use molecular systems and tests. By automating highly complex and time-consuming manual procedures, the Company's solutions deliver a better way for institutions of any size to perform sophisticated genetic testing for organisms and genetic-based diseases. Through its strong molecular biology capabilities, the Company is focusing on those applications where accurate, rapid, and actionable test results are needed most, such as managing infectious diseases and cancer. For more information, visit http://www.cepheid.com.
Use of Non-GAAP Measures
The Company has supplemented its reported GAAP financial information with non-GAAP measures that do not include stock-based compensation expense, amortization of purchased intangible assets, amortization of debt discount and transaction costs. The presentation of this additional information is not meant to be considered in isolation or as a substitute for results prepared in accordance with U.S. GAAP. The Company's management uses the non-GAAP information internally to evaluate its ongoing business, continuing operational performance and cash requirements, and believes these non-GAAP measures are useful to investors as they provide a basis for evaluating the Company's cash requirements and additional insight into the underlying operating results and the Company's ongoing performance in the ordinary course of its operations.
These non-GAAP measures may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. The Company believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with its results of operations as determined in accordance with U.S. GAAP and that these measures should only be used to evaluate the Company's results of operations in conjunction with the corresponding GAAP measures.
As described above, the Company excludes the following items from one or more of its non-GAAP measures when applicable:
Stock-based Compensation Expense. This consists primarily of expenses for stock options and restricted stock under ASC 718 (formerly SFAS 123(R)). The Company excludes stock-based compensation expense from its non-GAAP measures primarily because it is a non-cash expense that the Company does not believe is reflective of ongoing operating results in the period incurred. Further, as the Company applies ASC 718, it believes that it is useful to investors to understand the impact of the application of ASC 718 on its results of operations.
Amortization of Debt Discount and Transaction Costs. The Company incurs amortization of debt discount and transaction costs in connection with the Convertible Senior Notes issued in February 2014. The Company excludes these amounts because these expenses are not reflective of ongoing operating results in the period incurred. These amounts arise from the Company's issuance of debt and have no direct correlation to the operation of the Company's business.
Amortization of Purchased Intangible Assets. The Company incurs amortization of purchased intangible assets in connection with acquisitions.
To read full press release, please click here.
Help employers find you! Check out all the jobs and post your resume.
