Cepheid (CPHD) Updates on Xpert Availability; Sees Q4 adj.-EPS, vs. Consensus of Loss

January 8, 2013 8:34 AM EST
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Ahead of its presentation at the JP Morgan Healthcare Conference in San Francisco later today, Cepheid (Nasdaq: CPHD) this morning shared an update on Xpert test availability, highlighting that significant progress towards a return to normal manufacturing operations was achieved despite higher than anticipated demand for a number of Xpert test products during the fourth quarter.

"With respect to our manufacturing operations, the underlying causes of our 2012 second half challenges have been resolved," said John Bishop, Cepheid's Chief Executive Officer. "Additionally, we brought up a second Reagents on Board Automation Line, or ROBAL, here in Sunnyvale slightly ahead of schedule which expands our capacity significantly. Further, we are accelerating the completion of a second ROBAL line in our Swedish facility by one year and expect to have the line functional in the second half of this year."

Continued Bishop, "While many of our Xpert tests came off allocation in the fourth quarter as we expected, our operational remedies took several weeks longer than we originally anticipated. Having taken the extra time, however, we are confident that we are building a world-class manufacturing operation capable of meeting increasing product demand and ensuring a consistent supply of our growing menu of tests for all Xpert customers."

"That said, due to stronger than anticipated demand, certain Xpert products remain on allocation at this time, namely Xpert MRSA and Xpert Flu," concluded Bishop. "As we move through these final weeks of allocations, I'd like to thank our customers for their patience and reassure them that we are doing everything we can to ensure this experience is not repeated."

The company sees Q4 revs of $92 million, down from $94 million previously expected.

Non-GAAP EPS is expected to be 10 cents to 12 cents.

*** The Street currently sees revs of $93.6 million and a loss of 2 cents per share.

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