Cepheid Q2 Loss Widens, Revenues Top View; Trims 2014 EPS Outlook

(RTTNews) - Molecular diagnostics company Cepheid, Inc. (CPHD) reported Thursday a loss for the second quarter that widened from last year, despite double-digit sales growth, hurt by higher charges as well as costs and operating expenses. The company also trimmed its adjusted guidance for the full-year 2014, while raising annual sales forecast. The Sunnyvale, California-based company reported a net loss of $9.84million or $0.14 per share for the second quarter, wider than $6.58 million or $0.10 per share in the prior-year quarter.

Excluding items, adjusted net income for the quarter was $2.35 million or $0.03 per share, compared to $1.2 million or $0.02 per share in the year-ago quarter.

On average, 16 analysts polled by Thomson Reuters expected the company to report a loss of $0.14 per share for the quarter. Analysts' estimates typically exclude special items.

Total sales for the quarter grew 21 percent to $116.50 million from $96.01 million in the same quarter last year, and topped twenty-one Wall Street analysts' consensus estimate of $115.56 million by a whisker.

Gross margins for the quarter improved 400 basis points to 49 percent, but total costs and operating expenses increased to $122.06 million from $101.60 million last year.

Total clinical sales for the quarter grew 27 percent from the year-ago quarter to $111.3 million, with clinical systems sales surging 70 percent and clinical reagents sales improving 17 percent. Meanwhile, non-clinical and other sales declined 39 percent to $5.2 million from last year.

Geographically, domestic sales increased 7 percent to $61.6 million, and international sales grew 42 percent to $54.9 million in the prior-year quarter.

Gross margins for the quarter improved 400 basis points to 49 percent, but total costs and operating expenses increased to $122.06 million from $101.60 million last year.

Looking ahead to fiscal 2014, Cepheid trimmed its adjusted earnings guidance to in a range of $0.10 to $0.13 per share from the prior range of $0.19 to $0.24 per share. However, the company now projects sales between $452 million and $461 million, up from the previous projection between $446 million and $461 million.

Street is currently looking for full-year 2014 loss of $0.37 per share on annual sales of $460.13 million.

CPHD closed Thursday's regular trading session at $46.19, down $1.01 or 2.15% on a volume of 0.70 million shares. The stock lost a further $0.69 or 1.48% in after-hours trading.