Cepheid posts 3Q profit as GeneXpert sales rise
Diagnostics company Cepheid said Thursday that it turned a profit in the third quarter as it sold more of its GeneXpert systems to developing countries.
Cepheid reported a profit of $1.9 million, or 3 cents per share. A year ago the company took a loss of $1.1 million, or 2 cents per share. Excluding one-time items, Cepheid said its profit totaled 11 cents per share in the most recent quarter. Its revenue increased 25 percent, to $70.2 million from $56.1 million.
Analysts expected a profit of 2 cents per share and $68.3 million in revenue, according to FactSet.
Cepheid said it placed 141 GeneXpert systems through a program that is intended to help developing countries get access to its test for drug-resistant tuberculosis. The company installed 122 GeneXpert systems during the quarter through its commercial business. Its system revenue rose 18 percent to $14.7 million, and reagent and disposable product sales grew 24 percent to $52.6 million.
Cepheid installed 125 GeneXpert systems in the third quarter of 2010.
The company also said it is terminating a license agreement with Swiss drugmaker Roche because the patents Cepheid licensed are no longer part of its business plans. It will take a charge of $5.4 million, or 8 cents per share, in the fourth quarter to cover the amortization of the license fee.
Because of that charge, the company now expects full-year net income between zero and 3 cents per share. It raised its revenue estimate to $269 million to $272 million.
Previously Cepheid expected a profit of 8 cents to 11 cents per share on revenue of $265 million to $270 million. Analysts, on average, were forecasting income of 10 cents per share and $268.9 million in revenue.
Shares of Cepheid rose 17 cents to close at $38.55 Thursday, and lost 20 cents after hours.