NEW YORK, July 15-Cepheid today reported increased losses and a steep hike in revenues for the second quarter of 2002.
For the three months ended June 30, 2002, revenues were $3.2 million, up from 2 million for the same quarter in 2001. Net losses were $5.5 million (21 cents per share) for the quarter, up from $4.1 million (16 cents per share) from the same quarter last year.
The company attributed its increased losses to R&D spending for its GeneXpert system. Cepheid opened a new California manufacturing center in June, and hopes to have that system in production by the end of the year.
Cepheid is being considered for a contract by the United States Postal Service to install DNA-detection systems in its mail sorting facilities nationwide, an arrangement that could bring the company $25 million to $40 million in 2003, company representatives said.
The USPS plans to award the contract by the end of September 2002.
Cepheid executives said in a conference call that the company's directors planned to expand international sales. The company also announced an agreement with MedProbe to act as Cepheid's exclusive distributor in Norway, Sweden, Denmark, Finland and Iceland.
Cepheid said it had about $16 million in the bank. "We're in pretty good shape," said CEO John Bishop.