NEW YORK (GenomeWeb News) — Cepheid today said second-quarter revenues increased 37 percent as R&D spending rose 28 percent and net loss declined around 26 percent.
Total receipts for the three months ended June 30 increased to $27.2 million from $19.8 million year over year. This included $23.6 million of total product sales, which increased 25 percent to from $18.9 million for the second quarter 2006.
The company attributed the increase in product sales to a 165 percent increase in clinical product sales and a 43 percent increase in industrial sales, offset slightly by a 26 percent decrease in biothreat sales, compared to the year-ago period.
"The increase in clinical product sales during the second quarter reflects growing market traction for on-demand molecular diagnostics, particularly with the adoption of the Xpert [methicillin-resistant Staphylococcus aureus] test,” Cepheid CEO John Bishop said in a statement.
The company said the decrease in its biothreat business was due to a planned reduction in the price of Cepheid’s Anthrax cartridges to the United States Postal Service that is linked to a five-year agreement that the company is currently negotiating with USPS.
Instrument sales rose around 133 percent to $9.4 million; reagent and disposable sales decreased 5 percent to $14.2 million; contract revenues rose 180 percent to $1.9 million; and government and government-sponsored research revenue soared more than five-fold to $1.7 million.
R&D spending rose to $7.4 million from $5.8 million year over year.
Net loss fell to $5.2 million from $7 million in the year-ago period.
Cepheid said it had around $7.2 million in cash and cash equivalents, and $38.3 million in marketable securities at the end of the second quarter.
The company expects total revenue for the full year to be between $117 million and $123 million.