Cepheid warns 3Q revenue will fall short
SUNNYVALE, Calif. (AP) — Cepheid's shares slipped in after-hours trading Wednesday after the molecular diagnostics company warned that its third-quarter revenue will likely come in lower than expected.
The company, based in Sunnyvale, Calif., said that interruptions in its supply of Xpert cartridge parts hurt its revenue during the period.
Cepheid said it is working the address the cartridge availability issue and aggressively ship orders. However, with only a few days left in the quarter, it expects more than $5 million in back orders at the end of the period that will filled by the end of October.
The company says it would have delivered revenue between $84 million and $86 million for the quarter, but as a result of this shortage, it now expects revenue of $79 million to $81 million.
Analysts polled by FactSet were anticipating that Cepheid would post quarterly revenue of $84 million.
Cepheid CEO John Bishop said that demand for its Xpert family of tests grew quickly while the company is scaling up its operations. As the company developed higher-capacity production tools and processes, it was unable to produce the volume it needed.
Cepheid stood by its full-year forecast of revenue to be in the range of $333 million to $347 million for the full fiscal year. Analysts had forecast revenue of $334.4 million.
The company is scheduled to report its full third-quarter results on Oct. 18.
Shares of Cepheid fell $1.15, or 3 percent to $38 in after-hours trading on the news. They had ended the regular trading session up 20 cents at $39.15.