(Updates with company comment in fourth paragraph.)
Oct. 20 (Bloomberg) -- Cepheid Inc., the maker of a rapid test for a drug-resistant staph infection known as MRSA, said it had a third-quarter profit of $1.9 million, compared with a year-earlier loss, on greater use of its diagnostic systems.
Net income was 3 cents a share, from a loss of $1.12 million, or 2 cents, a year earlier, Sunnyvale, California-based Cepheid said today in a statement. Earnings excluding some items were 11 cents a share, beating by 4 cents the average estimate of six analysts surveyed by Bloomberg.
Revenue jumped 25 percent to $70.2 million on demand for its Xpert tests, 11 of which are available in the U.S. and 12 that are available elsewhere. Methicillin-resistant Staphylococcus aureus, or MRSA, is primarily a hospital-acquired infection that sickens about 90,000 Americans annually, killing about 15,000, according to the Centers for Disease Control and Prevention.
“Our family of Xpert molecular diagnostic systems and tests is impacting the treatment decisions of more patients than ever before,” said John Bishop, Cepheid’s chief executive officer, in a statement.
Cepheid said the company is terminating a DNA test license with Roche Holding AG because the patents under the agreement aren’t “pertinent to Cepheid’s future business plans.” The company expects to have a one-time charge of $5.4 million, or 8 cents a share, in the fourth quarter.
The company also raised its full-year revenue forecast to $269 million to $272 million from $265 million to $270 million announced on July 21. Earnings excluding certain items are expected to be 41 cents to 44 cents a share, the company said.
Cepheid rose 1.2 percent in extended trading after gaining 17 cents to $38.55 at the close in New York.
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