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Cepheid Announces Preliminary 2013 Second Quarter Results
Date:7/11/2013

d John L. Bishop, Cepheid's Chairman and Chief Executive Officer.  "Record revenue of $96 million and the associated production volumes show that we made good progress in this regard.  Revenue was driven by strength in HBDC and solid growth in our international commercial clinical business.  Second quarter commercial clinical revenue in North America was at the lower end of our target range, although improving customer confidence allowed our sales organization to return to higher levels of productivity late in the quarter."

Continued Bishop, "This inventory reserve is associated with certain manufacturing materials that did not meet our internal in-process criteria but were expected to be salvageable for potential future use.  An assessment of manufacturing inventory initiated by our new EVP, Global Operations in the last weeks of the quarter identified these items for further analysis and, having now completed the analysis, we have concluded that a portion of these materials should be reserved at this time."

Cepheid previously announced that Warren Kocmond had joined the company as EVP, Global Operations on May 6, 2013, taking responsibility for global manufacturing.  Warren brings well over two decades of experience to Cepheid from large scale manufacturing operations including Lam Research, Verigy, Applied Materials and Silicon Graphics. 

"In a few short weeks, Warren has already made a positive contribution to Cepheid, driving our manufacturing operations to record levels of productivity," added Bishop.  "I am confident that his focus on metric-driven efficiency will quickly drive our manufacturing operations to sharpen operational focus and further enhance execution, returning Cepheid to a solid track record of consistent product delivery and expected improvements in gross margins."

Cepheid also announced today that
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