SUNNYVALE, Calif. (AP) -- Molecular diagnostics company Cepheid lost money in its second quarter, hurt by an unexpected inventory reserve and some expenses. Its adjusted profit surprised Wall Street, and revenue beat analysts' estimates.
The company also lowered its full-year adjusted earnings forecast to account for additional investments in its manufacturing operations. However, the company raised the low end of its revenue outlook.
Cepheid lost $6.6 million, or 10 cents per share, for the three months ended June 30. That compares with a profit of $1.1 million, or 2 cents per share, a year ago.
Stripping out stock-based compensation expense and other items, earnings were 2 cents per share, down from 11 cents per share in the prior-year period.
Analysts polled by FactSet expected a loss of 5 cents per share.
Cepheid said that the current quarter's results were stung by an unexpected inventory reserve of about $3 million, which dragged down its earnings by approximately 4 cents per share.
Revenue increased 19 percent to $96 million from $81 million as clinical sales climbed 26 percent. On a geographic basis, international sales jumped 61 percent while North American sales edged up 1 percent.
Wall Street predicted revenue of $93.4 million.
For the year, Cepheid now foresees adjusted earnings between 18 cents and 21 cents per share with revenue between $380 million and $385 million. Its prior guidance called for earnings in a range of 41 cents to 46 cents per share and revenue of $375 million to $385 million.
Analysts predict a loss of 1 cent per share on revenue of $382.7 million.
Cepheid's stock gained 7 cents to $34.21 in Friday afternoon trading.