Zacks Analyst Interview Highlights: Cepheid and Sonic Innovations

CHICAGO--(BUSINESS WIRE)--Zacks.com releases the latest Analyst Interview. Today’s interview is with senior analyst Tom Park, who discusses Cepheid Inc. (Nasdaq: CPHD) and Sonic Innovations (Nasdaq: SNCI).

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Can you tell us a bit about your most recent report issued on a company under coverage?

Cepheid Inc. (Nasdaq: CPHD) is a molecular diagnostics company that develops, manufactures, and markets fully-integrated systems for genetic analysis in the clinical molecular diagnostic, industrial, and biothreat markets. These systems enable rapid, sophisticated molecular testing for organisms and genetic-based diseases by automating otherwise complex manual laboratory procedures.

Molecular testing involves a number of complicated and time-intensive steps, including sample preparation, DNA amplification, and detection. Cepheid’s easy-to-use systems integrate these steps and analyze complex biological samples.

CPHD reported Q3 EPS that beat our estimate by a penny on revenue that also exceeded our forecast. We again lowered our FY08 EPS estimate, and further lowered our FY09 revenue and EPS estimates.

For FY09, the company seeks to be profitable excluding stock compensation and amortization of acquired intangibles. The company is focused in driving growth primarily by penetrating further in the clinical market and launching new products. Our price target is based on a price-to-revenue multiple of roughly 4.3x our 2009 revenue estimate.

Have you issued any Buy reports lately? If so, on which companies?

Sonic Innovations (Nasdaq: SNCI) designs, develops, manufactures and markets advanced digital hearing aids, designed to provide the highest levels of satisfaction for hearing-impaired consumers.

To boost its growth, Sonic Innovations has once again adopted an acquisition strategy. The emphasis in R&D has resulted in new product launches that are helping to drive sales higher. The company expects to find additional growth from improvements to its distribution. The sale of the auditory testing division has helped the company clear a path to meaningful growth.

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