In referring to his recommended position in Cepheid (NASDAQ: CPHD), industry-leading biotech expert Michael Shulman jests, "To use a highly technical financial term: WooHoo! What a great quarter capped by a justifiably upbeat conference call."

Here, the editor of The ChangeWave Biotech Investor takes a look at the company, noting "I've been pounding the table for CPHD -- and this great quarter justifies my optimism."

"Cepheid develops and markets a diagnostic testing system called the GeneXpert that's a hardware platform for genetic tests of diseases that can be identified by their genetic code.

""There are several specific tests for this platform including MRSA, the killer staph infection that is typically found in hospitals, but is also spreading to other venues.

"In its latest quarrter, the company reported that revenues were $36.3 million, up 53% from Q3 2006. Total product sales were $34 million, up 50% and clinical product sales were $20.7 million, up 258%.

In its latest quarrter, the company reported that revenues were $36.3 million, up 53% from Q3 2006. Total product sales were $34 million, up 50% and clinical product sales were $20.7 million, up 258%.

"The GeneXpert system sales exploded! By the end of the quarter 1,376 GeneXpert System modules were installed in hospitals in the United States -- including 77 in VA hospitals, up by 51 modules in Q3 and representing a 79% share of the VA market.