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Apr 21, 2003

Omnicell Announces First Quarter 2003 Financial Results

Omnicell Announces First Quarter 2003 Financial Results

PALO ALTO, Calif. (April 21, 2003) – Omnicell, Inc. (NASDAQ: OMCL), a leading provider of patient safety solutions for healthcare, today announced financial results for the quarter ended March 31, 2003, summarized as follows:

  • For the first quarter of 2003, total revenue was $22.1 million, compared to $24.4 million for the same period in 2002 and $20.5 million for the fourth quarter of 2002.

  • Gross margin was 57.2% for the first quarter of 2003, compared to 61.6% for the same period in 2002 and 56.9% for the fourth quarter of 2002.

  • Total operating expenses decreased to $12.2 million for the first quarter of 2003 from $13.7 million for the same period of 2002 and $17.0 million for the fourth quarter of 2002. The fourth quarter of 2002 included $2.4 million for restructuring and purchased in-process research and development.

  • Net income for the quarter was $444,000 or $0.02 per diluted share compared to $1.7 million or $0.07 per diluted share for the same period of 2002 and a net loss of $5 million or $(0.23) per share on a diluted basis for the fourth quarter of 2002.

  • Total cash balances as of March 31, 2003 were $23.1 million, compared to $21.5 million as of December 31, 2002. The increase in cash balances was primarily due to net cash generated by operating activities.

  • Total backlog as of March 31, 2003 was $30.5 million, compared to $28.3 million for the quarter ended December 31, 2002, an increase of $2.2 million.

  • As of March 31, 2003, 25,472 pharmacy and supply automation systems had been installed or released for customer installation in 1,384 healthcare facilities.

Omnicell Chairman, President and CEO Randall A. Lipps, commenting on the current quarter’s improved business results, said, “I am very pleased with the progress we made during this past quarter on a number of fronts—revenue growth, expense management, new product and new business expansion, as well as completing our senior management changes. Of course, most gratifying is that we have returned to being profitable. We believe that we are well-positioned with the solutions and people that will continue to meet the healthcare market’s needs for increased patient safety and operational efficiency.”

Dennis P. Wolf, executive vice president of operations, finance, administration and CFO, observed, “Our expense run rate has dropped significantly, and we now have a much more efficient business model. With revenue now growing, we have returned to profitability faster than we thought. We will continue to look for ways to improve our operational processes and make more targeted investments to support our market needs-driven strategy.”

Conference Call Details

Management will report financial results for the first quarter of 2003 on Monday, April 21, at 9:00 a.m. ET via conference call. Investors and analysts may listen to this conference call by logging on to www.omnicell.com or by dialing 800-257-7087 (domestic) or 303-262-2175 (international) approximately 10 minutes prior to the scheduled start. A replay of the call will be available from 11:00 a.m. ET on April 21 through 11:59 p.m. ET on April 28. Dialing 800-405-2236 (domestic) or 303-590-3000 (international) and entering the passcode 534737 for both numbers will access the call replay.

About Omnicell

Established in 1992, Omnicell (NASDAQ: OMCL) is a leading provider of patient safety solutions for healthcare. Addressing the medication-use process and the medical-surgical supply chain, Omnicell's broad range of solutions are used throughout the healthcare facility--in the pharmacy, nursing units, operating room, cardiac cath lab, and all the way to the patient's bedside. Improving patient care by enhancing operational efficiency, Omnicell's solutions include systems for physician order management, automated pharmacy retrieval, medication and supply dispensing, nursing workflow automation at the bedside, and Web-based procurement. These solutions enable healthcare facilities to reduce medication errors, operate more efficiently, and decrease costs--ultimately contributing to improved clinical and financial outcomes. For more information, visit www.omnicell.com.

To the extent any statements contained in this release deal with information that is not historical, these statements are necessarily forward-looking. As such, they are subject to the occurrence of many events outside Omnicell’s control and are subject to various risk factors that could cause actual results to differ materially from those expressed or implied in any forward-looking statement. The risk factors are described in the Company’s Securities and Exchange Commission ("SEC") filings and include, without limitation, the continued growth and acceptance of our products and services and the continued growth of the clinical automation and workflow automation market generally, the potential of increasing competition, the ability of the Company to maintain or increase profitability in the future, grow product backlog, retain key personnel, cut expenses, develop new products and integrate acquired products or intellectual property in a timely and cost-effective manner, and improve sales productivity. For a more detailed description of the factors that may impact these forward-looking statements, please refer to the information under the heading "Factors That May Affect Our Future Operating Results" in Omnicell's annual report on Form 10-K filed with the SEC on March 28, 2003, as well as the other information contained in that Form 10-K and in our other SEC filings. Prospective investors are cautioned not to place undue reliance on forward-looking statements.

OMNICELL, INC.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

March 31,

 

2003

 

2002

Revenues:

 

 

 

Product revenues

$     17,557

 

 $       21,030

Service and other revenues

            4,517

 

            3,389

Total revenues

          22,074

 

          24,419

Costs of revenues:

 

 

 

Cost of product revenues

            7,706

 

            7,985

Cosf service and other revenues

            1,747

 

            1,382

Total cost of revenues

            9,453

 

            9,367

Gross profit

          12,621

 

          15,052

Operating expenses:

 

 

 

Research and development

            2,368

 

            2,678

Selling, general and administrative

            9,871

 

          11,004

Total operating expenses

          12,239

 

          13,682

Income from operations

              382

 

            1,370

Interest and other income

              124

 

              677

Interest and other expense

               (46)

 

             (457)

Income before provision for income taxes

              460

 

            1,590

Provision (benefit) for income taxes

                16

 

               (60)

Net income

$            444

 

 $         1,650

Net income per common share - basic

 $           0.02

 

 $           0.08

Net income per common share - diluted

 $           0.02

 

 $           0.07

Weighted average common shares outstanding - basic

22,104

 

21,514

Weighted average common shares outstanding - diluted

22,783

 

22,964

 

  

 

 

OMNICELL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

 

 

 

 

 

 

 

March 31,

 

December 31,

 

2003

 

2002

 

(Unaudited)

 

(Note 1)

ASSETS

 

 

 

 

 

 

 

Current assets:

 

 

 

Cash, cash equivalents and short-    term investments

 $       23,147

 

 $       21,485

Accounts receivable, net

            9,879

 

          10,644

Inventories

          10,345

 

          12,741

Other current assets

            3,156

 

            3,575

Total current assets

          46,527

 

          48,445

Property and equipment, net

            4,703

 

            5,026

Other assets

          10,188

 

          12,071

                Total assets

 $       61,418

 

 $       65,542

 

 

 

 

LIABILITIES AND STOCKHOLDERS'    EQUITY

 

 

 

 

 

 

 

Current liabilities:

 

 

 

Accounts payable

 $         2,614

 

 $         5,975

Accrued liabilities

          10,773

 

          11,695

Deferred service revenue

          12,574

 

          11,598

Deferred gross profit

          16,620

 

          18,008

Current portion of note payable

            1,204

 

            1,197

Total current liabilities

          43,785

 

          48,473

Note payable

                   -

 

              305

Other long-term liabilities

              458

 

              458

Stockholders' equity

          17,175

 

          16,306

Total liabilities and stockholders' equity

 $       61,418

 

 $       65,542

 

(Note 1 - December 31, 2002 amounts derived from the audited financial statements)