Omnicell, Inc.
Nov 1, 2001

Omnicell Announces Third Quarter 2001 Financial Results

Reports First Quarter of Operating Profit

PALO ALTO, Calif. — Nov. 1, 2001 — Omnicell, Inc. (NASDAQ: OMCL), a provider of clinical infrastructure and workflow automation solutions for the healthcare industry, today announced financial results for the quarter ended September 30, 2001.

Total revenues increased 32% to $22.7 million in the three months ended September 30, 2001 from $17.2 million for the comparable period in 2000. In the first nine months of 2001, total revenues increased 30% to $62.5 million from $48.1 million for the nine months ended September 30, 2000.

Total operating expenses decreased to $13.9 million in the third quarter of 2001 from $14.6 million (excluding restructure charges of $2.9 million) in the third quarter of 2000. For the nine months ended September 30, 2001, total operating expenses decreased to $40.5 million from $43.8 million (excluding restructure charges of $2.9 million) in the same period last year.

Net income for the quarter was $0.5 million or $0.02 per share compared to a net loss of $7.4 million or $0.58 per share on a pro forma basis in the same quarter a year ago. Net loss for the nine months ended September 30, 2001 was $2.6 million or a loss of $0.16 per pro forma share compared to a net loss of$19.3 million or a loss of $1.48 per pro forma share in the comparable period last year.

"We exceeded our goal to attain operating profitability by the fourth quarter of 2001" said Omnicell Chief Executive Officer Shelly Asher. "We plan to continue to increase our profitability and expect our revenues to grow 25-30% this year and next."

Omnicell also announced the following recent highlights:

Investors and analysts may listen to Asher, Omnicell Chairman Randy Lipps and CFO Bob Newell discuss this announcement today by logging on to www.omnicell.com or by dialing 800-219-6110 (domestic) or 303-205-0033 (international). The call will begin at 5 p.m. ET. A replay of the call will be available from 7 p.m. ET on Nov. 1 through 11:59 p.m. ET on Nov.15. Dialing 800-405-2236 (domestic) or 303-590-3000 (international) and entering the passcode 402989# will access the call replay. The Webcast will be available on Omnicell’s Web site until Nov. 8, 2001.

About Omnicell
Established in 1992, Omnicell (NASDAQ: OMCL) provides an integrated suite of clinical infrastructure and workflow automation solutions for healthcare. Omnicell’s solutions include pharmacy and supply systems, an Internet-based procurement application, and decision support capabilities designed to enable healthcare facilities to decrease costs, enhance operating efficiency, reduce medication errors, and improve patient care. For more information, visit www.omnicell.com.

The statements contained in this release may be deemed to contain "forward-looking statements." Such statements areindicated by words or phrases such as "anticipate," "estimate," "projects," "believes," "intends," "expects" and similar words and phrases. Actual results may differ materially from those expressed or implied in any forward-looking statement as a result of certain risks and uncertainties, including, without limitation, adoption of the Internet for business transactions by healthcare organizations; volume of transactions for medical products, services and equipment over the Internet; development of relationships with suppliers of healthcare products and services, automation systems and GPOs; and other risks and uncertainties detailed in the Company’s Securities and Exchange Commission filings. Prospective investors are cautioned not to place undue reliance on such forward-looking statements.

 

OMNICELL, INC.
SELECTED FINANCIAL INFORMATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)

 
       

Three Months Ended

Nine Months Ended

       

September 30,

 

September 30,

       

2001

 

2000

 

2001

 

2000

Revenues:

               
 

Product revenues

$19,308

 

$15,162

 

$54,583

 

$42,134

 

Service and other revenues

3,371

 

2,032

 

7,923

 

5,919

Total revenues

 

22,679

 

17,194

 

62,506

 

48,053

Costs and expenses:

             
 

Cost of product revenues

6,970

 

4,906

 

18,983

 

13,639

 

Cost of service and other revenues

1,389

 

1,627

 

4,777

 

5,848

Total cost of revenues

8,359

 

6,533

 

23,760

 

19,487

Gross margin

 

14,320

 

10,661

 

38,746

 

28,566

Operating expenses:

             
 

Research and development

2,864

 

2,622

 

8,299

 

8,580

 

Selling, general and administrative

10,803

 

11,600

 

31,106

 

34,856

 

Stock-based compensation

196

 

406

 

1,053

 

406

 

Restructure

 

-

 

2,908

 

-

 

2,908

Total operating expenses

13,863

 

17,536

 

40,458

 

46,750

                     

Operating income (loss)

457

 

(6,875)

 

(1,712)

 

(18,184)

                     

Interest income, net

59

 

(506)

 

(778)

 

(1,048)

                     

Income (loss) before provision for income taxes

516

 

(7,381)

 

(2,490)

 

(19,232)

                     

Provision for income taxes

(25)

 

(25)

 

(75)

 

(75)

                     

Net income (loss)

$491

 

($7,406)

 

($2,565)

 

($19,307)

                     

Net income (loss) per share - basic

$ 0.04

 

$ (3.19)

 

$ (0.59)

 

$ (7.54)

                     

Net income (loss) per share - diluted

$ 0.02

 

$ (3.19)

 

$ (0.59)

 

$ (7.54)

                     

Net income (loss) per share – pro forma

$ 0.02

 

$ (0.58)

 

$ (0.16)

 

$ (1.48)

               

Shares used in computing net income (loss)

13,971

 

2,321

 

4,314

 

2,562

per share - basic

               
                     

Shares used in computing net income (loss)

19,799

 

2,321

 

4,314

 

2,562

per share - diluted

             
                     

Shares used in computing net income (loss)

19,799

 

12,764

 

15,969

 

13,005

per share – pro forma

             
                     

BALANCE SHEET

       

September 30,

December 31,

               

2001

2000

               

(Unaudited)

(Note 1)

Cash, cash equivalents and short-term marketable securities

 

$24,819

 

$11,967

Trade receivables, net

       

16,552

 

11,036

Other current assets

       

18,061

 

13,142

Property and equipment, net

       

5,128

 

4,913

Other assets

         

5,770

 

2,847

Total assets

         

$70,330

 

$43,905

               

Deferred gross profit

       

$25,798

 

$25,87

Other current liabilities

       

26,457

 

23,751

Long-term obligations

       

699

 

9,218

Redeemable convertible preferred stock

       

-

 

10,113

Stockholders' equity (net capital deficiency)

       

17,376

 

(25,024)

Total liabilities and stockholders' equity (net capital deficiency)

 

$70,330

 

$43,905

(Note 1 - Derived from the audited financial statements at that date.)