Omnicell, Inc.
Jan 29, 2002

Omnicell Announces Fourth Quarter 2001 Financial Results

Revenues Grow, Profitability Continues to Increase

PALO ALTO, Calif. — Jan. 29, 2002 — Omnicell, Inc. (NASDAQ: OMCL), a provider of clinical infrastructure and workflow automation solutions for the healthcare industry, today announced financial results for the quarter and year ended Dec. 31, 2001.

Total revenues increased 26% to $24.4 million in the three months ended Dec. 31, 2001 from $19.3 million for the comparable period in 2000. For the year ended Dec. 31, 2001, total revenues increased 29% to $86.9 million from $67.4 million for the previous year.

Total operating expenses increased to $14.1 million in the fourth quarter of 2001 from $13.6 million in the fourth quarter of 2000. For the year ended Dec. 31, 2001, total operating expenses decreased to $54.6 million from $57.4 million (excluding restructure charges of $2.9 million) in the same period last year.

Operating income for the quarter was $1.3 million, compared to a loss of $1.3 million in the fourth quarter of 2000. For the year ended Dec. 31, 2001, the company posted an operating loss of $430,000, compared to an operating loss of $19.5 million in 2000.

Net income for the quarter was $1.4 million or $0.06 per diluted share compared to a net loss of $1.5 million or $0.10 per share on a pro forma basis in the same quarter a year ago. Net loss for the year ended Dec. 31, 2001 was $1.2 million, or $0.03 per pro forma share compared to a net loss of $20.8 million, or $1.40 per pro forma share in the year ended Dec. 31, 2000. The pro forma per share amounts reflect the conversion of all the company’s outstanding preferred stock into common stock, which occurred upon completion of the company’s initial public offering of common stock in August 2001.

"We are pleased with the strong revenue growth for the year and the quarter," said Omnicell President and CEO Shelly Asher. "And our fourth quarter’s operating profitability continues a trend of improved operating results that stretches several quarters now."

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 800-218-0204 (domestic) or 303-262-2130 (international). The call will begin at 5 p.m. ET. A replay of the call will be available from 7 p.m. ET on Jan. 29 through 11:59 p.m. ET on Feb. 12. Dialing 800-405-2236 (domestic) or 303-590-3000 (international) and entering the passcode 434434# will access the call replay. The Webcast will be available on Omnicell’s Web site until Feb. 12, 2002.

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 are indicated 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)


Three Months Ended

Year Ended

December 31,

December 31,

2001

2000

2001

2000

Revenues:
Product revenues

$20,918

$17,421

$75,501

$59,555

Service and other revenues

3,477

1,891

11,400

7,810

Total revenues

24,395

19,312

86,901

67,365

Costs and expenses:
Cost of product revenues

7,762

5,217

26,745

18,856

Cost of service and other revenues

1,245

1,874

6,022

7,722

Total cost of revenues

9,007

7,091

32,767

26,578

Gross margin

15,388

12,221

54,134

40,787

Operating expenses:
Research and development

2,551

2,762

11,031

11,412

Selling, general and administrative

11,706

10,807

43,683

46,000

Restructure

(150)

-

(150)

2,908

Total operating expenses

14,107

13,569

54,564

60,320

Operating income (loss)

1,281

(1,348)

(430)

(19,533)

Interest income, net

202

(108)

(577)

(1,156)

Income (loss) before provision for income taxes

1,483

(1,456)

(1,007)

(20,689)

Provision for income taxes

(85)

(25)

(160)

(100)

Net income (loss)

$1,398

($1,481)

($1,167)

($20,789)

Net income (loss) per share - basic

$ 0.07

$ (0.49) $ (0.11)

$ (12.20)

Net income (loss) per share - diluted

$ 0.06

$ (0.49) $ (0.11)

$ (12.20)

Net income (loss) per share - pro forma (Note 1)

$ 0.06

$ (0.10) $ (0.03)

$ (1.40)

Shares used in computing net income (loss) per share - basic

21,437

3,020

10,312

1,704

Shares used in computing net income (loss) per share - diluted

22,795

3,020

10,312

1,704

Shares used in computing net income (loss) per share - pro forma

22,795

12,981

18,351

14,071

(Note 1 - The net result is adjusted to add back the amount of interest recognized in the period associated with convertible debt.)

OMNICELL, INC.
SELECTED FINANCIAL INFORMATION
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)

December 31,

2001

2000

(Note 2)

Cash, cash equivalents and short-term marketable securities

$23,839

$11,967

Trade receivables, net

18,167

11,036

Inventory, net

12,702

10,414

Other current assets

5,253

2,728

Property and equipment, net

5,384

4,913

Other assets

6,769

2,847

Total assets

$72,114

$43,905

Deferred service revenue

$8,009

$3,233

Deferred gross profit

24,790

25,847

Other current liabilities

19,351

20,518

Long-term obligations

363

9,218

Redeemable convertible preferred stock

-

10,113

Stockholders' equity (net capital deficiency)

19,601

(25,024)

Total liabilities and stockholders' equity (net capital deficiency)

$72,114

$43,905

(Note 2 - Derived from the audited financial statements at that date.)