Omnicell, Inc.
Jul 30, 2002

Omnicell Announces Second Quarter 2002 Financial Results

Revenues Grow 20%, Firm Posts Fourth Straight Profitable Quarter

PALO ALTO, Calif. — July 30, 2002 — Omnicell, Inc. (NASDAQ: OMCL), a leading provider of supply chain and medication management solutions for healthcare, today announced financial results for the quarter ended June 30, 2002.

Total revenues increased 20 percent to $24.9 million in the three months ended June 30, 2002, from $20.8 million for the comparable period in 2001. For the six months ended June 30, 2002, total revenues increased 24 percent to $49.4 million from $39.8 million in 2001.

Total operating expenses decreased to $13.2 million in the second quarter of 2002 from $13.5 million in the second quarter of 2001. For the six months ended June 30, 2002, total operating expenses increased to $26.9 million from $26.6 million in 2001.

Operating income for the quarter was $1.7 million, compared to a loss of $0.9 million in the second quarter of 2001. For the six months ended June 30, 2002, operating income was $3.1 million, compared to a loss of $2.2 million in the same period last year.

Net income for the second quarter of 2002 was $1.8 million or $0.08 per diluted share compared to a net loss of $1.2 million or $(0.43) per share on a diluted basis in the same quarter a year ago. For the six months ended June 30, 2002, net income was $3.4 million or $0.15 per diluted share, compared to a loss of $3.1 million or $(1.11) per diluted share.

"We posted our fourth straight quarter of increasing operating profits," said Omnicell President and CEO Shelly Asher. "We continue to watch expenses closely and increase our product offerings to support our sales efforts."

Omnicell Founder and Chairman Randall A. Lipps said the company recently launched a suite of new solutions to help healthcare organizations increase operating efficiency and improve patient care.

"We have launched a number of new products and features that impact every clinical area of a hospital," said Lipps. "We believe our financial results reflect the depth and breadth of the innovative technology we have to offer healthcare facilities."

Omnicell also announced the following recent highlights:

Investors and analysts may listen to Asher, Lipps and CFO Bob Newell discuss this announcement today by logging on to www.omnicell.com or by dialing 800-218-9073 (domestic) or 303-262-2127 (international) approximately 10 minutes prior to the scheduled start of 5:00 p.m. ET. A replay of the call will be available from 7 p.m. ET on July 30 through 11:59 p.m. ET on Aug. 6. Dialing 800-405-2236 (domestic) or 303-590-3000 (international) and entering the passcode 482363# will access the call replay. The Webcast will be available on Omnicell’s Web site until Aug. 6.

About Omnicell
Established in 1992, Omnicell (NASDAQ: OMCL) provides solutions that improve patient care by enhancing the operational efficiency of healthcare organizations. Addressing the medication management and supply chain areas, Omnicell's medication and supply dispensing systems and decision support tools enable healthcare facilities to decrease costs, operate more efficiently, and reduce medication errors. 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 filings and include, without limitation, continued growth and acceptance of our products and services and continued growth of the clinical automation and workflow automation market generally, increasing competition, the ability of the company to achieve break-even by the end of the first half of 2003, grow product backlog, retain key personnel, cut expenses, develop and integrate products in a timely and cost-effective manner, and improve sales productivity. Prospective investors are cautioned not to place undue reliance on forward-looking statements.


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

Three Months Ended

Six Months Ended

June 30,

June 30,

2002

2001

2002

2001

Revenues:
Product revenues

$21,212

$18,549

$42,242

$35,275

Service and other revenues

3,730

2,291

7,119

4,552

Total revenues

24,942

20,840

49,361

39,827

Costs and expenses:
Cost of product revenues

8,013

6,592

15,998

12,013

Cost of service and other revenues

2,029

1,649

3,411

3,387

Total cost of revenues

10,042

8,241

19,409

15,400

Gross margin

14,900

12,599

29,952

24,427

Operating expenses:
Research and development

2,201

2,976

4,879

5,581

Selling, general and administrative

10,983

10,558

21,987

21,015

Total operating expenses

13,184

13,534

26,866

26,596

Operating income (loss)

1,716

(935)

3,086

(2,169)

Other income (expense), net

87

(251)

307

(838)

Income (loss) before provision for income taxes

1,803

(1,186)

3,393

(3,007)

Provision (benefit) for income taxes

25

25

(35)

50

Net income (loss)

$1,778

($1,211)

$3,428

($3,057)

Net income (loss) per share - basic

$0.08

($0.43)

$0.16

($1.11)

Net income (loss) per share - diluted

$0.08

($0.43)

$0.15

($1.11)

Shares used in computing net income (loss)

21,705

2,825

21,581

2,749

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

23,203

2,825

23,198

2,749

per share - diluted

 

SUMMARY BALANCE SHEET June 30, December 31,

2002

2001

(Note 1)
Cash, cash equivalents and short-term marketable securities

$21,296

$23,839

Trade receivables, net

18,518

18,167

Inventory, net

13,140

12,702

Other current assets

4,345

4,803

Property and equipment, net

5,147

5,384

Other assets

7,022

7,219

Total assets

69,468

72,114

Deferred service revenue

9,844

8,009

Deferred gross profit

19,418

24,790

Other current liabilities

15,902

19,351

Long-term obligations

146

363

Stockholders' equity

24,158

19,601

Total liabilities and stockholders' equity

69,468

72,114


(Note 1 - December 31, 2001 amounts derived from the audited financial statements at that date. Certain amounts have been reclassified to conform to current period presentation.)