Omnicell, Inc.
Jul 17, 2003

Omnicell Announces Second Quarter 2003 Financial Results

PALO ALTO, Calif. -- July 17, 2003 -- Omnicell, Inc. (NASDAQ: OMCL), a leading provider of patient safety solutions for healthcare, today announced financial results for the quarter ended June 30, 2003, summarized as follows:

Omnicell Chairman, President and CEO Randall A. Lipps, commenting on the current quarter's improved business results, said, "I am very pleased with the turnaround and transformation of our business within a relatively short period, and also with the continued progress we made during this past quarter on a number of fronts--revenue and backlog growth, expense control, new product and new business expansion, as well as strengthening our board of directors. We believe that the transformation that we have made in the company is timely because we are in the midst of a significant growth phase in our business. Our position is unique in the industry because we have a very strong customer base, a new management team and a much broadened product suite that addresses the most critical needs of hospitals today--cost reductions through automation and absolute adherence to patient safety. These competencies give us confidence that fiscal 2003 will be a record year and that 2004 growth will be very significant."

Dennis P. Wolf, executive vice president of operations, finance, administration and CFO, observed, "The efforts that we have undertaken in the last six months to implement an efficient business model have now become institutionalized. We grew our revenue 14% sequentially while expanding our backlog. Our expense structure is well under control. I am especially pleased to see that we are now well on our way to reaching our goal of 10% operating margin by year-end."

Conference Call Details
Management will report financial results for the second quarter of 2003 on Thursday, July 17, at 5:00 p.m. ET via conference call. Investors and analysts may listen to this conference call by logging on to www.omnicell.com or by dialing 800-366-3964 (domestic) or 303-262-2127 (international) approximately 10 minutes prior to the scheduled start. A replay of the call will be available from 7:00 p.m. ET on July 17 through 2:59 a.m. ET on July 25. Dialing 800-405-2236 (domestic) or 303-590-3000 (international) and entering the passcode 544936# for both numbers will access the call replay. On the conference call, management will be discussing certain additional financial and statistical information. That information can be located on the "Investor Relations" page of Omnicell's Web site at www.omnicell.com.

About Omnicell
Established in 1992, Omnicell (NASDAQ: OMCL) is a leading provider of patient safety solutions preferred by nurses. 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. More than 1,400 healthcare facilities use Omnicell's solutions 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 Omnicells 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 Companys Securities and Exchange Commission 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 achieve profitability in the next few quarters, 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. Prospective investors are cautioned not to place undue reliance on forward-looking statements.

OMNICELL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
Three months
ended June 30,
Prior Six months
Year ended June 30,
2003
2002
2003
2002
Revenues:
Product revenues
$ 20,447
$ 21,212
$ 38,004
$ 42,242
Service and other revenues
4,694
3,730
9,212
7,119
Total revenues
25,141
24,942
47,216
49,361
Costs of revenues:
Cost of product revenues
8,819
8,013
16,525
15,998
Cost of service and other revenues
1,678
2,029
3,425
3,411
Total cost of revenues
10,497
10,042
19,950
19,409
Gross profit
14,644
14,900
27,266
29,952
Gross profit margin
58.25%
59.74%
57.75%
60.68%
Operating expenses:
Research and development
2,106
2,201
4,475
4,879
Selling general and administrative
10,551
10,983
20,422
21,987
Restructuring and other non-recurring charges
630
-
630
-
Total operating expenses
13,287
13,184
25,527
26,866
Income from operations
1,357
1,716
1,739
3,086
Interest and other income
136
174
260
851
Interest and other expense
(32)
(87)
(77)
(544)
Income before provision for income taxes
1,461
1,803
1,922
3,393
Provision for income taxes
170
25
186
(35)
Net income
$ 1,291
$ 1,778
$ 1,736
$ 3,428
Net income per share - basic
$ 0.06
$ 0.08
$ 0.08
$ 0.16
Net income per share - diluted
$ 0.05
$ 0.08
$SPAN style="mso-spacerun: yes"> 0.07
$ 0.15
Weighted average shares outstanding - basic
22,382
21,705
22,243
21,581
Weighted average shares outstanding - diluted
24,646
23,203
23,601
23,198

OMNICELL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

June 30,2003
(Unaudited)

December 31,
2002 (1)

ASSETS
Current assets:
   Cash and cash equivalents
$26,031
$21,400
   Short-term investments
               1,981
85
   Accounts receivable net
             11,289
10,644
   Inventories
               8,673
12,741
   Other current assets
               3,447
3,575
      Total current assets
             51,421
48,445
Property and equipment net
               4,203
5,026
Other assets
               9,392
12,071
         Total assets
$65,016
$65,542
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
   Accounts payable
 $3,427
$5,975
   Accrued liabilities
12,543
11,695
   Deferred service revenue
12,563
11,598
   Deferred gross profit
14,667
18,008
   Current portion of note payable
908
1,197
      Total current liabilities
44,108
48,473
Note payable
-
                 305
Other long-term liabilities
458
458
Stockholders' equity
20,450
16,306
Total liabilities and stockholders' equity
$65,016
 $65,542
(1) Derived from the December 31, 2002 audited consolidated balance sheet.