Omnicell, Inc.
Oct 16, 2003

Omnicell Announces Record Third Quarter 2003 Financial Results

PALO ALTO, Calif. — Oct. 16, 2003 — Omnicell, Inc. (NASDAQ: OMCL), a leading provider of patient safety solutions preferred by nurses, today announced record third quarter 2003 results for the quarter ended September 30, 2003.

Financial highlights were as follows:

Other highlights of the quarter included: Omnicell Chairman, President and CEO Randall A. Lipps, commenting on the current quarter's strong business results, said, "The third quarter was a record for our company, as we posted record revenues, bookings and earnings. I am also very pleased with the continued progress we have made in expanding our product portfolio, completing a complementary acquisition, winning competitive accounts, and closing a three-year, multi-source agreement with HealthTrust Purchasing Group (HPG), an organization with 700 hospital and 300 non-acute care members. I believe we are well-positioned for continued growth moving forward and in reshaping Omnicell as a major industry force."

Dennis P. Wolf, executive vice president of operations, finance, administration and CFO, observed, "The efforts that we have undertaken in the last few quarters to implement an efficient business model have now become institutionalized and strong revenue growth and more robust profitability are direct outgrowths of this initiative. We have now increased our focus on Omnicell's infrastructure and processes in order to position us for continued growth."

Conference Call Details
Management will report financial results for the third quarter of 2003 on Thursday, October 16, at 2:00 p.m. PT 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 4:00 p.m. PT on October 16 through 11:59 p.m. PT on October 23. Dialing 800-405-2236 (domestic) or 303-590-3000 (international) and entering the passcode 555643# 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 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, 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
Sept. 30,

Change
(%)

Nine months ended
Sept. 30,

Change
(%)

2003   2002   2003   2002    
Revenues:                      
   Product revenues  $ 21,157    $ 14,167    $ 59,161    $ 56,409    
   Service and other revenues         5,202         3,695       14,414       10,814    
      Total revenues         26,359       17,862 48%     73,575       67,223 9%  
                       
Costs of revenues:                      
   Cost of product revenues         8,683         6,792       25,208       22,790    
   Cost of service and other revenues       2,117         1,393         5,542         4,804    
      Total cost of revenues       10,800         8,185       30,750       27,594    
                       
Gross profit         15,559         9,677 61%     42,825       39,629 8%  
                       
Operating expenses:                      
   Research and development         2,256         2,410         6,731        7,289    
   Selling general and administrative     10,794       10,878       31,216       32,865    
   Restructuring and severance charges              -                -           630                -    
      Total operating expenses       13,050       13,288 -2%     38,577       40,154 -4%  
                       
Income (loss) from operations         2,509        (3,611)         4,248          (525)    
                       
Interest and other income           116           198           376         1,049    
Interest and other expense            (41)            (15)          (118)          (559)    
                       
Income (loss) before provision (benefit)
for income taxes
      2,584        (3,428)         4,506            (35)    
                       
Provision (benefit) for income taxes         257             25           442            (10)    
                       
Net income (loss)      $   2,327    $  (3,453)    $   4,064    $      (25)    
                       
Net income (loss) per share - basic  $     0.10    $    (0.16)    $     0.18    $     0.00    
                       
Net income (loss) per share - diluted  $     0.09    $    (0.16)    $     0.17    $     0.00    
                       
Weighted average shares outstanding
- basic
    22,961       21,830 5%     22,482       21,674 4%  
                        
Weighted average shares outstanding
- diluted
    26,658       21,830 22%     24,620       21,674 14%  

 

 

OMNICELL, INC.    
CONDENSED CONSOLIDATED BALANCE SHEETS    
(in thousands)    /TD>
               
      Sept. 30,   December 31,    
      2003   2002 (1)   Change (%)
      (Unaudited)        
ASSETS                
Current assets:              
   Cash, cash equivalents and            
        short-term investments    $         30,896    $         21,485   44%
   Accounts receivable net               11,279               10,644   6%
   Inventories                  8,634               12,741   -32%
   Other current assets                4,203                3,575   18%
      Total current assets               55,012               48,445   14%
Property and equipment net                4,434                5,026   -12%
Other assets                 11,701               12,071   -3%
&nbp;        Total assets      $         71,147    $         65,542   9%
               
LIABILITIES AND STOCKHOLDERS' EQUITY        
Current liabilities:              
   Accounts payable      $           4,085    $           5,975   -32%
   Accrued liabilities                 12,774               11,695   9%
   Deferred service revenue               12,931               11,598   11%
   Deferred gross profit               11,510               18,008   -36%
   Current portion of note payable                   608                1,197   -49%
      Total current liabilities               41,908               48,473   -14%
Note payable                         -                   305    
Other long-term liabilities                   458                   458    
Stockholders' equity                 28,781               16,306   77%
Total liabilities and stockholders' equity  $         71,147    $         65,542   9%

(1) Derived from the December 31, 2002 audited consolidated balance sheet.