Omnicell, Inc.
Jan 26, 2004

Omnicell Announces Record Fourth Quarter 2003 Financial Results

MOUNTAIN VIEW, Calif. -- Jan. 26, 2004 -- Omnicell, Inc. (NASDAQ: OMCL), a leading provider of patient safety solutions preferred by nurses, today announced record results for the quarter ended December 31, 2003.

Financial highlights were as follows:

Other highlights included: Omnicell Chairman, President and CEO Randall A. Lipps, commented, "The fourth quarter was the third consecutive period in which we posted record revenues and earnings. Omnicell concluded a year of significant expansion, as we achieved the goals set at the beginning of 2003, including profitability, strengthening the balance sheet, product introduction and integration, reshaping the management team, and gaining market share."

Dennis P. Wolf, executive vice president of operations, finance, administration and CFO, observed, "We are very pleased with the progress we made in fiscal 2003. This past year we focused our efforts on operational improvements. As a result, we posted record financial results and enter fiscal 2004 with a robust product roadmap and an accomplished management team committed to continued improvement in operational efficiency and the growth of our company."

Conference Call Details
Management will report financial results for the fourth quarter of 2003 on Monday, January 26, at 6:00 a.m. PT via conference call. Investors and analysts may listen to this conference call by logging on to www.omnicell.com or by dialing 800-218-0204 (domestic) or 303-262-2141 (international) approximately 10 minutes prior to the scheduled start. A replay of the call will be available from 8:00 a.m. PT on January 26 through 11:59 p.m. PT on February 2. Dialing 800-405-2236 (domestic) or 303-590-3000 (international) and entering the passcode 567448# 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. These solutions enable healthcare facilities 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 Dec. 31, Change (%) Twelve months ended Dec. 31, Change (%)
  2003   2002   2003   2002  
Revenues:        
Product revenues   $23,045   $16,425 $82,006   $72,834
Service and other revenues   5,507   4,042 19,921   14,856
Total revenues   28,552   20,467 40% 102,127   87,690 16%
         
Costs of revenues:          
Cost of product revenues   9,250   7,518 34,458   30,308
Cost of service and other revenues 2,461   1,306 8,003   6,110
Total cost of revenues   11,711   8,824 42,461   36,418
         
Gross profit   16,841   11,643 45% 59,666   51,272 16%
         
Operating expenses:          
Research and development   2,219   2,681 8,950   9,970
Selling, general and administrative 11,563   11,902 42,779   44,767
Restructuring, facility charges and        
purchased in-process research and development 323   2,438   953   2,438  
Total operating expenses   14,105   17,021 -17% 52,682   57,175 -8%
         
Income (loss) from operations   2,736   (5,378) 6,984   (5,903)
         
Interest and other income   316   385 692   875
Interest and other expense   (9)   - (127)   -
         
Income (loss) before provision (benefit)
for income taxes
3,043   (4,993) 7,549   (5,028)
         
Provision (benefit) for income taxes (200)   20 242   10
         
Net income (loss)   $ 3,243   $ (5,013) $ 7,307   $ (5,038)
     
Net income (loss) per share - basic $ 0.14   $ (0.23) $ 0.32   $ (0.23)  
         
Net income (loss) per share - diluted $ 0.12   $ (0.23) $ 0.29   $ (0.23)  
         
Weighted average shares outstanding - basic 23,536   21,992 22,746   21,725
         
Weighted average shares outstanding - diluted 27,251   21,992 25,321   21,725

(in thousands)

                     
  December 31, 2003 (Unaudited)   December 31, 2002 (1)   Change($) Change(%)
ASSETS  
Current assets:  
Cash and cash equivalents   $ 24,499   $ 21,400   3,099   14%  
Short-term investments   9,025   85   8,940   10518%  
Accounts receivable, net   14,529   10,644   3,885   36%  
Inventories     8,783   12,741   (3,958)   -31%  
Lease receivables subject to a sales agreement 2,737   1,700   1,037   61%  
Other current assets   3,966   3,575   391   11%  
Total current assets   63,539   50,145   13,394   27%  
Property and equipment, net   4,833   5,026   (193)   -4%  
Long-term lease receivables subject to a sales agreement 4,985   3,683   1,302   35%  
Other assets     11,110   12,071   (961)   -8% &bsp;
Total assets     $ 84,467   $ 70,925   13,542   19%  
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities:      
Accounts payable     $ 2,921   $ 5,975   (3,054)   -51%  
Accrued liabilities     15,403   11,695   3,708   32%  
Deferred service revenue   12,650   11,598   1,052   9%  
Deferred gross profit   10,125   18,008   (7,883)   -44%  
Obligation resulting from sale of lease receivables 2,737   1,700   1,037   61%  
Current portion of note payable 305   1,197   (892)   -75%  
Total current liabilities   44,141   50,173   (6,032)   -12%  
Note payable     -   305   (305)   -100%  
Long-term obligation resulting from sale of lease            
receivables     4,985   3,683   1,302   35%  
Other long-term liabilities   583   458   125   27%  
Stockholders' equity     34,758   16,306   18,452   113%  
Total liabilities and stockholders' equity $ 84,467   $ 70,925   13,542   19%