Omnicell, Inc.
Apr 14, 2004

Omnicell Announces First Quarter 2004 Financial Results

MOUNTAIN VIEW, Calif. – April 14, 2004 - Omnicell, Inc. (NASDAQ: OMCL), a leading provider of patient safety solutions preferred by nurses, today announced results for the quarter ended March 31, 2004.

Financial highlights were as follows:

Net income for the quarter was $2.4 million or $0.08 per diluted share, compared to net income of $0.4 million or $0.02 per diluted share for the same period of 2003 and net income of $3.2 million or $0.12 per diluted share for the fourth quarter of 2003.

For the first quarter of 2004, total revenue was $27.8 million, compared to $22.1 million for the same period in 2003 and $28.6 million for the fourth quarter of 2003.

Total operating margin was $2.4 million, compared to $0.4 million for the same period of 2003 and an operating margin of $2.7 million for the fourth quarter of 2003.

Gross margin was 59.7% for the first quarter of 2004, compared to 57.2% for the same period in 2003 and 59.0% for the fourth quarter of 2003.

Total operating expenses were $14.2 million for the first quarter of 2004, compared to $12.2 million for the same period of 2003 and $14.1 million for the fourth quarter of 2003. Other highlights included:

Total backlog as of March 31, 2004 was $41.7 million, compared to $38.1 million as of December 31, 2003, representing an increase of $3.6 million. Backlog increased 37% from the same period of last year.

As of March 31, 2004, we had completed our installation obligation for 29,792 medication and supply dispensing systems at 1,481 healthcare facilities.

Omnicell Chairman, President and CEO Randall A. Lipps, commenting on the current quarter’s business results, said, "The first quarter’s revenue grew 26% and backlog increased 37% from the same period of last year. The growth in backlog is encouraging, and it reflects increased demand for our wide range of medication-use process solutions utilizing bar code technology. We believe that this heightened demand has been driven in part by the Food and Drug Administration’s publication on February 25 of its final rule on bar codes, which requires bar codes on drugs and blood to reduce the risk of medication errors."

Conference Call Details
Management will report financial results for the first quarter of 2004 on Wednesday, April 14, 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 800-219-6110 (domestic) or 303-262-2190 (international) approximately 10 minutes prior to the scheduled start. A replay of the call will be available from 8:00 a.m. PT on April 14 through 11:59 p.m. PT on April 21. Dialing 800-405-2236 (domestic) or 303-590-3000 (international) and entering the passcode 576230# 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.

Forward Looking Statements
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 maintain profitability, 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 STATEMENT OF OPERATIONS
 (in thousands, except per share amounts)
 (unaudited)

 

Three Months Ended

 

 

March 31,

 

 

2004

 

2003

Change %

 Revenues:

 

 

 

 

Product revenues

$ 22,227

 

$ 17,557

 

Service and other revenues

          5,602

 

  4,517

 

Total revenues

   27,829

 

         22,074

26%

Costs of revenues:

 

 

 

 

Cost of product revenues

    9,197

 

 7,706

 

Cost of service and other revenues

2,021

 

          1,747

 

Total cost of revenues

           11,218

 

         9,453

 

 Gross profit

       16,611

 

12,621

32%

 Operating expenses:

 

 

 

 

Research and development

 2,366

 

 2,368

 

Selling, general and administrative

         11,876

 

9,871

 

Total operating expenses

   14,242

 

   12,239

16%

Income from operations

             2,369

 

        382

 

Interest and other income

              84

 

             124

 

Interest and other expense

               (2)

 

(46)

 

Income before provision for income taxes

             2,451

 

            460

 

Provision for income taxes

          97

 

               16

 

Net income

$  2,354

 

$  444

 

Net income per share - basic

 $ 0.10

 

 $ 0.02

 

Net income per share - diluted

 $ 0.08

 

 $ 0.02

 

Weighted average common shares outstanding - basic

24,301

 

22,104

 

Weighted average common shares outstanding - diluted

28,145

 

22,783

 

 

 

OMNICELL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands) 

March 31, December 31, Change
2004 2003 (1) ($) (%)
(Unaudited)
ASSETS
Current assets:
   Cash and cash equivalents  $ 25,196  $ 24,499            697 3%
   Short-term investments            11,015              9,025         1,990 22%
   Accounts receivable, net        13,599            14,529          (930) -6%
   Inventories            10,059    8,783    1,276 15%
   Receivables subject to a sales agreement              2,737              2,737                - 0%
   Other current assets              4,877              3,966            911 23%
      Total current assets         67,483             63,539         3,944 6%
Property and equipment, net              5,600              4,833            767 16%
Long-term receivables subject to a sales agreement              4,352              4,985           (633) -13%
Other assets             13,624             11,110         2,514 23%
         Total assets  $ 91,059  $ 84,467         6,592 8%
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
   Accounts payable  $ 6,301  $ 2,921         3,380 116%
   Accrued liabilities             13,735         15,403 (1,668) -11%
   Deferred service revenue             13,055             12,650            405 3%
   Deferred gross profit              8,450             10,125 (1,675) -17%
   Obligation resulting from sale of receivables              2,737              2,737       &bsp;      - 0%
   Current portion of note payable                     -                 305          (305) -100%
      Total current liabilities             44,278             44,141            137 0%
Long-term obligation resulting from sale of receivables           4,352           4,985         (633) -13%
Other long-term liabilities                 557                 583            (26) -4%
Stockholders' equity             41,872             34,758         7,114 20%
Total liabilities and stockholders' equity  $ 91,059  $ 84,467         6,592 8%

(1) Derived from the December 31, 2003 audited consolidated balance sheet.