Omnicell, Inc.
Feb 3, 2005

Omnicell Announces Results for Fourth Quarter and Full Year 2004

MOUNTAIN VIEW, Calif. -- Feb. 3, 2005 -- Omnicell, Inc. (NASDAQ: OMCL), a leading provider of patient safety solutions preferred by nurses, today announced results for the quarter and full year ended December 31, 2004.

Financial highlights were as follows:

Other results included: Omnicell Chairman, President and CEO Randall A. Lipps, commenting on the current quarter and the past year's business results, said, "In summary, I am pleased with our dramatically improved competitive position and resulting prospects for sales growth and market share expansion. At the same time, I am firmly committed to substantially improving our operating efficiency and focusing on increasing our backlog to enable us to more predictably grow our revenue."

Conference Call Details
Management will report financial results for the fourth quarter of 2004 on Thursday, Feb. 3, at 2:00 p.m. PT via conference call. Investors and analysts interested in joining the conference may access the call by dialing 800-257-7063 -- toll-free (domestic) or 303-205-0044 -- direct-dial (international) approximately 10 minutes prior to the scheduled start. A replay of the call will be available from 4:00 p.m. PT on Feb. 3 through 11:59 p.m. PT on Feb. 10. Dialing 800-405-2236 -- toll-free (domestic) or 303-590-3000 -- direct-dial (international) and entering the passcode 11022199# 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 Omnicell¹s 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. Improving patient care by enhancing operational efficiency, Omnicell solutions are used throughout the healthcare facility--in the pharmacy, nursing units, surgical services, cath lab, and all the way to the patient¹s bedside. The company's MedGuard line of solutions for the medication-use process includes systems for physician order management, automated pharmacy retrieval, medication packaging, medication dispensing, and nursing workflow automation with bar code medication administration. For the medical-surgical supply chain, Omnicell's OptiFlex product line provides open bar code systems, cabinet-based supply management, integrated open and cabinet-based systems, and Web-based procurement. More than 1,500 healthcare facilities use Omnicell solutions to help 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 Omnicell¹s 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 Company¹s 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 STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)

  Three months ended
December 31
Change (%) Twelve months ended
December 31
Change (%)
  2004 2003   2004 2003  
Revenues:            
   Product revenues $ 28,482 $ 23,045   $ 100,856 $ 82,206  
   Service and other revenues 5,687 5,508   23,083 19,921  
      Total revenues 34,169 28,553 20% 123,939 102,127 21%
 
Costs of revenues:            
   Cost of product revenues 13,151 9,250   43,032 34,458  
   Cost of service and other revenues 2,493 2,461   9,001 8,003  
      Total cost of revenues 15,644 11,711   52,033 42,461  
 
Gross profit 18,525 16,842 10% 71,906 59,666 21%
 
Operating expenses:            
   Research and development 2,426 2,220   9,105 8,950  
   Selling general and administrative 13,664 11,563   52,083 42,779  
   Restructuring and severance charges - 323   171 953  
      Total operating expenses 16,090 14,106 14% 61,359 52,682 16%
 
Income from operations 2,435 2,736   10,547 6,984  
 
Interest and other income 191 316   457 692  
Income and other expense (8) (8)   (78) (127)  
 
Income before provision for income taxes 2,618 3,044   10,926 7,549  
 
Provision for income taxes (1) (201)   324 242  
 
Net income $ 2,619 $ 3,245 -19% $ 10,602 $ 7,307 45%
 
Net income per share - basic $ 0.10 $ 0.14   $ 0.43 $ 0.32  
 
Net income per share - diluted $ 0.10 $ 0.12   $ 0.38 $ 0.29  
 
Weighted average shares outstanding - basic 25,305 23,536 8% 24,849 22,746 9%
 
Weighted average shares outstanding - diluted 27,453 27,251 1% 27,720 25,321 9%




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

December 31, December 31, Change
2004 2003 (1) ($) (%)
(Unaudited)
ASSETS

Current assets:
   Cash, cash equivalents and
      short-term investments
$ 30,599 $ 33,524 (2,925) -9%
   Accounts receivable, net 22,280 14,529 7,751 53%
   Inventories 14,214 8,783 5,431 62%
   Receivables subject to a sales agreement 3,062 2,737 325 12%
   Other current assets 7,730 3,966 3,764 95%
      Total current assets 77,885 63,539 14,346 23%
Property and equipment, net 5,660 4,833 827 17%
Long-term receivables subject to a sales agreement 3,040 4,985 (1,945) -39%
Other assets 12,841 11,110 1,731 16%
   Total assets $ 99,426 $ 84,467 14,959 18%


LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
   Accounts payable $ 4,489 $ 2,921 1,568 54%
   Accrued liabilities 12,853 15,403 (2,550) -17%
   Deferred service revenue 13,922 12,650 1,272 10%
   Deferred gross profit 7,846 10,125 (2,279) -23%
   Obligation resulting from sales of receivables 3,062 2,737 325 12%
   Current portion of note payable - 305 (305) -100%
      Total current liabilities 42,172 44,141 (1,969) -4%
Long-term obligation resulting from sale of receivables 3,040 4,985 (1,945) -39%
Other long-term liabilities 517 583 (66) -11%
Stockholders' equity 53,697 34,758 18,939 54%
Total liabilties and stockholders' equity $ 99,426 $ 84,467 14,959 18%


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