Omnicell, Inc.
Jul 30, 2015

Omnicell Announces Second Quarter 2015 Results

- Revenue of $112.8 million grew 7.4% Year-Over-Year

MOUNTAIN VIEW, Calif., July 30, 2015 /PRNewswire/ -- Omnicell, Inc. (NASDAQ: OMCL), a leading provider of medication and supply management solutions to healthcare systems, today announced results for its second quarter ended June 30, 2015

Omnicell, Inc. logo.

GAAP results: Revenue for the second quarter of 2015 was $112.8 million, down $3.4 million or 3.0% from the first quarter of 2015, and up $7.7 million or 7.4% from the second quarter of 2014. Revenue for the six months ended June 30, 2015 was $229.0 million, up $22.2 million or 10.7% from the six months ended June 30, 2014

Second quarter 2015 net income as reported in accordance with U.S. generally accepted accounting principles (GAAP) was $8.8 million, or $0.24 per diluted share. This compares to GAAP net income of $6.3 million, or $0.17 per diluted share, for the first quarter of 2015, and GAAP net income of $7.8 million, or $0.21 per diluted share, for the second quarter of 2014. 

GAAP net income for the six months ended June 30, 2015 was $15.1 million, or $0.41 per diluted share, which included a $3.4 million gain on business combination of an equity investment. GAAP net income was $14.0 million, or $0.38 per diluted share, for the six months ended June 30, 2014.

Non-GAAP results: Non-GAAP net income for the second quarter of 2015 was $10.3 million, or $0.28 per diluted share, excluding $3.6 million of stock-based compensation expense and $1.3 million ($1.8 million net of $0.5 million tax effect) of amortization expense for all intangible assets associated with past acquisitions. Non-GAAP net income for the second quarter also excludes $3.4 million gain on the Company's 2012 minority equity investment in Avantec Healthcare Ltd., which was recorded as part of Omnicell's acquisition of the remainder of Avantec Healthcare Ltd. in April. This compares to non-GAAP net income of $11.2 million, or $0.30 per diluted share, for the second quarter of 2014. Non-GAAP net income for the second quarter of 2014 excluded $2.7 million of stock-based compensation expense and $0.6 million ($1.0 million net of $0.4 million tax effect) of amortization expense for all intangible assets associated with past acquisitions. Second quarter 2015 results compare to non-GAAP net income of $10.8 million, or $0.29 per diluted share, for the first quarter of 2015. Non-GAAP net income for the first quarter of 2015 excludes $3.7 million of stock-based compensation expense and $0.8 million ($1.2 million net of $0.4 million tax effect) of amortization expense for all intangible assets associated with past acquisitions. 

Non-GAAP net income for the six months ended June 30, 2015 was $21.0 million, or $0.57 per diluted share. Non-GAAP net income for the six months ended June 30, 2015, excludes $7.3 million of stock-based compensation expense and $2.1 million ($3.0 million net of the $0.9 million tax effect) of amortization expense for all intangible assets associated with past acquisitions. Non-GAAP net income for the six months ended June 30, 2015 also excludes $3.4 million gain on business combination of an equity investment in Avantec Healthcare Ltd. This compares to non-GAAP net income of $20.8 million, or $0.57 per diluted share for the six months ended June 30, 2014, excluding $5.4 million of stock-based compensation expense and $1.3 million ($2.1 million net of $0.8 million tax effect) of amortization expense for all intangible assets associated with past acquisitions.

"Omnicell's business has grown well from 2014 with a strong contribution from new customer orders. A small sequential decline in revenue due to timing of customer implementations affected our results for the second quarter, but our order intake and the pipeline of new sales opportunities demonstrate that we have not lost market momentum." said Randall Lipps, Omnicell president, chairman and CEO. "Driven by our three-leg growth strategy of differentiated products, expansion into new markets and targeted acquisitions, the company has all the ingredients for continued success."

Reporting Segments

As reported last quarter, beginning the first quarter of 2015, Omnicell enhanced the management of its business, operating structure and segment reporting structure by excluding certain corporate-level costs from our reporting segments based on how the Chief Operating Decision Maker ("CODM") reviews the business. Corporate-level costs may include expenses related to executive management, finance and accounting, human resources, legal, training and development, and certain administrative expenses. Omnicell's CODM allocates resources and evaluates the performance of our segments using information about its revenues, gross profit and income from operations, excluding certain costs which are managed separately at the corporate level.

Omnicell Conference Call Information

Omnicell will hold a conference call today, Thursday, July 30, 2015 at 1:30 p.m. PT to discuss second quarter financial results. The conference call can be monitored by dialing 1-800-696-5518 within the U.S. or 1-706-758-4883 for all other locations. The Conference ID # is 86450368. Internet users can access the conference call at http://ir.omnicell.com/events.cfm. A replay of the call will be available today at approximately 4:30 p.m. PT and will be available until 11:59 p.m. PT on August 13, 2015. The replay access numbers are 1-855-859-2056 within the U.S. and 1-404-537-3406 for all other locations, Conference ID # is 86450368.

About Omnicell

Since 1992, Omnicell (NASDAQ: OMCL) has been creating new efficiencies to improve patient care, anywhere it is delivered. Omnicell is a leading supplier of comprehensive automation and business analytics software for patient-centric medication and supply management across the entire health care continuum from the acute care hospital setting to post-acute skilled nursing and long-term care facilities to the home.

More than 3,000 customers worldwide have utilized Omnicell Automation and Analytics solutions to increase operational efficiency, reduce errors, deliver actionable intelligence and improve patient safety. Omnicell Medication Adherence solutions, including its MTS Medication Technologies brand, provide innovative medication adherence packaging solutions to help reduce costly hospital readmissions. In addition, these solutions enable approximately 6,000 institutional and retail pharmacies worldwide to maintain high accuracy and quality standards in medication dispensing and administration while optimizing productivity and controlling costs.

For more information about Omnicell, please 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 "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. 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. Such statements include, but are not limited to Omnicell's momentum, pipeline and new sales opportunities, profit and revenue growth, and the success of Omnicell's strategy for growth, including differentiated products, expansion into new markets and targeted acquisitions. Risks that contribute to the uncertain nature of the forward-looking statements include our ability to take advantage of the growth opportunities in medication management across the spectrum of healthcare settings from long term care to home care, unfavorable general economic and market conditions, risks to growth and acceptance of our products and services, including competitive conversions, and to growth of the clinical automation and workflow automation market generally, the potential of increasing competition, potential regulatory changes, the ability of the company to improve sales productivity to grow product bookings, to develop new products and to acquire and successfully integrate companies. These and other risks and uncertainties are described more fully in Omnicell's most recent filings with the Securities and Exchange Commission. Prospective investors are cautioned not to place undue reliance on forward-looking statements. All forward-looking statements contained in this press release speak only as of the date on which they were made. Omnicell undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.

Use of Non-GAAP Financial Information

This press release contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (GAAP). Our management evaluates and makes operating decisions using various performance measures. In addition to Omnicell's GAAP results, we also consider non-GAAP gross profit, non-GAAP operating expenses, non-GAAP net income, and non-GAAP net income per diluted share. Additionally, we calculate Adjusted EBITDA (another non-GAAP measure) by means of adjustments to GAAP Net Income. These non-GAAP results should not be considered as an alternative to gross profit, operating expenses, net income, net income per diluted share, or any other performance measure derived in accordance with GAAP. We present these non-GAAP results because we consider them to be important supplemental measures of Omnicell's performance.

Our non-GAAP gross profit, non-GAAP operating expenses, non-GAAP net income and non-GAAP net income per diluted share are exclusive of certain items to facilitate management's review of the comparability of Omnicell's core operating results on a period to period basis because such items are not related to Omnicell's ongoing core operating results as viewed by management. We define our "core operating results" as those revenues recorded in a particular period and the expenses incurred within that period that directly drive operating income in that period. Management uses these non-GAAP financial measures in making operating decisions because, in addition to meaningful supplemental information regarding operating performance, the measures give us a better understanding of how we should invest in research and development, fund infrastructure growth and evaluate the effectiveness of marketing strategies. In calculating the above non-GAAP results, management specifically adjusted for the following excluded items:

a)  Stock-based compensation expense impact of Accounting Standards Codification (ASC) 718. We recognize equity plan-related compensation expenses, which represent the fair value of all share-based payments to employees, including grants of employee stock options, as required under ASC 718, Compensation - Stock Compensation (ASC 718) as non-GAAP adjustments in each period.

b)  Intangible assets amortization from business acquisitions. We excluded from our non-GAAP results the intangible assets amortization expense resulting from our past acquisitions. These non-cash charges are not considered by management to reflect the core cash-generating performance of the business and therefore are excluded from our non-GAAP results.

c)  Gain on business combination of an equity investment. We excluded from our non-GAAP results the gain on a minority equity investment in a private company, Avantec Healthcare Ltd., which was recognized in relation to the acquisition by Omnicell of the remainder of the company. This non-cash gain is not considered by management to reflect the core cash-generating performance of the business and therefore is excluded from our non-GAAP results.

Management adjusts for the above items because management believes that, in general, these items possess one or more of the following characteristics: their magnitude and timing is largely outside of Omnicell's control; they are unrelated to the ongoing operation of the business in the ordinary course; they are unusual and we do not expect them to occur in the ordinary course of business; or they are non-operational, or non-cash expenses involving stock option grants.

We believe that the presentation of these non-GAAP financial measures is warranted for several reasons:

1) Such non-GAAP financial measures provide an additional analytical tool for understanding Omnicell's financial performance by excluding the impact of items which may obscure trends in the core operating results of the business;

2) Since we have historically reported non-GAAP results to the investment community, we believe the inclusion of non-GAAP numbers provides consistency and enhances investors' ability to compare our performance across financial reporting periods;

3) These non-GAAP financial measures are employed by Omnicell's management in its own evaluation of performance and are utilized in financial and operational decision making processes, such as budget planning and forecasting; and

4) These non-GAAP financial measures facilitate comparisons to the operating results of other companies in our industry, which use similar financial measures to supplement their GAAP results, thus enhancing the perspective of investors who wish to utilize such comparisons in their analysis of our performance.

Set forth below are additional reasons why share-based compensation expense related to ASC 718 is excluded from our non-GAAP financial measures:

i)  While share-based compensation calculated in accordance with ASC 718 constitutes an ongoing and recurring expense of Omnicell, it is not an expense that requires cash settlement by Omnicell. We therefore exclude these charges for purposes of evaluating core operating results. Thus, our non-GAAP measurements are presented exclusive of stock-based compensation expense to assist management and investors in evaluating our core operating results.

ii)  We present ASC 718 share-based payment compensation expense in our reconciliation of non-GAAP financial measures on a pre-tax basis because the exact tax differences related to the timing and deductibility of share-based compensation, under ASC 718 are dependent upon the trading price of Omnicell's common stock and the timing and exercise by employees of their stock options. As a result of these timing and market uncertainties the tax effect related to share-based compensation expense would be inconsistent in amount and frequency and is therefore excluded from our non-GAAP results.

Our Adjusted EBITDA calculation is defined as earnings before interest income and expense, taxes, depreciation and amortization, and non-cash expenses, including ASC 718 stock compensation expense, as well as excluding certain non-GAAP adjustments.

As stated above, we present non-GAAP financial measures because we consider them to be important supplemental measures of performance. However, non-GAAP financial measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for Omnicell's GAAP results. In the future, we expect to incur expenses similar to certain of the non-GAAP adjustments described above and expect to continue reporting non-GAAP financial measures excluding such items. Some of the limitations in relying on non-GAAP financial measures are:

  • Omnicell's stock option and stock purchase plans are important components of incentive compensation arrangements and will be reflected as expenses in Omnicell's GAAP results for the foreseeable future under ASC 718.
  • Other companies, including companies in Omnicell's industry, may calculate non-GAAP financial measures differently than Omnicell, limiting their usefulness as a comparative measure.

Pursuant to the requirements of SEC Regulation G, a detailed reconciliation between Omnicell's non-GAAP and GAAP financial results is set forth in the financial tables at the end of this press release. Investors are advised to carefully review and consider this information strictly as a supplement to the GAAP results that are contained in this press release and in Omnicell's SEC filings.

 

 

Omnicell, Inc.

Condensed Consolidated Statements of Operations

(Unaudited, in thousands, except per share data)



Three Months Ended


Six Months Ended


June 30,
 2015


March 31,
 2015


June 30,
 2014


June 30,
 2015


June 30,
 2014

Revenues:










Product

$

89,154



$

94,109



$

85,244



$

183,263



$

167,824


Services and other revenues

23,634



22,112



19,808



45,746



38,992


Total revenues

112,788



116,221



105,052



229,009



206,816


Cost of revenues:










Cost of product revenues

46,203



45,416



41,003



91,619



79,903


Cost of services and other revenues

9,123



9,120



8,009



18,243



16,378


Total cost of revenues

55,326



54,536



49,012



109,862



96,281


Gross profit

57,462



61,685



56,040



119,147



110,535


Operating expenses:










Research and development

8,746



8,019



6,471



16,765



12,592


Selling, general and administrative

39,735



43,287



37,011



83,022



75,431


Gain on business combination

(3,443)







(3,443)




Total operating expenses

45,038



51,306



43,482



96,344



88,023


Income from operations

12,424



10,379



12,558



22,803



22,512


Interest and other income (expense), net

(472)



(517)



(40)



(989)



(296)


Income before provision for income taxes

11,952



9,862



12,518



21,814



22,216


Provision for income taxes

3,201



3,544



4,729



6,745



8,233


Net income

$

8,751



$

6,318



$

7,789



$

15,069



$

13,983


Net income per share:










Basic

$

0.24



$

0.18



$

0.22



$

0.42



$

0.39


Diluted

$

0.24



$

0.17



$

0.21



$

0.41



$

0.38


Weighted average shares outstanding:










Basic

36,120



36,024



35,661



36,072



35,451


Diluted

37,030



36,914



36,618



36,987



36,478


 

Omnicell, Inc.

Condensed Consolidated Balance Sheets

(Unaudited, in thousands)



June 30, 2015


December 31, 2014





ASSETS

Current assets:




Cash and cash equivalents

$

88,028



$

125,888


Accounts receivable, net

117,307



82,763


Inventories

46,027



31,554


Prepaid expenses

15,401



23,518


Deferred tax assets

12,490



12,446


Other current assets

6,071



7,215


Total current assets

285,324



283,384


Property and equipment, net

34,772



36,178


Long-term net investment in sales-type leases

10,208



10,848


Goodwill

149,654



122,720


Intangible assets, net

94,285



82,667


Long-term deferred tax assets

1,397



1,144


Other long-term assets

25,382



23,273


Total assets

$

601,022



$

560,214






LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:




Accounts payable

$

26,085



$

19,432


Accrued compensation

18,573



19,874


Accrued liabilities

33,419



19,299


Deferred service revenue

23,527



25,167


Deferred gross profit

36,671



28,558


Total current liabilities

138,275



112,330


Non-current deferred service revenue

19,056



20,308


Non-current deferred tax liabilities

32,723



30,454


Other long-term liabilities

11,620



7,024


Total liabilities

201,674



170,116


Stockholders' equity:




Total stockholders' equity

399,348



390,098


Total liabilities and stockholders' equity

$

601,022



$

560,214


 

Omnicell, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited, in thousands)



Six months ended June 30,


2015


2014

Operating Activities




Net income

$

15,069



$

13,983


Adjustments to reconcile net income to net cash provided by operating activities:




Depreciation and amortization

11,977



9,391


Gain (loss) on disposal of fixed assets

(5)



202


Gain on business combination

(3,443)




Provision for receivable allowance

480



436


Share-based compensation expense

7,301



5,449


Income tax benefits from employee stock plans

3,087



3,058


Excess tax benefits from employee stock plans

(3,159)



(3,326)


Provision for excess and obsolete inventories

168



250


Deferred income taxes

(1,717)



860


Changes in operating assets and liabilities:




  Accounts receivable, net

(27,676)



(24,408)


  Inventories

(9,633)



(335)


  Prepaid expenses

8,234



2,144


  Other current assets

1,507



1,602


  Net investment in sales-type leases

353



622


  Other long-term assets

64



228


  Accounts payable

1,364



2,494


  Accrued compensation

(1,654)



(3,910)


  Accrued liabilities

5,752



2,424


  Deferred service revenue

(2,892)



2,640


  Deferred gross profit

6,008



10,788


  Other long-term liabilities

(995)



829


  Net cash provided by operating activities

10,190



25,421


Investing Activities




Acquisition of intangible assets, intellectual property and patents

(225)



(191)


Software development for external use

(6,127)



(5,507)


Purchases of property and equipment

(3,764)



(7,335)


Business acquisition, net of cash acquired

(23,625)




  Net cash used in investing activities

(33,741)



(13,033)


Financing Activities




Proceeds from issuances under stock-based compensation plans

9,432



11,813


Employees' taxes paid related to restricted stock units

(2,046)



(1,729)


Common stock repurchases

(25,021)



(4,069)


Excess tax benefits from employee stock plans

3,159



3,326


  Net cash (used) provided by financing activities

(14,476)



9,341


Effect of exchange rate changes on cash and cash equivalents

167



119


Net (decrease) increase in cash and cash equivalents

(37,860)



21,848


Cash and cash equivalents at beginning of period

125,888



104,531


Cash and cash equivalents at end of period

$

88,028



$

126,379










 

Omnicell, Inc.

Reconciliation of GAAP to Non-GAAP

(Unaudited, in thousands, except per share data)








Three Months Ended


Six Months Ended







June 30,
 2015


March 31,
 2015


June 30,
 2014


June 30,
 2015


June 30,
 2014
















Reconciliation of GAAP net income to non-GAAP net income:







GAAP net income

$

8,751



$

6,318



$

7,789



$

15,069



$

13,983


Adjustments:











Share-based compensation expense:












Cost of revenues

532



517



264



1,049



532




Operating expenses

3,104



3,148



2,456



6,252



4,917




Total share-based compensation expense (a)

3,636



3,665



2,720



7,301



5,449



Amortization of acquired intangibles:












Cost of revenues

531



368



368



899



736




Operating expenses

1,279



863



680



2,142



1,360




Total Amortization of acquired intangibles:

1,810



1,231



1,048



3,041



2,096



Income tax effect of non-GAAP adjustments  (b)

(485)



(443)



(395)



(928)



(774)




Total Amortization of acquired intangibles, net:

1,325



788



653



2,113



1,322



Gain on business combination

(3,443)







(3,443)




Non-GAAP net income

$

10,269



$

10,771



$

11,162



$

21,040



$

20,754

















Reconciliation of GAAP gross profit to non-GAAP gross profit:










Revenues


$

112,788



$

116,221



$

105,052



$

229,009



$

206,816



GAAP gross profit

57,462



61,685



56,040



119,147



110,535



GAAP gross margin

50.9%



53.1%



53.3%



52.0%



53.4%




Share-based compensation expense

532



517



264



1,049



532




Amortization of acquired intangibles

531



368



368



899



736



Non-GAAP gross profit

$

58,525



$

62,570



$

56,672



$

121,095



$

111,803



Non-GAAP gross margin

51.9%



53.8%



53.9%



52.9%



54.1%

















Reconciliation of GAAP operating expenses to non-GAAP operating expenses:







GAAP operating expenses

$

45,038



$

51,306



$

43,482



$

96,344



$

88,023



GAAP operating expenses % to total revenue

39.9%



44.1%



41.4%



42.1%



42.6%



Share-based compensation expense

(3,104)



(3,148)



(2,456)



(6,252)



(4,917)



Amortization of acquired intangibles

(1,279)



(863)



(680)



(2,142)



(1,360)



Gain on business combination

$

3,443



$



$



$

3,443



$


Non-GAAP operating expenses

$

44,098



$

47,295



$

40,346



$

91,393



$

81,746



Non-GAAP operating expenses % to total revenue

39.1%



40.7%



38.4%



39.9%



39.5%

















Reconciliation of GAAP income from operations to non-GAAP income from operations:





GAAP income (loss) from operations

$

12,424



$

10,379



$

12,558



$

22,803



$

22,512



GAAP operating income % to total revenue

11.0%



8.9%



12.0%



10.0%



10.9%



Share-based compensation expense

3,636



3,665



2,720



7,301



5,449



Amortization of acquired intangibles

1,810



1,231



1,048



3,041



2,096



Gain on business combination

(3,443)







(3,443)




Non-GAAP income from operations

$

14,427



$

15,275



$

16,326



$

29,702



$

30,057



Non-GAAP operating income % to total revenue

12.8%



13.1%



15.5%



13.0%



14.5%
























Three Months Ended


Six Months Ended







June 30,
 2015


March 31,
 2015


June 30,
 2014


June 30,
 2015


June 30,
 2014
















GAAP shares - diluted

37,030



36,914



36,618



36,987



36,478

















GAAP net income per share - diluted

$

0.24



$

0.17



$

0.21



$

0.41



$

0.38


Adjustments:











Share-based compensation expense

0.10



0.10



0.07



0.20



0.15



Amortization of acquired intangibles

0.04



0.02



0.02



0.06



0.04



Gain on business combination

(0.10)







(0.10)




Non-GAAP net income per share - diluted

$

0.28



$

0.29



$

0.30



$

0.57



$

0.57

















Reconciliation of GAAP EBITDA to non-GAAP  EBITDA:










GAAP net income

$

8,751



$

6,318



$

7,789



$

15,069



$

13,983


Add back:











Share-based compensation expense

3,636



3,665



2,720



7,301



5,449



Interest (income) and expense, net

84



99



(32)



183



(35)



Depreciation and amortization expense

6,264



5,711



4,779



11,975



9,391



Income tax expense

3,201



3,544



4,729



6,745



8,233



Gain on business combination

 

$

(3,443)



$



$



$

(3,443)



$


Non-GAAP adjusted EBITDA (c)

$

18,493



$

19,337



$

19,985



$

37,830



$

37,021



















(a)

This adjustment reflects the accounting impact of non-cash stock-based compensation expense for the periods presented

(b)

Tax effects are calculated using the effective tax rates for the respective periods presented

(c)

Defined as earnings before interest income and expense, taxes, depreciation and amortization, and non-cash expenses, including stock compensation expense, per ASC 718, as well as excluding certain non-GAAP adjustments

 

Omnicell, Inc.

Segmented Information

(Unaudited, in thousands, except for percentages)



Three Months Ended June 30, 2015


Three Months Ended June 30, 2014


Automation and
Analytics


Medication
Adherence


Total


Automation and

Analytics


Medication

Adherence


Total





Revenues

$

88,701



$

24,087



$

112,788



$

84,702



$

20,350



$

105,052


Cost of revenues

39,403



15,923



55,326



35,992



13,020



49,012


Gross profit

49,298



8,164



57,462



48,710



7,330



56,040


Gross margin %

55.6%



33.9%



50.9%



57.5%



36.0%



53.3%














Operating expenses

25,978



5,910



31,888



26,044



4,800



30,844


Income from segment operations

$

23,320



$

2,254



25,574



$

22,666



$

2,530



25,196


Operating margin %

26.3%



9.4%



22.7%



26.8%



12.4%



24.0%














Corporate costs





13,150







12,638


Income from operations





$

12,424







$

12,558


 

Omnicell, Inc.

Segmented Information

(Unaudited, in thousands, except for percentages)



Six Months Ended June 30, 2015


Six Months Ended June 30, 2014


Automation and
Analytics


Medication
Adherence


Total


Automation and

Analytics


Medication

Adherence


Total





Revenues

$

181,480



$

47,529



$

229,009



$

166,201



$

40,615



$

206,816


Cost of revenues

78,255



31,607



109,862



70,932



25,349



96,281


Gross profit

103,225



15,922



119,147



95,269



15,266



110,535


Gross margin %

56.9%



33.5%



52.0%



57.3%



37.6%



53.4%














Operating expenses

54,567



12,251



66,818



51,146



9,451



60,597


Income from segment operations

$

48,658



$

3,671



52,329



$

44,123



$

5,815



49,938


Operating margin %

26.8%



7.7%



22.9%



26.5%



14.3%



24.1%














Corporate costs





29,526







27,426


Income from operations





$

22,803







$

22,512


 

Omnicell, Inc.

Segment Information - Non-GAAP Gross Margin and Non-GAAP Operating Margin

(Unaudited, in thousands, except for percentages)



Three Months Ended June 30, 2015


Automation and
Analytics


Medication
Adherence


Total













Revenues

$

88,701





$

24,087





$

112,788
















GAAP Gross profit

$

49,298



55.6%


$

8,164



33.9%


$

57,462



50.9%

Plus:












a) Stock-based compensation expense

370



0.4%


$

162



0.7%


532



0.5%

b) Amortization expense of acquired intangible
assets and other acquisition-related expenses

199



0.2%


$

332



1.4%


531



0.5%

Non-GAAP Gross profit

$

49,867



56.2%


$

8,658



35.9%


$

58,525



51.9%













GAAP Operating income

$

23,320



26.3%


$

2,254



9.4%


$

25,574



22.7%

Plus:












a) Stock-based compensation expense

1,207



1.4%


377



1.6%


1,584



1.4%

b) Amortization expense of acquired intangible assets and other acquisition-related expenses

724



0.8%


1,086



4.5%


1,810



1.6%

c) Gain on business combination

(3,443)



(3.9)%


$

0



—%


(3,443)



(3.1)%

Non-GAAP Operating income

$

21,808



24.6%


$

3,717



15.4%


$

25,525



22.6%













GAAP Corporate costs









$

13,150



11.7%

Less: Stock-based compensation expense









2,052



1.8%

Non-GAAP Corporate costs









$

11,098



9.8%













Non-GAAP Income from operations









$

14,427



12.8%

 


Three Months Ended June 30, 2014


Automation and
Analytics


Medication
Adherence


Total













Revenues

$

84,702





$

20,350





$

105,052
















GAAP Gross profit

$

48,710



57.5%


$

7,330



36.0%


$

56,040



53.3%

Plus:












a) Stock-based compensation expense

226



0.3%


$

38



0.2%


264



0.3%

b) Amortization expense of acquired intangible assets and other acquisition-related expenses

35



0.0%


$

333



1.6%


368



0.4%

Non-GAAP Gross profit

$

48,971



57.8%


$

7,701



37.8%


$

56,672



53.9%













GAAP Operating income

$

22,666



26.8%


$

2,530



12.4%


$

25,196



24.0%

Plus:












a) Stock-based compensation expense

1,020



1.2%


168



0.8%


1,188



1.1%

b) Amortization expense of acquired intangible assets and other acquisition-related expenses

147



0.2%


901



4.4%


1,048



1.0%













Non-GAAP Operating income

$

23,833



28.1%


$

3,599



17.7%


$

27,432



26.1%













GAAP Corporate costs









$

12,638



12.0%

Less: Stock-based compensation expense









1,532



1.5%

Non-GAAP Corporate costs









$

11,106



10.6%













Non-GAAP Income from operations









$

16,326



15.5%

 

OMCL-E

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To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/omnicell-announces-second-quarter-2015-results-300121530.html

SOURCE Omnicell, Inc.

News Provided by Acquire Media