Omnicell, Inc.
OMNICELL INC /CA/ (Form: 8-K, Received: 01/26/2004 08:00:56)

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D. C.  20549

 

FORM 8-K

 

CURRENT REPORT

 

PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported):  January 26, 2004

 

OMNICELL, INC.

(Exact name of registrant as specified in its charter)

 

Delaware

 

000-33043

 

94-3166458

(State or other jurisdiction of
incorporation or organization)

 

(Commission File Number)

 

(IRS Employer
Identification Number)

 

1201 Charleston Road
Mountain View, CA  94043

(Address of principal executive offices, including zip code)

 

(650) 251-6100

(Registrant’s telephone number, including area code)

 

 



 

Item 7.  Financial Statements and Exhibits.

 

(c)                     Exhibits.

 

Exhibit
Number

 

Description

99.1

 

Press Release of Omnicell, Inc. dated January 26, 2004.

 

 

Item 12. Results of Operations and Financial Condition.

 

On January 26, 2004, Omnicell, Inc. announced its financial results for the three and twelve months ended December 31, 2003. The full text of the press release issued in connection with the announcement is attached as Exhibit 99.1 to this Current Report on Form 8-K.

 

The information in this Form 8-K and the Exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

 

2



 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

 

 

 

OMNICELL, INC.

 

 

 

 

Dated:  January 26, 2004

 

By:

/s/ Dennis P. Wolf

 

 

 

Dennis P. Wolf

 

 

Executive Vice President,
Operations, Finance and
Administration
and Chief Financial Officer

 

3



 

INDEX TO EXHIBITS

 

Exhibit
Number

 

Description

99.1

 

Press Release of Omnicell, Inc. dated January 26, 2004.

 

4


Exhibit 99.1

 

Contact:

 

 

Dennis P. Wolf

 

Omnicell, Inc.

EVP of Operations, Finance,

 

1201 Charleston Road

Administration & CFO

 

Mountain View, CA  94043

800-850-6664, ext. 6482

 

 

dennisw@omnicell.com

 

 

 

For Immediate Release

 

Omnicell Announces Record Fourth Quarter 2003 Financial Results

 

MOUNTAIN VIEW, Calif. – January 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:

 

                  Net income for the quarter was a record $3.2 million or $0.12 per diluted share, compared to a net loss of $5.0 million or $0.23 per share for the same period of 2002 and net income of $2.3 million or $0.09 per share on a diluted basis for the third quarter of 2003.

 

                  For the fourth quarter of 2003, total revenue was $28.6 million, compared to $20.5 million for the same period in 2002 and $26.4 million for the third quarter of 2003.

 

                  Total operating margin was $2.7 million or 10%, compared to a net loss of $5.4 million for the same period of 2002 and an operating margin of $2.5 million or 10% for the third quarter of 2003.

 

                  Gross margin was 59.0% for the fourth quarter of 2003, compared to 56.9% for the same period in 2002 and 59.0% for the third quarter of 2003.

 

                  Total operating expenses were $14.1 million for the fourth quarter of 2003, compared to $17.0 million for the same period of 2002 and $13.1 million for the third quarter of 2003.

 

Other highlights included:

 

                  Omnicell moved to a new corporate headquarters. The new build-to-suit 87,000 square foot facility consolidates several corporate functions, including marketing, engineering, manufacturing, administration and training.

 

                  Total backlog as of December 31, 2003 was $38.1 million, compared to $36.6 million as of September 30, 2003, representing an increase of $1.5 million. Backlog increased 35% from the same period of last year.

 

                  As of December 31, 2003, we had completed our installation obligation, if any, for 29,011 medication and supply dispensing systems at 1,450 healthcare facilities.

 

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. PST 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. PST on January 26 through 11:59 p.m. PST 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.

 

 

(see detailed financial results on next page)

 



 

OMNICELL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(Unaudited)

 

 

 

Three months ended
Dec. 31,

 

 

 

Twelve months ended
Dec. 31,

 

Change

 

 

 

2003

 

2002

 

Change (%)

 

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

)

 

 

 

 

 

 

 

 

 

 

7,549

 

(5,028

)

 

 

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

 

 

 

 



 

OMNICELL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

 

 

December 31,
2003

 

December 31,
2002 (1)

 

Change ($)

 

Change (%)

 

 

 

(Unaudited)

 

 

 

 

 

 

 

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

%

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

%

 


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