Omnicell, Inc.
OMNICELL INC /CA/ (Form: 8-K, Received: 10/21/2004 17:04:11)

 

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): October 21, 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)

 


 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o             Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o             Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o             Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o             Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 



 

Item 2.02. Results of Operations and Financial Condition.

 

On October 21, 2004, Omnicell, Inc. issued a press release announcing its financial results for the third quarter ended September 30, 2004. A copy of the press release is attached as Exhibit 99.1 to this Current Report and is incorporated herein by reference.

 

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 by Omnicell, Inc., except as expressly set forth by specific reference in such a filing.

 

Item 9.01.  Financial Statements and Exhibits.

 

(c)           Exhibits.

 

Exhibit
Number

 

Description

99.1

 

Press Release dated October 21, 2004, announcing Omnicell, Inc. financial results for the third quarter of 2004.

 

 

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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: October 21, 2004

By:

  /s/ Dennis P. Wolf

 

Dennis P. Wolf

 

Executive Vice President,

 

Operations, Finance and

 

Administration and Chief Financial Officer

 

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INDEX TO EXHIBITS

 

Exhibit
Number

 

Description

99.1

 

Press Release dated October 21, 2004, announcing Omnicell, Inc. financial results for the third quarter of 2004.

 

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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 Revenue and Backlog for Third Quarter 2004

 

MOUNTAIN VIEW, Calif. – Oct. 21, 2004 — Omnicell, Inc. (NASDAQ: OMCL), a leading provider of patient safety solutions preferred by nurses, today announced results for the quarter ended September 30, 2004.

 

Financial highlights were as follows:

 

                  Net income for the quarter was $3.3 million or $0.12 per diluted share, compared to net income of $2.3 million or $0.09 per diluted share for the same period of 2003 and net income of $2.4 million or $0.09 per diluted share for the second quarter of 2004.

 

                  For the third quarter of 2004, total revenue was a record $32.7 million, compared to $26.4 million for the same period in 2003 and $29.2 million for the second quarter of 2004.

 

                  Total operating margin was $3.3 million, compared to $2.5 million for the same period of 2003 and an operating margin of $2.5 million for the second quarter of 2004.

 

                  Gross margin was 58.3% for the third quarter of 2004, compared to 59.0% for the same period in 2003 and 60.5% for the second quarter of 2004.

 

                  Total operating expenses were $15.8 million for the third quarter of 2004, compared to $13.1 million for the same period of 2003 and $15.2 million for the second quarter of 2004.

 

                  Cash balances as of September 30, 2004, were down by $0.9 million to $32.6 million, compared to $33.5 million as of December 31, 2003.

 

Other highlights included:

 

                  Total backlog as of September 30, 2004 was $49.7 million, compared to $46.4 million as of June 30, 2004, representing an increase of $3.3 million. Backlog increased 36% from the same period of last year.

 

                  As of September 30, 2004, we had completed our installation obligation for 31,104 medication and supply dispensing systems at 1,534 healthcare facilities.

 

Omnicell Chairman, President and CEO Randall A. Lipps, commenting on the current quarter’s business results, said, “We are very pleased with our third quarter performance, as we again posted record revenues and record bookings. Deals greater than $500 thousand drove the strong growth in backlog, reflecting continued healthy demand for our medication-use process solutions as well as our supply chain management products.”

 

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Conference Call Details

 

Management will report financial results for the second quarter of 2004 on Thursday, October 21, at 2:00 p.m. PDT via conference call. Investors and analysts interested in joining the conference may access the call by dialing 800-366-7417 — toll-free (domestic) or 303-262-2190 — direct-dial (international) approximately 10 minutes prior to the scheduled start. A replay of the call will be available from 4:00 p.m. PDT on October 21 through 11:59 p.m. PDT on October 28. Dialing 800-405-2236 — toll-free (domestic) or
303-590-3000 — direct-dial (international) and entering the passcode 11011628# 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. 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 patient’s 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 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.

 

(see detailed financial results on next page)

 

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OMNICELL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(Unaudited)

 

 

 

Three months ended
September 30,

 

 

 

Nine months ended
September 30,

 

 

 

 

 

2004

 

2003

 

Change (%)

 

2004

 

2003

 

Change (%)

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

Product revenues

 

$

26,767

 

$

21,157

 

 

 

$

72,374

 

$

59,161

 

 

 

Service and other revenues

 

5,967

 

5,202

 

 

 

17,396

 

14,414

 

 

 

Total revenues

 

32,734

 

26,359

 

24

%

89,770

 

73,575

 

22

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs of revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of product revenues

 

11,344

 

8,683

 

 

 

29,881

 

25,208

 

 

 

Cost of service and other revenues

 

2,302

 

2,117

 

 

 

6,508

 

5,542

 

 

 

Total cost of revenues

 

13,646

 

10,800

 

 

 

36,389

 

30,750

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

19,088

 

15,559

 

23

%

53,381

 

42,825

 

25

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

2,476

 

2,256

 

 

 

6,679

 

6,731

 

 

 

Selling general and administrative

 

13,325

 

10,794

 

 

 

38,419

 

31,216

 

 

 

Restructuring and severance charges

 

 

 

 

 

171

 

630

 

 

 

Total operating expenses

 

15,801

 

13,050

 

21

%

45,269

 

38,577

 

17

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

3,287

 

2,509

 

 

 

8,112

 

4,248

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and other income

 

105

 

116

 

 

 

266

 

376

 

 

 

Interest and other expense

 

(12

)

(41

)

 

 

(70

)

(118

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for income taxes

 

3,380

 

2,584

 

 

 

8,308

 

4,506

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

124

 

257

 

 

 

325

 

442

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

3,256

 

$

2,327

 

40

%

$

7,983

 

$

4,064

 

96

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share - basic

 

$

0.13

 

$

0.10

 

 

 

$

0.32

 

$

0.18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share - diluted

 

$

0.12

 

$

0.09

 

 

 

$

0.29

 

$

0.17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic

 

25,038

 

22,961

 

9

%

24,697

 

22,482

 

10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - diluted

 

27,571

 

26,658

 

3

%

27,809

 

24,620

 

13

%

 

3



 

OMNICELL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

 

 

September 30,

 

December 31,

 

Change

 

 

 

2004

 

2003 (1)

 

($)

 

(%)

 

 

 

(Unaudited)

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

Cash, cash equivalents and short term investments

 

$

32,583

 

$

33,524

 

(941

)

-3

%

Accounts receivable, net

 

17,420

 

14,529

 

2,891

 

20

%

Inventories

 

17,197

 

8,783

 

8,414

 

96

%

Receivables subject to a sales agreement

 

2,737

 

2,737

 

 

0

%

Other current assets

 

7,066

 

3,966

 

3,100

 

78

%

Total current assets

 

77,003

 

63,539

 

13,464

 

21

%

Property and equipment, net

 

5,764

 

4,833

 

931

 

19

%

Long-term receivables subject to a sales agreement

 

3,247

 

4,985

 

(1,738

)

-35

%

Other assets

 

12,691

 

11,110

 

1,581

 

14

%

Total assets

 

$

98,705

 

$

84,467

 

14,238

 

17

%

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

8,334

 

$

2,921

 

5,413

 

185

%

Accrued liabilities

 

9,827

 

15,403

 

(5,576

)

-36

%

Deferred service revenue

 

14,861

 

12,650

 

2,211

 

17

%

Deferred gross profit

 

8,223

 

10,125

 

(1,902

)

-19

%

Obligation resulting from sale of receivables

 

2,737

 

2,737

 

 

0

%

Current portion of note payable

 

 

305

 

(305

)

-100

%

Total current liabilities

 

43,982

 

44,141

 

(159

)

0

%

Long-term obligation resulting from sale of receivables

 

3,247

 

4,985

 

(1,738

)

-35

%

Other long-term liabilities

 

543

 

583

 

(40

)

-7

%

Stockholders’ equity

 

50,933

 

34,758

 

16,175

 

47

%

Total liabilities and stockholders’ equity

 

$

98,705

 

$

84,467

 

14,238

 

17

%

 


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

 

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