Omnicell Announces Record Revenue And Backlog For Third Quarter 2004

MOUNTAIN VIEW, Calif., Oct. 21 /PRNewswire-FirstCall/ -- Omnicell, Inc. , a leading provider of patient safety solutions preferred by nurses, today announced results for the quarter ended September 30, 2004.

(LOGO: http://www.newscom.com/cgi-bin/prnh/19991203/SFF009 ) 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."

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 http://www.omnicell.com/.

About Omnicell

Established in 1992, Omnicell 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(TM) 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(TM) 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 http://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 STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (Unaudited) Three months ended Nine months ended Sept. 30, Change(%) Sept. 30, Change(%) 2004 2003 2004 2003 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% OMNICELL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) September 30, December 31, Change 2004 2003(A) ($) (%) (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% (A) Derived from the December 31, 2003 audited consolidated balance sheet.

CONTACT: Dennis P. Wolf, EVP of Operations, Finance, Administration &CFO, of Omnicell, Inc, 800-850-6664, ext. 6482, or dennisw@omnicell.com

Web site: http://www.omnicell.com/