MOUNTAIN VIEW, Calif., Feb. 3 /PRNewswire-FirstCall/ -- Omnicell, Inc. , 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: * Net income for the quarter was $2.6 million or $0.10 per diluted share, compared to net income of $3.2 million or $0.12 per diluted share for the same period of 2003 and net income of $3.3 million or $0.12 per diluted share for the third quarter of 2004. Full year 2004 net income was $10.6 million, compared to $7.3 million for 2003, an increase of 45%. * For the fourth quarter of 2004, total revenue was a record $34.2 million, compared to $28.6 million for the same period in 2003 and $32.7 million for the third quarter of 2004. Full year 2004 total revenue was $123.9 million, compared to $102.1 million for 2003, an increase of 21%. * Total operating margin was $2.4 million, compared to $2.7 million for the same period of 2003 and an operating margin of $3.3 million for the third quarter of 2004. Full year 2004 operating margin was $10.5 million, compared to $7.0 million for 2003, an increase of 51%. * Gross margin was 54.2% for the fourth quarter of 2004, compared to 59.0% for the same period in 2003 and 58.3% for the third quarter of 2004. Full year 2004 gross margin was 58.0%, compared to 58.4% for 2003. * Total operating expenses were $16.1 million for the fourth quarter of 2004, compared to $14.1 million for the same period of 2003 and $15.8 million for the third quarter of 2004. Full year 2004 total operating expenses were $61.4 million, compared to $52.7 million for 2003, an increase of 16%. * Cash balances as of December 31, 2004, were down by $2.9 million to $30.6 million, compared to $33.5 million as of December 31, 2003. Other results included: * Total backlog as of December 31, 2004 was $46.9 million, compared to $49.7 million as of September 30, 2004, representing an decrease of $2.8 million. Backlog increased 23% from the same period of last year. * As of December 31, 2004, we had completed our installation obligation for 32,226 medication and supply dispensing systems at 1,566 healthcare facilities.
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 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 Twelve months ended Change ended Change December 31, (%) December 31, (%) 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 Interest 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 $0.29 Weighted average shares outstanding - basic 25,305 23,536 8% 24,849 22,746 9% Weighted average shares outstanding - diluted 27,453 27,251 1% 27,720 25,321 9% OMNICELL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) December December 31, 31, Change 2004 2003 (1) ($) (%) (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 sale 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 liabilities and stockholders’ equity $99,426 $84,467 14,959 18% (1) Derived from the December 31, 2003 audited consolidated balance sheet.
Omnicell, Inc.
CONTACT: Dennis P. Wolf, EVP and CFO of Omnicell, Inc., 1-800-850-6664,ext. 6482, or dennisw@omnicell.com
Web site: http://www.omnicell.com/