MOUNTAIN VIEW, Calif., Oct. 29, 2015 /PRNewswire/ -- Omnicell, Inc. (NASDAQ: OMCL), a leading provider of medication and supply management solutions to healthcare systems, today announced results for its third quarter ended September 30, 2015.
GAAP results: Revenue for the third quarter of 2015 was $125.2 million, up $12.4 million or 11.0% from the second quarter of 2015, and up $12.7 million or 11.3% from the third quarter of 2014. Revenue for the nine months ended September 30, 2015 was $354.2 million, up $34.9 million or 10.9% from the nine months ended September 30, 2014.
Third quarter 2015 net income as reported in accordance with U.S. generally accepted accounting principles (GAAP) was $8.0 million, or $0.22 per diluted share. This compares to GAAP net income of $8.8 million, or $0.24 per diluted share, for the second quarter of 2015, and GAAP net income of $7.3 million, or $0.20 per diluted share, for the third quarter of 2014.
GAAP net income for the nine months ended September 30, 2015 was $23.1 million, or $0.63 per diluted share, which includes a $3.4 million gain on business combination of an equity investment. GAAP net income was $21.3 million, or $0.58 per diluted share, for the nine months ended September 30, 2014.
Non-GAAP results: Non-GAAP net income for the third quarter of 2015 was $13.2 million, or $0.36 per diluted share, excluding $4.0 million of stock-based compensation expense and $1.2 million, net of tax effect of $0.8 million, of amortization expense for all intangible assets associated with past acquisitions. This compares to non-GAAP net income of $11.1 million, or $0.30 per diluted share, for the third quarter of 2014. Non-GAAP net income for the third quarter of 2014 excluded $3.2 million of stock-based compensation expense and $0.6 million, net of tax effect of $0.5 million, of amortization expense for all intangible assets associated with past acquisitions. Third quarter 2015 results compare to non-GAAP net income of $10.3 million, or $0.28 per diluted share, for the second quarter of 2015. Non-GAAP net income for the second quarter of 2015 excludes $3.6 million of stock-based compensation expense and $1.3 million, net of tax effect of $0.5 million, 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 Limited (“Avantec”), which was recorded as part of Omnicell’s acquisition of the remaining 85% of the issued and outstanding ordinary shares of Avantec not already held by Omnicell in April 2015.
Non-GAAP net income for the nine months ended September 30, 2015 was $34.2 million, or $0.93 per diluted share. Non-GAAP net income for the nine months ended September 30, 2015 excludes $11.3 million of stock-based compensation expense and $3.3 million, net of tax effect of $1.7 million of amortization expense for all intangible assets associated with past acquisitions. Non-GAAP net income for the nine months ended September 30, 2015 also excludes a $3.4 million gain on business combination of an equity investment in Avantec. Non-GAAP net income for the nine months ended September 30, 2014 was $31.9 million, or $0.87 per diluted share, excluding $8.6 million of stock-based compensation expense and $2.0 million, net of tax effect of $1.3 million of amortization expense for all intangible assets associated with our business acquisitions.
“I am pleased to report record quarter revenues and strong earnings growth in the third quarter,” said Randall Lipps, Omnicell president, chairman and CEO. “The fundamentals of our business have not changed and we continue to close a solid mix of competitive wins and our existing customers continue to expand their implementations. 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, October 29, 2015 at 2:30 p.m. PT to discuss third 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 66699013. 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 5:30 p.m. PT and will be available until 11:59 p.m. PT on November 12, 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 66699013.
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 7,000 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.
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