MOUNTAIN VIEW, Calif., April 21 /PRNewswire-FirstCall/ -- Omnicell, Inc. , a leading provider of system solutions to acute healthcare facilities, today announced results for its first quarter ended March 31, 2008.
GAAP results: Revenues for the first quarter of 2008 totaled $62.1 million, up $4.1 million or 7.2% from the fourth quarter of 2007 and up $13.9 million or 29.8% from the first quarter of 2007.
First quarter 2008 net income as reported in accordance with U.S. generally accepted accounting principles (GAAP) was $3.7 million, or $0.10 per fully diluted share. This compares to net income of $14.3 million, or $0.39 per fully diluted share in the fourth quarter of 2007, and compares to $4.0 million in the first quarter of 2007, or $0.13 per fully diluted share. The existence and subsequent release of a tax valuation allowance created differences in income tax liabilities which affect the comparability of results for these periods:
Non-GAAP results: Non-GAAP net income for the first quarter of 2008 was $6.8 million, or $0.19 per fully diluted share. This compares to non-GAAP net income of $10.2 million, or $0.28 per fully diluted share, for the fourth quarter of 2007. Non-GAAP results excludes share-based compensation expenses related to SFAS No. 123(R), and any tax benefit from the reversal of tax valuation allowances.
“We are pleased with our strong financial results and record revenue for the first quarter,” said Randall A. Lipps, Omnicell’s President and Chief Executive Officer. “Our orders in the first quarter were lower than we had expected, which we attribute to the macroeconomic environment. However, our customer base and our opportunities pipeline continued to grow in the first quarter, and our competitive position remains strong. I believe that when economic conditions improve, we will be well positioned to take advantage of the market opportunity. Our customers continue to rely on us to deliver the best customer experience in healthcare with products that enable them to be more efficient so they can continually improve patient safety.”
Omnicell Conference Call Information
Omnicell will hold a conference call today at 1:30 p.m. PDT to discuss first quarter financial results. The conference call can be monitored by dialing 1-888-803-5209 within the U.S. or 1-706-679-1978 for all other locations. The Conference ID # is 43853338. Internet users can access the conference call at http://www.omnicell.com. A replay of the call will be available today at approximately 5:00 p.m. PDT and will be available until April 28. The replay access numbers are 1-800-642-1687 within the U.S. and 1-706-645-9291 for all other locations, conference code 43853338#.
About Omnicell
Omnicell, Inc. is a leading provider of systems and software solutions targeting patient safety and operational efficiency in healthcare facilities. Since 1992, Omnicell has worked to enhance patient safety and allow clinicians to spend more time with their patients.
Omnicell’s medication-use product line includes solutions for the central pharmacy, nursing unit, operating room, and patient bedside. Solutions range from large central pharmacy “smart inventory” carousels to small handheld devices. From the point at which a medication arrives at the receiving dock to the time it is administered, Omnicell systems store it, package it, bar code it, order it, issue it, and provide information and controls on its use and reorder.
Omnicell’s supply product lines provide a healthcare institution with fast, effective control of costs, capture of charges for payer reimbursement, and timely reorder of supplies. Products range from high-security closed-cabinet systems and software to open-shelf and combination solutions in the nursing unit, cath lab and operating room.
Omnicell’s mission is to provide the best customer experience in healthcare, helping hospitals reduce medication errors, operate more efficiently, and decrease costs. 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 (SEC) 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 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.
Use of Non-GAAP Financial Information
This press release contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (GAAP). Our management evaluates and makes operating decisions using various performance measures. In addition to Omnicell’s GAAP results, we also consider non-GAAP gross margin, non-GAAP operating expenses, non-GAAP net income, and non-GAAP earnings per diluted share. These non-GAAP results should not be considered as an alternative to gross margin, operating expenses, net income, earnings per fully diluted share, or any other performance measure derived in accordance with GAAP. We present these non-GAAP results because we consider them to be important supplemental measures of Omnicell’s performance.
Our non-GAAP gross margin, non-GAAP operating expenses, non-GAAP net income, non-GAAP earnings per fully diluted share are exclusive of certain items to facilitate management’s review of the comparability of Omnicell’s core operating results on a period to period basis because such items are not related to Omnicell’s ongoing core operating results as viewed by management. We define our “core operating results” as those revenues recorded in a particular period and the expenses incurred within that period that directly drive operating income in that period. Management uses these non-GAAP financial measures in making operating decisions because, in addition to meaningful supplemental information regarding operation performance, the measures give us a better understanding of how we should invest in research and development, fund infrastructure growth and evaluate marketing strategies. In calculating the above non-GAAP results, management specifically adjusted for the following excluded items:
Management adjusts for the excluded items because management believes that, in general, these items possess one or more of the following characteristics: their magnitude and timing is largely outside of Omnicell’s control; they are unrelated to the ongoing operation of the business in the ordinary course; they are unusual and we do not expect them to occur in the ordinary course of business; or they are non-operational, or non-cash expenses involving stock option grants.
We believe that the presentation of these non-GAAP financial measures is warranted for several reasons:
Set forth below are additional reasons why specific items are excluded from our non-GAAP financial measures:
As stated above, we present non-GAAP financial measures because we consider them to be important supplemental measures of performance. However, non-GAAP financial measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for Omnicell’s GAAP results. In the future, we expect to incur expenses similar to the non-GAAP adjustments described above and expect to continue reporting non-GAAP financial measures excluding such items. Some of the limitations in relying on non-GAAP financial measures are:
Pursuant to the requirements of SEC Regulation G, a detailed reconciliation between the GAAP and non-GAAP financial results is set forth in the financial statements at the end of this press release. Investors are advised to carefully review and consider this information strictly as a supplement to the GAAP results that are contained in this press release and in the Company’s SEC filings.
CONTACT: Rob Seim, Chief Financial Officer of Omnicell, Inc.,
1-800-850-6664, ext. 6478, robs@omnicell.com
Web site: http://www.omnicell.com/
