Omnicell Achieves Record Revenue in the Third Quarter 2016

October 27, 2016

MOUNTAIN VIEW, Calif.

Record GAAP revenue of $176.7 million representing 41% year over year growth
Record Non-GAAP revenue of $179.4 million representing 43% year over year growth

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, 2016. 

GAAP results: Revenue for the third quarter of 2016 was $176.7 million, up $3.8 million, or 2.2% from the second quarter of 2016, and up $51.5 million or 41.1% from the third quarter of 2015. Revenue for the nine months ended September 30, 2016 was $520.6 million, up $166.4 million or 47.0% from the nine months ended September 30, 2015. 

Third quarter 2016 net income as reported in accordance with U.S. generally accepted accounting principles (GAAP) was $2.0 million, or $0.05 per diluted share. This compares to GAAP net loss of $(1.2) million, or $(0.03) per diluted share, for the second quarter of 2016, and GAAP net income of $8.0 million, or $0.22 per diluted share, for the third quarter of 2015. 

GAAP net income for the nine months ended September 30, 2016 was $0.4 million, or $0.01 per diluted share. GAAP net income for the nine months ended September 30, 2015 was $23.1 million, or $0.63 per diluted share, which included a $3.4 million gain on business combination of an equity investment.

Non-GAAP results: Non-GAAP revenue for the third quarter of 2016 was $179.4 million, up $3.8 million, or 2.2% from the second quarter of 2016, and up $54.2 million or 43.3% from the third quarter of 2015.

Non-GAAP net income for the third quarter of 2016 was $14.9 million, or $0.40 per diluted share, excluding $4.7 million of stock-based compensation expense, $5.5 million, net of tax effect of $3.4 million, of intangible assets amortization expense, $0.5 million, net of tax effect of $0.3 million, of acquisition related expenses, and $0.6 million, net of tax effect of $0.3 million, of inventory fair value adjustments. Non-GAAP net income includes the effect of a deferred revenue fair value adjustment of $1.7 million, net of tax effect of $1.0 million. This compares to non-GAAP net income for the second quarter 2016 of $14.0 million, or $0.38 per diluted share, excluding $5.5 million of stock-based compensation expense, $5.6 million, net of tax effect of $3.4 million, of intangible assets amortization expense, $1.9 million, net of tax effect of $1.1 million, of acquisition related expenses and $0.6 million, net of tax effect of $0.3 million, of inventory fair value adjustments. Non-GAAP net income for the second quarter of 2016 also includes the effect of a deferred revenue fair value adjustment of $1.7 million, net of tax effect of $1.0 million. Non-GAAP net income for the third quarter of 2015 was $13.2 million, or $0.36 per diluted share, which excluded $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. 

Non-GAAP net income for the nine months ended September 30, 2016 was $42.0 million, or $1.14 per diluted share, excluding $14.1 million of stock-based compensation expense, $16.8 million, net of tax effect of $10.3 million, of intangible assets amortization expense, $4.0 million, net of tax effect of $2.4 million, of acquisition related expenses and $1.7 million, net of tax effect of 1.0 million, of inventory fair value adjustments. Non-GAAP net income includes the effect of a deferred revenue fair value adjustment of $5.0 million, net of tax effect of $3.0 million. This compares to non-GAAP net income of $34.2 million, or $0.93 per diluted share for the nine months ended September 30, 2015, which 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 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 an equity investment in Avantec Healthcare Ltd. 

“Omnicell completed another strong quarter marked by record revenues and market share gains,” said Randall Lipps, Omnicell President, CEO and Chairman. “Omnicell’s continued growth is the result of successfully broadening our product portfolio, expanding the markets we participate in, and partnering with our customers to address medication management across the full continuum of patient care. The Company is well positioned to take advantage of the great opportunities ahead,” Mr. Lipps added.

2016 Guidance
 
For full year 2016, the Company re-confirms its 2016 total year guidance. The Company continues to expect product bookings to be between $540 million and $560 million. The Company is narrowing the 2016 non-GAAP revenue guidance range to be between $700 million to $710 million. The range was previously $695 million to $715 million. The Company expects 2016 non-GAAP EPS to be in the middle of the range that we previously guided to of $1.50 to $1.60 per share.


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