Omnicell Announces Fourth Quarter and Full Year 2010 Results

January 27, 2011

MOUNTAIN VIEW, Calif.

Omnicell, Inc. (NASDAQ: OMCL), a leading provider of system solutions to healthcare facilities, today announced results for its fourth quarter and year ended December 31, 2010.

GAAP results: Revenue for the fourth quarter of 2010 was $57.3 million, up $1.0 million or 1.7% from the third quarter of 2010, and up $2.6 million or 4.8% from the fourth quarter of 2009.  Revenue for the year ended December 31, 2010 was $222.4 million, up $8.9 million or 4.2% from the year ended December 31, 2009.

Fourth quarter 2010 net income as reported in accordance with U.S. generally accepted accounting principles (GAAP) was $0.7 million, or $0.02 per diluted share. This compares to net income of $1.3 million, or $0.04 per diluted share in the third quarter of 2010 and net income of $0.6 million, or $0.02 per diluted share in the fourth quarter of 2009. For the year ended December 31, 2010, net income was $4.9 million, or $0.15 per diluted share. This compares to net income of $0.4 million, or $0.01 per diluted share for the year ended December 31, 2009.

Non-GAAP results: Non-GAAP net income was $3.6 million for the fourth quarter of 2010, or $0.11 per diluted share. Non-GAAP net income for the fourth quarter excludes $2.6 million in stock-based compensation expense and $0.4 million of tax adjustments from the repatriation of profits from India associated with the facilities consolidation announced in third quarter of 2010. This compares to non-GAAP net income of $3.6 million, or $0.11 per diluted share for the third quarter of 2010, which excluded $2.2 million in stock-based compensation expense, a $2.4 million gain ($1.4 million, net of tax) related to the settlement of litigation claims and $2.3 million ($1.6 million, net of tax) related to restructuring, reduction-in-force and tax on repatriation of profits from India associated with the facilities consolidation.  Fourth quarter 2010 results compare to non-GAAP net income of $3.4 million, or $0.11 per diluted share for the fourth quarter of 2009, which excluded $2.5 million of stock-based compensation expense and $0.4 million of income tax expense related to prior years research and development tax credits.  Excluding $9.0 million in stock-based compensation expense, $2.4 million gain ($1.4 million, net of tax) related to the settlement of litigation claims, and $2.7 million ($2.0 million, net of tax) related to restructuring, reduction-in-force and repatriation of profits from India associated with the facilities consolidation, non-GAAP net income was $14.5 million for the year ended December 31, 2010, or $0.43 per diluted share.  Excluding $9.7 million in stock-based compensation expense, $2.5 million ($1.5 million, net of tax) from 2009 restructuring activities and $0.4 million in income tax expense related to prior years research and development tax credits, non-GAAP net income was $12.1 million for the year ended December 31, 2009, or $0.38 per diluted share.

Product backlog as of December 31, 2010 totaled $127 million, up $13 million or 11% from December 31, 2009.

“We are pleased to report solid results for our fourth quarter and fiscal 2010,” said Randall Lipps, Omnicell President, Chairman and CEO. “We continued to execute against our strategic and long-term goals, and met or exceeded all guidance provided for the year. Omnicell continues to drive innovation for health systems’ medication and supply automation.” 

“We are doing this through our own development initiatives such as the Savvy mobile medication management solution; in strategic alliances such as our partnership with Cardinal Health to provide automated medication replenishment to the pharmacy; and via acquisition such as Pandora Data Systems to ensure patient safety and enhance hospitals’ regulatory compliance,” added Mr. Lipps. “We believe we have favorable momentum entering 2011.”

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