Omnicell Announces Record Revenue and Profit in Third Quarter 2012

October 25, 2012

MOUNTAIN VIEW, Calif.

Omnicell, Inc. (NASDAQ: OMCL), a leading provider of medication and supply management solutions to healthcare systems, today announced results for its quarter ended September 30, 2012, which includes the third quarter results of Omnicell’s acquisition of MTS Medication Technologies, Inc. (“MTS”) in May 2012.

GAAP results: Revenue for the third quarter of 2012 was $84.3 million, up $8.9 million or 11.9% from the second quarter of 2012, and up $19.9 million or 30.9% from the third quarter of 2011. Revenue for the nine months ended September 30, 2012 was $223.9 million, up $41.3 million or 22.6% from the nine months ended September 30, 2011.

Third quarter 2012 net income as reported in accordance with U.S. generally accepted accounting principles (GAAP) was $6.9 million, or $0.20 per diluted share. This compares to net income of $1.4 million, or $0.04 per diluted share, in the second quarter of 2012 and net income of $3.0 million, or $0.09 per diluted share, in the third quarter of 2011. For the nine months ended September 30, 2012, net income was $10.6 million, or $0.31 per diluted share. This compares to net income of $6.3 million, or $0.18 per diluted share, for the nine months ended September 30, 2011.

Non-GAAP results: Non-GAAP net income was $9.9 million for the third quarter of 2012, or $0.29 per diluted share. Non-GAAP net income for the third quarter excludes $2.4 million in stock-based compensation expense and the $0.7 million after-tax effect of amortization expense for all intangible assets acquired in connection with the acquisition of MTS completed in May 2012, as well as all earlier Omnicell acquisitions. This compares to non-GAAP net income of $6.7 million, or $0.20 per diluted share, for the second quarter of 2012, which excluded $2.2 million in stock-based compensation expense and the $3.2 million after-tax effect of MTS acquisition costs and amortization expense for all intangible assets acquired in connection with the acquisition as well as all earlier Omnicell acquisitions. Third quarter 2012 results compare to non-GAAP net income of $5.4 million, or $0.16 per diluted share, for the third quarter of 2011, which excluded $2.4 million of stock-based compensation expense.

For the nine months ended September 30, 2012, non-GAAP net income was $21.2 million, or $0.62 per diluted share. This excluded $6.8 million in stock-based compensation expense and the $3.8 million after-tax effect of acquisition costs and amortization expense for all intangible assets acquired in connection with the MTS acquisition as well as all earlier Omnicell acquisitions.  For the nine months ended September 30, 2011, non-GAAP net income was $14.1 million, or $0.41 per diluted share, excluding $7.3 million in stock-based compensation expense and a $1.0 million pre-tax settlement expense for litigation claims.

"Our performance in the third quarter of 2012 demonstrates that our three-part strategy of expanding in the U.S., making selective acquisitions, and achieving targeted international expansion is driving growth in revenue and profits," said Randall Lipps, Omnicell president, chairman and CEO. "We continue to see strong competitive conversion momentum in our Acute Care business and the profit generated by our Non-Acute Care segment, following the acquisition of MTS, is ahead of our earlier projections, as multi-medication adherence packaging is entering new markets outside the U.S."

"I am particularly pleased that we achieved record operating margin in the third quarter, meeting our goal earlier than projected, even while continuing to invest in our product line and market strategies," Mr. Lipps added.

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