Omnicell Announces Third Quarter 2011 Results

October 27, 2011

MOUNTAIN VIEW, Calif.

Omnicell, Inc. (NASDAQ: OMCL), a leading provider of medication and supply management solutions and analytics software for healthcare facilities, today announced results for its quarter ended September 30, 2011.

GAAP results: Revenue for the third quarter of 2011 was $64.4 million, up $3.4 million or 5.6% from the second quarter of 2011, and up $8.1 million or 14.4% from the third quarter of 2010.  Revenue for the nine months ended September 30, 2011 was $182.6 million, up $17.5 million or 10.6% from the nine months ended September 30, 2010.

Third quarter 2011 net income as reported in accordance with U.S. generally accepted accounting principles (GAAP) was $3.0 million, or $0.09 per diluted share. This compares to net income of $2.6 million, or $0.08 per diluted share in the second quarter of 2011 and net income of $1.3 million, or $0.04 per diluted share in the third quarter of 2010. For the nine months ended September 30, 2011, net income was $6.3 million, or $0.18 per diluted share. This compares to net income of $4.2 million, or $0.13 per diluted share for the nine months ended September 30, 2010.

Non-GAAP results: Non-GAAP net income was $5.4 million for the third quarter of 2011, or $0.16 per diluted share. Non-GAAP net income for the third quarter excludes $2.4 million of stock-based compensation expense. This compares to non-GAAP net income of $5.0 million, or $0.15 per diluted share for the second quarter of 2011, which excluded $2.5 million of stock-based compensation expense. Third quarter 2011 results compare 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 of 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 a facilities consolidation. 

For the nine months ended September 30, 2011, non-GAAP net income was $14.1 million, or $0.41 per diluted share. This excluded $7.3 million in stock-based compensation expense and a $1.0 million pre-tax settlement expense for litigation claims, net of a $0.4 million tax effect. For the nine months ended September 30, 2010, non-GAAP net income was $10.8 million, or $0.32 per diluted share, excluding $6.5 million of 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 income tax on repatriation of profits from India associated with a facilities consolidation. 

"I am very pleased with our performance in the third quarter," said Randall Lipps, Omnicell president, chairman and CEO. "The marketplace continues to be very receptive to our recently introduced G4 platform of new medication and supply automation solutions. This is confirmed by our continued success in expanding market share, as well as the response of our customer base to the opportunity to upgrade their Omnicell systems.”

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